Economics of the Conservation Reserve Program and the wildlife it supports: A case study of upland birds in South Dakota

Abstract The research presented in this study focuses on the economic value of the U.S. Department of Agriculture's Conservation Reserve Program (CRP) by using primary survey data to derive both the economic contribution (jobs, wages, and value-added) and consumer welfare values. The combination of the two economic methods as it pertains to the CRP is a novel approach within the published literature. The survey was conducted querying upland bird hunters in South Dakota on their hunting activities, expenditures, and use of land enrolled in the CRP. In 2013, South Dakota had 972,000 acres enrolled in the CRP and have consistently ranked in the top ten for states with enrolled acres. Based on the data gathered and 2015 hunter figures, our results indicate that upland bird hunting on CRP lands contributed $17.7 million of annual value added and 365 jobs to the state economy. Furthermore, our study estimates consumer surplus benefits of $133.7 million annually to South Dakota upland game bird hunters are associated with CRP lands. Although elected officials often concentrate on economic contribution and/or impacts, one should not overlook welfare values as they are a measure of well-being—something pertinent to rural areas of the U.S. that struggle with outmigration and attracting new employment opportunities. The collective results within this study highlight the economic importance of the CRP to the outdoor recreation sector. Given these economic impacts capture only a portion of CRP benefits, they indicate large potential economic impacts to the South Dakota economy if a large reduction in program acres were to occur. Management implications This research pertains to policy makers at all levels tasked with assessing the benefits of land retirement programs, such as the Conservation Reserve Program defined within the U.S. Farm Bill. Specifically, this study highlights the economic value, economic contribution, and consumer surplus of upland bird hunting to South Dakota's economy through a novel approach based on primary survey data. Survey responses show that hunting participants have substantial welfare values, and a vast majority would significantly alter their behavior if enrolled program acres were to decline significantly.