Explaining Differences in EQIP Applications Between States

This report, based on the research by Reimer, Gramig, and Prokopy, investigates the variations in application rates for the Environmental Quality Incentives Program (EQIP) across the United States. The study aims to understand how agricultural and sociopolitical contexts influence farmer participation in this key agricultural conservation program. The research employs a fractional logit model to analyze the relationship between EQIP application rates and various factors, including farm characteristics, tenancy rates, and views on federal environmental spending. The findings indicate that high sales farm prevalence, tenancy rates, and regional effects significantly impact application rates. The research highlights the importance of understanding the factors that influence farmers' decisions to participate in agricultural conservation programs and suggests the need for further research to assess the role of government agencies and individual political opinions in shaping participation rates. The study underscores the significance of EQIP in promoting environmental quality by incentivizing the adoption of best management practices on active farmland.