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Farm-Level Evaluation of Alternative Policy Approaches to Reduce Nitrate Leaching from Midwest Agriculture

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  • Swinton, Scott M.
  • Clark, David S.

Abstract

Policies to reduce nitrate leaching are evaluated using a mixed integer linear programming model of a representative Michigan cash grain farm. At spring 1993 prices, elimination of the current deficiency payment program is found to be more efficient at reducing leaching than a nitrogen input tax, a tax credit on biologically fixed nitrogen, a rotation payment, or obligatory use of the Integrated Farm Management Program Option (IFMPO). However, elimination of the deficiency payment program would significantly reduce farm income. Modeling risk management and nitrate leaching dynamics are useful extensions of this research, as is estimating the benefits from averting nitrate leaching.

Suggested Citation

  • Swinton, Scott M. & Clark, David S., 1994. "Farm-Level Evaluation of Alternative Policy Approaches to Reduce Nitrate Leaching from Midwest Agriculture," Agricultural and Resource Economics Review, Cambridge University Press, vol. 23(1), pages 66-74, April.
    • Handle: RePEc:cup:agrerw:v:23:y:1994:i:01:p:66-74_00
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    1. Chu, Mei-chin & Swinton, Scott M. & Batie, Sandra S. & Dobbins, Craig & Doering, Otto, III & Ritchie, Joe T., "undated". "Designing Contracts To Reduce Agricultural Non-Point Source Pollution," 1995 Annual Meeting, August 6-9, Indianapolis, Indiana 271474, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Glenn Sheriff, 2005. "Efficient Waste? Why Farmers Over-Apply Nutrients and the Implications for Policy Design," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(4), pages 542-557.
    3. Aihoon, John Komo & Groenewald, Jan A. & von Bach, Helmke J. Sartorius, 1997. "The Potential Use Of Pollution Insurance As Environmental Policy: An Empirical Analysis," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(2), pages 1-22, June.
    4. Athanasios Kampas & Ben White, 2004. "Administrative Costs and Instrument Choice for Stochastic Non-point Source Pollutants," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(2), pages 109-133, February.
    5. Chowdhury, Manzoor E. & Lacewell, Ronald D., 1996. "Implications Of Alternative Policies On Nitrate Contamination Of Groundwater," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(01), pages 1-14, July.
    6. Amon-Armah, Frederick & Yiridoe, Emmanuel K. & Hebb, Dale & Jamieson, Rob, "undated". "Nitrogen abatement cost comparison for cropping systems under alternative management choices," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149915, Agricultural and Applied Economics Association.
    7. El-Osta, Hisham S. & Mishra, Ashok K., 2001. "Adoption And Economic Impact Of Site-Specific Technologies In U.S. Agriculture," 2001 Annual meeting, August 5-8, Chicago, IL 20593, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Finger, Robert, 2011. "Reductions of Agricultural Nitrogen Use Under Consideration of Production and Price Risks," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114356, European Association of Agricultural Economists.
    9. Finger, Robert, 2012. "Nitrogen use and the effects of nitrogen taxation under consideration of production and price risks," Agricultural Systems, Elsevier, vol. 107(C), pages 13-20.

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