Browsing by Author "Reneau, D. R."

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An Economic Analysis of Agricultural Soil Loss in Crosby County, Texas
(Texas Water Resources Institute, 1979-05) Reneau, D. R.; Taylor, C. R.; Harris, B. L.
The Federal Water Pollution Control Act Amendments of 1972, Public Law 92-500, established a national goal of eliminating the discharge of pollutants into the nation's waterways by 1985. As a step toward that goal an interim water quality standard of "fishable, swimmable waters nationwide" by July 1, 1983 was set. Under section 208 of this law, each state was required to establish a "continuing planning process" to define controls for agricultural non-point sources of water pollution. Section 208 calls for the development of state and area-wide water quality management plans. The plans are to include "a process to (i) identify if appropriate, agriculturally and silviculturally related non-point sources of pollution, including runoff from manure disposal areas, and from land used for livestock and crop production, and (ii) set forth procedures and methods (including land use requirements) to control to the extent feasible such sources." In an earlier group of technical reports (TR 87, 88, 90, 93, 94) in this series, a model was developed to measure the net social benefits from controlling agricultural sediment given various policy options. This was done by contrasting benefits to be gained from reducing the sediment load in a watershed against costs involved in achieving that reduction using various voluntary or mandatory policies to accomplish the reduction. It was a major conclusion of these studies that no policy which restricted soil loss to less than that which was economically desirable from the farmers own viewpoint would generate benefits greater than the costs involved. This finding, in the watersheds of major sediment control concern lead to a decision to change the base area for this report to a county instead of a watershed and to only deal with the on-farm consequences of various management practices. These on-farm consequences would include the changes in topsoil loss and the yield losses that result from losing topsoil. Also included are profit levels that could be expected from different management practices and how the present value of a stream of these profits would vary over various planning horizons.
An Economic Analysis of Agricultural Soil Loss in Mitchell County, Texas
(Texas Water Resources Institute, 1979-03) Taylor, C. R.; Reneau, D. R.; Harris, B. L.
The Federal Water Pollution Control Act Amendments of 1972, Public Law 92-500, established a national goal of eliminating the discharge of pollutants into the nation's waterways by 1985. As a step toward that goal an interim water quality standard of "fishable, swimmable waters nationwide" by July 1, 1983 was set. Under section 208 of this law, each state was required to establish a "continuing planning process" to define controls for agricultural nonpoint sources of water pollution. Section 208 calls for the development of state and area-wide water quality management plans. The plans are to include "a process to (i) identify if appropriate, agriculturally and silviculturally related non-point sources of pollution, including runoff from manure disposal areas, and from land used for livestock and crop production, and (ii) set forth procedures and methods (including land use requirements) to control to the extent feasible such sources." In an earlier group of technical reports (TR 87, 88, 90, 93) in this series a model was developed to measure the net social benefits from controlling agricultural sediment given various policy options. This was done by contrasting benefits to be gained from reducing the sediment load in a watershed against costs involved in achieving that reduction using various voluntary or mandatory policies to accomplish the reduction. It was a major conclusion of these studies that no policy that restricted soil loss to less than that which was economically desirable from the farmers own viewpoint would generate benefits greater than the costs involved. This finding, in the watersheds of major sediment control concern lead to a decision to change the base area for this report to a county instead of a watershed and to only deal with the on-farm consequences of various management practices. These on-farm consequences would include the changes in topsoil loss and the yield losses that result from losing topsoil. Also included are profit levels that could be expected from different management practices and how the present value of a stream of these profits would vary over different planning horizons.
An Economic Analysis of Erosion and Sediment Damage in the Duck Creek Watershed, Dickens County, Texas
(Texas Water Resources Institute, 1978-08) Harris, B. L.; Reneau, D. R.; Taylor, C. R.
