Potential Economic Impacts of the Managed Haying and Grazing Provision of the Conservation Reserve Program

The Food Security and Rural Investment Act of 2002 included a new provision that allowed managed haying and grazing (including the harvest of biomass), if consistent with the conservation of soil, water quality, and wildlife habitat, in return for partial reductions in the annual CRP payments. The legislation provided for managed (or limited use) haying and grazing on the CRP acreage rather than prohibiting all use. This research analyzed whether or not the alternative grazing and haying scenarios would dramatically impact the price of beef or hay, and we estimated the impact such changes would have on state economies.