Effects of market and regulatory changes on livestock manure management in Southern Alberta

A spatial model of intensive livestock production for a region in southern Alberta was used to evaluate the impact of economic factors and regulation on regional returns and optimal manure management. Under current conditions, profit maximizing application of manure met nitrogen requirements but phosphorus application was about three times the crop requirements. Higher commercial nitrogen prices did not significantly alter the optimal manure application, but reduced regional returns. With a phosphorus limit regulation, it was less costly to compost about half of the beef cattle manure to remove it from the region than to truck manure long distances to meet the regulation. A $0.91/t reduction in the costs of composting, or a subsidy to reduce costs, was required to meet the phosphorus regulation. The net costs of the subsidy were slightly less than that of phosphorus regulation. Future research needs to explore the economic market and limitations of composting for manure management before any composting policy is initiated.