ENVIRONMENTAL QUALITY INCENTIVES PROGRAM: WHY ARE SO MANY CONTRACTS BEING CANCELLED?
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This paper analyzes why USDA's Environmental Quality Incentives Program has a high rate of contract withdrawals. Using a logit model we examine whether withdrawals are linked to: (i)farmers bidding for payments that are too low, (ii)a learning phase about the program, (iii)the types of conservation practices included in a contract.