Budgetary and farm-sector impacts of the 1985–1990 Conservation Reserve Program

Alex Barbarika; Jim Langley

ABSTRACT:

Computer simulation models of corn, wheat, cotton, and soybean markets were used to investigate the budgetary and farm income impacts of the 1985–1990 Conservation Reserve Program (CRP) over the period from 1986 to 2000. Results indicate that the CRP increases farm income and crop prices. Over 15 years, government outlays increase by an estimated $8.5 billion (undiscounted), consisting of $18.2 billion in CRP payments to fanners, of set by $9.1 billion in commodity program outlay reductions. The estimated commodity program savings vary depending upon assumptions about acreage limitation requirements of U.S. Department of Agriculture commodity programs if the CRP had not been implemented.

Footnotes

Alex Barbarika, Jr. and Jim Langley are agricultural economists with the Agricultural Stabilization and Conservation Service, U.S. Department of Agriculture, P.O. Box 2415, Washington, D.C., 20013. The views expressed are those of the authors and do not necessarily reflect those of ASCS or USDA.
Copyright 1992 by the Soil and Water Conservation Society

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