The Future of Animal Agriculture in North America - Farm Foundation

could also be integrated air and water policies for agriculture,
which are likely to be more cost-effective than separate policies
for each (USDA-ERS 2005). This option could include
increasing commitment to implementing regulatory and
incentive programs, including adequate funding for staff.
A related option would be for public-sector entities to provide
guidance for the improvement of private decision making by
key stakeholders. Under the National Land and Water
Information System, Canada is building capacity to provide
strategic information on land, soil, water, air, climatic and
biodiversity resource information to decision makers.
One implication of this option is that it would prevent the
“race-to-the-bottom” scenario that some fear. This option also
would allow the industry to move more freely across the continent.
Option 2. Expand systems research
by the public and private sector
Increase funding and partnerships for systems-oriented research
and technology about farm and industry-related aspects of the
problem, environmental/health aspects of the problem, and
social, economic and legal/policy, and international aspects of
the problem.
This research program must focus on farm and environment
interface, consider environmental capacity issues, and identify
solutions for different scales of farming and regional
environments. The technological solutions must consider
social/behavioral factors related to adoption, incorporate
information systems and use a performance-based approach to
assure accountability. The research should be regional, national
and global in scope, future-oriented and anticipatory of
emerging challenges, multidisciplinary including agricultural
universities and medical schools, and involve public and
private partnerships.
One implication of this option is that it would require
increased funding of research. Multidisciplinary research and
research partnerships are other potential implications.
Option 3. Target implementation of best management practices to
the highest priority water quality concerns
Past technical, cost sharing and educational work on nutrient
management plans had significant shortcomings in
implementation and accountability. Existing programs may not
be targeted to the producers contributing in a significant way to
local and regional water quality problems because of lack of
information on water quality problems or poor coordination
among agencies. In addition, in the United States, small or
mid-size farms that appear to be important contributors to
water quality problems in some states and regions may not be
reached by existing programs. These farms are not typically
required to be permitted by federal and state water quality
regulatory programs.
Environmental Issues 107
Central elements of this approach are to target efforts to areas
and farms with the greatest problems to achieve the greatest
environmental bang-for-the-buck. This would possibly include
a multi-faceted approach to integrate ecological goods and
services into agri-environmental policy to achieve broader
environmental outcomes. Because the focus is on
implementation, it would use existing social and economic
research knowledge on implementation and adoption, including
incentive-based tools. It would require improved coordination
among agencies and possibly other water or air quality
monitoring groups, and development of information systems to
assure alignment with existing farm programs and resulting
benefits. Work would be needed to improve understanding and
build trust within and among suppliers of information and
services, and with stakeholders.
Implications of this option include greater return on investment
from environmental programs; require greater investment in
education and efforts to move research findings into the field;
and focus on incentive-based tools rather than command and
control regulation.
Option 4. Use market-oriented mechanisms to “get the prices right”
This option involves public and private cooperation to explore
and foster promising innovative arrangements that internalize
external costs of animal enterprises, e.g., off-farm impacts on
neighbor, communities and the environment. Such
arrangements could more accurately reflect the societal costs
of animal production in prices, providing incentives to firms
to better manage manure and animal byproducts. Reflecting
the true cost of manure and byproducts in prices of products
or services provides incentive for producers and processors
to adopt systems that maximize profits while being
environmentally friendly. This option recognizes that
environmental stewardship does not depend on availability of
technology alone. Incentives must exist for producers to adopt
practices that protect the environment. The type of incentive
program will depend on implicit and explicit property rights in
current government approaches.
There are several market-oriented approaches to environmental
stewardship that attempt to provide the appropriate cost and/or
price signals to the managers that can influence the
environmental outcome. Examples include the following:
• Tighter coordination among participants in the supply chain
with regard to environmental byproducts of the operations.
• Green payments that reward stewardship and give farmers
incentives to provide environmental services.
• Tradable environmental credits could be used for many
environmental objectives, such as reduction of GHG
emissions and/or carbon sequestration, biodiversity credit,
and air and water quality. Polluters in other industries could