Assessing the Market for Poultry Litter in Georgia: Are Subsidies Needed to Protect Water Quality?

Jeffrey D. Mullen, Ulugbek Bekchanov, Berna Karali, David Kissel, Mark L. Risse, Kristin Rowles and Sam Collier

Journal of Agricultural and Applied Economics, 2011, vol. 43, issue 04

Abstract: Concerns about nutrient loads into our waters have focused attention on poultry litter applications. Like many states with a large poultry industry, Georgia recently designed a subsidy program to facilitate the transportation of poultry litter out of vulnerable watersheds. This paper uses a transportation model to examine the necessity of a poultry litter subsidy to achieve water protection goals in Georgia. We also demonstrate the relationship between diesel and synthetic fertilizer prices and the value of poultry litter. Results suggest that a well functioning market would be able to remove excess litter from vulnerable watersheds in the absence of a subsidy.

Keywords: fertilizer; phosphorous; poultry litter; subsidy; transportation model; water quality; Environmental Economics and Policy; Marketing; Q12; Q13; Q25; Q53 (search for similar items in EconPapers)
Date: 2011
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Persistent link: http://EconPapers.repec.org/RePEc:ags:joaaec:117948

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