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Differences between Livestock and Crop Producers' Participation in Nutrient Trading

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  • Stacy Sneeringer

Abstract

Descriptions of agricultural producers' participation in nutrient trading schemes generally refer to crop producers reducing nutrient run-off from fields to generate credits. However, livestock producers may participate differently than crop producers because some are regulated as Concentrated Animal Feeding Operations (CAFOs), and because agricultural producers generating manure face different costs of reducing nutrient application (and therefore generating credits) from those only using fertilizer. These differences may affect nutrient reduction credit prices and the supply of agriculturally supplied credits, thereby raising the costs to non-agricultural operations of meeting water quality goals. We examine how CAFO laws interact with nutrient trading requirements. We model trading participation by farm type and then simulate trading participation by applying the model to 2007 Census of Agriculture data. Copyright 2013, Oxford University Press.

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  • Stacy Sneeringer, 2013. "Differences between Livestock and Crop Producers' Participation in Nutrient Trading," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(2), pages 296-321.
    • Handle: RePEc:oup:apecpp:v:35:y:2013:i:2:p:296-321
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    File URL: http://hdl.handle.net/10.1093/aepp/ppt010
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    1. Ribaudo, Marc & Kaplan, Jonathan D. & Christensen, Lee A. & Gollehon, Noel R. & Johansson, Robert C. & Breneman, Vincent E. & Aillery, Marcel P. & Agapoff, Jean & Peters, Mark, 2003. "Manure Management For Water Quality Costs To Animal Feeding Operations Of Applying Manure Nutrients To Land," Agricultural Economic Reports 33911, United States Department of Agriculture, Economic Research Service.
    2. Latane, Annah & Stephenson, Kurt, 2011. "Agricultural Nutrient Nonpoint Source Credits: A Comparison of State Crediting Procedures," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98823, Southern Agricultural Economics Association.
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    1. Ribaudo, Marc & Savage, Jeffrey & Aillery, Marcel P., 2014. "An Economic Assessment of Policy Options To Reduce Agricultural Pollutants in the Chesapeake Bay," Economic Research Report 171880, United States Department of Agriculture, Economic Research Service.
    2. Sneeringer, Stacy, 2016. "Comparing Participation in Nutrient Trading by Livestock Operations to Crop Producers in the Chesapeake Bay Watershed," Economic Research Report 249772, United States Department of Agriculture, Economic Research Service.
    3. Sneeringer, Stacy & Key, Nigel D., 2013. "Effects of CAFO Regulations on Livestock Producers’ Behaviors," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151430, Agricultural and Applied Economics Association.
    4. Caela O'Connell & Marzieh Motallebi & Deanna L. Osmond & Dana L. K. Hoag, 2017. "Trading on risk: The moral logics and economic reasoning of North Carolina farmers in water quality trading markets," Economic Anthropology, Wiley Blackwell, vol. 4(2), pages 225-238, June.

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