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Mitigating the Compliance Cost of a Phosphorus-Based Swine Manure Management Policy

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  • Yap, Crystal
  • Foster, Kenneth A.
  • Preckel, Paul V.
  • Doering, Otto C., III
  • Richert, Brian T.

Abstract

Regulatory changes by federal and state agencies portend a switch from nitrogen-based livestock manure disposal policies to phosphorus-based policies. This paper estimates the compliance costs of such a policy change for a hypothetical hog-grain farm in North Central Indiana. The farm includes 1,500 acres of cropland and has the capacity to raise 11,970 grow-finish hogs annually. The farm model also as the potential to produce four different crops on six different land types. A nonlinear math-programming model was developed to determine the optimal mix of management activities for a phosphorus-based regulation. The model allows mitigation of compliance costs via the choice between four different pig diets, three alternative methods of manure disposal, changes in timing of manure application, and crop pattern adjustments. This analysis concludes that the new regulation will result in a decrease in whole-farm returns above variable costs, the use of phytase enzyme in pig diets, and an increase in wheat acreage. The model also reveals that it is optimal for the farmer to hire a custom hauler to assist in application of manure in an effort to reduce the degree to which available field days constrain farming activities and land application of manure. The estimated cost to the farmer, as a result of the policy change, ranges between $0.56 and $21.74 per unit of pig production capacity.

Suggested Citation

  • Yap, Crystal & Foster, Kenneth A. & Preckel, Paul V. & Doering, Otto C., III & Richert, Brian T., 2004. "Mitigating the Compliance Cost of a Phosphorus-Based Swine Manure Management Policy," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-12, April.
  • Handle: RePEc:ags:joaaec:42944
    DOI: 10.22004/ag.econ.42944
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    References listed on IDEAS

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    1. Boland, Michael A. & Preckel, Paul V. & Foster, Kenneth A., 1998. "Economic Analysis Of Phosphorus - Reducing Technologies In Pork Production," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(2), pages 1-15, December.
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    Cited by:

    1. Kaufman, James & Kalaitzandonakes, Nicholas G., 2011. "Mitigating environmental externalities in livestock production through feed biotechnologies," Agricultural Systems, Elsevier, vol. 104(9), pages 770-780.
    2. Janne Antero Helin, 2014. "Reducing nutrient loads from dairy farms: a bioeconomic model with endogenous feeding and land use," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 167-184, March.
    3. Atreya, Ajita & Vitale, Jeffrey D. & Stoecker, Arthur L. & Carter, Scott D., 2009. "Effect of Corn Price on Profitability of Control Vs Phytase Enhanced Diet of Hogs," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46864, Southern Agricultural Economics Association.
    4. Sanna Lötjönen & Esa Temmes & Markku Ollikainen, 2020. "Dairy Farm Management when Nutrient Runoff and Climate Emissions Count," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 960-981, May.

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    More about this item

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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