Distinguishing between Whole-Farm vs. Partial-Farm Participation in the Conservation Reserve Program

By distinguishing between the decision to participate in the conservation reserve program (CRP) and the decision for whole-farm vs. part-farm participation, we model participation as separate binary decisions. Our results suggest the farm characteristics and other factors affect the decision to participate in CRP differently than the decision regarding whole-farm vs. part-farm participation. This model formulation also helps to clarify the conditions under which the effect of CRP payments on the acreage enrolled in the program is positive or negative.