The Impact of the Conservation Reserve Program on Nearby Property Values

Matthew Wibbenmeyer, Liao, Yanjun (Penny), Hannah Drunkenmiller, Rich Iovanna and Alexandra Thompson
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Matthew Wibbenmeyer: Resources for the Future
Liao, Yanjun (Penny): Resources for the Future
Alexandra Thompson: 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 residential property transactions, we apply a repeat-sales hedonic framework to identify how changes in nearby CRP land influence home values. We find that CRP enrollment meaningfully raises residential property values: a 10-hectare increase in CRP land within 1,000 meters raises home values by about 1.6 percent, with especially strong effects for land converted to tree cover. Placebo and robustness tests indicate that results are not driven by county-level economic trends or development pressure. In aggregate, our estimates imply that property value benefits attributable to CRP lands are equivalent to $775-900 millionper year, highlighting local benefits beyond payments to participating landowners.Keywords: Payments for Ecosystem Services, Land Conservation, Environmental Amenities, Hedonic Pricing

Date: 2026-01-20
New Economics Papers: this item is included in nep-agr, nep-env, nep-hre, nep-res and nep-uep
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