Income Effects of Reducing Agricultural Pollution*

James C. Wade, Kenneth J. Nicol and Earl O. Heady

Journal of Agricultural and Applied Economics, 1976, vol. 8, issue 2, 65-72

Abstract: The value and quantity of agricultural commodity production in various regions of the United States determines farmers' income in each region. Many farmers, businessmen, policy makers and administrators are concerned with the problem of change in farm income resulting from water quality restraints placed on cropland agriculture. This study evaluates the income change from a series of hypothetical national water quality policies by examining the changes in national and regional gross farm income. Long-run changes in total national income of controlling water pollution from farmland by soil loss restraints are relatively small, as aggregate gross income increases by four to six percent depending on the level of control studied.The changes in regional gross farm income are more extreme since various regions of the country, including the southern states, are affected differently by potential water quality control. This study utilizes a national modeling system to examine these variables and reports an analysis of potential changes in gross farm income caused by environmental restraints placed on agriculture. Environmental goals analyzed are national soil conservation ones, with implications for national and regional farm incomes.

Date: 1976
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