Progress 10/01/03 to 09/30/09

Outputs
OUTPUTS: Four research studies were conducted under this project. 1. A policy evaluation was conducted of the West Virginia Department of Agriculture administered a transport subsidy program to farmers throughout West Virginia during 2001 and into 2002. Three program goals were evaluated using mail and telephone survey data and economic computations of litter versus commercial fertilizer costs made with excel spreadsheets. 2. This project involved an analysis of data from a 2005 survey of farmers in poultry production counties of Maryland and West Virginia. Off-farm transport and on-farm implement of best management practices (BMPs) for land application were found to be strategies to address nutrient imbalances. The movement of poultry litter was examined and factors that influence implementation of BMPs by poultry growers are assessed. Most poultry growers transfer some or all of their litter and most stays in the county where it was generated. BMPs were most likely to be implemented by West Virginia chicken growers in Hardy County (a primary production county). 3. A mixed-integer linear programming model was formulated to minimize the cost of transport and processing of excess manure in the Chesapeake Bay watershed. The results showed that primarily poultry manure was moved out of surplus counties for land application or processing. In the base model, annual cost was more than $350 million with the bulk of the costs arising from construction of energy facilities for poultry manure. Forest land application of poultry manure had the lowest average cost and more forest land than agricultural land was used for manure application. The lowest cost analysis was $127 million annually when constraints were removed to expand manure application on agricultural land and allow unlimited construction of composting facilities. 4. This study involved a feasibility and economic viability analysis of a bio-based waste to energy system utilizing poultry litter as a fuel and a fixed-bed gasifier as a medium to convert litter into heat and cooling energy. Greenhouse and soil tests were conducted on the biochar product of gasification. As a soil amendment, biochar was determined to be alkaline and to increase plant essential macro and micro nutrients when added to West Virginia soils. No significant effects were observed on the tissue concentrations of lead or cadmium in radish bulbs, radish leaves, or spinach leaves. For the economic analyses, three major types of benefits from installation of a gasifier on a broiler farm were described: production of biochar and possible carbon credits, savings of fossil fuel, and improved health and production of broilers. Three scenarios were examined with economic analyses: base, high energy prices, and optimistic benefits. Under these scenarios, a broiler producer could afford to pay about $190,000, $350,000, and almost $900,000 for the gasifier. PARTICIPANTS: Partner organizations, individuals and collaborators: For the gasifier project: Coaltec Energy, USA Josh Frye Poultry Farm in Wardensville, WV Louis McDonald, Associate Professor, Soil Chemistry at WVU For the survey of poultry growers: Mid-Atlantic Water Program Doug Parker, Associate Professor in Agricultural and Resource Economics at University of Maryland For evaluation of poultry transport program: West Virginia Department of Agriculture TARGET AUDIENCES: Target audiences: For the gasifier project: Farmers using biochar and poultry growers For the survey of poultry growers: poultry growers and poultry industry in general For evaluation of poultry transport program: Decision makers concerning transport subsidy programs including the West Virginia Department of Agriculture and USDA, NRCS. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
Outcomes and impacts include: (a) Manure transfer/nutrient management guidelines for the AMA litter transfer program were altered in terms of mileage and payment rates based on findings from this research. (b) market development for the biochar product from poultry litter gasification via demonstration at a workshop on best management practices for crop operation.

Publications

• Catma, S. and A. R. Collins. 2010. Phosphorus Imbalances in the Chesapeake Bay Watershed: Can Forest Land and Manure Processing Facilities be the answers Revise and re-submit to Agricultural and Resource Economics Review
• Collins, A.R., T. Basden, and L. McDonald. 2009. Gasification of Poultry Litter to Produce Bio-Energy for Heat. Final Project Report submitted to Coaltec Energy USA, Inc., Carterville, IL.
• Collins, A.R. and D. Parker. 2007. Poultry Litter Management in Two Mid-Atlantic States. Agricultural and Resource Economics Review 36(2): 352.
• Collins, A.R. and T. Basden. 2006. A Policy Evaluation of Transport Subsidies for Poultry Litter in West Virginia. Review of Agricultural Economics 28(1): 72-88.

