Farm Return and Land Price Effects from Environmental Standards and Stocking Density Restrictions

Alfons Weersink, Greg deVos and Peter Stonehouse

Agricultural and Resource Economics Review, 2004, vol. 33, issue 2, 272-281

Abstract: This study assesses the economic and environmental effects to hog finishing farms from residual taxes/standards and restrictions on manure application and stocking density. Economic effects are measured in terms of net farm income and land prices, while levels of ammonia and excess nitrogen and phosphorus proxy the environmental effects. Any environmental policy requiring the need for additional land comes at a small cost to farmers who have access to adequate neighboring land. If this is not the case, then manure application and stocking density restrictions are expensive since the producer is basically forced to either purchase land or reduce hog production levels.

Date: 2004
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