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Income Effects of Reducing Agricultural Pollution*

Published online by Cambridge University Press:  28 April 2015

James C. Wade ,
Kenneth J. Nicol  and
Earl O. Heady
James C. Wade
Affiliation:
Department of Agricultural Economics, University of Arizona
Kenneth J. Nicol
Affiliation:
Center for Agricultural and Rural Development, Iowa State University, Ames, Iowa
Earl O. Heady
Affiliation:
Center for Agricultural and Rural Development, Iowa State University, Ames, Iowa
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Extract

The value and quantity of agricultural commodity production in various regions of the United States determines farmers' income in each region. Many farmers, businessmen, policy makers and administrators are concerned with the problem of change in farm income resulting from water quality restraints placed on cropland agriculture. This study evaluates the income change from a series of hypothetical national water quality policies by examining the changes in national and regional gross farm income. Long-run changes in total national income of controlling water pollution from farmland by soil loss restraints are relatively small, as aggregate gross income increases by four to six percent depending on the level of control studied.

The changes in regional gross farm income are more extreme since various regions of the country, including the southern states, are affected differently by potential water quality control. This study utilizes a national modeling system to examine these variables and reports an analysis of potential changes in gross farm income caused by environmental restraints placed on agriculture. Environmental goals analyzed are national soil conservation ones, with implications for national and regional farm incomes.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 8 , Issue 2 , December 1976 , pp. 65 - 72
Copyright
Copyright © Southern Agricultural Economics Association 1976

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Footnotes

*

Experiment Station Journal Paper No. J-8258 of the Iowa Agriculture and Home Economics Experiment Station, Ames, Iowa. Project No. 1885 and NSF-RANN Grant No. GI-32990.

References

[1] Eyvindson, R. H. “A Model of Interregional Competition in Agriculture Incorporating Consuming Regions, Producing Areas, Farm Size Groups, and Land Classes,” Volumes I through V, Unpublished Ph.D. Dissertation, Iowa State University of Science and Technology, Ames, 1965.Google Scholar
[2] Heady, Earl O. and Nicol, Kenneth J.. “Models and Projected Results of Soil Loss Restraints for Environmental Improvement Through U.S. Agriculture,” Agriculture and Environment, Volume 1, pp. 355–371,1974, Amsterdam.CrossRefGoogle Scholar
[3] Iowa State University of Science and Technology, Cooperative Extension Service. Iowa's New Conservancy Districts and Soil Loss Limit Regulations, PM-536, June 1972.Google Scholar
[4] Isard, Walter H.Methods in Regional Analysis, MIT Press, Boston, Massachusetts, 1960.Google Scholar
[5] Nicol, Kenneth J. “A Modeling Approach to the Economics and Regional Impacts of Sediment Loss Control,” Unpublished Ph.D. Dissertation, Iowa State University of Science and Technology, July 1975.Google Scholar
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[7] U.S. Department of Agriculture. National Inventory of Soil and Water Conservation Needs, 1967, USDA Statistical Bulletin No. 461, Washington, D.C.Google Scholar
[8] Wischmeier, Walter H. and Smith, Dwight D.. Predicting Rainfall-Erosion Losses from Cropland East of the Rocky Mountains, USDA, Agricultural Handbook No. 282, May 1965.Google Scholar