Working Lunch!

1. Working Lunch! NACAA: July 17, 2007 Grand Rapids, MI Dave Beede Dept. Animal Science Michigan State University

2. Environmental Opportunities for Animal Agriculture:Extension’s Critical Role Dave Beede

3. What are current and future environmental opportunities for animal agriculture? What should be and/or are Extension’s roles? http://www.mdr.msu.edu Two Questions ?

4. Overview • Working Lunch • Two Questions (handout) • ‘Systems Thinking’ in farms? • Criteria for Evaluation of Agriculture Systems • Potential Climate Revenue Centers, Market Opportunities • Applied Research? • Extension’s Current and Future Role

5. Animal Farm ?

6. Animal Farm ?

7. Animal Farm……..

8. Dairy Farm (System)

9. Dairy Production System http://www.mdr.msu.edu MSU Extension Dairy Team, 2006

10. Industry: Straight line production process Raw materials  product  replacement over time Highly efficient operations Little waste material resulting from process Agriculture: Circular flow of nutrients (cycle) Products and wastes leave cycle May re-enter cycle Human/societal waste, food residues, etc. Raindrops collect gases and particulates from air Sustainable (systemic), but not perpetual Industry vs. Agriculture Production Systems Hoshiba, S. 2002. In: Greenhouse Gases and Animal Agriculture

11. ‘Industrial Agriculture’ Straight line production Import of some raw materials (feed, fertilizer, bedding) Raw materials  product  exported Quite inefficient (25 to 35% for animal products) Large amounts of waste; e.g., dairy……. ►(240 lb intake – 90 lb milk) = 150 lb out as manure Accumulation of nutrients (risk)? Not sustainable - Paradigm of industry is not directly transferable to agriculture Industry vs. Agriculture Production Systems Hoshiba, S. 2002. In: Greenhouse Gases and Animal Agriculture

12. Dairy Production System methane, ammonia methane, ammonia http://www.mdr.msu.edu MSU Extension Dairy Team, 2006

13. NRC (2003) Committee:Scientific Evaluation Commissioned by USDA and US EPA

14. Percent of Total US Air EmissionsNRC (2003) & Van Aardenne et al (2001)

15. Crops Feeds The (single) farm as a system Environment Manure FARM Farm boundary Animals Environment

16. The farm as a system In- and outflow of nutrients Emissions, runoff Environment Emissions, dust Feeds Manure Imports Crops Animals Meat & Milk Exports Inorganic P Environment

17. The farm (F-x) as a sub-system Environment U.S. farms Outflows F-7 F-1 F-9…. Inflows F-6 F-3 F-2 F-5 F-8 Environment F-4

18. The farm as a sub-system Systems are: • Artificial – imposed by humans • Hierarchical structure • Systems of lower levels are sub-systems of higher levels • Higher systems create new entities • e.g., trade organizations, cooperatives, markets • Systems are embedded in an environment • Material and energy flows amongst each other • Interact with each other

19. If the System is all livestock and crop farms, where does the Phosphorus in corn distiller’s grains come from?! F-7 F-1 F-9… F-6 F-3 F-2 F-5 F-8 F-4 Specific example of systems-approach

20. Origin of P accumulating in U.S.-Agricultural System Answer: Specific example of systems-approach

21. U.S.-agricultural system Net phosphorus flow • Not added to the system by corn distiller’s grains • Just not re-distributed evenly • Inflow of P to the system • Mined inorganic P (feed, fertilizer) • May not (does not!) counterbalance P outflow

22. P in Distiller’s Grains • Dairy industry takes on an industrial waste product (DGs) and transforms (part of) it into a valuable product (milk). • Who is the polluter? • Who is the (re)mediator? • Question:Environmental cost?! • Who is and should be responsible?

23. Agricultural production systems Criteria of evaluation? Kawakami et al., 2000.

24. Agricultural production systems Criteria of evaluation? • Profitability, economic efficiency • Bottom line for farms (sub-systems) • Input of fossil fuel (energy) • Net addition of CO2 • Environmental load (P, C, N; chem. species?) • Animal welfare • Human welfare (social benefit) How to assess these? They may not affect bottom line directly. Kawakami et al., 2000.

25. Agricultural production systems Cost of environmental load • Time lag • Partially ‘exported’ into ‘environment’ (the community) • Who is responsible for cost of environmental ‘clean up’? e.g., from EtOH production? • Up-front cost (prevention) cheaper? • How is farmer paid for compliance? • Cheap food policy vs. environmental protection?? • Climate/ environmental market potential for farmers?

