The Impact of Rising Corn Prices on the Conservation Reserve Program: An Empirical Model

Authors

Davide Gill-Austern, Skidmore CollegeFollow

Abstract

This paper examines the relationship between corn prices and Conservation Reserve Program (CRP) enrollment within the Corn Belt Region. While this paper places particular emphasis on corn prices, other variables are examined which could have an impact on enrollment, such as corn yield, corn acreage, gross state product and the 2008 Farm Bill. Five empirical models are constructed to estimate the results. This paper finds that a rise in corn prices leads to a reduction in CRP acreage. Specifically, if corn prices rise by $1, CRP land in the Corn Belt will decline by 135,263 acres over a three-year period.

Recommended Citation

Gill-Austern, Davide (2011) "The Impact of Rising Corn Prices on the Conservation Reserve Program: An Empirical Model," Undergraduate Economic Review: Vol. 7: Iss. 1, Article 22.
Available at: https://digitalcommons.iwu.edu/uer/vol7/iss1/22