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CREP - Cattle Receiving Enhanced Pastures? Investigating Landowner Response to Federal Incentives

Author

Listed:
  • James Manley

    (Department of Economics, Towson University)

  • Jason Mathias

    (City of Baltimore)

Abstract

Using enrollment data on the enhanced CRP's river buffer subprogram from 1998 to 2010 we find that participation incentives are larger for cattle pasture and that enrollments increase at a higher rate in counties with large amounts of cattle ranching. Counties producing cattle receive almost twice as much in up-front incentives, and the marginal effect of that incentive is also higher. This is probably due to the fact that cattle ranchers can use heavily subsidized "cost share" funding to improve their ranches. Accounting for the cattle effect also helps explain previous findings of apparent producer preference for up-front payments over a discounted stream of annual benefits. This preference is replicated but disappears when we control for cattle production.

Suggested Citation

  • James Manley & Jason Mathias, 2015. "CREP - Cattle Receiving Enhanced Pastures? Investigating Landowner Response to Federal Incentives," Working Papers 2015-01, Towson University, Department of Economics, revised Jan 2015.
    • Handle: RePEc:tow:wpaper:2015-01
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    File URL: http://webapps.towson.edu/cbe/economics/workingpapers/2015-01.pdf
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    More about this item

    Keywords

    Agricultural Economics; Agricultural Policy; Conservation Reserve Enhancement Program; Conservation Reserve Program; Landowner Incentives; Subsidy Response; Cattle Ranching.;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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