ECONOMIC IMPACTS OF THE CONSERVATION RESERVE PROGRAM ON RURAL ECONOMIES

Abstract-The impacts of a substantial program like the CRP, while significant for the nation, are potentially even more important for local farm dependent economies. This paper illustrates the importance of measuring the distributional impacts of national programs. The impacts of the CRP on 5 industrial sectors were investigated at national, regional, and local levels using an input/output model. The results indicate that the agricultural production sector is most affected, followed by the agricultural inputs sector. The Total Gross Output (TGO) in the agricultural production sector and the agricultural inputs sector in areas dependent on agricultural production were found to decline up to 7 times the national rate. TGO for agriculturally dependent, rural economies decreased up to 35 times the national rate. I