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Reducing Nutrient Losses From Cropland in the Mississippi/Atchafalaya River Basin: Cost Efficiency and Regional Distribution

Author

Listed:
  • Marshall, Elizabeth
  • Aillery, Marcel
  • Ribaudo, Marc
  • Key, Nigel
  • Sneeringer, Stacy
  • Hansen, LeRoy
  • Malcolm, Scott
  • Riddle, Anne

Abstract

Every summer, a large area forms in the northern Gulf of Mexico where dissolved oxygen becomes too low for many aquatic species to survive. This “hypoxic zone” is fueled by nutrient (nitrogen and phosphorus) runoff from the Mississippi/Atchafalaya River Basin (MARB), most of which comes from agriculture. This analysis used the ERS Regional Environment and Agriculture Programming (REAP) model and data from the USDA Conservation Effects Assessment Project (CEAP) to assess the most cost-effective way of achieving a 45-percent reduction in cropland nutrient loads to the Gulf. Strategies involve adoption of management practices that reduce nutrient loss from fields to water resources, off-field practices for intercepting nutrients, retirement of marginal cropland, and other changes in crop management. Results suggest that proximity to the Gulf was a major factor in the location of nutrient-reduction efforts when reducing Gulf hypoxia was the only goal. When local as well as Gulf nutrient-reduction targets are applied, nutrient-reduction efforts are spread more evenly across the MARB. Adopting nutrient management practices, restoring wetlands, and retiring cropland to meet water quality goals also increased commodity prices, resulting in more intensive production outside the MARB and increased nutrient and sediment loadings to water in other watersheds.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:uersrr:277567
    DOI: 10.22004/ag.econ.277567
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    Cited by:

    1. Xu, Yuelu & Elbakidze, Levan & Yen, Haw & Arnold, Jeffrey G. & Gassman, Philip W. & Hubbart, Jason & Strager, Michael P., 2022. "Integrated assessment of nitrogen runoff to the Gulf of Mexico," Resource and Energy Economics, Elsevier, vol. 67(C).
    2. Loduca, Natalie R & Haqiqi, Iman & Liu, Jing & Reeling, Carson, 2020. "How Scale and Scope of Ecosystem Markets Impact Permit Trading: Evidence from Partial Equilibrium Modeling in the Chesapeake Bay Watershed," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304319, Agricultural and Applied Economics Association.
    3. Jing Liu & Laura Bowling & Christopher Kucharik & Sadia Jame & Uris Baldos & Larissa Jarvis & Navin Ramankutty & Thomas Hertel, 2022. "Multi-scale Analysis of Nitrogen Loss Mitigation in the US Corn Belt," Papers 2206.07596, arXiv.org.
    4. Xu, Yuelu & Elbakidze, Levan, 2021. "Integrated assessment of N runoff in the Gulf of Mexico: an application of spatially explicit partial equilibrium and HAWQS models," 2021 Annual Meeting, August 1-3, Austin, Texas 313917, Agricultural and Applied Economics Association.
    5. Sawadgo, Wendiam & Plastina, Alejandro, 2021. "Do cost-share programs increase cover crop use? Empirical evidence from Iowa," ISU General Staff Papers 202101010800001084, Iowa State University, Department of Economics.
    6. Konstantinos Metaxoglou & Aaron Smith, 2022. "Nutrient Pollution and US Agriculture: Causal Effects, Integrated Assessment, and Implications of Climate Change," NBER Chapters, in: American Agriculture, Water Resources, and Climate Change, pages 297-341, National Bureau of Economic Research, Inc.
    7. Nguyen, Nhu & Reeling, Carson & Verdier, Valentin, 2024. "Selection and the Additionality of Incentives for Environmental Conservation," 2024 Annual Meeting, July 28-30, New Orleans, LA 343675, Agricultural and Applied Economics Association.

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    Keywords

    Crop Production/Industries; Environmental Economics and Policy; Health Economics and Policy;
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