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Proceedings available at: www.extension.org/67651
The 2010 USDA Agricultural Resource Management Survey (ARMS) Corn data will be used to examine the price paid for manure as a function of type of manure (i.e. species), form of manure, distance, size of farm, location, yield goal and whether the application rates of manure were influenced by Federal, State or local policies. Based on economic theory and the few empirical studies on manure use, it is hypothesized that swine manure will command a lower price than manure from cattle or poultry operations, all else equal. Liquid manure, due to dilution and volatilization of nutrients, will have a negative effect on price received. Due to transportation costs, which are included in the ARMS manure cost question, distance is hypothesized to have a positive effect on price. Farms in areas with high nutrient demand, such as the Corn Belt, are hypothesized to pay higher prices for manure while those in areas with excess manure nutrients, such as the Chesapeake Bay area, will pay lower prices or even be compensated to accept manure. Similarly, if policy affects application of manure, it is an indication that there are problems of excess manure in the area so prices are expected to be lower. Higher yield goals are expected to be positively associated with the price paid for manure since nutrient requirements will be higher.