4 Phosphorus Balance In European Agriculture - Status And Policy Options

 

Erik Sibbesen1 and artur Runge-Metzger2

1) The Danish Institute of Plant and Soil Science, Research Centre Foulum, DK-8830 Tjele, Denmark.

2) Institute of Agricultural Economics, University of Göttingen, Platz der Göttinger Sieben 5, Göttingen, Germany. (new address see list of participants)

 

 

Intensive agriculture is characterised by high animal densities and high levels of plant production. In some regions of Europe the fodder needs of livestock greatly exceed plant production so that considerable amounts of feeds have to be imported from other regions.

About one fourth to one fifth of the P and N in fodder leaves the agricultural system through animal products. The remainder is excreted from the animals and mainly spread on agricultural lands as animal manure. Much of the manure N is lost from the agroecosystem by volatilisation and leaching, however P, with its lower mobility, largely accumulates in the surface soil. This accumulation is beneficial if the P fertility of the land needs improvement. However, in parts of Europe the soil P content is now much greater than that needed by the crops. This increases the risk for P losses to the hydrosphere by leaching and erosion. In large areas of the Netherlands the soil may now be saturated with P so that P added in excess of crop uptake leaches from the soil (Van Boheemen, 1987; Breeuwsma and Silva, 1992).

We here attempt a P-balance of the agricultural system in all European (except the former Soviet) countries. Legislation by some countries on the application of animal manure to agricultural land will be presented. The effects of such policy interventions on P accumulation will be discussed in the context of economic considerations.

 

P compartments and flows

There are three main compartments in the agricultural P cycle, namely animals, soils and crops. In addition, two storage compartments, one for animal excreta and one for plant products, feeds and mineral supplements are used to obtain a comprehensive view of P flows inside, and into and out of the system (Figure 1). However, only those compartments and flows with the most significant influence on the P accumulation in soils will be considered.

It is possible to obtain a fair estimate of most of the P amounts and flows on a farm scale, but this is more difficult on a national scale. The simplest national agricultural balance of P is obtained by calculating the P input through mineral fertilizers, mineral supplements and imported fodder and subtract the P output through animal and plant products. Such balances have been computed for the

Netherlands and W. Germany by Isermann (1990), for E. Germany by Harenz (1989 a,b) and for Ireland by Tunney (1990). More detailed balances including estimates of P in fodder, animal excreta and harvested crops were made by Sibbesen (1989) for seven EC countries. He used the output of P in animal products to calculate P in fodder and excreta, a method which facilitates the calculation of P flows through various animal groups like cattle, pigs and poultry. This method will be used here.

Figure 1. Phosphorus cycling in agriculture.

 

Data sources and calculation method

Information about livestock numbers and production of animal products were obtained from FAO (1991d). From this information the P excreted in animal manure was calculated. The P excretion per animal varies considerably between animal species but also from animal to animal within the same species depending on feeding intensity (Koefoed and Hansen, 1990). However, the fraction of fodder P excreted by an animal species seems to vary less with feeding intensity (Koefoed and Hansen, 1990). Consequently, the fraction of fodder P which ends up in the animal products is also relatively constant. It is difficult to get information on fodder use in all European countries, especially on the use of forage. Information on animal production is more easily obtained. If P leaving agriculture through milk, eggs and animals for slaughter can be calculated, then it is straightforward to calculate the input of P in fodder and output of P through excreta provided the distribution coefficients between animal products and excreta are known.

 

Table 1. Values used for P concentration, carcass fraction (fca) and distribution of fodder P on excreta (Pe) and animal products (Pa) (milk, eggs and animals sent for slaughter). The P concentration values refer to live animals including contents of digestive and urinary tracts. For mammals, the carcass fraction is the weight of dressed carcass relative to live weight. For poultry it is the ready-to-cook weight relative to live weight.

