Cropland diversion for conservation and environmental improvement: an economic welfare analysis

The potential economic welfare consequences of converting cropland to alternative uses to enhance conservation and environmental goals are analyzed. The conceptual costs and benefits of such a cropland diversion program are identified and appropriate measures are discussed. Some partial estimates of those costs and benefits for a hypothetical program are reported to gauge the order of magnitude of possible economic impact. The partial empirical analysis suggests a cropland diversion program may fall short of generating annual benefits greater than annual costs, at least during a five-year implementation period. Opportunities to improve conservation program design and implementation are examined.