THE ECONOMICS OF AGRICULTURAL LAND USE CONVERSION AND THE CONSERVATION RESERVE PROGRAM
The food security and environmental benefits of the United States rely heavily on how the policymakers understand the land-use change. Inside the policy toolbox, agricultural policy is the most influential in the management of the United States’ cropland area. The commencement and administration of the Conservation Reserve Program(CRP) have shaped the land-use scheme of continental United States. This article shows that the government responds to market conditions by changing the program cap. The farmers also respond to the increasing crop prices by delisting their land from the CRP program. Only 30.8% of all land in the CRP in 1997 remained in the same category in 2015 and for each one-dollar increase in the cropland net returns, the CRP enrollment margin would decrease by about 0.02%.