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 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.


Issue Date:
2005-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/30972
Published in:
Journal of Agricultural and Resource Economics, Volume 30, Number 3
Page range:
431-448
Total Pages:
18




 Record created 2017-04-01, last modified 2017-08-24

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