Progress 01/01/08 to 12/31/08

Outputs
OUTPUTS: During 2008, two research studies were conducted under this project. The first study is being done to evaluate cost-effective methods of utilizing excess manure in the Chesapeake Bay region. This study employs a math programming approach to minimize the cost of manure use among alternatives of land application (agricultural and forest), composting, pelletization, and electricity generation. Costs of each alternative have been obtained from previous research literature, manure surplus and deficit counties throughout the Chesapeake Bay region have been determined, and a math programming model has been developed and tested. The initial phase of this study was completed in 2008. In a subsequent phase, fertilizer application data is being added to the model to analyze the results. The second study involves a feasibility and economic viability analysis of a bio-based waste to energy system utilizing poultry litter as a fuel and a fixed-bed gasifier as a medium to convert litter into heat and cooling energy. This system has been installed on a poultry farm in Hardy County, WV by Coaltec Energy, USA, Inc. During 2008, this system remained in the testing phase of operation as litter quality remained a problem. A litter shed is being constructed to keep the litter dry and prevent it from forming "clumps" in the gasifier. Electronic scales have been purchased to collect chick growth data to examine the effect of different heating systems (gasifier versus propone) on broiler production. The remaining material after gasification (called "char") is being analyzed in greenhouse studies for plant growth properties. Once the gasifier is fully operational, data will be collected on the operational costs and energy savings generated by gasifier use. PARTICIPANTS: Gasifier Project: Partner organizations and individuals include: Coaltec Energy, NRCS, Poultry Specialists Inc., and Josh Frye. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
Cost-effective manure transport and processing facility locations were determined within the Chesapeake Bay Watershed. This model was designed to allocate excess manure to land application or processing in order to minimize the costs of appropriately utilizing all excess manure. Optimal solutions were assessed while examining the impact of farmer's willingness to accept manure, implicit values of manure use in land application and processing, and policies such as manure transport subsidies, energy tax credits and cost-sharing of composting facility construction. Under the base model, the total cost of utilizing excess manure to society is slightly under $200 million. 84% and 16% of total cost is spent on land application option of manure and processing options, respectively. Even when agricultural land available for manure application was limited with landowners' willingness to accept manure, land application is still the most preferred manure utilization option. The results show that when a manure transport subsidy program is implemented, the total cost of the objective function decreases between 78% and 80% depending on the other components of each scenario. However, about an average of $1.65 transport subsidy is needed to reduce the total cost of the objective function by $1. This implies that the cost of the transport program to society is greater than the benefits in terms of cost reduction. High-capacity litter composting facilities are the most economically viable processing option and are built in every model scenario. Only a $0.54 cost-share for composting facilities was needed to reduce the total cost of the objective function by $1. Unlike the transport subsidy program, there are substantial cost-savings provided by a cost-share program. Processing poultry litter for energy production, however, is the least economically viable processing option. In the model, the current renewable energy tax credit has no impact on building energy facilities that transform manure into electricity. Unless a state or federal program subsides at least 50% of total capital cost, the energy production option will remain economically not competitive with land application and other processing options.

Publications

• Catma, S. 2008. Utilization of Excess Manure within the Chesapeake Bay Watershed a Cost Minimization Approach. PhD Dissertation, West Virginia University Libraries, Morgantown, WV.

