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Using SPARROW for Agricultural Analysis

Using SPARROW for Agricultural Analysis. Marc Ribaudo and Robert Johansson Resource Economics Division Economic Research Service U.S. Department of Agriculture. Why does ERS care about water quality?. Agriculture is the largest land use in the U.S.

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Using SPARROW for Agricultural Analysis

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  1. Using SPARROW for Agricultural Analysis • Marc Ribaudo and Robert Johansson • Resource Economics Division • Economic Research Service • U.S. Department of Agriculture

  2. Why does ERS care about water quality? • Agriculture is the largest land use in the U.S. • Agriculture is generally recognized as the largest contributor of non-point pollution in the U.S.

  3. Damages Runoff AmbientWater Quality Inputs

  4. Shifts in hog production between 1987 and 1997

  5. Working Farmland Conservation Programs

  6. Policy Questions What are the environmental and economic tradeoffs inherent in working land programs and their designs? • EQIP and CSP

  7. Environmental Damages and Benefits

  8. Correlation Matrix (current, area weighted)

  9. Land Use and the Environment at the Extensive Margin

  10. Policy Questions How do government programs such as • crop insurance subsidies • set-aside programs (CRP) • price supports influence the environment?

  11. Net Gain/Loss of Agricultural Land 1982-1997 No change Decrease Yellow-red is land leaving agriculture, blue is land entering agriculture. Increase

  12. Characterizing Environmental Attributes of Land • Use maps and tables demonstrating the environmental • characteristics of land and how it varies spatially. • Emphasize exogenous features of the landscape • Map and analyze a variety of environmental indicators including: • county-level data set on species endangerment (Biodata Inc.) • pesticide, nitrogen, phosphorus, and sediment concentrations (USGS) • recreational activities and trips (2000 NSRE and 1996 NSFWS)

  13. Concluding Comments Agricultural &/or Environmental Policy 1 Changes in production practices, input use and outputs 2 Changes in physical measures of environmental impacts 3 Changes in economic measures of environmental impacts • ERS has expertise in examining 1, 3, and 4 • SPARROW can assist us in understanding 2

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