Agriculture Reference
In-Depth Information
elements, which can result in lower productivity (Pimental et al. 1995; Lal et al. 1998;
Olson et al. 1998). Off-site impacts include sedimentation of local water bodies, impair-
ment of water quality, disruption of wildlife habitats and ecosystems, and reduc-
tion of recreational and aesthetic water resources (Ribaudo 1986b; Hitzhusen 1991,
2007; Bejranonda et al. 1999). From a societal point of view, the reduction in these costs
needs to be accounted for in order to determine the true economic benefits of CRP land.
Through different methods such as contingent valuation method, hedonic pricing, and
travel cost methodology, economists can take the physical environmental cost and ben-
efits of CRP land and equate them to economic returns.
Both off-site and on-site costs of soil erosion are associated with the amount of
soil loss per acre (Ribaudo 1986b). In order to calculate the benefits of reduced soil
erosion, we must first calculate the cost of soil erosion from RCP and from CRP. If
we subtract the cost of soil erosion from CRP from the cost of soil erosion from row
crops, we can get the benefits of reduced soil erosion from CRP (
B
on
and
B
of
).
The annual damage from soil erosion on a per ton basis (studies by Ribaudo
1986b; Shakya 1992) is used for estimation of the cost off-farm. Such estimates were
established for different regions of the United States by Ribaudo (1986b). Shakya
(1992) recommends using the estimates for three of the regions calculated in this
study—Corn Belt, Appalachian, and Northeast—since Ohio lies on the borders of
these three regions and displays characteristics of all three. Ribaudo's estimates for
these three regions are used for the calculation of off-site costs (Table 10.5) and have
been adjusted to 2011 values. In this analysis, the average values from the three
TABLE 10.5
Off-Site and On-Site Costs and Benefits of Soil Erosion in Ohio
Off-Site Cost
$/ha (
C
of
)
On-Site Cost
$/ha (
C
on
)
Total (
C
of
+
C
on
)
Downstream
Costs $/t
On-Site
Costs $/t
Region
CRP
RC
CRP
RC
CRP
RC
Appalachia
2.49
1.11
13.96
0.86
0.40
4.82
1.27
18.77
Corn Belt
2.17
0.96
12.18
1.54
0.69
8.65
1.24
20.82
Northeast
12.60
5.66
70.59
1.65
0.74
9.26
5.96
79.86
Average
5.76
2.58
32.24
1.35
0.61
7.57
2.82
29.66
For CRP (average): $/hectare/yr
Off-site Benefit:
B
of
=
C
of
(RC) -
C
of
(CRP) = 29.66
On-site Benefit:
B
on
=
C
on
(RC) -
C
on
(CRP) = 6.97
Total = 36.63
For CRP (Corn Belt): $/hectare/yr
Off-site Benefit:
B
of
=
C
of
(RC) -
C
of
(CRP) = 11.21
On-site Benefit:
B
on
=
C
on
(RC) -
C
on
(CRP) = 7.95
Total = 19.17
Notes:
Average erosion under row crop (RC) = 5.6 metric tons/hectare/year; average erosion under CRP =
0.45 metric tons/hectare/year.
Search WWH ::
Custom Search