The Federal Water Pollution Control Act Amendments of 1972, Public Law 92-500, established a national goal of eliminating the discharge of pollutants into the nation's waterways by 1985. As a step toward that goal an interim water quality standard of "fishable, swimmable waters nationwide" by July 1, 1983 was determined. Under section 208 of this law, each state was required to establish a "continuing planning process" to define controls for agricultural non-point sources of water pollution. Section 208 calls for the development of state and area-wide water quality management plans The plans are to include "a process to (i) identify if appropriate? agriculturally and silviculturally related non-point sources of pollution, including runoff from manure disposal areas, and from land used for livestock and crop production, and (ii) set forth procedures and methods (including land use requirements) to control to the extent feasible such sources." The water quality issue of concern in this study is fertilizer and pesticide residuals carried into waterways by sediment. Since sediment is a potential transporter of pollutants, practices to control agricultural non-point source pollution would probably be aimed at reducing soil loss. Conservation and conservation related practices are, at present, considered the best technical practices to abate agricultural non-point source pollution. This study examines the economic impact of various policies that could be used to reduce soil loss. Both regulatory and voluntary policies are considered. Economic impacts examined include: (a) impacts of the policies on farm income; (b) government costs associated with the policies, including administration costs; (c) off-site sediment damages that would be abated; and (d) social desirability of the policies. The first section of the report describes the selected "Best Management Practices" and examines the on-farm economics of soil conservation. Then, the second section postulates various sediment damage control options and models the economic consequences, both to agricultural producers as a group? and to society of implementing them.
An Economic Analysis of Erosion and Sediment Damage in the Lower Running Draw Watershed
(Texas Water Resources Institute, 1978-08) Mueller, P. E.; Lacewell, R. D.; Harris, B. L.; Reneau, D. R.; Taylor, C. R.
The development and implementation of agricultural non-point source (NPS) pollution control plans was mandated by the 1972 Federal Pollution Control Act Amendments, Public Law 92-500. The purpose of this particular report is to present the results of a study on the economic impact of implementing potential agricultural NPS pollution controls in Lower Running Water Draw watershed. The study focuses on: (a) the effects of erosion control on farm income, (b) off-site sediment damages in the watershed; (c) the costs of administering and enforcing alternative erosion controls, and (d) on-farm economics of soil conservation practices. Erosion controls considered include the traditional voluntary programs combined with economic incentives as well as possible regulatory programs. The focus of the study is on erosion and sedimentation because sediment is a potential transporter of pollutants. Practices to control agricultural non-point source pollution would probably be aimed at reducing soil loss. Conservation and conservation related practices are, at present, considered the best technical practices to abate agricultural non-point source pollution. This is a study of both conservation and environmental economics, two areas that tend to be closely related. For this project, the concern was over potential pollution (an off-site problem), but because of long-run farm income consequences, this concern cannot be separated from conservation problems (an on-farm problem). Accordingly, the report contains substantial information on the short and long-run on-farm benefits and costs of various soil conservation practices for the specific soil mapping units in Lower Running Water Draw watershed. The results of this study are applicable to the majority of the soils in the High Plains Land Resource Area. Only sheet and rill erosion are considered in the study. The first section of the report describes the selected "Best Management Practices" and examines the on-farm economics of soil conservation. The second section postulates various sediment damage control options and models the economic consequences of implementation, both to agricultural producers as a group, and to society.
An Economic Analysis of Erosion and Sedimentation in Lavon Reservoir Watershed
(Texas Water Resources Institute, 1978-10) Harris, B. L.; Reneau, D. R.; Taylor, C. R.
Public Law 92-500 - the 1972 Federal Water Pollution Control Act Amendments - mandates the analysis of agricultural non-point source (NPS) pollution controls. This report presents the results of a study of the economic impact of implementing potential agricultural NPS pollution controls in the watershed above Lavon Reservoir. The study focuses on: (a) effects of erosion controls on farm income, (b) off-side sediment damages in the watersheds; (c) costs of administering and enforcing alternative erosion-sedimentation controls, and (d) effects of adopting cotton pest management methods. Erosion controls considered include possible regulatory programs as well as voluntary programs combined with economic incentives. While the stimulus for this study was concern over pollution (an off-site problem) it can not, because of long-run farm income consequences, be separated from conservation problems (an on-farm problem). Thus, the study is as much an analysis of conservation economics as it is an analysis of environmental economics. Accordingly, the report contains substantial information on the short and long-run on-farm benefits and costs of various soil conservation practices for all soil mapping units in Lavon watershed The results are applicable to much of the Blackland Prairies Land Resource area.
