Title
Estimating the range of economic impacts on farms of nutrient leaching reduction policies
Description
Declining agricultural incomes, increasing concern over rural poverty and sporadic crises such as those of Bovine Spongiform Encephalopathy (BSE) and Foot and Mouth Disease mean that the imposition of further costs on U.K. agriculture are likely to be politically and socially sensitive. Such additional costs are however on the agenda with the implementation of theWater Framework Directive (WFD; European Commission, 2000). The WFD aims to achieve “good ecological status” in EU water bodies reducing, inter alia, diffuse pollution from agriculture. In this study, we assess four possible WFD measures proposed to the U.K. Department for Environment, Food, and Rural Affairs: reducing inorganic fertilizer application, conversion of arable land to ungrazed grassland, reducing livestock stocking rates, and reducing livestock dietary N and P intakes. For each measure, changes in farm gross margins (FGMs) are estimated using a dataset of over 2000 farms. In contrast to previous analyses, which have focussed upon mean responses on stylized farms, our approach allows the analysis of the range of impacts across a wide variety of real-world farms and farm types. Findings reveal high variability in impacts. Cost-effectiveness analysis indicates that, on average, cropping farms seem capable of reducing nutrient leaching in a more cost-efficient way than livestock or dairy enterprises.
URL
http://dx.doi.org/10.1111/j.1574-0862.2008.00323.x
URL Description
Abstract
Language
English
Author
Carlo Fezzi
Author
Paulette Posen
Author
Dan Rigby
Author
David Hadley
Author
Ian Bateman

water framework directive; farm financial impacts; farm accounts; nitrate and phosphate leaching; cost-effectiveness

Volume number
39
Issue number
2
Is this item peer reviewed?
Yes
ISSN
0169-5150
Copyright URL
http://olabout.wiley.com/WileyCDA/Section/id-406241.html
Publisher
Blackwell Publishing
Date of publication
01 January 2008
Page reference
197-205
Place of publication
Malden, MA
Is this item a pre-print or post-print?
Postprint
Title of journal
Agricultural economics
Harvard
Fezzi, Carlo et al (2008) Estimating the range of economic impacts on farms of nutrient leaching reduction policies. Agricultural economics. 39 (2), pp. 197-205 Malden, MA: Blackwell Publishing.
Vancouver
Fezzi Carlo et al. Estimating the range of economic impacts on farms of nutrient leaching reduction policies. Agricultural economics 2008; 39 (2): 197-205.