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Asymmetric Willingness-to-Pay Distributions for Livestock Manure

Author

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  • Norwood, F. Bailey
  • Luter, Ryan L.
  • Massey, Raymond E.

Abstract

The Environmental Protection Agency's new Concentrated Animal Feeding Operations (CAFO) regulations are forcing some farms to export livestock manure to off-farm acres. The regulation compliance cost depends on the willingness of neighboring crop producers to accept or pay for the manure. This study estimates a manure willingness-to-pay distribution for crop producers using a contingent valuation mail survey. A flexible parametric distribution is borrowed from the crop yield literature, which shows that manure willingness to pay is left-skewed. Most crop producers in our sample will pay a positive price close to the savings in commercial fertilizer, but approximately 25% require a payment before accepting manure.

Suggested Citation

  • Norwood, F. Bailey & Luter, Ryan L. & Massey, Raymond E., 2005. "Asymmetric Willingness-to-Pay Distributions for Livestock Manure," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(3), pages 1-18, December.
    • Handle: RePEc:ags:jlaare:30972
    DOI: 10.22004/ag.econ.30972
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    Cited by:

    1. Park, Seong Cheol & Stoecker, Arthur L. & Hattey, Jeffory A. & Turner, Jason Clemn, 2007. "Long-Term Profitabiltiy Of Animal Manure Using Optimal Nitrogen Application Rate," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34830, Southern Agricultural Economics Association.
    2. Kangondo, Angelique, 2015. "Economics of Manure Disposal and Utilization in Morogoro Municipality, Tanzania," Research Theses 243440, Collaborative Masters Program in Agricultural and Applied Economics.
    3. Lai, John & Wang, H. Holly, 2016. "Producers’ Willingness to Adopt an Alternative Technology: Market Opportunities to Export Pork to China," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236054, Agricultural and Applied Economics Association.
    4. Justin Dijak & Laura McCann & Caroline Brock, 2020. "Horse Manure Management by Commercial and Old-Order Amish Equine Operators: Economic and Conservation Implications," Sustainability, MDPI, vol. 12(20), pages 1-17, October.
    5. Erich von Stroheim & Dana Loyd Keske Hoag, 2021. "Valuing Cattle Manure as an Agricultural Resource for Efficiency and Environmental Sustainability," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    6. Andrew M. Johnson & Tahirou Abdoulaye & Bamikole Ayedun & Joan R. Fulton & Nicole J. Olynk Widmar & Akande Adebowale & Ranajit Bandyopadhyay & Victor Manyong, 2020. "Willingness to pay of Nigerian poultry producers and feed millers for aflatoxin‐safe maize," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 299-317, April.
    7. Park, Seong Cheol & Vitale, Jeffrey D. & Turner, Jason Clemn & Stoecker, Arthur L. & Hattey, Jeffory A., 2011. "Economic Potential of Swine Effluent in Intensified Forage Systems in the Southern Plains," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2011, pages 1-22, June.
    8. Aydın Alptekinoğlu & John H. Semple, 2016. "The Exponomial Choice Model: A New Alternative for Assortment and Price Optimization," Operations Research, INFORMS, vol. 64(1), pages 79-93, February.
    9. Ali, Sarah & McCann, Laura M.J. & Allspach, Jessica, 2012. "Manure Transfers in the Midwest and Factors Affecting Adoption of Manure Testing," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(4), pages 1-16, November.
    10. Lusk, Jayson L. & Norwood, F. Bailey, 2006. "Social Desirability Bias in Willingness-to-Pay for Products with Normative Attributes," 2006 Annual meeting, July 23-26, Long Beach, CA 21428, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Baerenklau, Kenneth A. & Nergis, Nermin, 2006. "Controlling Dairy Nitrogen Emissions: A Dynamic Analysis of Herd Adjustment, Ground Water Discharges, and Air Emissions," 2006 Annual meeting, July 23-26, Long Beach, CA 21448, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Yu, Charng-Jian & Du, Xiaodong & Phaneuf, Daniel, 2021. "The Impact of the Clean Water Act on Farm Practices: The Case of U.S. Dairy CAFOs," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 46(3), September.

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    Keywords

    Environmental Economics and Policy;

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