Journal
AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS
Volume 86, Issue 1, Pages 26-41Publisher
WILEY
DOI: 10.1111/j.0092-5853.2004.00560.x
Keywords
agricultural policy; conservation practices; green payments; land-use changes; nitrate runoff and leaching; non-point pollution; soil erosion
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The growth in conservation programs has created a need for modeling frameworks capable of measuring microlevel behavioral responses and macrolevel landscape changes. This paper presents an empirical model that predicts farmers' production practices and the resulting levels of agricultural runoffs at more than 42,000 agricultural sites in the upper-Mississippi river basin under alternative conservation policies. Results suggest that payments for conservation tillage and crop rotations increase the use of these conservation practices. However, the acreage response is inelastic and the programs are not likely to be cost effective on their own for addressing hypoxia problem in the Gulf of Mexico.
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