Internalizing the societal costs of agricultural production

Monetary Valuation and Internalization of Externalities in German Agriculture Using the Example of Nitrate Pollution: A Case-Study

Plants are dependent on nitrogen for their growth. However, if more plant nutrients are deposited than the plant can absorb, the excess nitrogen seeps into the soil where it accumulates as nitrate. About 74% of the drinking water produced in Germany comes from groundwater. The legal limit of 50 milligrams of nitrate per liter of fresh water is exceeded frequently in Germany, especially in agricultural areas. High levels of nitrate in drinking water can quickly lead to health issues, under certain conditions. The nitrate problem is omnipresent in Germany. However, studies which determine the externalized costs of nitrogen eutrophication are mostly missing. The present study closes this gap by combining the results of a transdisciplinary investigation from hydrological analyses and environmental-economic calculations. Water samples were taken from a deep well in Hauneck, which is a municipality in Hesse (Germany). Afterwards, an isotope analysis was carried out to determine the groundwater residence time and possible sources of nitrate. Thus, in addition to the sources of pollution, concrete social costs were determined, using a damage cost approach as well as an avoidance cost approach. For Hauneck, it was found that about 54% of the drinking water price is directly linked to the externalization of costs. These are borne via the principle of the common burden. In addition, the isotope investigations have shown that the removal of excess nitrate will continue for decades, which will lead to long term external costs. The paper reveals how the internalization of these costs can contribute to the conservation of water resources.

Fertilizing nature: a tragedy of excess in the commons

Why has nitrogen fertilizer use declined in some countries while increasing in others, despite significant environmental harm? Proper crop management strategies offer environmental and economic benefits without sacrificing yields.

Globally, we are applying excessive nitrogen (N) fertilizers to our agricultural crops, which ultimately causes nitrogen pollution to our ecosphere. The atmosphere is polluted by N₂O and NO_x gases that directly and indirectly increase atmospheric warming and climate change. Nitrogen is also leached from agricultural lands as the water-soluble form NO₃⁻, which increases nutrient overload in rivers, lakes, and oceans, causing “dead zones”, reducing property values and the diversity of aquatic life, and damaging our drinking water and aquatic-associated industries such as fishing and tourism. Why do some countries show reductions in fertilizer use while others show increasing use? What N fertilizer application reductions could occur, without compromising crop yields? And what are the economic and environmental benefits of using directed nutrient management strategies?

Fields of dreams: negotiating an ethanol agenda in the Midwest United States

Corn ethanol production is central in the United States' agrofuels initiatives. In this paper I discuss corn ethanol production in Iowa, USA and examine several dynamics: farmers' positions in agrofuel supply chains; struggles around the construction and operation of agrofuel refineries; the politics of ethanol production and regulation; and the ecological consequences of increased corn production. I argue that current US agrofuels production and politics reinforce longstanding and unequal political economic relationships in industrial agriculture. I also argue that the politics of US agrofuels, focused on carbon accounting for greenhouse gas reduction and energy security, privilege urban and other actors' social and ecological interests over those of rural places of production.

Agricultural sustainability: concepts, principles and evidence

Concerns about sustainability in agricultural systems centre on the need to develop technologies and practices that do not have adverse effects on environmental goods and services, are accessible to and effective for farmers, and lead to improvements in food productivity. Despite great progress in agricultural productivity in the past half-century, with crop and livestock productivity strongly driven by increased use of fertilizers, irrigation water, agricultural machinery, pesticides and land, it would be over-optimistic to assume that these relationships will remain linear in the future. New approaches are needed that will integrate biological and ecological processes into food production, minimize the use of those non-renewable inputs that cause harm to the environment or to the health of farmers and consumers, make productive use of the knowledge and skills of farmers, so substituting human capital for costly external inputs, and make productive use of people's collective capacities to work together to solve common agricultural and natural resource problems, such as for pest, watershed, irrigation, forest and credit management. These principles help to build important capital assets for agricultural systems: natural; social; human; physical; and financial capital. Improving natural capital is a central aim, and dividends can come from making the best use of the genotypes of crops and animals and the ecological conditions under which they are grown or raised. Agricultural sustainability suggests a focus on both genotype improvements through the full range of modern biological approaches and improved understanding of the benefits of ecological and agronomic management, manipulation and redesign. The ecological management of agroecosystems that addresses energy flows, nutrient cycling, population-regulating mechanisms and system resilience can lead to the redesign of agriculture at a landscape scale. Sustainable agriculture outcomes can be positive for food productivity, reduced pesticide use and carbon balances. Significant challenges, however, remain to develop national and international policies to support the wider emergence of more sustainable forms of agricultural production across both industrialized and developing countries.

Addressing externalities from swine production to reduce public health and environmental impacts

Animal agriculture in the United States for the most part has industrialized, with negative consequences for air and water quality and antibiotic use. We consider health and environmental impacts of current US swine production and give an overview of current federal, state, and local strategies being used to address them.