The economic impact of conservation compliance on northern Missouri farms

ABSTRACT:

Individual farmers and other landowners are expected to base their decisions on whether to participate in conservation compliance primarily on economic criteria, with profitability being an important determinant. Crop budgets were developed to identify the crop rotation that will generate the most net revenue for each of several conservation practices that meet a soil erosion goal of T—the soil tolerance value. The budgets show an economic advantage for soybeans over corn, wheat, and forages, regardless of the price scenario, in northern Missouri. If compliance reduces soybean production, the impact will be lower economic returns to land and management and, subsequently, to the value of the land itself. Educational programs warning investors of this potential outcome would be appropriate. Alternatives, such as long-term easements, new crops, and new cultural practices, need to be developed to help farmers (landowners) shift out of agricultural enterprises that are neither consistently profitable nor resource-sustainable.