The growth of the poultry industry in Arkansas has exploded in the past decade. As a result, approximately 1.5 million tons of litter are produced every year. Concerns about possible contamination of ground and surface water from land applications of poultry litter have been raised. This paper compares four policy scenarios in terms of their efficiency and practicality to manage land applications of poultry litter. The results indicate that a litter tax per ton of litter applied could achieve the same level of litter control as that of a land tax on litter applications, but at a lower tax rate.