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Economic Comparison of Commodity and Conservation Program Benefits: An Example from the Mississippi Delta

Published online by Cambridge University Press:  28 April 2015

John D. Anderson  and
Gregory M. Parkhurst
John D. Anderson
Affiliation:
Department of Agricultural Economics, Mississippi State University, Starkville, MS
Gregory M. Parkhurst
Affiliation:
Department of Agricultural Economics, Mississippi State University, Starkville, MS
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Abstract

Changes to commodity programs in the 2002 Farm Bill increased the value of crop base acreages on which decoupled payments are received. The bill also expanded the availability of key conservation programs. This paper compares the value of payments from commodity programs (along with continued crop production) to the easement payment (and recreational lease revenue) available under the Wetland Reserve Program. A net present value model using risk-adjusted returns is employed in the analysis for Mississippi delta cropland containing rice, cotton, and soybean base. Sensitivity analysis is conducted on some of the key variables affecting the decision.

Keywords

conservationcountercyclical paymentdirect paymentnet present valueWRPQ12Q15Q18C15

Information

Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 2 , August 2004 , pp. 415 - 424
Copyright
Copyright © Southern Agricultural Economics Association 2004

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