Progress 01/01/07 to 12/31/07

Outputs
OUTPUTS: During 2007, three research studies were conducted under this project. The first study is being done to evaluate cost-effective methods of utilizing excess manure in the Chesapeake Bay region. This study employs a math programming approach to minimize the cost of manure use among alternatives of land application (agricultural and forest), composting, pelletization, and electricity generation. Costs of each alternative have been obtained from previous research literature, manure surplus and deficit counties throughout the Chesapeake Bay region have been determined, and a math programming model has been developed and tested. The second study involves a feasibility and economic viability analysis of a bio-based waste to energy system utilizing poultry litter as a fuel and a fixed-bed gasifier as a medium to convert litter into energy. This system has been installed on a poultry farm in Hardy County, WV by Coaltec Energy, USA, Inc. It is currently in the testing phase of operation. A plan has been developed in conjunction with poultry scientists for data collection to examine the effect of different heating systems (gasifier versus propone) on broiler production and litter quality. Data also will be collected on the operational costs and energy savings generated by gasifier use. The third research project involves an analysis of data from a 2005 survey of farmers in poultry production counties of Maryland and West Virginia. Off-farm transport and on-farm implement of best management practices (BMPs) for land application were found to be strategies to address nutrient imbalances. The movement of poultry litter is examined and factors that influence implementation of BMPs by poultry growers are assessed. Most poultry growers transfer some or all of their litter and most stays in the county where it was generated. BMPs were most likely to be implemented by West Virginia chicken growers in Hardy County (a primary production county). PARTICIPANTS: First study: Alan Collins is the individual working on this study. Serkan Catma, a PhD candidate, is doing his dissertation on this study. Contacts include the nutrient management team of the Mid-Atlantic Water Program. Second study: Alan Collins and Tom Basden are the individuals working on this study. Partner organizations include the WV Department of Agriculture, Coaltec Energy, USA, Inc., Josh Frye (a poultry farmer), and Joe Moritz (WVU Poultry Scientist). Funding for this study is being provided by a USDA Conservation Innovation Grant. Third study: Alan Collins is the individual working on this study. Partners include Doug Parker at the University of Maryland and Jim Pease at Virginia Tech University. Collaborators include county extension agents and the USDA National Agricultural Statistics Service. Funding for this study was provided by the Mid-Atlantic Water Program. TARGET AUDIENCES: The main target audiences are agricultural and environmental policy makers and poultry farmers. Extension efforts will include workshops, fact sheets, and field days (particularly for the gasifier project). One field day for the gasifier project has already been held. PROJECT MODIFICATIONS: The major changes in research approaches were based on receiving of external funding from the USDA Conservation Innovation Grant and the Mid-Atlantic Water Program.

Impacts
The first two research studies described above are on-going with no research results achieved to date so that outcomes or impacts have been observed to date. The farmer survey data have been collected and result summaries have been reported survey participants, county extension agents, and at national conferences.

Publications

• Collins, A.R. and D. Parker. 2007. Poultry Litter Management in Two Mid-Atlantic States. Agricultural and Resource Economics Review 36(2): 352.

Progress 01/01/06 to 12/31/06

Outputs
During 2006, two research studies were initiated under this project. The first study focuses primarily on finding and evaluating cost-effective ways to utilize excess manure in Chesapeake Bay region based on a mathematical programming model. This model will evaluate cost minimization of manure use for land application as a fertilizer along with alternatives of composting, pelletization, and electricity generation. The primary objectives of this study are: i.To determine a least cost solution to excess manure utilization, ii.To evaluate the optimal mixture of land application and processing (composting, pelletization or energy generation) of excess manure, iii.To evaluate the impact of farmer's willingness to accept manure on the optimal mixture and least cost solution for utilizing manure, iv.To compare optimal mixtures and least cost solutions under a phosphorus and a nitrogen-based standard, and v.To analyze the impacts of proposed policy prescriptions to excess manure, such as a transport subsidy program or energy tax credits, in terms of cost and optimal mixtures land application and processing. The second study involves a feasibility and economic viability analysis of a bio-based waste to energy system utilizing poultry litter as the fuel and a fixed-bed gasifer as the medium to convert the material to energy. This system is being installed on a West Virginia poultry farm by Coaltec Energy USA, Inc. in conjunction with the West Virginia Department of Agriculture. Using data collected from the gasifier system, an economic feasibility analysis will be conducted to determine a range of energy price scenarios under which the gasifier will be able to pay for itself. Benefits of the gasifier to a poultry producer (provision of heat, improvements in poultry production, and ash generation) will be compared to its costs (capital investment, labor input and maintenance, and loss of litter for land application). In addition, West Virginia poultry producers will be surveyed to gauge their interest in and ability to invest in this new technology. The attributes of the ash generated from combustion of poultry litter also will be evaluated. This evaluation will include analysis of ash samples and greenhouse studies to determine the availability of the nutrients in the ash. The results will be used to determine the feasibility of incorporating this product into commercial fertilizer formulations.

Impacts
The first study will derive a minimum cost needed to appropriately dispose of excess manure in the Chesapeake Bay region given the land application and processing alternatives. Model solutions also will provide a comparison of minimum cost needed to dispose of excess manure based on phosphorus versus nitrogen based land application standards. Finally, the first study will help analyze the impact from and economic consequences of existing and proposed policies such as transport subsidies or renewable energy tax credits to help build power plants across the region. The second study will provide the poultry industry and growers with useful information about the technical and economic viability of using gasifier technonlogy to address litter disposal needs.

