Abstract
Environmental compliance requires farm program part icipants to conserve soil on highly erodible cropland and refrain f rom draining wet lands or risk losing all or part of most farm program payments. Since 2008, have accounted for a large share of payments subject to withholding. Federally subsidized crop insurance is not current ly subject to environmental compliance but has been in the past. If direct payments are reduced or eliminated in future farm legislat ion but crop insurance is again subject to withholding, environmental compliance incent ives would change. In many areas where crop product ion is risky, such as the Northern Plains, crop insurance could provide a conservat ion incent ive that is equal to or even larger than direct payments. In other areas, such as the Mississippi Delta, compliance incent ives could decline. Stay Connected Economic Research Service Menu
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