Agricultural and recreational impacts of the conservation reserve program in rural North Dakota, USA.

The Conservation Reserve Program (CRP), created in 1985, provides conservation benefits and agricultural supply control through voluntary, long-term retirement of crop land. While the effects of the CRP on the agricultural sector are well understood, the implications of its conservation benefits for rural economies remain largely undocumented. To quantify the effects on rural economies, this study addressed the net economic effects of decreased agricultural activity and increased recreational activity associated with the CRP in six rural areas of North Dakota from 1996 to 2000. Based on the level of economic activity that would have occurred in the absence of the program, net revenues from CRP land if returned to agricultural production in the six study areas were estimated at $50.2 million annually or $37 per acre of land currently enrolled in the CRP. Recreational (hunting) revenues as a result of the CRP in the study areas were estimated at $12.8 million annually or $9.45 per CRP-acre. The net economic effect of the CRP (lost agricultural revenues and gains in recreational expenditures) indicated that several areas of the state are not as economically burdened by the CRP as previous research has suggested. In addition, the net economic effects of the program would appear more favourable if revenues from all CRP-based recreation were included. The degree that recreational revenues offset agricultural losses might be further enhanced by enterprises that capitalize on the economic opportunities associated with expanded recreational activities on CRP lands.

Regional economic impacts of water management alternatives: the case of Devils Lake, North Dakota, USA.

Devils Lake, located in a closed basin in northeastern North Dakota has over a century-long history of highly fluctuating water levels. The lake has risen nearly 25 feet (7.7 m) since 1993, more than doubling its surface area. Rising water levels have affected rural lands, transportation routes, and communities near the lake. In response to rising lake levels, Federal, state and local agencies have adopted a three-part approach to flood damage reduction, consisting of (1) upper basin water management to reduce the amount of water reaching the lake, (2) protection for structures and infrastructure if the lake continues to rise, and (3) developing an emergency outlet to release some lake water. The purpose of this study was to provide information about the net regional economic effects of a proposed emergency outlet for Devils Lake. An input-output model was used to estimate the regional economic effects of the outlet, under two scenarios: (1) the most likely future situation (MLS) and (2) a best case situation (BCS) (i.e., where the benefits from the outlet would be greatest), albeit an unlikely one. Regional economic effects of the outlet include effects on transportation (road and railroad construction), agriculture (land kept in production, returned to production sooner, or kept in production longer), residential relocations, and outlet construction expenditures. Effects are measured as changes in gross business volume (gross receipts) for various sectors, secondary employment, and local tax collections. The net regional economic effects of the proposed outlet would be relatively small, and consideration of these economic impacts would not strengthen the case for an outlet.