The optimal level of soil erosion for Federal policymakers and farmers is constantly shifting because both the general economy and the agricultural sector are constantly changing. This report examines the choices of farmers and policymakers using two models that link levels of soil erosion to both productivity and macroeconomic variables. Because farmers do not bear the costs of offsite damage from "soil erosion, they may ignore such damage when choosing the level of erosion to tolerate. The Conservation Compliance Provision of the 1985 Food Security Act may be ineffective if the benefits farmers receive from participating in farm programs fail to offset the gains from more erosive production practices.