A Carrot-and-Stick Approach to Environmental Improvement: Marrying Agri-Environmental Payments and Water Quality Regulations

Agri-environmental programs, such as the Environmental Quality Incentives Program, provide payments to livestock and crop producers to generate broadly defined environmental benefits and to help them comply with federal water quality regulations, such as those that require manure nutrients generated on large animal feeding operations to be spread on cropland at no greater than agronomic rates. We couch these policy options in terms of agri-environmental "carrots" and regulatory "sticks," respectively. The U.S. agricultural sector is likely to respond to these policies in a variety of ways. Simulation analysis suggests that meeting nutrient standards would result in decreased levels of animal production, increased prices for livestock and poultry products, increased levels of crop production, and water quality improvements. However, estimated impacts are not homogeneous across regions. In regions with relatively less cropland per ton of manure produced, the impacts of these policies are more pronounced.Environmental Economics and Policy,

WHEN THE !%$? HITS THE LAND: IMPLICATIONS FOR US AGRICULTURE AND ENVIRONMENT WHEN LAND APPLICATION OF MANURE IS CONSTRAINED

Confined animal production in the U.S. and its associated discharge of manure nutrients into area waters is considered a leading contributor to current water quality impairments. A common option to mitigate these impairments is to limit land application of manure. This paper evaluates the implications of alternative land application constraints for U.S. agriculture and the environment at the regional and sector level. The results suggest that when these constraints are particularly binding, due to minimal acceptance of manure as a substitute for commercial fertilizer, potentially large and unanticipated changes in returns to agricultural production and water quality may occur. Furthermore, we find that some of the cost of meeting the land application constraints will be passed on to consumers through higher prices and to a portion of rural economies through lower production rates and labor expenditures.Environmental Economics and Policy, Livestock Production/Industries,

A Faster Primal Network Simplex Algorithm

We present a faster implementation of the polynomial time primal simplex algorithm due to Orlin [23]. His algorithm requires O(nm min{log(nC), m log n}) pivots and O(n2 m ??n{log nC, m log n}) time. The bottleneck operations in his algorithm are performing the relabeling operations on nodes, selecting entering arcs for pivots, and performing the pivots. We show how to speed up these operations so as to yield an algorithm whose running time is O(nm. log n) per scaling phase. We show how to extend the dynamic-tree data-structure in order to implement these algorithms. The extension may possibly have other applications as well

MANAGING MANURE TO IMPROVE AIR AND WATER QUALITY

Animal waste from confined animal feeding operations is a potential source of air and water quality degradation from evaporation of gases, runoff to surface water, and leaching to ground water. This report assesses the potential economic and environmental tradeoffs between water quality policies and air quality policies that require the animal agriculture sector to take potentially costly measures to abate pollution. A farm-level analysis of hog farms estimates the economic and environmental tradeoffs that occur when policies are designed to address pollutant flows to one environmental medium without considering flows to another medium. A national analysis addresses the broader impacts of coordinated (water and air) policies, including long-term structural adjustments and welfare impacts on both producers and consumers. The report also analyzes the potential implications of adding air quality regulations to existing Clean Water Act regulations in the Chesapeake Bay watershed, where a limited land base increases producers' costs of meeting manure management requirements.animal waste, nitrogen, ammonia, water quality, nutrient management plan, manure management costs, price and quantity adjustments, CAFO, Environmental Economics and Policy, Livestock Production/Industries,