Doctoral Dissertations

Date of Award

8-1975

Degree Type

Dissertation

Degree Name

Doctor of Philosophy

Major

Agricultural Economics

Major Professor

M. B. Badenhop

Committee Members

B. J. Trevena, Larry Bauer, Keith Phillips

Abstract

The U.S. Department of Agriculture's report to the President in 1970 oh agriculture-related pollution stated; ". .. from the standpoint of quantity, sediment resulting from erosion of the land is the greatest contributor to pollution of surface waters." One major agricultural area in Tennessee contributing to this agriculture-related pollution is the Obion-Forked Deer River Basin, an area of approximately 3 million acres in parts of 14 counties in Northwest Tennessee. Approximately 94 percent of the Basin's land area was used for agricultural purposes in 1970. Continuously cropped upland areas without conservation measures have averaged 50 tons per acre of soil loss annually. The average topsoil loss for the Basin is approximately 23 million tons per year. This amount of soil erosion through time not only leaves the uplands relatively bare and less productive, but clogs stream channels with debris which destroys opportunities for recreation and contributes to bottomland flooding. In 1972, estimated damages due to flooding and sedimentation in the Basin was $31 million. The overall objective of this study was to determine the effect of water and land management practices on farm income of farms on the upland areas of the Basin. The overall objective of this study was met by quantifying the various farm enterprises and resource constraints and evaluating the problematic situation in a linear programming framework, a mathematical procedure for arriving at an optimal solution of a problem when given various activities and restrictions. Within this study, farm budgets were used to obtain information on typical farming practices and techniques used by farmers in the Basin. An objective function of net return to the uplands was maximized subject to resource constraints. The maximum potential net farm income was calculated for the upland areas of the Basin. Then, a soil erosion discharge standard available from the Soil Conservation Service and the Water Quality Control Division of the Tennessee Depart-ment of Public Health was used to set the maximum allowable level of soil that could be eroded. A system of land-use practices was generated to meet this standard. The maximum net returns to the uplands were recalculated subject to the original resource constraints plus the discharge standard and recommended cropping practices. The difference between the maximum net returns with the recommended water and land management practices and the maximum net returns without these measures was an estimate of the opportunity cost involved. The maximum potential agricultural income under current produc-tion patterns without regard for soil erosion. Model I, was estimated to be $186.3 million. The agricultural production organization generated stressed the production of cotton on the uplands. The universal soil loss equation was utilized in establishing the recommended crop rotational systems necessary to meet the soil erosion discharge standard of 10 tons per acre in Model II. The recommended cropping systems were entered into the second model of the study and the subsequent recalculation of potential agricultural income was estimated to be $144.5 million. The optimal production organization generated emphasized the production of cotton in rotation with com, wheat, and meadow (hay) crops. The estimated opportunity cost is the mathematical difference between the maximum potential agricultural incomes calculated in Model I and Model II. Consequently, the estimated opportunity cost in terms of agricultural income foregone with the implementation of recommended cropping systems is determined to be $41.8 million. This approximate $42 million loss in potential agricultural income must be considered the minimum cost involved with such an agricultural production change to limit soil erosion to a maximum of 10 tons per acre.

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