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Incorporating Environmentally Compliant Manure Nutrient Disposal Costs into Least-Cost Livestock Ration Formulation

Listed author(s):
  • Hadrich, Joleen C.
  • Wolf, Christopher A.
  • Black, J. Roy
  • Harsh, Stephen B.

Livestock rations are formulated to minimize feed cost subject to nutritional requirements for a target performance level, which ignores the potentially substantial cost of disposing of nutrients fed in excess of nutritional requirements. We incorporate nutrient disposal costs into a modified least-cost ration formulation model to arrive at a joint least-cost decision that minimizes the sum of feed and net nutrient disposal costs. The method is demonstrated with phosphorus disposal costs on a representative dairy farm. Herd size, land availability and proximity, crop rotation, and initial soil phosphorus content are shown to be important in determining phosphorus disposal costs.

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Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 40 (2008)
Issue (Month): 01 (April)

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Handle: RePEc:ags:joaaec:45525
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  1. Jeffrey R. Stokes & Peter R. Tozer, 2002. "Cost Minimization and Managing Soil Nutrient Loading: Conflict or Compromise?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 50(2), pages 151-169, 07.
  2. 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(02), December.
  3. Bosch, Darrell J. & Zhu, Minkang & Kornegay, Ervin T., 1997. "Economic Returns From Reducing Poultry Litter Phosphorus With Microbial Phytase," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(02), December.
  4. Wittenberg, Eric & Wolf, Christopher A., 2005. "2004 Michigan Dairy Grazing Farm Business Analysis Summary," Staff Papers 11709, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  5. Wittenberg, Eric & Wolf, Christopher A., 2005. "2004 Michigan Dairy Farm Business Analysis Summary," Staff Papers 11785, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  6. Darrell J. Bosch & James W. Pease, 2004. "Manure Applications and Nutrient Standards," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 14-25.
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