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Incorporating Environmentally Compliant Manure Nutrient Disposal Costs into Least-Cost Livestock Ration Formulation

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  • Hadrich, Joleen C.
  • Wolf, Christopher A.
  • Black, J. Roy
  • Harsh, Stephen B.

Abstract

Livestock rations are formulated to minimize feed cost subject to nutritional requirements for a target performance level, which ignores the potentially substantial cost of disposing of nutrients fed in excess of nutritional requirements. We incorporate nutrient disposal costs into a modified least-cost ration formulation model to arrive at a joint least-cost decision that minimizes the sum of feed and net nutrient disposal costs. The method is demonstrated with phosphorus disposal costs on a representative dairy farm. Herd size, land availability and proximity, crop rotation, and initial soil phosphorus content are shown to be important in determining phosphorus disposal costs.

Suggested Citation

  • Hadrich, Joleen C. & Wolf, Christopher A. & Black, J. Roy & Harsh, Stephen B., 2008. "Incorporating Environmentally Compliant Manure Nutrient Disposal Costs into Least-Cost Livestock Ration Formulation," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(1), pages 1-14, April.
    • Handle: RePEc:ags:joaaec:45525
    DOI: 10.22004/ag.econ.45525
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    1. Jeffrey R. Stokes & Peter R. Tozer, 2002. "Cost Minimization and Managing Soil Nutrient Loading: Conflict or Compromise?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 50(2), pages 151-169, July.
    2. Boland, Michael A. & Preckel, Paul V. & Foster, Kenneth A., 1998. "Economic Analysis Of Phosphorus - Reducing Technologies In Pork Production," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(2), pages 1-15, December.
    3. Bosch, Darrell J. & Zhu, Minkang & Kornegay, Ervin T., 1997. "Economic Returns From Reducing Poultry Litter Phosphorus With Microbial Phytase," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(2), pages 1-12, December.
    4. Wittenberg, Eric & Wolf, Christopher A., 2005. "2004 Michigan Dairy Grazing Farm Business Analysis Summary," Staff Paper Series 11709, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Wittenberg, Eric & Wolf, Christopher A., 2005. "2004 Michigan Dairy Farm Business Analysis Summary," Staff Paper Series 11785, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    6. Darrell J. Bosch & James W. Pease, 2004. "Manure Applications and Nutrient Standards," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 14-25.
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    1. Gebrezgabher, Solomie A. & Meuwissen, Miranda P.M. & Oude Lansink, Alfons G.J.M., 2014. "A multiple criteria decision making approach to manure management systems in the Netherlands," European Journal of Operational Research, Elsevier, vol. 232(3), pages 643-653.
    2. S Mutua & B Bebe & A Kahi & A Guliye, 2013. "Incorporation of Milk Yield, Dry Matter Intake and Phosphorous Excretion Predictive Functions in the Development of a Multi-Objective Dairy Feed Formulation Software Program," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 5(11), pages 208-208, October.
    3. Schmit, Todd M. & Verteramo, Leslie & Tomek, William G., 2009. "Implications of Growing Biofuel Demands on Northeast Livestock Feed Costs," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(2), pages 200-212, October.
    4. De Matteis, Maria C. & Yu, T. Edward & Boyer, Christopher N. & DeLong, Karen L. & Smith, Jason, 2018. "Economic and environmental implications of incorporating distillers’ dried grains with solubles in feed rations of growing and finishing swine in Argentina," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    5. Jones, Crystal & Tonsor, Glynn T. & Black, J. Roy & Rust, Steven R., 2007. "Economically Optimal Distiller Grain Inclusion in Beef Feedlot Rations: Recognition of Omitted Factors," 2007 Conference, April 16-17, 2007, Chicago, Illinois 37574, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    6. Enahoro, D. & Schmit, T.M. & Boisvert, R.N., 2016. "Assessment Of New York’S Pollution Discharge Elimination Permits For Cafo’S: A Regional Analysis," Working Papers 250026, Cornell University, Department of Applied Economics and Management.

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    More about this item

    Keywords

    Agribusiness; Environmental Economics and Policy; Livestock Production/Industries;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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