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Assessing the Market for Poultry Litter in Georgia: Are Subsidies Needed to Protect Water Quality?

Published online by Cambridge University Press:  26 January 2015

Jeffrey Mullen
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, Georgia
Ulugbek Bekchanov
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, Georgia
Berna Karali
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, Georgia
David Kissel
Affiliation:
Soil, Plant and Water Lab, University of Georgia, Athens, Georgia
Mark Risse
Affiliation:
Department of Biological and Agricultural Engineering, University of Georgia, Athens, Georgia
Kristin Rowles
Affiliation:
Georgia Water Planning and Policy Center, Albany, Georgia
Sam Collier
Affiliation:
Georgia Water Planning and Policy Center, Albany, Georgia
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Abstract

Concerns about nutrient loads into our waters have focused attention on poultry litter applications. Like many states with a large poultry industry, Georgia recently designed a subsidy program to facilitate the transportation of poultry litter out of vulnerable watersheds. This paper uses a transportation model to examine the necessity of a poultry litter subsidy to achieve water protection goals in Georgia. We also demonstrate the relationship between diesel and synthetic fertilizer prices and the value of poultry litter. Results suggest that a well-functioning market would be able to remove excess litter from vulnerable watersheds in the absence of a subsidy.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 2011

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