Resources for the Future Inc.
01/23/2026 | Press release | Distributed by Public on 01/23/2026 14:20
Landmark Conservation Program Benefits Rural Economies
Landmark Conservation Program Benefits Rural Economies
New studies find that the Conservation Reserve Program has created modest but measurable net benefits for rural communities between 2001 and 2022.
Date
Jan. 23, 2026
News Type
Press Release
What's the story?
In 1985, the US Congress created the Conservation Reserve Program (CRP) to protect environmentally sensitive cropland from degradation. Farmers receive approximately $72 per acre annually through long-term contracts to convert farmland into forests, wetlands, and grasslands, which serve as carbon sinks. However, continuing CRP has been hotly debated in recent years due to the costs incurred by the federal government.
New studies from researchers at Resources for the Future (RFF) find that CRP has created modest but measurable net benefits for rural communities between 2001 and 2022. The RFF analyses show that an increase in land enrolled in the program increases nearby property values and is associated with a small but consistently positive increase in rural employment.
Expert Perspective
"Although CRP incurs federal costs, our analyses show that the socioeconomic benefits for farmers and their communities are substantial. The benefits associated with rural development can be less obvious than the direct payments to farmers, but these benefits are still a very real and vital part of the equation that policymakers should consider when reviewing government programs."
-Yanjun (Penny) Liao, RFF Fellow
How does the Conservation Reserve Program affect property value?
CRP generates modest but measurable gains in the values of nearby residential properties. These property value increases are likely due to aesthetic improvements, wildlife habitat restoration, and better recreation amenities nearby.
The analyses show that a 10-hectare increase in CRP land raises the value of property within one kilometer of the enrolled land by about 0.5 to 0.7 percent. Property that is within 500 meters of the enrolled land sees a 1.7 percent value increase on average. Overall, these average percentage increases translate to about $700 to $1,100 in higher property values.
Enrolled land covered by trees generates the greatest gains in nearby property values. A 10-hectare increase in forested land increases property values within one kilometer by about two percent. Tree cover tends to be costly and time-consuming for farmers to establish and maintain, but it generates the most pronounced benefits for housing prices and rural development.
Based on the distribution of land enrolled in CRP, the RFF analyses estimate that the program's effect on property values is worth about $3 billion to residential real estate value nationwide, or about $60 million per year.
How does the program affect other socioeconomic indicators?
Enrollment in CRP modestly supports rural economies and is associated with small but consistent increases in rural development and business activity. The RFF analyses show that a 1,000-acre increase in a county's program enrollment can lead to an average creation of eight rural jobs. The program does not contribute to sustained rural depopulation.
The analyses likely understate the program's overall value, as the papers do not factor in the economic benefits associated with carbon sequestration, water quality improvements, and habitat restoration. Quantifying these benefits will be an important area for future research and policy analysis.
In 2023, the federal government spent approximately $1.8 billion on CRP payments to protect 22.9 million acres, with most funding going to farmers through direct payments. Other program costs make up a relatively small fraction of the total budget, implying that these property value gains and other benefits are a meaningful component of the program's net social welfare gain.
Expert Perspective
"Congress has not updated the Conservation Reserve Program since it passed the 2018 Farm Bill. As active policy debates continue regarding CRP's future, Congress should fully consider the relative costs and benefits of the program for rural economies as a whole to ensure that program updates are well-suited to the places they're trying to help."
-Alexandra Thompson, RFF Senior Research Associate
Where can I learn more?
For more information on the program's socioeconomic impacts, read the report Conservation and Community: The Local Economic Impacts of the Conservation Reserve Program by Yanjun (Penny) Liao, Matthew Wibbenmeyer, Hannah Druckenmiller, Rich Iovanna, Alexandra Thompson, and Brandon Holmes.
For analysis on how the program affects property values specifically, read the working paper "The Impact of the Conservation Reserve Program on Nearby Property Values" by Wibbenmeyer, Liao, Druckenmiller, and Iovanna.
Resources for the Future (RFF) is an independent, nonprofit research institution in Washington, DC. Its mission is to improve environmental, energy, and natural resource decisions through impartial economic research and policy engagement. RFF is committed to being the most widely trusted source of research insights and policy solutions leading to a healthy environment and a thriving economy.
Unless otherwise stated, the views expressed here are those of the individual authors and may differ from those of other RFF experts, its officers, or its directors. RFF does not take positions on specific legislative proposals.
For more information, please see our media resources page or contact Media Relations and Communications Manager Annie Tastet.
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Resources for the Future Inc. published this content on January 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on January 23, 2026 at 20:20 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]