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.