Risk, Government Programs, and
the EnvironmentFinancial risk permeates nearly all farm
business ventures. In some instances, private and public tools used
to manage financial risks in agriculture may influence farmers'
production decisions. These decisions, in turn, can influence environmental
quality. This bulletin synthesizes several research literatures
and provides some perspective on private and public attempts to
cope with financial risks and their unintended environmental consequences.
(March 2004)
Managing
Manure:New Clean Water Act Regulations Create Imperative for Livestock
Producers Nutrients from livestock and poultry manure
are key sources of water pollution. Since regulations for livestock
and poultry operations under the 1972 Clean Water Act were first
developed, operations in general have become more concentrated and
specialized. Ever-growing numbers of livestock and poultry per farm
and per acre have increased the risk of water pollution, with manure
being disposed of in ways not adequately addressed in the original
regulations. In 2001, the Environmental Protection Agency (EPA)
proposed new regulations that would compel operations with the largest
number of animals to manage their manure according to a nutrient
management plan.
Does Off-Farm
Work Hinder "Smart" Farming?As off-farm income
takes on greater importance to farm households, less time is available
for farm management. Smart farming (e.g., soil testing, integrated
pest management, and precision farming) typically substitutes management
for capital. The value of management time and effort does not typically
enter into calculations of economic returns to alternative production
technologies or farming systems. The result could be misleading
in understanding the benefits of technology adoption, particularly
if farm households are willing to forego some financial return from
farming to gain convenience.
Adoption of Bioengineered Crops—This
report uses USDA survey data to examine the extent to which US farmers
have adopted bioengineered crops, factors affecting adoption of
these crops, and the impacts of bioengineered crops on input use
and farm-level net returns.
Soil, Nutrient, and Water Management
Systems Used in U.S. Corn ProductionCorn production uses
over 25 percent of the Nation's cropland and more than 40 percent
of the commercial fertilizer applied to crops. Thus, corn farmers'
choices of soil, nutrient, and water management systems can have
a major impact not only on their own profitability, but also on
the environment. In this report, Agricultural Resource Management
Survey (ARMS) data on cropping practices used on U.S. corn farms
are analyzed This is the first study to relate corn farm management
choices to so broad a set of characteristics.
Adoption of Agricultural Production
Practices: Lessons Learned from the U.S. Department of Agriculture
Area Studies ProjectData for 12 U.S. watersheds were analyzed
to study the constraints associated with the adoption of micronutrients,
N-testing, split nitrogen applications, green manure, biological
pest controls, pest-resistant varieties, crop rotations, pheromones,
scouting, conservation tillage, contour farming, strip cropping,
grassed waterways, and irrigation. The data also show how the adoption
of specific management practices affects chemical use and crop yields.
Conservation
Tillage Firmly Planted in U.S. AgricultureU.S. farmers
used conservation tillage (no-till, ridge-till, and mulch-till)
on more than 109 million acres in 2000, amounting to over 36 percent
of U.S. planted cropland and up from 26 percent in 1990. Use of
no-till expanded threefold during the decade, due partly to conservation
compliance requirements under farm programs. Conservation tillage
helps reduce soil erosion, slow nutrient and pesticide runoff, and
cut farmers' fuel costs.
Pest Management in U.S. AgricultureDescribes
the use of pest management practices, including integrated pest
management (IPM), for major field crops and selected fruits and
vegetables. The data came chiefly from the 1996 Agricultural Resource
Management Study (ARMS) developed by USDA. Because different pest
classes may dominate among different crops and regions, requiring
different pest management techniques to control them, the extent
of adoption of pest management practices varies widely. For example,
insects are a major pest class in cotton production, while minor
for soybeans. As insect management has a wider variety of nonchemical
techniques than weed control, cotton growers are expected to be
further ahead on the IPM continuum than soybean producers.
Genetically Engineered Crops for
Pest Management in U.S. AgricultureAdoption of genetically
engineered crops with traits for pest management has risen dramatically
since their commercial introduction in the mid-1990's. The farm-level
impacts of such crops on pesticide use, yields, and net returns
vary with the crop and technology examined. Adoption of herbicide-tolerant
cotton led to significant increases in yields and net returns, but
was not associated with significant changes in herbicide use. On
the other hand, increases in adoption of herbicide-tolerant soybeans
led to small but significant increases in yields, no changes in
net returns, and significant decreases in herbicide use. Adoption
of Bt cotton in the Southeast significantly increased yields and
net returns and significantly reduced insecticide use. April 2000
Green Technologies for a More
Sustainable AgricultureFor U.S. agriculture to continue
along a sustainable path of economic development, further production
increases must be generated by technologies that are both profitable
and more environmentally benign. In this context, we assess the
role of these "green" or sustainable technologies in steering
agriculture along a more sustainable path. However, the lack of
markets for the environmental attributes associated with green technologies
can limit their development. In addition, simply making a technology
available does not mean it will be adopted. Experience with green
technologies such as conservation tillage, integrated pest management,
enhanced nutrient management, and precision agriculture demonstrates
that even when technologies are profitable, barriers to adopting
new practices can limit their effectiveness. July 1999
Proceedings of the Third National
IPM Symposium/Workshop: Broadening Support for 21 Century IPMMore
than 600 participants from around the country attended the symposium/workshop
(Feb. 1996), reflecting a wide spectrum of professional interests
including scientists (social, biological, and environmental), agricultural
producers, and representatives of agribusiness and nonprofit organizations.
Two dominant themes provided a unifying focus. "Putting Customers
First" focused on reaching out to the diverse customer base
of USDA programs to identify IPM research and implementation needs.
"Assessing IPM Program Impacts" addressed how to incorporate
economic, environmental, and public health assessment in IPM research
and extension activities. Other topics covered included analytical
and data needs for pest-management programs, policies for promoting
biological and reduced risk alternatives, and overcoming barriers
to increased adoption of IPM practices and technologies.
Agricultural Biotechnology: An
Economic PerspectiveDescribes the economic, scientific,
and social factors that will influence the future of biotechnology
in agriculture. The supply of biotechnology innovations and products
will be affected by public policies and by expected producer and
consumer demand.
Agricultural Resources
and Environmental IndicatorsThis ERS basebook contains
a wealth of information covering a broad range of subjects in resource
and environmental economics. Chapter 4 covers Agricultural Production
Management, including soil management and conservation, pest management,
nutrient management, and livestock/manure management.
for more information, contact:
Lee Christensen
web administration: webadmin@ers.usda.gov
page updated: April 27, 2004
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