Cover Practice Definitions and Incentives in the Conservation Reserve Program

by Bryan Pratt and Steven Wallander

This study examines data on the costs of cover practices to demonstrate how USDA Conservation Reserve Program's (CRP) use of ranking points in the Environmental Benefits Index (EBI) and cost-share payments combine to incentivize some participants to adopt higher public-benefit practices. This analysis also provides predictions for how policy alternatives might impact the program.

Errata: On February 28, 2022, figure 2a was revised to correct the image used in the figure and table A.2c was revised to correctly label the table. None of the underlying data, other figures, or text were impacted.

Keywords: Carbon sequestration, conservation covers, conservation practices, conservation program, Conservation Reserve Program, cost sharing, Environmental Benefits Index, reverse auction, soil erosion, wildlife habitat

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