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Document Type

Thesis - University Access Only

Award Date

1994

Degree Name

Master of Science (MS)

Department / School

Economics

First Advisor

Burton Pflueger

Abstract

Livestock waste has been identified as a nonpoint source of pollution. Livestock producers face increasing environmental pressure to control livestock waste on their operations. However, it may not be economically viable for the producers to bear the entire cost of establishing and utilizing livestock waste management systems. This research examined the optimal level of cost sharing to minimize the impact on individual livestock producers while meeting environmental standards. This research utilized two hypothetical farms (small and large) characteristic of farms in the northeast region of South Dakota to determine the impact of adding a livestock waste management system on the financial situation of the representative farms. A computerized farm planning and analysis tool called FINPACK was used for analysis of the financial impact. Long range projections were considered as short term transition costs would be excessive and long range benefits would not be realized. Research results for a small farm showed that the operation was affected least with cost sharing levels between 60 percent and 80 percent. For the large farm this level was closer 60 percent. Both operations needed some level of cost sharing to maintain the initial financial viability, although lower levels of cost sharing still allowed the farm to remain profitable. These research results show that livestock operations can meet environmental standards and remain financially viable if some cost share program is utilized. There remains a need to research other cost share programs, other enterprise mixes and other geographic locations.

Library of Congress Subject Headings

Animal waste -- Economic aspects
Animal waste -- Economic aspects -- South Dakota -- Computer simulation

Format

application/pdf

Publisher

South Dakota State University

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