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The Effects of Agricultural and Tax Policy Reform on the Economic Return to Wetland Drainage in the Mississippi Delta Region

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  • Randall A. Kramer
  • Leonard Shabman

Abstract

The conversion of wetlands to cropland has been a common land use activity in many parts of the United States. Two major policy reforms occurred in the 1980s to reduce Federal incentives to drain and clear wetlands: the denial of farm program benefits to those who cleared wetlands (the "swampbuster" provision of the Food Security Act of 1985) and the elimination of income tax deductions for drainage expenses (enacted in the Tax Reform Act of 1986). A stochastic simulation analysis of three representative counties in Louisiana, Arkansas, and Mississippi shows that both reforms reduced the economic feasibility of wetlands conversion.

Suggested Citation

  • Randall A. Kramer & Leonard Shabman, 1993. "The Effects of Agricultural and Tax Policy Reform on the Economic Return to Wetland Drainage in the Mississippi Delta Region," Land Economics, University of Wisconsin Press, vol. 69(3), pages 249-262.
    • Handle: RePEc:uwp:landec:v:69:y:1993:i:3:p:249-262
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    Citations

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    Cited by:

    1. Gelso, Brett R. & Fox, John A., 2001. "Costs Of Wetland Restrictions To Kansas Agricultural Producers," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36115, Western Agricultural Economics Association.
    2. Fernandez, Linda & Karp, Larry, 1994. "Wetlands Mitigation Banks: A Developer's Investment Problem," CUDARE Working Papers 201376, University of California, Berkeley, Department of Agricultural and Resource Economics.
    3. Heimlich, Ralph E. & Wiebe, Keith D. & Claassen, Roger & Gadsby, Dwight M. & House, Robert M., 1998. "Wetlands and Agriculture: Private Interests and Public Benefits," Agricultural Economic Reports 34043, United States Department of Agriculture, Economic Research Service.
    4. Linda Fernandez & Larry Karp, 1998. "Restoring Wetlands Through Wetlands Mitigation Banks," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(3), pages 323-344, October.
    5. Claassen, Roger & Breneman, Vincent E. & Bucholtz, Shawn & Cattaneo, Andrea & Johansson, Robert C. & Morehart, Mitchell J., 2004. "Environmental Compliance In U.S. Agricultural Policy: Past Performance And Future Potential," Agricultural Economic Reports 34033, United States Department of Agriculture, Economic Research Service.
    6. Gelso, Brett R., 2002. "Equity Considerations for Wetland Retention Programs: Using a Stochastic Frontier Approach to Investigate Policy Alternatives," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 32(2), pages 1-15.
    7. R.K. Turner & J.C.J.M. van den Bergh & A. Barendregt & E. Maltby, 1998. "Ecological-Economic Analysis of Wetlands," Tinbergen Institute Discussion Papers 98-050/3, Tinbergen Institute.

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