  P concentration Carcass fract. Distribution
   mgkg-1  Refs.  fca  Refs.  Pe  Pa  Refs.
Cow milk

1.0
1, 2    

77

23
19, 22
Sheep milk

1.5
2    

77

23
22
Goat milk

1.2
2    

77

23
22
Eggs with shell

1.9
3,4    

80

20
21
               
Cattle

7.1
5,6,7,8,9,10

0.47

15

78

22
18,19,20
Pigs

5.5
5,11,12,13

0.70

16

76

24
18,19,20
Sheep, goats

5.0
5

0.47

22

77

23
22
Horses

7.0
18

0.60

22

77

23
22
Poultry

5.8
5, 14

0.82

17

58

42
14, 21
1) Andersen and Just (1983), 2) Ling (1961), 3) Bergquist (1979), 4) Simons (1986), 5) Günther (1972), 6) Agricultural Research Council (1984), 7) Ellenberger et al. (1950), 8) Schulz et al. (1974) 9) Nørgaard (1989), 10) Van Soest (1983) 11) Jørgensen et al. (1984) 12) Jørgensen et al. (1986), 13) Just et al. (1985), 14) Håkansson et al. (1983), 15) LIK (1986a), 16) LIK 1985), 17) LIK (1986b), 18) Sibbesen (1989), 19) Koefoed and Hansen (1990), 20) Sibbesen (1990), 21) M.G. Thomsen, pers. comm., 22) Estimated.

 

For a given animal group the amount of P removed in live animals (Pla) sent for slaughter is calculated from the equation

Pla = Qmfca-1cla

where Qm is the quantity of meat based on dressed carcasses excluding offal and slaughter fat (FAO, 1991d), fca is the carcass fraction (comparable to dressing %, Beaton et al., Ch. 2), i.e. the mean weight of dressed carcasses relative to that of live animals and cla is the mean P concentration of live animals. cla is calculated from the equation:

cla = feacea + fgicgi + fucu

where fea, fgi and fu are the mean weight of respectively empty animal, gastrointestinal content and urine relative to that of live animal, and cea cgi and cu are the mean P concentration of respectively empty animal, gastrointestinal content and urine (Sibbesen, 1990). The P concentrations, carcass fractions and distribution coefficients in Table 1 were used here.

Calculation of P in harvested crops is straightforward if crop coverage, yields and P concentrations are known. Coverage and yields of crops, were obtained from FAO (1991d), Eurostat (1989) and national agricultural statistical tables. Yields of forage crops could not be found for most countries outside the EC, so they were estimated. P concentrations were taken from Andersen and Just (1983) and Nehring et al. (1972).

All calculations are based on 1989 data except for the yields of crops which are based on four years (1986-1989) to partly compensate for year to year variations. Country divisions existing in 1989 are used. The data are presented relative to the area of total agricultural (crop and pasture) land.

 

Land use

To place European agriculture in a global scale, some land use parameters of world divisions are shown in Table 2. European agriculture only covers 4.5% of the world agricultural area, but 60% of Europe’s agricultural area is arable, indicating an intensive mode of production. Arable areas generally receive more nutrients and are more prone to P losses by surface runoff and wind erosion than permanent grassland areas. Denmark has the largest proportion of arable land and Iceland the least (Table 3). Poland, Czechoslovakia, E. Germany and Hungary also have relatively large proportions of arable land.

 

Table 2. Land use of continents in 1989 (FAO, 1991d).

   Total land area

 Agricultural area

Total Arable2 Grass3

 agric.

of total

 arable

of agric.

 agric.

of world
   ---------------1,000,000 ha---------------  -------------%-------------
N + Centr America

 

2138

 

636

 

267

 

369

 

30

 

42

 

14

South America

 

1753

 

595

 

116

 

479

 

34

 

19

 

13

Europe1 473 209 126 83 27 60 4.5
Africa 2964 1059 168 891 36 16 23
Asia 2678 1099 420 678 41 38 23
Oceania 843 482 50 432 57 10 10
USSR 2227 597 226 371 27 38 13
               
World 13076 4677 1373 3304 36 29 100
1 Europe except European part of USSR.

Table 3. Land use of European countries, 1989 (FAO, 1991)

   Total land area

 Agricultural area

Total Arable1 Grass2

 Agric.

of total

 Arable

of

total

Arable

of agric. 