26. The farm as a subsystem Dynamic over time Environment Environment

27. Adapted from R. Bawden, MSU Exploring the Environment:N-S-P-E-C-T • Natural • Biodiversity • Resources • Climate • Social • Social Organizations • Laws, Order & Regulations • Health, Safety & Security • Pop. Dynmcs & Employ • Technological • Energy • Military • Information and Media • Mech., Transport & Manufact. System • Political • Prevailing Ideologies • Forms of Government • Political Leadership • Constitution • Cultural • Lifestyle, Leisure & Entertmt • Religion & Spirituality • Literature and Art • Fashion • Ethics • Economic • Taxation • Global Trade • Income Distribution • Inflation & Interest Rates

28. System evolves over time • System embedded in environment • Forces from environment • System affects environment • N-S-P-E-C-T perspectives • Actions within the system • Strategy: Actively affect environment (vs. passively being affected)

29. Predicting the Future • Anticipate changes and developments in the system and its environment • Goal: Prepare farm (sub-system) for future success • CHALLENGE: “Try to avoid getting the future wrong vs. the impossible task of getting it absolutely right.” R. Bawden: Scenario Planning as an Experiential Exercise in Social, Reflexive and Transformational Learning

30. Predicting the future?? “Prediction is very difficult, especially about the future” – Niels Bohr • “Heavier-than-air machines are impossible.” – Lord Kelvin, 1895, British mathematician, physicist, and President of the Royal Society • “I think that there is a world market for about 5 computers.” – Thomas Watson, 1943, Chairman of IBM • “We don’t like their sound. Groups with guitars are on their way out.” – Decca Recording executive, 1962, on turning down the Beatles for a recording contract Cerf and Navasky, 1984. The Experts Speak. Pantheon Books.

31. Predicting the future using N-S-P-E-C-T Factors of future scenarios High Critical cohort of influences Impact Low Uncertainty Low High R. Bawden: Scenario Planning as an Experiential Exercise in Social, Reflexive and Transformational Learning

32. Predicting the future using N-S-P-E-C-T Examples for dairy farming

33. Role of THE Extension Educator? • Recognizes changes  progressive • ‘Imagine into existence’ future scenarios • Anticipates (N-S-P-E-C-T): social benefits, potential climate/environmental profit centers, exchanges, etc., etc.? ~ Initiates proactive change • Anticipates regulations ~ Initiates pro-active change ~ Mediator between farmers & scientific community

34. Chicago Climate Exchange (CCX) Richard Sandor 2003

35. New source of revenue?

36. CCX:monitoring, reporting, verification

41. ENVIRONMENTAL CREDIT CORP.SUPPLYING ENVIRONMENTAL CREDITSTO GLOBAL FINANCIAL MARKETS

44. American Electric Power Co., (AEP) Columbus, OH Coal Burning: produces 145 million tons CO2 / year Dairy and Swine Farms Dairy cow Produces 365 m3 CH4/year; (potency: CH4 = 21x CO2 ) 5 tons of CO2 equivalent; or 5 CO2 credits/year Via Anaerobic Digestion farms capture and destroy 5 CO2 credits/year per cow; burn methane for power - - - - - - a Wall Street Journal, June 14, 2007 Cows Produce Credits for Coala

45. American Electric Power Co., (AEP) Columbus, OH Coal Burning: produces 145 million tons CO2 / year AEP to buy 600,000 CO2 credits/year from ~ 200 dairy and hog farms 0.4% of AEPs annual global-warming emissions Real reductions (1 to 5%/year) mandated Dairy and Swine Farms Dairy cow Produces 365 m3 CH4/year; (potency: CH4 = 21x CO2 ) 5 tons of CO2 equivalent; or 5 CO2 credits/year Via Anaerobic Digestion farms capture and destroy 5 CO2 credits/year per cow; burn methane for power - - - - - - a Wall Street Journal, June 14, 2007 Cows Produce Credits for Coala

46. Michigan Conservation & Climate Initiative • MCCI provides access to US market for C offset credits for producers & landowners (CCX) • Joint Project: MI Assoc. Conservation Districts, MDA, Delta Insitute • Conservation tillage, permanent grass plantings, tree planting, anaerobic manure digesters • Supported by: MI Corn Marketing & Growers Assoc., MDEQ, MFB, MNLA, PF, USDA Farmer Service Agency, USDA NRCS --------------------------------------------------------------------------------------------------------------------

47. Percent of Total US Air EmissionsaNRC (2003) & Van Aardenne et al (2001)

48. Experimental Approach Emissions measurements • Newly established MSU Animal Air Quality Research Facilities • Strategies to reduce CH4 and NH3 pre- and post-excretion  Climate Credits

49. Discussion!----------------------------------

50. What are current and future environmental opportunities for animal agriculture? What should be and/or are Extension’s roles? http://www.mdr.msu.edu beede@msu.edu Two Questions ?