Determinants and consequences of large-scale tree plantation projects: Evidence from the Great Plains Shelterbelt Project

Abstract

This paper examines the determinants and consequences of the adoption of large- scale tree plantation projects on farmland using the experience of the Great Plains Shelterbelt Project in the late 1930s. I show how agricultural market pressure influenced the decision to plant shelterbelt trees on the cropland and how soil erosion has changed in the long run because of the large-scale tree plantation. I compile a primary database on shelterbelt adoption from the archives and use a difference- in-difference model to study the determinants of the county-level adoption rate. The main finding is that an increase in the market crop price reduces the adoption of shelterbelt trees. Agricultural factors such as tenancy, access to irrigation, and duration of the agricultural contract explain the variations in the decision process. I use an instrumental variable technique to study the persistent effects of the plantation project in the long run. I show that shelterbelt adoption in the 1930s decreases wind erosion even in the 2000s and that the effect is concentrated in pasture areas.