Working Lands Conservation and Rural Employment: Lessons from The Environmental Quality Incentives Program

In agriculture, conservation subsidies have been an important component of USDA initiatives. Historically, conservation programs focused on cropland retirement, but after 2001, subsequent farm bills have increasingly allocated funds for conservation practices (e.g., no-till) on working lands. This study examines the employment trade-offs between land retirement and working lands programs using panel data and a fixed effect model with instrumental variables to address endogeneity issues in EQIP and CRP enrollment. Findings indicate that working land programs significantly boost local employment and decrease unemployment rate, and reallocating funds from land retirement to working land programs leads to higher overall employment. These results offer valuable insights for policymakers aiming to support rural employment while improving environmental benefits.