The Cache River of southernmost Illinois is used as a case study for develo
ping and demonstrating an approach to quantitatively link (1) national agri
cultural policy and global agricultural markets, (2) landowner's decisions
on land use, (3) spatial patterns of land use at a watershed scale, and (4)
hydrologic impacts, thus providing a basis to predict, under a certain set
of circumstances, the environmental consequences of economic and political
decisions made at larger spatial scales.. The heart of the analysis is an
estimation, using logistic regression, of the affect of crop prices and Con
servation Reserve Program (CRP) rental rates on farmland owner's decisions
whether to reenroll in the CRP or return to crop production. This analysis
shows that reasonable ranges for crop prices (80%-150% of 1985-1995 values)
and CRP rental rates (0-125% of 1985-1995 rates) result in a range-of 3%-9
2% of CRP lands being returned to crop production, with crop prices having
a slightly greater effect than CRP rental rates. Four crop price/CRP rental
,rate scenarios are used to display resulting land-use patterns, and their
effect on sediment loads, a critical environmental quality parameter in thi
s case, using the agricultural non point source (AGNPS) model. These scenar
ios demonstrate the importance of spatial pattern of land uses on hydrologi
cal and ecological processes within watersheds. The approach developed can
be adapted for use by local governments and watershed associations whose go
als are to improve watershed resources and environmental quality.