Economic and environmental implications of alternative agricultural systems in the Eastern Corn Belt: A multiple criteria decision approach

John Clark Foltz, Purdue University

Abstract

Society is scrutinizing the environmental impacts of agriculture. This research estimated the net farm returns and environmental consequences of alternative agricultural systems on typical Eastern Corn Belt farms. Partial budgets captured the economic impacts of the alternative farming systems. Two physical simulation models, EPIC (Erosion Productivity Impact Calculator) and GLEAMS (Groundwater Loading Effects of Agricultural Management Systems), estimated the environmental impacts. The analysis considered 2 soil types, 3 tillage systems, 4 crop rotations, and 3 fertilizer and pesticide levels. Profits, soil erosion rates, and fertilizer nutrient and pesticide loading into ground and surface water were incorporated into a multiple criteria decision algorithm which determined a typical farmer's or environmentalist's preferred choices among the different farming systems. On the high productivity soil, the farmer's choices were: continuous corn, a corn/soybean rotation, and a corn/alfalfa rotation with minimum tillage and input use. On the low productivity soil, the farmer's choices were narrowed to continuous corn or a corn/alfalfa rotation, usually with minimum tillage and input use. The environmentalist's preferred choices were more limited. On the high productivity soil, a corn/soybean rotation with minimum tillage and input use was selected. On the low productivity soil, the preferred alternative was continuous corn with minimum tillage and input use. In no case were current EPA fertilizer and pesticide surface and ground water tolerances exceeded. More stringent soil erosion regulations would most adversely affect continuous corn and conventional tillage systems. Stricter surface water runoff standards would discourage corn production with high input use and conventional tillage. More stringent groundwater tolerances would most severely impact high input use cropping systems, no-till, and alfalfa production. Stricter regulations on nitrates in ground and surface water would require reductions in alfalfa and corn production, respectively, especially at high input levels. Tighter regulations on phosphorus in surface water would discourage alfalfa production. On both soil types, at least one cropping system was preferred by both the farmer and the environmentalist. Thus, a congruence of policy choices is feasible. However, "green" payments may be necessary to compensate farmers for income losses associated with a transition to more environmentally acceptable farming systems.

Degree

Ph.D.

Advisors

Martin, Purdue University.

Subject Area

Agricultural economics|Environmental science

COinS