The US Conservation Reserve Program: The evolution of an enrollment mechanism

[Display omitted] •The USDA’s CRP retires cropland to provide ecosystem services.•CRP uses a competitive auction to select offers.•An environmental benefits index, with cost an additive factor, ranks offers.•All offers are subject to a parcel specific bid cap.•Alternative auction mechanisms (quota a...

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Published in	Land use policy Vol. 63; pp. 601 - 610
Main Author	Hellerstein, Daniel M.
Format	Journal Article
Language	English
Published	Kidlington Elsevier Ltd 01.04.2017 Elsevier Science Ltd
Subjects	Agricultural conservation Agricultural economics Agriculture Agriculture departments Auctions Bid caps Bids Conservation Conservation Reserve Program Cost analysis cost effectiveness CRP ecosystem services Enrollment mechanism Enrollments Environmental benefits index Evolution Evolutionary conservation General signup Government agencies Land use Quota price auction Ratings & rankings Reference price auction United States USDA United States > US United States CRP General signup Quota price auction Reference price auction Bid caps Conservation reserve program Environmental benefits index Auctions Enrollment mechanism
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Abstract	[Display omitted] •The USDA’s CRP retires cropland to provide ecosystem services.•CRP uses a competitive auction to select offers.•An environmental benefits index, with cost an additive factor, ranks offers.•All offers are subject to a parcel specific bid cap.•Alternative auction mechanisms (quota and reference price) are considered. The United States Department of Agriculture’s Conservation Reserve Program (CRP) has evolved from near open enrollment, to competitive enrollment, and now to a mixture of competitive and targeted enrollment. This paper reviews the history of the CRP and the evolution of its enrollment mechanism. I discuss the use of bid caps and the Environmental Benefits Index bid ranking mechanism in the “general” CRP; and the use of highly targeted, but non-competitive, “continuous” CRP. Possible challenges of these designs are discussed, and alternative auction mechanisms are considered that could be more cost effective.
AbstractList	The United States Department of Agriculture's Conservation Reserve Program (CRP) has evolved from near open enrollment, to competitive enrollment, and now to a mixture of competitive and targeted enrollment. This paper reviews the history of the CRP and the evolution of its enrollment mechanism. I discuss the use of bid caps and the Environmental Benefits Index bid ranking mechanism in the "general" CRP; and the use of highly targeted, but non-competitive, "continuous" CRP. Possible challenges of these designs are discussed, and alternative auction mechanisms are considered that could be more cost effective. [Display omitted] •The USDA’s CRP retires cropland to provide ecosystem services.•CRP uses a competitive auction to select offers.•An environmental benefits index, with cost an additive factor, ranks offers.•All offers are subject to a parcel specific bid cap.•Alternative auction mechanisms (quota and reference price) are considered. The United States Department of Agriculture’s Conservation Reserve Program (CRP) has evolved from near open enrollment, to competitive enrollment, and now to a mixture of competitive and targeted enrollment. This paper reviews the history of the CRP and the evolution of its enrollment mechanism. I discuss the use of bid caps and the Environmental Benefits Index bid ranking mechanism in the “general” CRP; and the use of highly targeted, but non-competitive, “continuous” CRP. Possible challenges of these designs are discussed, and alternative auction mechanisms are considered that could be more cost effective.
Author	Hellerstein, Daniel M.
Author_xml	– sequence: 1 givenname: Daniel M. surname: Hellerstein fullname: Hellerstein, Daniel M. email: danielh@ers.usda.gov organization: Agricultural economist, Economic Research Service, USDA, Washington DC, USA
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Keywords	CRP General signup Quota price auction Reference price auction Bid caps Conservation reserve program Environmental benefits index Auctions Enrollment mechanism
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Snippet	[Display omitted] •The USDA’s CRP retires cropland to provide ecosystem services.•CRP uses a competitive auction to select offers.•An environmental benefits... The United States Department of Agriculture's Conservation Reserve Program (CRP) has evolved from near open enrollment, to competitive enrollment, and now to a... The United States Department of Agriculture’s Conservation Reserve Program (CRP) has evolved from near open enrollment, to competitive enrollment, and now to a...
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SubjectTerms	Agricultural conservation Agricultural economics Agriculture Agriculture departments Auctions Bid caps Bids Conservation Conservation Reserve Program Cost analysis cost effectiveness CRP ecosystem services Enrollment mechanism Enrollments Environmental benefits index Evolution Evolutionary conservation General signup Government agencies Land use Quota price auction Ratings & rankings Reference price auction United States USDA
Title	The US Conservation Reserve Program: The evolution of an enrollment mechanism
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