Publications

• Collins, A.R. and T. Basden. 2006. A Policy Evaluation of Transport Subsidies for Poultry Litter in West Virginia. Review of Agricultural Economics 28(1): 72-88.

Progress 01/01/05 to 12/31/05

Outputs
Litter transport is a commonly utilized strategy to address nutrient excesses. However, little hard information is currently available on the transport and fate of litter other than the tonnages involved in state subsidy programs. During the past year, this project examined: (1) the willingness-to-pay (WTP) for litter from non-users of litter; and (2) documented the movement of litter. This research relied on data collected from a mail survey sent to 999 farmers in Hardy and Pendleton counties in West Virginia with response rate of 58%. The majority of non-poultry farmers (66%) have used litter recently. Litter is commonly either given away or traded for services rather than exchanged for cash. Farmers who responded that they would pay nothing for poultry litter cited mainly environmental rather than financial concerns about litter use. In cash markets, mean WTP for broiler litter among non-users ranged from $6.7 per ton in Pendleton to $4.3 per ton in Hardy. Pendleton was found to have a more active, cash compensation litter market. In addition, willingness to pay (WTP) for broiler litter among non-users in Pendleton County who were very certain about their WTP was found to be higher than current market prices for litter. The greater WTP in Pendleton County reflects both lower litter prices in this county due to an abundance of turkey litter as well as an opportunity for future growth in broiler litter use. Conversely, WTP in Hardy County was lower current market price, reflecting a low potential for growth in litter use. 63% of poultry growers reported transferring some or all their litter off-farm. Not surprisingly, most litter (90%) stayed within the county where it was generated. Insufficient agricultural land resources are one reason why many growers transfer litter. Among broiler chicken growers, over half of the respondents did not have a land base sufficient to land apply all their litter. A minority (15%) applied all their litter on-farm even though the farmer owned or rented insufficient acreage for litter application.

Impacts
Information from the survey will be used to evaluate transport and market development strategies for poultry litter. Survey data indicate that willingness to accept manure among farmers. This research would enable more accurate estimates of manure nutrient application potentials within poultry production areas of Hardy and Pendleton Counties. In addition, survey data helps to identify education and/or technical limitations that discourage manure use by potential recipient farmers.

Publications

• Collins, A.R. and T. Basden. 2006. A Policy Evaluation of Transport Subsidies for Poultry Litter in West Virginia. Review of Agricultural Economics. 28(1):1-17.

Progress 01/01/04 to 12/31/04

Outputs
This project included three separate activities during 2004. The first activity involves development of nutrient budgets in the Mid-Atlantic region. Cropland nutrient budgets are being developed for states, counties, physiographic regions and watersheds within the Mid-Atlantic region. To date, the focus has been on phosphorus (P). The budgets are estimates of major P inputs (manure and fertilizer) and outputs (harvested crops) for cropland. P balance for cropland is defined as the difference between P inputs and outputs. The state-level budget trends indicate that manure P production has been increasing throughout the region since 1939, primarily due to increases in poultry production. Although significant reductions in fertilizer use since 1978 have offset some of the recent manure P increases at the state level, significant P surpluses still exist. County-level budgets indicate that areas with intensive animal production correspond with P surplus areas. The second activity involved development of a bench scale biofilter for removing ammonia from poultry house exhaust, and conserving energy in a poultry house by recirculating air through a biofilter to harvest ammonia. The high cost of energy is likely to further erode profit margins for growers. Treating stale air from the poultry house in a compost biofilter to remove ammonia and tempering the incoming fresh air would reduce the heat lost during the ventilation process. Harvesting the ammonia in a compost biofilter and land-application of the ammonia-rich spent biofilter medium would allow for use of the ammonia for crop production. High ammonia levels in poultry houses adversely affect both bird performance and worker health. The initial effort evaluated the use of a biofilter to remediate ammonia generated by a small flock of broilers. This bench scale study showed that compost had a high affinity for trapping air borne ammonia during the length of the study period. With the favorable results, a whole house study was designed that would not only evaluate the effectiveness of a compost biofilter to remove ammonia but also reduce the heating needs of the poultry house. The third activity involves greenhouse gas sequestration within soils and biomass. This activity analyzed the performance of alternative incentive designs and payment levels if farmers were paid to adopt land uses and management practices that raise soil carbon levels. At payment levels below $10 per metric ton for permanently sequestered carbon, analysis suggests landowners would find it more cost effective to adopt changes in rotations and tillage practices. At higher payment levels, afforestation dominates sequestration activities, mostly through conversion of pastureland. The most cost-effective payment design adjusts payment levels to account both for the length of time farmers are willing to commit to sequestration activities and for net sequestration. A 50-percent cost-share for cropland conversion to forestry or grasslands would increase sequestration at low carbon payment levels but not at high payment levels.

