Economic Analysis of Nutrient Management Practices for Water Quality Protection (original) (raw)

The main purpose of this study was to evaluate the effect of alternative cropping systems on farm net returns, and nitrate-N and sediment yields in Thomas Brook Watershed (TBW). The study involved integrated bio-physical and economic optimization modelling. Crop yield and nitrate-N pollution response functions were estimated and then used in trade-off analysis between farm returns and environmental quality improvement. Five crop rotation systems were evaluated for seven fertilizer levels under conventional tillage (CT) and no-till systems (NT). Nitrate-N leached, as well as estimated maximum economic rate of N (MERN) fertilizer level and marginal abatement costs depended on crop type, rotation system, and tillage type. The most cost effective cropping systems that met restrictions on Health Canada maximum limit on nitrate-N in water included corn-corn-corn-alfalfa-alfalfa under NT for corn-based cropping systems, potato-winter wheat-carrot-corn under CT for vegetable horticulture-ba...

Economic and Water Quality Impacts of Reducing Nitrogen and Pesticide Use in Agriculture

Agricultural and Resource Economics Review, 1997

A multiyear regional risk programming model was used in evaluating the impacts of different environmental policies on cropping systems, input use, nonpoint source pollution, farm income, and risk. A direct expected utility maximizing problem (DEMP) objective with a Von Neuman Morgenstern utility function was used in deriving optimal cropping systems. A biophysical simulation model provided input for the optimization. Three types of policies—taxing, regulating the aggregate, and regulating the per acre level—were studied for two farm inputs—nitrogen and atrazine. It was observed that policies had varied and multiple cross-effects on pollutant loads, farm income, and risk. This information is crucial in developing successful policies toward improving water quality. If an appropriate input policy is chosen, both targeted and nontargeted pollutant loads can be managed. The three policies varied in their effects on pollutant loads and involved tradeoffs in water quality and economic attr...

Eco-efficiency of Alternative Cropping Systems Managed in an Agricultural Watershed

2013

The eco-efficiency index (EEI) framework has been used to determine economically and environmentally optimal nitrogen (N) fertilizer application rates for some pollutants (such as greenhouse gas emissions) for selected agricultural production systems. However, previous EEI applications have not examined N application rates linked to nitrate-N loss from crop production. The research gap is surprising given the importance of nutrient N in crop production and concerns with nitrate-N in groundwater systems. Eco-efficiency of crop production systems are increased for farm management practices which generate higher economic returns and lower negative environmental impacts and, therefore are considered more eco-efficient. Data for the analysis were generated using the SWAT biophysical simulation modeling. The cropping systems evaluated in this study included: i) corn-based cropping systems involving corn-corn-alfalfa-alfalfa-alfalfa (CCAAA), and CCCAA rotations; ii) potato-based cropping s...

COST EFFECTIVENESS OF NUTRIENT MANAGEMENT AND BUFFERS: COMPARISONS OF FOUR SPATIAL SCENARIOS

2004

Policymakers are seeking cost effective methods to reduce nutrient pollution from agriculture. Predicted costs and pollution reductions from nutrient management and buffers are evaluated under four spatial scenarios describing a watershed. Results will help policymakers evaluate alternative Best Management Practices (BMPs) for water quality protection in agriculture.

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