Asymmetric Willingness-to-Pay Distributions for Livestock Manure
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...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Western Agricultural Economics Association
2005-12-01
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| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/30972 |
| Summary: | 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. |
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| ISSN: | 1068-5502 2327-8285 |