The Impact of the Conservation Reserve Program on Nearby Property Values
This paper examines how land enrolled in the Conservation Reserve Program affects nearby home prices and finds that more CRP land raises the value of nearby homes, showing that conservation programs can provide clear local economic benefits in addition to environmental ones.
Abstract
Conservation programs are often viewed as competing with local economic activity, yet they may also generate environmental amenities for nearby communities. We estimate how land enrolled in the Conservation Reserve Program (CRP)—the largest US payments-for-ecosystem-services program—affects residential property values. Using nationwide field-level CRP data from 2012–2022 linked to residential property transactions, we apply a repeat-sales hedonic framework to identify how changes in nearby CRP land influence home values. We find that CRP enrollment meaningfully raises residential property values: a 10-hectare increase in CRP land within 1,000 meters raises home values by about 1.6 percent, with especially strong effects for land converted to tree cover. Placebo and robustness tests indicate that results are not driven by county-level economic trends or development pressure. In aggregate, our estimates imply that property value benefits attributable to CRP lands are equivalent to $775-900 millionper year, highlighting local benefits beyond payments to participating landowners.
Keywords: Payments for Ecosystem Services, Land Conservation, Environmental Amenities, Hedonic Pricing
