Does participation in the conservation reserve program impact the economic well-being of farm households?

Hung Hao Chang, Dayton M. Lambert, Ashok K. Mishra

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

This study uses U.S. farm household survey data to examine how participation in the Conservation Reserve Program (CRP) affects farm household economic well-being. Further, the study also examines the effects of CRP participation on farm household consumption, income, and imputed savings. In contrast to previous studies that assume the relationships are homogenous across the population, quantile regression is used to investigate the association between CRP participation across the entire distribution of farm household consumption and income. Empirical findings suggest that the effect of CRP participation on household economic well-being differs across the income and consumption distribution. For households in the lower percentiles of the distribution, the CRP participation is associated with an increase in household consumption, but a decrease in farm household income and savings. In contrast, farm households at the median and higher income and consumption quantiles, participation in CRP is associated with lower levels of household consumption and income, but with higher levels of savings.

Original languageEnglish (US)
Pages (from-to)201-212
Number of pages12
JournalAgricultural Economics
Volume38
Issue number2
DOIs
StatePublished - Mar 2008
Externally publishedYes

Keywords

  • Conservation Reserve Program
  • Economic well-being
  • Farm household
  • Quantile regression

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Economics and Econometrics

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