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Farmer Transaction Costs of Participating in Federal Conservation Programs: Magnitudes and Determinants

Author

Listed:
  • Laura McCann
  • Roger Claassen

Abstract

Transaction costs may be a barrier to participation in USDA conservation programs. Data on perceived barriers and transaction costs from the 2012 USDA Agricultural Resources Management Survey of soybean farmers were analyzed. Of farmers who had not applied for programs, almost a third agreed that applying for programs and documenting compliance (perceived transaction costs) were barriers to participation. The measured magnitudes of transaction costs of those who did apply varied by program but do not seem particularly onerous and are lower than in European studies. Regression analysis indicates that complexity of the program and the farming system may increase transaction costs.

Suggested Citation

  • Laura McCann & Roger Claassen, 2016. "Farmer Transaction Costs of Participating in Federal Conservation Programs: Magnitudes and Determinants," Land Economics, University of Wisconsin Press, vol. 92(2), pages 256-272.
    • Handle: RePEc:uwp:landec:v:92:y:2016:i:2:p:256-272
    Note: DOI: 10.3368/le.92.2.256
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    Citations

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    Cited by:

    1. Christine Léger Léger-Bosch, 2018. "Farmland Tenure and Transaction Costs," Working Papers hal-01775201, HAL.
    2. Robert J. Johnston & Tom Ndebele & David A. Newburn, 2023. "Modeling transaction costs in household adoption of landscape conservation practices," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 341-367, January.
    3. Ndebele, Tom & Johnston, Robert J. & Newburn, David, 2020. "Transaction Costs and Household Adoption of Stormwater Best Management Practices," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304338, Agricultural and Applied Economics Association.
    4. Palm-Forster, Leah H. & Taylor, Mykel & Banerjee, Simanti & Xie, Lusi, 2023. "Factors influencing enrollment of leased cropland in the Conservation Stewardship Program in Kansas," Land Use Policy, Elsevier, vol. 135(C).
    5. Karsyn Lamb & Kristiana Hansen & Christopher Bastian & Amy Nagler & Chian Jones Ritten, 2019. "Investigating Potential Impacts of Credit Failure Risk Mitigation on Habitat Exchange Outcomes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(3), pages 815-842, July.
    6. Lee, Seungyub & McCann, Laura, 2018. "Adoption of Cover Crops in Soybean Production," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266576, Southern Agricultural Economics Association.
    7. Indranil De & Rooba Hasan & Mubashshir Iqbal, 2022. "Natural Treatment Systems and Importance of Social Cost Benefit Analysis in Developing Countries: A Critical Review," Sustainability, MDPI, vol. 14(7), pages 1-15, March.
    8. Lundmark, Robert, 2022. "Time-adjusted transaction costs for energy renovations for single-family house-owners," Energy Economics, Elsevier, vol. 114(C).
    9. Tanner, Sophia & Wang, Ying & Pratt, Bryan & Bowman, Maria S. & Wallander, Steven & Lupi, Frank, 2024. "Who transitions between agricultural conservation programs? The case of cover crops," 2024 Annual Meeting, July 28-30, New Orleans, LA 343746, Agricultural and Applied Economics Association.
    10. Coppess, Jonathan, . "Farm Bill 2023: NRCS Backlogs and the Conservation Bardo," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 13(177).
    11. Christine Léger Léger-Bosch, 2019. "Farmland tenure and transaction costs: Public and collectively owned land vs conventional coordination mechanisms in France [Régime de tenure foncière et coûts de transaction: terres publiques et c," Post-Print hal-02573765, HAL.
    12. Francesco Riccioli & Salomon Espinosa Diaz & Francesco Di Iacovo & Roberta Moruzzo, 2023. "Exploring the Effect of Perceived Transaction Costs on Farmers’ Attitudes toward Participation in Agri-Environment-Climate Measures (AECMs)," Social Sciences, MDPI, vol. 12(3), pages 1-17, February.
    13. Czap, Natalia V. & Czap, Hans J. & Banerjee, Simanti & Burbach, Mark E., 2019. "Encouraging farmers' participation in the Conservation Stewardship Program: A field experiment," Ecological Economics, Elsevier, vol. 161(C), pages 130-143.
    14. Christian Ritzel & Gabriele Mack & Marco Portmann & Katja Heitkämper & Nadja El Benni, 2020. "Empirical evidence on factors influencing farmers’ administrative burden: A structural equation modeling approach," PLOS ONE, Public Library of Science, vol. 15(10), pages 1-16, October.
    15. Salomon Espinosa Diaz & Francesco Riccioli & Francesco Di Iacovo & Roberta Moruzzo, 2023. "Transaction Costs in Agri-Environment-Climate Measures: A Review of the Literature," Sustainability, MDPI, vol. 15(9), pages 1-18, May.

    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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