An economic and environmental evaluation of the cost of conservation compliance on a Beaver Creek Watershed representative farm

Soil and water conservation continue to be important environmental concerns. Soil conservation and USDA program benefits became linked for the first time in history with passage of the Food Security Act of 1985. Conservation Compliance denies all USDA benefits to any person who produces an agricultural commodity on highly erodible land without the use of conservation practices appropriate for that land. The Conservation Compliance provisions of the Food Security Act of 1985 were enacted, in part, to reduce soil erosion and improve water quality.

This study examined the impact of Conservation Compliance on a representative Beaver Creek Watershed farm. The study addressed the impacts on net return and soil erosion. Alternative Conservation Systems and stricter soil erosion constraints were evaluated. One specific objective of the study was to develop a linear programming model to evaluate the effects of alternative crop systems. Another objective was to evaluate the trade-offs, if any, between soil erosion control and net return.

A linear programming model and a simulation model were integrated in this analysis. The Erosion Productivity-Impact Calculator was used to develop soil loss coefficients. The net return effect of compliance under the Alternative Conservation Systems was compared to the current practices. Further restrictions on soil erosion were also evaluated. Partial budgeting was used to develop coefficients for the farm. Net returns was compared with and without constraints on soil erosion.

The implementation of Alternative Conservation Systems would reduce erosion on the representative farm by approximately 9,151 tons and net returns by $916 from the current farm practices. If soil erosion were constrained to less than 5-tons per acre, the erosion level would decrease by approximately 12,264 ton, and net returns by $25,247 from the current practices. Alternative Conservation Systems allow farm operators to reduce erosion substantially, but at the same time be cost effective for a given situation.