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...

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Bibliographic Details
Published in:Journal of Agricultural and Resource Economics
Main Authors: F. Bailey Norwood, Ryan L. Luter, Raymond E. Massey
Format: Article
Language:English
Published: Western Agricultural Economics Association 2005-12-01
Subjects:
animal waste
asymmetric distribution
contingent valuation
manure
nonmarket valuation
pollution
willingness to pay
Online Access:https://ageconsearch.umn.edu/record/30972
Description
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.
ISSN:1068-5502
2327-8285

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