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Abstract

The monitoring of the transport of manure and its content is a cornerstone in the implementation of water quality objectives in nutrient management in agriculture. This paper uses a spatial price equilibrium model, applied to the market of manure in livestock dense regions, to assess the impact of an inflated stated nutrient content of transported manure. This paper shows that, due to the varying composition of manure, it is very difficult to monitor the real content of transported manure. The spatial price equilibrium model suggests that the inability of monitoring this nutrient content could be an important explaining factor for bad measured surface water quality. In addition, the paper also illustrates that monitoring the actual use of synthetic fertilizer does not function in the Flemish case study region. As an alternative policy approach we propose that a total ban on synthetic nitrogen fertilizer would be justified in region with manure nutrient surpluses. The total ban on synthetic nitrogen fertilizer could be complemented by a correction mechanism financed by a tax on livestock to compensate foregone revenues of reduced fertilizer availability for arable farms.

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