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The Potential Role for a Nitrogen Compliance Policy in Mitigating Gulf Hypoxia

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  • Marc Ribaudo
  • Nigel Key
  • Stacy Sneeringer

Abstract

We evaluate whether expanding compliance to include nitrogen management could be an effective tool to reduce excess nitrogen applications in the Mississippi and Atchafalaya River Basin (MARB). Compliance requires farmers to meet some minimum standard of environmental protection on environmentally sensitive land as a condition for receiving federal farm program benefits. Using farm-level data on “excess” nitrogen applications and program benefits, we estimate the level of compliance and the reduction in excess nitrogen applications to cropland in the MARB. Extending compliance provisions to nitrogen management could reduce excess applications up to 60% under ideal conditions.

Suggested Citation

  • Marc Ribaudo & Nigel Key & Stacy Sneeringer, 2017. "The Potential Role for a Nitrogen Compliance Policy in Mitigating Gulf Hypoxia," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(3), pages 458-478.
    • Handle: RePEc:oup:apecpp:v:39:y:2017:i:3:p:458-478.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppw029
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    References listed on IDEAS

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    1. Hendricks, Nathan P. & Sinnathamby, Sumathy & Douglas-Mankin, Kyle & Smith, Aaron & Sumner, Daniel A. & Earnhart, Dietrich H., 2014. "The environmental effects of crop price increases: Nitrogen losses in the U.S. Corn Belt," Journal of Environmental Economics and Management, Elsevier, vol. 68(3), pages 507-526.
    2. Sneeringer, Stacy, 2016. "Comparing Participation in Nutrient Trading by Livestock Operations to Crop Producers in the Chesapeake Bay Watershed," Economic Research Report 249772, United States Department of Agriculture, Economic Research Service.
    3. Ribaudo, Marc & Kaplan, Jonathan D. & Christensen, Lee A. & Gollehon, Noel R. & Johansson, Robert C. & Breneman, Vincent E. & Aillery, Marcel P. & Agapoff, Jean & Peters, Mark, 2003. "Manure Management For Water Quality Costs To Animal Feeding Operations Of Applying Manure Nutrients To Land," Agricultural Economic Reports 33911, United States Department of Agriculture, Economic Research Service.
    4. Claassen, Roger & Breneman, Vincent E. & Bucholtz, Shawn & Cattaneo, Andrea & Johansson, Robert C. & Morehart, Mitchell J., 2004. "Environmental Compliance In U.S. Agricultural Policy: Past Performance And Future Potential," Agricultural Economic Reports 34033, United States Department of Agriculture, Economic Research Service.
    5. JunJie Wu, 1999. "Crop Insurance, Acreage Decisions, and Nonpoint-Source Pollution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(2), pages 305-320.
    6. David A. Hennessy, 1998. "The Production Effects of Agricultural Income Support Policies under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 46-57.
    7. John K. Horowitz & Erik Lichtenberg, 1993. "Insurance, Moral Hazard, and Chemical Use in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 926-935.
    8. Claassen, Roger, 2012. "The Future of Environmental Compliance Incentives in U.S. Agriculture: The Role of Commodity, Conservation, and Crop Insurance Programs," Economic Information Bulletin 121803, United States Department of Agriculture, Economic Research Service.
    9. Ribaudo, Marc & Delgado, Jorge & Hansen, LeRoy T. & Livingston, Michael J. & Mosheim, Roberto & Williamson, James M., 2011. "Nitrogen in Agricultural Systems: Implications for Conservation Policy," Economic Research Report 118022, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Lim, Teng & Massey, Ray & McCann, Laura & Canter, Timothy & Omura, Seabrook & Willett, Cammy & Roach, Alice & Key, Nigel & Dodson, Laura, 2023. "Increasing the Value of Manure for Farmers," USDA Miscellaneous 333552, United States Department of Agriculture.
    2. Marshall, Elizabeth & Aillery, Marcel & Ribaudo, Marc & Key, Nigel & Sneeringer, Stacy & Hansen, LeRoy & Malcolm, Scott & Riddle, Anne, 2018. "Reducing Nutrient Losses From Cropland in the Mississippi/Atchafalaya River Basin: Cost Efficiency and Regional Distribution," Economic Research Report 277567, United States Department of Agriculture, Economic Research Service.
    3. Traxler, Emilia & Li, Tongzhe, 2020. "Agricultural Best Management Practices, A summary of adoption behaviour," Working Papers 305271, University of Guelph, Institute for the Advanced Study of Food and Agricultural Policy.

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    More about this item

    Keywords

    compliance; nitrogen; hypoxia; farm programs;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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