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

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  • Hadrich, Joleen C.
  • Wolf, Christopher A.
  • Roy Black, J.
  • Harsh, Stephen B.

Abstract

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.

Suggested Citation

  • Hadrich, Joleen C. & Wolf, Christopher A. & Roy Black, J. & Harsh, Stephen B., 2008. "Incorporating Environmentally Compliant Manure Nutrient Disposal Costs into Least-Cost Livestock Ration Formulation," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 287-300, April.
    • Handle: RePEc:cup:jagaec:v:40:y:2008:i:1:p:287-300_24
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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, July.
    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(2), pages 1-15, 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(2), pages 1-12, December.
    4. Wittenberg, Eric & Wolf, Christopher A., 2005. "2004 Michigan Dairy Grazing Farm Business Analysis Summary," Staff Paper Series 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 Paper Series 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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    Cited by:

    1. Schmit, Todd M. & Verteramo, Leslie & Tomek, William G., 2009. "Implications of Growing Biofuel Demands on Northeast Livestock Feed Costs," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(2), pages 200-212, October.
    2. Jones, Crystal & Tonsor, Glynn T. & Black, J. Roy & Rust, Steven R., 2007. "Economically Optimal Distiller Grain Inclusion in Beef Feedlot Rations: Recognition of Omitted Factors," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9741, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Enahoro, D. & Schmit, T.M. & Boisvert, R.N., 2016. "Assessment Of New York’S Pollution Discharge Elimination Permits For Cafo’S: A Regional Analysis," Working Papers 250026, Cornell University, Department of Applied Economics and Management.
    4. De Matteis, Maria C. & Yu, T. Edward & Boyer, Christopher N. & DeLong, Karen L. & Smith, Jason, 2018. "Economic and environmental implications of incorporating distillers’ dried grains with solubles in feed rations of growing and finishing swine in Argentina," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    5. Gebrezgabher, Solomie A. & Meuwissen, Miranda P.M. & Oude Lansink, Alfons G.J.M., 2014. "A multiple criteria decision making approach to manure management systems in the Netherlands," European Journal of Operational Research, Elsevier, vol. 232(3), pages 643-653.

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    More about this item

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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