Marc Ribaudo

Manure Management for Water Quality Costs to Animal Feeding Operations of Applying Manure Nutrients to Land

Nutrients from livestock and poultry manure are key sources of water pollution. Ever-growing numbers of animals per farm and per acre have increased the risk of water pollution. New Clean Water Act regulations compel the largest confined animal producers to meet nutrient application standards when applying manure to the land, and USDA encourages all animal feeding operations to do the same. The additional costs for managing manure (such as hauling manure off the farm) have implications for feedgrain producers and consumers as well. This reports farm-level analysis examines on-farm technical choice and producer costs across major U.S. production areas for hauling manure to the minimum amount of land needed to assimilate manure nutrients. A regional analysis then focuses on off-farm competition for land to spread surplus manure, using the Chesapeake Bay region as a case study. Finally, a sectorwide analysis addresses potential long-term structural adjustments at the national level and ultimate costs to consumers and producers.

Least-cost management of nonpoint source pollution: source reduction versus interception strategies for controlling nitrogen loss in the Mississippi Basin

Abstract Nutrient pollution is one of the major sources of water quality impairments in the U.S. Agriculture is a major source of nutrients. Two alternative strategies for reducing nutrient loads from cropland are to reduce fertilizer application rates and to filter nutrients coming off cropland with restored wetlands. These two approaches are evaluated in the Mississippi Basin, where nutrient loadings to the Gulf of Mexico have caused a large zone of hypoxic waters. Because of the easement and restoration costs of wetlands, a fertilizer standard was found to be more cost effective than restoring wetlands for achieving a water quality goal up to a particular level of total nitrogen loss reduction. Beyond this point, wetland restorations are more cost-effective.

Environmental indices and the politics of the Conservation Reserve Program

Abstract Environmental indicators can be used to target public programs to provide a variety of benefits. Social scientists, physical scientists, and politicians have roles in developing indicators that reflect the demands of diverse interest groups. We review the US Department of Agriculture’s Conservation Reserve Program (CRP), the largest agricultural conservation program the United States, to determine how a set of environmental indicators were developed and used, and assess results of their application. The use of such indicators has helped the CRP increase and broaden the program’s environmental benefits beyond erosion reduction, which was the primary focus of early program efforts, to meet other demands. This case study provides an example about how integration and assessment for the purpose of managing public resources requires more than natural science disciplines. Social science can help explain how public values influence what information is collected and how it is interpreted. Examples are given to show how the indices used for the CRP integrated science, politics and social values. In the end, the environmental benefits index (EBI) used to target US

Nitrogen in Agricultural Systems: Implications for Conservation Policy

20 billion of CRP funds reflects compromises made between science and policy considerations. It is our intention that studying this index will yield ideas and understanding from the natural science community that develops ecosystem indices about how to better plug in to programs in the future.

Baseline requirements can hinder trades in water quality trading programs: Evidence from the Conestoga watershed

Nitrogen is an important agricultural input that is critical for crop production. However, the introduction of large amounts of nitrogen into the environment has a number of undesirable impacts on water, terrestrial, and atmospheric resources. This report explores the use of nitrogen in U.S. agriculture and assesses changes in nutrient management by farmers that may improve nitrogen use effi ciency. It also reviews a number of policy approaches for improving nitrogen management and identifi es issues affecting their potential performance. Findings reveal that about two-thirds of U.S. cropland is not meeting three criteria for good nitrogen management. Several policy approaches, including fi nancial incentives, nitrogen management as a condition of farm program eligibility, and regulation, could induce farmers to improve their nitrogen management and reduce nitrogen losses to the environment.

The Use of Markets to Increase Private Investment in Environmental Stewardship

The U.S. Environmental Protection Agency (USEPA) and the U.S. Department of Agriculture (USDA) are promoting point/nonpoint trading as a way of reducing the costs of meeting water quality goals. Farms can create offsets by implementing management practices such as conservation tillage, nutrient management and buffer strips. To be eligible to sell offsets or credits, farmers must first comply with baseline requirements. USEPA guidance recommends that the baseline for nonpoint sources be management practices that are consistent with the water quality goal. A farmer would not be able to create offsets until the minimum practice standards are met. An alternative baseline is those practices being implemented at the time the trading program starts, or when the farmer enters the program. The selection of the baseline affects the efficiency and equity of the trading program. It has major implications for which farmers benefit from trading, the cost of nonpoint source offsets, and ultimately the number of offsets that nonpoint sources can sell to regulated point sources. We use a simple model of the average profit-maximizing dairy farmer operating in the Conestoga watershed in Pennsylvania to evaluate the implications of baseline requirements on the cost and quantity of offsets that can be produced for sale in a water quality trading market, and which farmers benefit most from trading.

Environmental regulation in agriculture and the adoption of environmental technology.

U.S. farmers and ranchers produce a wide variety of commodities for food, fuel, and fiber in response to market signals. Farms also contain significant amounts of natural resources that can provide a host of environmental services, including cleaner air and water, flood control, and improved wildlife habitat. Environmental services are often valued by society, but because they are a public good—that is, people can obtain them without paying for them—farmers and ranchers may not benefit financially from producing them. As a result, farmers and ranchers under-provide these services. This report explores the use of market mechanisms, such as emissions trading and eco-labels, to increase private investment in environmental stewardship. Such investments could complement or even replace public investments in traditional conservation programs. The report also defines roles for government in the creation and function of markets for environmental services.

THE EFFECT OF FEEDGRAIN PROGRAM PARTICIPATION ON CHEMICAL USE

Agriculture in the United States has been the subject of numerous government incentive programs over the years. These programs have been designed to achieve a wide variety of goals that include supply control, cropland conversion, soil conservation and environmental quality. A variety of incentive mechanisms have been used to achieve these goals. Incentives for protecting and enhancing water quality come from two different programmatic directions. The U.S. Department of Agriculture (USDA) has a long history of promoting natural resource stewardship through various forms of voluntary assistance (carrots), such as education, technical assistance and cost sharing. Water quality programs that have arisen from the Clean Water Act (CWA) and state water quality protection laws can be of the variety (stick), where farmers are forced through command-and-control or other incentive mechanisms to adopt alternative management practices.

Estimating changes in recreational fishing participation from national water quality policies

Economic incentives created by the commodity programs are hypothesized to cause program participants to apply agrichemicals at greater rates than nonparticipants. Corn producers who participate in the USDA feedgrain program are shown to apply nitrogen, herbicides, and insecticides at statistically greater rates than those who do not participate.

Economic and Environmental Effects Associated with Reducing the Use of Atrazine: An Example of Cross-Disciplinary Research

The complete evaluation of the offsite effects of national policies or programs that affect levels of agricultural nonpoint source pollution requires linking extensive water quality changes to changes in recreational activity. A sequential decision model is specified to describe an individuals decisions about fishing. A participation model for recreational fishing that includes a water quality index reflecting regional water quality is developed and estimated as a logit model with national level data. A visitation model for those who decide to fish that also includes the water quality index is estimated using ordinary least squares. The water quality index is found to be significant in the participation model but not in the visitation model. Together, the two models provide a means of estimating how changes in water quality might influence the number of recreation days devoted to fishing. The model is used to estimate changes in fishing participation for the Conservation Reserve Program.