Erosion and Sediment Damages and Economic Impacts of Potential 208 Controls: A Summary of Five Watershed Studies in Texas
(Texas Water Resources Institute, 1979-01) Taylor, C. R.; Reneau, D. R.; Harris, B. L.
This report summarizes results of economic analyses of erosion and sedimentation in five agricultural watersheds in Texas (see fig. 1). Economic analyses of the study areas considered both the on-farm economics of soil conservation and the economic consequences of various sedimentation control options. These topics were joined in the studies because they deal with different facets of the same problem. Unlike some potential pollutants, soil particles transported from a farmer's field that may become a problem downstream are a valuable resource, not a waste product. Because soil is valuable in itself, some level of soil conservation is going to be economically desirable even if downstream damages are not present or are not considered by the farmer. Results of the studies show that soil conservation does indeed pay in many situations and that its value is greater the longer the planning horizon of a farmer. This suggests that an educational program in this regard may reduce sediment damage while increasing farm income at the same time . Sediment can cause environmental damage (off-site costs) both directly and indirectly. Directly, the soil particles can cause environmental damage by filling up reservoirs and flood control structures and by deposition in other places. Indirectly, sediment can cause environmental costs by carrying plant nutrients that are potential pollutants. For the study watersheds, no evidence was found that the concentration of plant nutrients in the water posed health hazards to livestock or humans, nor caused undue eutrophication in the watersheds. Consequently, the study focused on off-site sediment damages resulting from shortened economic lives of reservoir and flood control structures and from sediment deposition in the watershed. Annualized off-site sediment damages ranged from a high of 26 cents per ton of gross erosion in Lake Lavon watershed to 14 cents per ton of gross erosion in Duck Creek, to 13.5 cents per ton of gross erosion in Lower Running Water Draw, to a negligible amount in Turkey Creek and Cameron County. These estimates are considerably lower than off-site sediment damages in corn belt watersheds (Lee & Guntermann). Policy Options for Controlling Sediment Public policies that can be implemented to abate off-site sediment damages include direct regulation, provision of economic incentives, education, and public investment. For point sources of pollutants, regulations are typically directed toward the pollutant at or near the point of emission into waterways. However, this is infeasible with non-point sources such as sediment because they enter waterways at an infinite number of points. Hence, regulations must be directed toward the practices that cause erosion and thus sedimentation. The economic incentive option includes alternatives such as Federal or State cost-sharing for adoption of conservation practices, and disincentives such as taxes or penalties on erosion. Education is a viable policy option in situations where producers are not adopting soil conservation practices that would be profitable. In these situations a successful education program would increase producer's income as well as reducing off-site sediment damages. Public investment could be used to pay for dredging sediment from reservoirs and flood control structures to prevent loss of flood control, water supply and recreational benefits. Social benefits and costs of various policy options based on direct regulation, taxation, and provision of economic incentives were estimated for three watersheds: Lake Lavon, Duck Creek, and Lower Running Water Draw. Items considered in the benefit-cost analysis were: (a) farm income consequences; (b) off-site sediment damages abated; (c) governmental cost or revenue; and (d) administration and enforcement costs associated with each policy. The major conclusion of this social benefit and cost analysis is that off-site damages are not large enough to warrant controls on agricultural activities in any of the watersheds; that is, the costs to society of controls exceed the total benefits to society for all of the policy options considered. Another conclusion is that an education program that emphasizes the on-farm profitability of conservation practices may reduce sediment damages while simultaneously increasing farm income.
Impact of New Irrigation Technology on the Texas High Plains: 1980-2020
(Texas Water Resources Institute, 1983-12) Ellis, J. R.; Lacewell, R. D.; Reneau, D. R.
