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Economic and Environmental Impacts of Planting Flexibility and Conservation Compliance: Lessons from the 1985 and 1990 Farm Bills for Future Farm Legislation

Published online by Cambridge University Press:  15 September 2016

Shunxiang Wu ,
David J. Walker  and
Merlyn A. Brusven
Shunxiang Wu
Affiliation:
Department of Agricultural Economics and Rural Sociology
David J. Walker
Affiliation:
Department of Agricultural Economics and Rural Sociology
Merlyn A. Brusven
Affiliation:
Department of Plant, Soil and Entomological Science, University of Idaho, Moscow
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Abstract

The interaction of the planting flexibility and conservation compliance provisions from the 1985 and 1990 farm bills was evaluated using an integrated systems model. Results showed that flex and compliance policy in combination reduced net returns and government costs, diluted environmental benefits of conservation compliance, and increased grower responsiveness to market signals, compared with conservation compliance alone. Strict compliance and higher flex levels were the most detrimental to farm income and environmental goals. Decoupling in current and future policy proposals will promote conservation goals. Budgetary reductions in future farm policy could reduce conservation incentives.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 26 , Issue 2 , October 1997 , pp. 216 - 228
Copyright
Copyright © 1997 Northeastern Agricultural and Resource Economics Association 

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