PR - Economic Assessment Of Manure Phosphorus Regulations

Environmental concerns about phosphorus loadings in Lake Winnipeg and other water bodies have led to proposed phosphorus-based nutrient management regulations for the province of Manitoba (Canada), including maximum threshold levels for phosphorous on agricultural lands. The proposed regulations will require costly changes in the manure management practices of the province’s pig farmers. This article focuses on the direct annual cost to the pig producers in the province of complying with the proposed regulations should they become law. A recent set of farm-level survey data provides a base for the analysis. A GIS data system is used to facilitate measurement of impacts at level of the individual producer which are aggregated to determine the added provincial cost. The estimated added annual cost to the Manitoba pig industry under a maximum threshold regulation of two-times phosphorus removal is 17.88 million dollars, representing 18% of the estimated annual 2005 net income accruing to pig producers in the province. The estimated added annual cost under a maximum threshold regulation of one-times phosphorus removal is 27.86 million dollars, representing 28% of the estimated annual 2005 net income accruing to pig producers in the province.

KEYWORDS: phosphorus, nutrient management regulations, manure application, Province of Manitoba