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Integrating Commodity and Conservation Programs: Design Options and Outcomes

Author

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  • Claassen, Roger
  • Aillery, Marcel P.
  • Nickerson, Cynthia J.

Abstract

Can a single program support farm income and encourage producers to adopt environmentally sound farming practices? While simple in concept, attempting to roll the farm income support features of existing commodity programs and conservation payments into a single program raises questions. Exactly how would farm commodity and conservation payments be combined? What difference would it make for environmental gain and farm income support? This report approaches the questions in two ways. First, spending patterns in existing commodity and conservation programs are analyzed to determine the extent to which producers who are currently receiving commodity payments also receive conservation payments. Then, a number of hypothetical program scenarios are devised and analyzed to estimate how emphasis on current income support recipients would differ from a combined program that focuses on achieving cost-effective environmental gain. The results show that policymakers face significant tradeoffs between environmental conservation) objectives and farm income support objectives in designing a program that provides both income support and environmental gain.

Suggested Citation

  • Claassen, Roger & Aillery, Marcel P. & Nickerson, Cynthia J., 2007. "Integrating Commodity and Conservation Programs: Design Options and Outcomes," Economic Research Report 6703, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersrr:6703
    DOI: 10.22004/ag.econ.6703
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    File URL: https://ageconsearch.umn.edu/record/6703/files/er070044.pdf
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    References listed on IDEAS

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    1. Feather, Peter & Hellerstein, Daniel & Hansen, LeRoy T., 1999. "Economic Valuation of Environmental Benefits and the Targeting of Conservation Programs: The Case of the CRP," Agricultural Economic Reports 34027, United States Department of Agriculture, Economic Research Service.
    2. Richard B. Alexander & Richard A. Smith & Gregory E. Schwarz, 2000. "Effect of stream channel size on the delivery of nitrogen to the Gulf of Mexico," Nature, Nature, vol. 403(6771), pages 758-761, February.
    3. Peter Feather & Daniel Hellerstein, 1997. "Calibrating Benefit Function Transfer to Assess the Conservation Reserve Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 151-162.
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    1. John Horowitz, 2014. "Greenhouse Gas Offsets: Analysis Of Baseline Rules And Additionality For Reduced Nitrogen Application On Wheat," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 1-27.
    2. Claassen, Roger & Duquette, Eric & Horowitz, John & Kohei, Ueda, 2014. "Additionality in U.S. Agricultural Conservation and Regulatory Offset Programs," Economic Research Report 180414, United States Department of Agriculture, Economic Research Service.
    3. Cécile Couharde & Rémi Generoso, 2023. "The financial cost of stabilizing US farm income under climate change," Working Papers hal-04159823, HAL.
    4. Noelle Harden & Loka Ashwood & William Bland & Michael Bell, 2013. "For the public good: weaving a multifunctional landscape in the Corn Belt," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 30(4), pages 525-537, December.

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