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2018 | OriginalPaper | Buchkapitel

Optimal Regional Regulation of Animal Waste

verfasst von : Antti Iho, Doug Parker, David Zilberman

Erschienen in: Modeling, Dynamics, Optimization and Bioeconomics III

Verlag: Springer International Publishing

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Abstract

Large animal facilities generate manure in excess of their production needs leading to excessive nutrient loading. Differences in manure contents of phosphorus and nitrogen relative to crop requirements exacerbate loading of the more abundant nutrient, frequently phosphorus. Current regulations that restrict manure utilization and animal production, but not at crop lands leads to suboptimal resource allocation and under utilization of manure in crop production. The transboundary character of nutrient loading further complicates the management of manure phosphorus and nitrogen. Due to differences in environmental characteristics, upstream and downstream regions may have differing objectives towards controlling nitrogen and phosphorus surpluses. We consider optimal management of manure in a stylized two-agent, two-nutrient and two-region model. We show that trade-offs in managing manure phosphorus and nitrogen, inability to regulate manure applications outside animal farms’ field areas and regional differences in environmental targets can severely impede the effectiveness of regulation. Depending on the environmental and economic characteristics, tightening upstream regulation with respect to the loading of one nutrient might increase the downstream loading of the other and might even decrease the total welfare.

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Fußnoten
1
However, the specific rules and limits applied to CAFOs’ manure management are state-specific.
 
2
All crop farm’s fields are assumed to be suitable for manure application. Assuming a smaller fraction to be suitable would change the link between the application distance and acreage. This has trivial effects on the results and will thus not be further considered here.
 
3
The counterpart of dumping in models by [17] or [41] is the excessive manure application which is monotonically decreasing with the distance from the animal facility, until becoming zero at the threshold distance. Their crop response functions are increasing and concave, ours is a linear response and plateau, simplified to a fixed yield and fixed need of nutrients. Externalities in both models are due to the sum of over application. Therefore, we do not need to define the exact location for dumping, as long as it’s either on-farm or off-farm.
 
4
Agronomic nutrient needs may differ from nutrient uptake of crops. Soybeans, for instance, can bind most of the nitrogen it needs from atmospheric nitrogen. We define residual nutrients as differences between actual applications and application requirements.
 
5
Hauling distance is a common metric for crop and livestock farmer. For tractability, we denote hauling distances with subscripts. That is, if the crop farm’s hauling distance is equal to the boundary of the animal and crop farm (\(d_{off}=\underline{d}\)), it does not import manure.
 
6
Think of f as a simplification from a concave-convex cost function. The sufficient (second-order) conditions tell that the relevant part of the curve must have a positive second derivative.
 
7
We could also assume linear or even concave hauling costs. This would make the optima characterized by some binding constraints. Qualitatively, the results would remain unchanged.
 
8
Note that the farmer marginally loses \(\left( p^k\xi ^k\right) \) whether the farmer is a net importer or exporter of feed. If the farmer produces more than the production animals need, increasing the number of animals reduces the sales revenues. If the farmer has to buy the additional feed needed, the input costs increase by the same amount.
 
9
This would be different if the animal farm did not retrieve the entire surplus from the crop farm in selling manure: its gains from both land applications are identical.
 
10
For simplicity, we assume the fractions exogenous. In reality, they reflect the amount of externalities in the agricultural region: algae growth, for instance, reduces the amount of nutrient residuals that are eventually carried over to recreational region’s surface waters. Intensive algae growth in the agricultural region would lower both \(\omega _N\) and \(\omega _P\).
 
11
As there are no polluting activities in downstream region, its optimum would be trivially: \(\,r^N=r^P=0\).
 
12
CAFO definitions vary by state and do not match perfectly the classes of Agricultural Census data; 90% of hogs and pigs are on farms that have more than 2000 heads and 66% of milk cows are on farms with more than 200 heads.
 
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Metadaten
Titel
Optimal Regional Regulation of Animal Waste
verfasst von
Antti Iho
Doug Parker
David Zilberman
Copyright-Jahr
2018
DOI
https://doi.org/10.1007/978-3-319-74086-7_1

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