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Agricultural land values and rents under the Conservation Reserve Program

Land Economics 65(2): 131-137
Agricultural land values and rents under the Conservation Reserve Program
The US Conservation Reserve Program (CRP) can have a positive impact on the value of eligible land. The primary reason found for a positive effect of the CRP on land values is the asymmetry of information regarding land quality. Because of the process whereby farmers can learn the bid caps, then to the extent thay they know that their land would earn less than the cap in a private market the caps represent a surplus which is capitalized into the value of their land.

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Accession: 001748754

DOI: 10.2307/3146787

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