Abstract
I directly estimate the acre-for-acre impact of crop insurance participation on Conservation Reserve Program (CRP) enrollment at the county level. The government may be sponsoring competing interests if subsidized insurance expands production at the expense of CRP. I employ an instrumental variables technique to correct for endogeneity in insurance decisions. Results suggest that an additional 1,000 acres insured reduces CRP enrollment by about three acres, though effect sizes vary by region. Local policy initiatives such as conservation compliance incentives could help offset local environmental consequences of converting land from CRP to insured production.
Highlights
Equations 7 and 8 display a symbol that should not be there, and equation 8 is missing a closing curly bracket
Due to a technical processing error, this article published with uncorrected errors, as detailed below
The following references were omitted from the reference list: Ifft, J., D
Summary
Equations 7 and 8 display a symbol that should not be there, and equation 8 is missing a closing curly bracket. Due to a technical processing error, this article published with uncorrected errors, as detailed below. The following references were omitted from the reference list: Ifft, J., D.
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