A major federal natural resources program, the Forestry Incentives Program, was evaluated. The program ' s internal rate of return ranged from 8.3% to 10. 9%, depending on which costs are included. The retention of forest practices established 8 years prior was excellent. Evaluation challenges include dispersion of program benefits throughout the rural United States, evaluating benefits accruing many years in the juture (75- 100 years), and multiple-agency involvement in program administration.