The Impact of the Conservation Reserve Program on Nearby Property Values

Matthew Wibbenmeyer, Liao, Yanjun (Penny), Hannah Drunkenmiller and Richard Iovanna
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Matthew Wibbenmeyer: Resources for the Future
Liao, Yanjun (Penny): Resources for the Future

No 26-02, RFF Working Paper Series from Resources for the Future

Abstract: Conservation programs are often viewed as competing with local economic activity, yet they may also generate environmental amenities for nearby communities. We estimate how land enrolled in the Conservation Reserve Program (CRP)—the largest US payments-for-ecosystem-services program—affects residential property values. Using nationwide field-level CRP data from 2012–2022 linked to home transactions, we apply a repeat-sales hedonic framework to identify how changes in nearby CRP land influence transaction prices of the same properties. We find that CRP enrollment produces meaningful appreciation of home values: a 10-hectare increase in CRP land within 1,000 meters raises home values by roughly 0.5 percent, with especially strong effects for land converted to tree cover. Placebo and robustness tests confirm that results are not driven by county-level economic trends or development pressure. Our estimates imply that CRP lands increase US residential property values by $48–68 million annually, highlighting local benefits beyond payments to participating landowners.Keywords: Payments for Ecosystem Services, Land Conservation, Environmental Amenities, Hedonic Pricing

Date: 2026-01-20
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