UC Riverside

Nutrient emissions from animal feeding operations continue to degrade water and air quality. New regulations will limit the amounts of nutrients that can be locally applied to land. In this paper, a structural-dynamic model of a livestock-crop operation is calibrated with data from a representative farm and is used to predict the effects of nitrogen regulations. Policy simulations clarify the importance of dynamic elements and demonstrate three main results: (1) cost estimates for large producers are higher than suggested by previous studies; (2) cross-media pollution effects are potentially significant; and (3) improved input management appears most promising for reducing both water and air emissions and waste management costs. Implications for policy and future research are discussed. © 2008 Canadian Agricultural Economics Society.