USING INPUT-OUTPUT (I-O) ANALYSIS IN EVALUATING CONSERVATION PROGRAMS AND PROJECTS: LESSONS LEARNED FROM EVALUATION OF THE CONSERVATION RESERVE PROGRAM (CRP)

This paper describes the use of input-output modeling in estimating the economic impacts of the conservation reserve program (CRP) in North Dakota, discusses challenges faced in conducting the analysis, and examines lessons learned from the study. The study had two major phases: (1) a statewide survey of CRP participants was conducted to determine selected characteristics of those individuals and their enrolled land that would be important for subsequent impact estimation and (2) a regional input-output model was used to estimate the indirect effects of the CRP program for each of the state's five pool groups. The results of this analysis indicated that the impacts of the Conservation Reserve Program on the North Dakota economy were relatively modest. Based on the 1.3 million acres removed from production through the fifth sign-up, total business activity was reduced by only 0.54 percent statewide and 0.91 percent for the most affected region. However, it should be noted that the impacts were not distributed uniformly among sectors or communities.