The Efficiency and Effectiveness of Conservation Compliance under 1996 Farm Commodity Policy Reforms
ABSTRACT:
Using an integrated systems watershed model, this study evaluated the efficiency and effectiveness of conservation compliance under the 1996 farm commodity program in terms of private and social benefits, taxpayer cost, and environmental performance. The results show that private benefits increase but social benefits decrease as conservation compliance erosion limits become less restrictive under the 1996 farm program. The results also show that private and social benefits increase from improved efficiency in cropping decisions as farm commodity policy becomes less restrictive. In the 1996 Farm Bill relative to the 1990 farm program, net farm income increased 2.23%, 2.34%, 4.77%, and 5.94%; taxpayer costs decreased 7.24%, 14%, 10%, and 7.11%, net social benefit for the watershed increased $6,276, $18,529, $28,941, and $25,337, respectively, for 1 T, 15 T, 2 T, and reduced tillage compliance with the new farm program. Environmental benefit of conservation compliance is slightly diluted with the new farm program except for reduced tillage compliance. This study found that economic efficiency but not environmental performance is enhanced by decoupling and other changes in the 1996 Farm Bill.
Footnotes
David J. Walker, Shunxiang Wu, and Merlyn A. Brusven are, respectively, a professor, a former post doctoral research fellow in the Department of Agricultural Economics and Rural Sociology, and a professor in the Department of Plant, Soil, and Entomological Science at the University of Idaho.
- Copyright 2000 by the Soil and Water Conservation Society
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