MANURE HANDLING COSTS AND THE COMPETITIVENESS OF PORK PRODUCTION

Simulations of possible regulation-related manure handling costs are compared to base scenario costs for the three main regions and phases of modern hog production over widely varying scale levels. The base scenario confirms previous research suggesting that in Iowa net benefits occur at small scale levels from injecting slurry stored in an outside earthern basin for corn production using a phosphorus standard. Increased transportation costs result in Iowa costs surpassing costs in Utah at higher scale levels, while costs in North Carolina are highest at all scale levels. Requiring systems to be lined and covered in Iowa and North Carolina results in proportionately greater increased costs per head in North Carolina. Adding the requirement that manure be applied according to a phosphorus standard increases costs proportionately more in Iowa at larger scale levels, but not at all at the smallest scale, and costs in Iowa surpass those in North Carolina at the largest scale. The results of all scenarios underscore the advantages enjoyed by Utah in manure handling because scales of operation there are among the largest.