Regional Economic Impacts of Policies to Control Erosion and Sedimentation in Illinois and Other Corn Belt States

Abstract

This analysis indicates that the adoption of different soil erosion control policies by different states in the Com Belt will not result in significant shifts of production activities among the states. Some price impacts would occur but they would be felt throughout the region. More significant impacts may occur at the substate level. Farm operators on more erosive lands may be adversely affected. These results were generated using a general equilibrium linear programming model of crop production and markets in the Com Belt.

Natural Resource Economics and Conservation: Contributions of Agricultural Economics and Agricultural Economists

“…As discussed above, McConnell's (1983) theoretical work on soil erosion showed that well-functioning land and capital markets should provide sufficient incentives for farmers to invest in erosion control measures in order to protect soil productivity, a result subsequently confirmed by hedonic econometric studies of agricultural land transactions (Miranowski and Hammes 1984;Palmquist and Danielson 1989). Linear programming studies incorporating soil erosion coefficients derived from the Universal Soil Loss Equation, conducted subsequent to the enactment of the Clean Water Act, provided critical information about the costs of reducing erosion from changes in farm practices, cropping practices, and land set-asides (Wade and Heady 1977;Taylor and Frohberg 1977;Osteen and Seitz 1978). This body of research provided the intellectual grounding for the incorporation of environmental quality goals into a traditional conservation setaside approach via the creation of the CRP in the 1985 farm bill.…”

Discussion: Non-Point Source Pollution Abatement—Potential Impact and Research Needs

“…An example of this process is evdards. However, Osteen and Seitz [19] recently ident in ,ome recent research at the University reported the opposite result with an adapta-of Georgia. Reduced tillage is a promising tion of the model used in the earlier research.…”

“…practice at least for sediment control. In addi-The aggregate effect is therefore still uncer-tion, Osteen and Seitz [19] found it a profit tain. Hurt and Reinschmiedt's point that the maximizing practice without environmental adjustment toward this new equilibrium can controls.…”

Do Conservation Practices and Programs Benefit the Intended Resource Concern?

“…Primarily due to limitations of the biophysical modeling, initial economic analyses of agricultural nonpoint pollution used estimates of soil erosion rates with fixed delivery ratios, regardless of proximity to water or watershed topography, as proxies for actual effluents (Wade and Heady, 1977;Osteen and Seitz, 1978;Heimlich and Ogg, 1982;Spurlock and Clifton, 1982). Although pioneering, earlier efforts were constrained by limited sets of production alternatives or had severe, unrealistic restrictions on management practices (Taylor and Frohberg, 1977).…”