An Economic Analysis of the Conservation Reserve Program in South Georgia

Author： Redmond Clair Cubbage Frederick W. Ullrich Richard D.

Publisher： Society of American Foresters

ISSN： 0148-4419

Source： Southern Journal of Applied Forestry, Vol.14, Iss.3, 1990-08, pp. : 137-142

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Abstract

The Conservation Reserve Program (CRP) pays farm landowners to plant trees or grasses instead of crops on highly erodible farm rand. We analyzed the returns to these investments for farm owners and the economic effects on farm communities. On a per-acre return on investment, trees usually had a superior discounted value to cash crops at both a 4% and 10% discount rate. The CRP policies reduced total regional income attributable to farmland in most years of a timber investment. These impacts ranged from 0.07% to - 0.76% on a "crop weighted average acre." In years in which trees were harvested, however, the CRP had a positive effect on the economy, ranging from 0.06% to 10.6%. We may assume that timber under the CRP will be harvested over a number of years rather than in a particular thinning and harvesting year; therefore, economic fluctuations are less severe. South. J. Appl. For. 14(3):137-142.