Abstract
Environmental concerns have spurred interest in reforesting frequently flooded farmland in the Mississippi Delta. A comparison of land-owners' returns from agriculture and forest production shows that on many sites, Nuttall oak and cottonwood can be more profitable than soybeans. Reforestation can also affect the regional economy. If timber processing expands, the economic benefits of reforestation are greater than those generated under soybean production for some sites. The results of this study have policy implications for targeting subsidies for reforestation in the Delta--and in other regions where farmers who reforest may represent the next important source of timber.