Crop production on the Texas High Plains is constrained by limited and erratic rainfall, hence irrigation is important. Presently, 6 million acres, or 50% of regional cropland, are irrigated annually. Irrigation water is drawn from the Ogallala Aquifer, which has a recharge rate near zero, and is being depleted at the present rate of use. Future crop production is dependent on technology, as well as the resources available. Because water is a major limiting resource, technologies that increase plant available water, such as advanced irrigation distribution systems and soil moisture conserving tillage methods, are of particular interest, and are the focus of this study. Two levels of analysis were included. The first, a farm level analysis based upon representative counties showed the similarities and differences of response given particular resource endowments, technological options and price situations. Part of the analysis considers the impact of annual qroundwater withdrawal constraints on discounted net present value for a forty year planning horizon. The discounted net revenue was higher for lower discount rates, better commodity prices, and more advanced technology. However, alternative discount rates, prices, and technology did not change the optimum annual withdrawal limit. Lower initial groundwater resources reduced the revenue level and the optimal annual groundwater decline limit. The other part of the farm firm analysis covers expected costs, returns and cropping patterns for a single period. Prices have a significant influence on production, but a far greater impact on net returns. The value of production is 64% to 85% higher for normal prices versus low prices, while net returns are from 8 to 30 times higher. The amount of available groundwater was not as important as price in the determination of production levels, but it too had a significant impact on net returns. Comparing across representative counties, with prices, technology and groundwater situations held constant, the value of production varied more than $150 per acre, but net returns changed very little. The value of production increases 17% with advanced technology, but net revenue more than doubles. The second level of analysis, a regional analysis, addressed expected changes in cropland use, groundwater pumpage, production levels, input demand, and farm income over the next forty years, under select technology and price assumptions. Water availability and hence use, drops over time, reducing irrigated cropland, gross returns and net revenue. The demand for other inputs does not decline as quickly as water usage, indicating input substitution. Further, the decline in net revenue is greater than the reduction in gross returns or variable costs of production. The intensity of crop production declines and the mix of crops changes, reducing purchased input demand and lowering regional farm income. Advanced technology enhances the value of the groundwater resource, increasing water use especially in the later periods of the time horizon. Nontheless, over the whole 40 years, technologies which improve dryland, as well as irrigated, crop production, such as limited tillage and crop rotations, have a greater impact than advanced irrigation technology. While advanced technology enhances productivity and increases net returns, technology is not a substitute for irrigation. Nor does technology save groundwater resources in the large, since the increased value of the water, given advanced technology, encourages greater use, overall. Advanced technology, however, is important to the future of crop production in the region, since it increased the level of production, and net revenue. Further, the impact of technology was proportionally greater under the low commodity price scenarios than for average prices.
Recursive Programming Model for Crop Production on the Texas High Plains
(Texas Water Resources Institute, 1984-02) Ellis, J. R.; Lacewell, R. D.; Reneau, D. R.
A flexible, recursive programming model of crop production on the Texas High Plains was developed. Besides the linear programming (LP) Optimization routine and recursive feedback section, the model also includes a matrix generator and report writer to make scenario definition and output analysts faster and easier. The production activities for each run of the model, are defined for one acre of a specific crop or crop rotation, irrigated at particular times, using a chosen irrigation distribution system and tillage method, on a given land class. The irrigation level may be zero (i.e. dryland) and the land class can include terracing when appropriate. The objective function for the LP optimization routine is the maximization of net returns (gross returns minus all variable, or variable and fixed, costs) to land, water and management. For static runs, the maximization includes net returns over variable costs only; for temporal runs, over variable and fixed costs. LP constraints include land by soil class, irrigation water availability for each of 18 irrigation periods and a total annual water use constraint. The model can be run as either a static single period optimization or as a recursive, temporal model When operated in the recursive mode, the model will loop through up to 20 iterations, rebuilding the LP matrix for each iteration and writing a report for each period. The feedback section of the recursive model is used to update the groundwater situation after solution of each iteration. The amount of groundwater used is summed and that usage translated into the reduction in aquifer saturated thickness, increased pump lift and reduced well yield per period. The new groundwater situation plus any inputted changes in prices, technical efficiencies or crop yields form the data, from which the production activities and constraints for the next iteration are built. At the end of the prescribed number of iterations, a summary report covering the whole time horizon is written and the discounted present value of net returns is calculated at three prescribed discount rates.