Evaluating the Effectiveness of Maryland’s Cover Crop Program

Hanjun Lu, Roderick M. Rejesus, Dean Hively, Alison Thieme and Jyoti Jennewein

No 361072, 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association

Abstract: Maryland’s Cover Crop Program, administered by the Department of Agriculture (MDA), aims to enhance soil health and protect the Chesapeake Bay by encouraging farmer adoption of cover crops. This manuscript evaluates the effectiveness of its various financial incentive payments in increasing cover crop biomass. We analyzed MDA field-level payment data and remotely-sensed biomass estimates from 2017 to 2022. We used several statistical methods, including a Two-Way Fixed Effects model, an instrumental variable method, and advanced difference-in-differences models for cases with no stayers and continuous treatments. The results show that the program’s total payments do increase biomass. Payments for planting early have the strongest positive effect. Payments for terminating late also help increase biomass. Payments for specific crop species, for aerial seeding into corn, and for late planting had little to no positive effect, and sometimes had a negative effect. These results are consistent across the different methods we used. Our findings suggest that while the MDA program is working overall, it could be improved by focusing more on the most effective payments.

Keywords: Production Economics; Agricultural and Food Policy (search for similar items in EconPapers)
Pages: 61
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea25:361072

DOI: 10.22004/ag.econ.361072

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