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Commodity Programs and the Internalization of Erosion Costs: Do They Affect Crop Rotation Decisions?
Gregory L. Poe, Richard M. Klemme, Shawn J. McComb and John E. Ambrosious
Review of Agricultural Economics
Vol. 13, No. 2 (Jul., 1991), pp. 223-235
Stable URL: http://www.jstor.org/stable/1349639
Page Count: 13
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This paper investigates the impact of commodity programs and the internalization of erosion costs on crop rotation decisions. Not surprisingly, commodity programs are found to shift decisions toward more erosive rotations. Internalization of on-site and off-site erosion costs calculated under real interest rates of 2 and 4 percent and planning horizons of 20 and 40 years affect rotation decisions under historical market conditions. Under conditions of commodity program participation, internalization of erosion costs affect rotation decisions only when lengthy time horizons (40 years) are considered. The impact of cross-compliance restrictions on rotation decisions is also examined.
Review of Agricultural Economics © 1991 Agricultural & Applied Economics Association