Premium
The Effect of Rental Rates on the Extension of Conservation Reserve Program Contracts
Author(s) -
Cooper Joseph C.,
Osborn C. Tim
Publication year - 1998
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/3180280
Subject(s) - conservation reserve program , renting , government (linguistics) , extension (predicate logic) , economics , function (biology) , business , public economics , microeconomics , actuarial science , agriculture , geography , computer science , linguistics , philosophy , programming language , archaeology , biology , political science , law , evolutionary biology
Given that the majority of conservation reserve program (CRP) contracts on approximately 36 million acres of enrolled land expire concurrently, re‐enrollment decisions by farmers and the federal government have high budgetary implications. Using a survey of over 8,000 CRP contract holders, we apply an ordered response discrete choice model to explicitly model the range in rental rates over which the representative farmer may be ambivalent to renewing the CRP contract. Given the empirical results from the ordered response model, we estimate acreage re‐enrollment as a function of the rental rate and compare them to results of a binomial choice model.