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Type: Journal Article
Author(s): Joshua M. Duke; Brian J. Schilling; Kevin P. Sullivan; J. Dixon Esseks; Paul D. Gottlieb; Lori Lynch
Publication Date: September 2016

Agricultural conservation easements have positive externalities but few studies examine the supply-side. This paper explores whether easements may also overcome a credit-market failure, as banks may not be lending based on the full developed value of land. Original survey data test our research hypotheses and show profitable owners and nonoperators to be using easement payments to extract capital from their land by using the preservation programs as a bank. The results also show that the unprofitable owners and operators are reinvesting in their agricultural enterprises. Both results are consistent with an underlying credit-market failure, and the latter suggests that easements may provide indirect efficiency enhancement. The results suggest an integration of policies on agricultural finance and land preservation might lead to improved efficiency. © The Authors 2016 Published by Oxford University Press on behalf of the Agricultural and Applied Economics Association. All rights reserved. For permissions, please e-mail: journals.permissions@oup.com

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Citation: Duke, J. M., B. J. Schilling, K. P. Sullivan, J. D. Esseks, P. D. Gottlieb, and L. Lynch. 2016. Illiquid capital: are conservation easement payments reinvested in farms? Applied Economic Perspectives and Policy, v. 38, no. 3, p. 449-473. 10.1093/aepp/ppw016.

Cataloging Information

Regions:
Alaska    California    Eastern    Great Basin    Hawaii    Northern Rockies    Northwest    Rocky Mountain    Southern    Southwest    National
Keywords:
  • Agricultural Land Use Policy
  • agriculture
  • conservation easements
  • Credit-Market Failure
  • Farmland Preservation
  • land management
Tall Timbers Record Number: 33157Location Status: Not in fileCall Number: AvailableAbstract Status: Fair use, Okay
Record Last Modified:
Record Maintained By: FRAMES Staff (https://www.frames.gov/contact)
FRAMES Record Number: 55209

This bibliographic record was either created or modified by Tall Timbers and is provided without charge to promote research and education in Fire Ecology. The E.V. Komarek Fire Ecology Database is the intellectual property of Tall Timbers.