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

Shunxiang Wu, David J. Walker and Merlyn A. Brusven

Agricultural and Resource Economics Review, 1997, vol. 26, issue 2, 216-228

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.

Date: 1997
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