One of the challenges of trying to implement regulations or recommendations to control agricultural pollution is to evaluate the economic impacts on the livestock sector. Therefore, the main objective of this project was to propose a framework for the economic evaluation of the impacts of the new phosphorus P regulations. To demonstrate the new regulations, manure application rates were assessed with the help of three different nutrient management options: N-based nutrient recommendations, up to two times crop P2O5 removal and up to one times crop P2O5 removal. Costs per marketed pig allowed an effective comparison between the different strategies. The lowest average incremental costs of compliance were for annual application on land (up to two times P2O5 crop removal) and for the multi-year land application (up to one times P2O5 crop removal), averaging $0.15 in increased costs per marketed pig for farrowing and finishing operations. As for the strategies where no extra land was available and manure needed to be transported over a certain distance, increased cost per marketed pig averaged $1.11 per marketed pig for the two types of transport and distances assessed. Finally, for the strategy where no additional spreading land was available, incremental costs for manure treatment with solid-liquid separation technology averaged $1.08 per marketed pig and with aerobic technology, $3.50 per marketed pig. As for manure storage, incremental costs averaged $0.62 per marketed pig over a 10 year-period, using an interest rate of 7.5%. Overall, the assessment of the impacts of the new proposed environmental regulations on the selected scenario farms presented the following results: Negative impacts on farrowing operations were larger than on finishing operations, Grain corn was the cropping system with the least increase in land required and pasture was the crop with the highest increase, In areas or on farms where there is not sufficient nearby land for manure application a P2O5 removal basis, the cost increases are substantial, Incorporation of phytase into finishing rations will pay substantial dividends in lowering costs of manure management, For operations with cropping enterprises, the impact of exporting manure N to other farms and replacing with synthetic fertilizer N is substantial, equivalent to a decrease in net returns of 22-54%.
These increased costs could have significant impacts on Manitoba’s pork industry. For primary producers, this represents decreased profitability that will reduce further investment in this sector and an increased risk of losses during periods of low prices, threatening the viability of some existing operations. Beyond the farm gate, these increases in costs could also reduce investment and economic activity in other sub-sectors of the pork industry such as feed suppliers and pork processors.