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Differences between Livestock and Crop Producers' Participation in Nutrient Trading
Author(s) -
Sneeringer Stacy
Publication year - 2013
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppt010
Subject(s) - agriculture , livestock , business , manure , nutrient , agricultural economics , agricultural science , crop , fertilizer , economics , environmental science , agronomy , geography , chemistry , archaeology , organic chemistry , forestry , biology
Descriptions of agricultural producers' participation in nutrient trading schemes generally refer to crop producers reducing nutrient run‐off from fields to generate credits. However, livestock producers may participate differently than crop producers because some are regulated as Concentrated Animal Feeding Operations (CAFOs), and because agricultural producers generating manure face different costs of reducing nutrient application (and therefore generating credits) from those only using fertilizer. These differences may affect nutrient reduction credit prices and the supply of agriculturally supplied credits, thereby raising the costs to non‐agricultural operations of meeting water quality goals. We examine how CAFO laws interact with nutrient trading requirements. We model trading participation by farm type and then simulate trading participation by applying the model to 2007 Census of Agriculture data.