Since both release resources from agricultural production, it is not surprising that decisions to work off the farm and to participate in the U. S. Conservation Reserve Program (CRP) are correlated. By incorporating these decisions into a heteroskedastic specification of a farm household income...

Using data from a national survey of farm households in the United States, this paper examines the effects of farm households’ decisions to participate in the Conservation Reserve Program (CRP) and to work off the farm on the technical efficiency of farm household production. After controlling...