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Low crop prices, increasing conservation compliance

An ag economist says farmers are more likely to implement conservation measures in times of low crop prices under the 2014 Farm Bill than they were in past farm bills because crop insurance incentives.

“When crop prices are really low, you see high commodity payments and pretty much compliance incentives are high everywhere.”

Senior Economist Roger Claassen with USDA’s Economic Research Service tells Brownfield in times of medium or high crop prices, compliance incentives are more variable.  “In places like northern Illinois, we saw compliance incentives declining. If you look in a place like the Northern Plains, where the direct payments were not as high, but crop insurance premium subsidies are higher, we might see some increase.”

He says severing the link between conservation compliance and crop insurance premium subsidies would mean a 65-percent increase in the amount of highly erodible land on farms where compliance incentives are relatively low.

Claassen says conservation crop rotation, conservation tillage and seasonal residue management are the most common conservation compliance measures used by farmers.

AUDIO: Interview with Roger Claassen