Impacts
Nutrient budgets could be used to develop regional strategies to address nutrient surpluses and protect regional water resources, such as the Chesapeake Bay. Budget information is being made available for use by policy makers at: http://www.mawaterquality.org/budget. Ammonia losses from animal agriculture are an emerging environmental issue. The animal confinement systems that we now use to produce poultry are a source for ammonia that is now lost to air during house ventilation. Valuable heated air is also lost during the ventilation process. If the whole house experiment can be shown to mitigate ammonia as well as the bench scale version and the heat exchanger is efficient enough to significantly reduce heating costs, this system will improve air quality and farmer profitability at the same time. The system must be user friendly, or easy enough for a typical poultry grower to operate and maintain.

Publications

• Collins, A.R. and T. Basden. 2005. A Policy Evaluation of Transport Subsidies for Poultry Litter in West Virginia. Review of Agricultural Economics. In Press. Lewandrowski, J., M. Peters, C. Jones, R. House, M. Sperow, M. Eve, and K. Paustian. 2004. Economics of Sequestering Carbon in the U.S. Agricultural Sector. USDA-ERS Technical Bulletin Number 1909, Washington, D.C.

Progress 01/01/03 to 12/31/03

Outputs
Research examined a litter transport subsidy program to farmers throughout West Virginia during 2001 and into 2002. These subsidies were intended as a pilot program to demonstrate the feasibility of moving surplus poultry litter from the Potomac Headwaters to central and northern West Virginia. A total of $75,000 in funding was provided for this program by the West Virginia Department of Agriculture and a poultry integrator (Pilgrims Pride). The primary feature of this program was to provide transportation cost subsidies to farmers outside the Potomac watershed who purchased poultry litter. Farmers were responsible for paying the first fifty miles of transport costs and then the program paid $2 per loaded mile of transport cost thereafter. To impress upon farmer participants the importance of nutrient planning in litter management, approval into the program was based upon an on-site assessment to determine farmer eligibility and development of a N-based nutrient management plan by a certified Nutrient Management Consultant. Research methods included mail and telephone surveys. A short mail survey was sent to 60 program participants during March 2002 with a 78% response rate. A detailed telephone survey was conducted on 31 farmers during April and May 2002. A brief, follow-up telephone survey was conducted in October 2003 to 26 farmers. Economic feasibility computations were made using excel spreadsheets to determine if litter use on tall grass hay land in West Virginia would be economically viable when compared with commercial fertilizer application. Present value costs were computed for both litter and commercial fertilizer. Economic feasibility was based on the net savings per acre by litter application. Three program goals were evaluated: (1) an ability to attract first time litter buyers; (2) to subsidize farmers who would continue to use litter in the future; and (3) to encourage farmers to utilize litter properly. The first two goals were met about two-thirds of the time with 62% program participants being first time users and 64% of the subsidized litter being an economically feasible replacement for commercial fertilizer. In counties where litter application was economically feasible, the average cost reduction achieved by litter use was between 14% and 17%. Despite most of the litter being transported to economically feasible regions, the program did not convince the majority of farmer participants to become committed users of litter without continued transport subsidies. Under the third goal, environmental protections provided by the transport program were found to be comparable to that utilized by poultry growers within the Potomac Headwaters region.

Impacts
Like many other states, budget problems in West Virginia have prevented the litter transport program from continuing into 2003. If the subsidy program was to be continued at some point in the future, the West Virginia Department of Agriculture should consider some of the following suggestions for future subsidy programs: (1) give funding priority to first time buyers; (2) establish a transport mileage cap within an economically feasible region, around 200 miles for tall grass hay land in West Virginia; (3) pay a portion of the transport bill rather than 100% after 50 miles in order to attract more buyers closer to but outside of the Potomac Headwaters region; and (4) avoid a continued dependence on subsidies by requiring prior program participants to pay an increasing portion of the transport costs to continue participation in the program over time.

Publications

• No publications reported this period