Improving targeting of farmers for enrollment in agri‐environmental programs

Abstract

AbstractAgricultural cost‐share research and planning tend to focus on one program at a time, and hence overlook additional efficiencies that might be obtained by considering the possibility that enrollment decisions are related across different programs. Models of multiple‐program participation decisions enable these relationships to be considered as part of conditional enrollment predictions, providing more complete and accurate understanding of enrollment behavior. Analysis of data from farmer surveys in Maryland and Ohio show complementary drivers across program participation. Results are consistent with economies of scale and/or scope among different agri‐environmental programs. The data also show the gains in prediction accuracy when the model accounts for participation in other programs, thereby enabling improved targeting and program design. For instance, enrollment in commodity‐type programs causes a much larger marginal increase (12.6%) in the probability of Maryland cover crops participation than does the increase from Conservation Reserve Program enrollment (4.4%).