 

---------1,000,000 ha-------

 -------------%-------------
Iceland 10.0 2.28 0.01 2.27 23 0.08 0.35
Norway 30.7 0.99 0.88 0.11 3 3 89
Sweden 41.2 3.41 2.85 0.56 8 7 84
Finland 30.5 2.58 2.45 0.12 8 8 95
Denmark 4.2 2.77 2.55 0.22 65 60 92
               
Ireland 6.9 5.64 0.95 4.69 82 14 17
U. K. 24.2 17.88 6.69 11.20 74 28 37
Netherl. 3.4 1.98 0.91 1.07 58 27 46
B.+ Lux. 3.3 1.49 0.81 0.68 45 25 54
France 55.0 29.50 17.90 11.60 54 33 61
               
W. Ger. 24.4 11.68 7.27 4.41 48 30 62
E. Ger. 10.5 5.93 4.68 1.26 56 44 79
Poland 30.4 18.46 14.41 4.05 61 47 78
CSR 12.5 6.62 4.98 1.64 53 40 75
Switzerl. 4.0 2.00 0.39 1.61 50 10 20
               
Austria 8.3 3.47 1.46 2.02 42 18 42
Hungary 9.2 6.25 5.05 1.20 68 55 81
Portugal 9.2 3.67 2.91 0.76 40 32 79
Spain 49.9 25.78 15.57 10.21 52 31 60
Italy 29.4 13.92 9.04 4.88 47 31 65
               
Yugosl. 25.5 13.39 7.04 6.35 52 28 53
Romania 23.0 14.31 9.90 4.41 62 43 69
Bulgaria 11.1 5.87 3.85 2.02 53 35 66
Albania 2.7 0.99 0.58 0.40 36 21 59
Greece 13.1 8.13 2.88 5.26 62 22 35
               
EC-12 223 122 67 55 55 30 55
Europe 473 209 126 83 44 27 60

1 Land under temporary crops, temporary (< 5 y's) meadows for mowing or pasture, land under kitchen gardens, and land temporarily fallow (< 5 y's).

2 Land used permanently (5 y's and more) for herbaceous crops, either cultivated or growing wild.

 

Stocking rate and P in animal products

The animal density is far greater in Europe than in other world divisions (Figure 2). The P flow through the animals is a key parameter with respect to P fertilisation of the land. The estimated amounts of P leaving agriculture through animal products (Table 4) vary greatly between countries. The Netherlands are on an absolute first place delivering almost twice as much as number two Belgium+Luxembourg which again deliver almost twice as much as Denmark and W. Germany. Norway, E. Germany and Switzerland are also positioned well above the European mean while Mediterranean and Balkan countries except for Italy are positioned well below.

Figure 2. Animal density based on total agricultural area for world regions in 1989 based on FAO (1991).

 

P in animal excreta and mineral fertilizers

In the production of P in animal excreta, countries range in the same order as with P in animal products (Table 4). In the Netherlands and Belgium+Luxem-bourg the average production rate is much higher than the amounts normally taken up by crops. Monogastric animals like pigs and poultry can be raised on purchased feed in factory farms without associated land. Ruminants, i.e. cattle sheep and goats, normally need land for producing the forage on which they are normally raised. The high excretion rates of P from ruminants in the Netherlands and Belgium+Luxembourg, however, indicate that they are largely raised on purchased feeds.

P in mineral fertilizers is ideally used as a supplement to P in animal manure. One should therefore expect little use of mineral phosphate fertilizers in countries producing much excreta P and vice versa. The opposite, however, is observed: countries producing much excreta P generally also apply much mineral fertilizer P (Table 4). Mediterranean and Balkan countries, producing little excreta P, also used little mineral fertilizer P. The average total P fertilisation rate was 25 kg ha-1 y-1 for all Europe and ranged from 79 kg ha-1 y-1 in the Netherlands to 1 kg ha-1 y-1 on Iceland (Table 4, Figure 3).

 

 

Figure 3. Total P fertilisation for all agricultural land in Europe in 1989.

 

CROP REMOVAL AND NET P FERTILISATION

Crop removal of P with harvests was around 20 kg P ha-1 y-1 at the most, i.e. in Denmark, the Netherlands, Belgium+Luxembourg and W.Germany (Table 5). Crop removal in the Mediterranean and Balkan countries generally was less than 10 kg P ha-1 y-1. The key figure for an environmental balance sheet is the net P fertilisation rate, calculated as the difference between total fertilisation and crop removal. It was positive for all European countries indicating a steady P enrichment of European soils (Figure 4 and Table 5). However, the enrichment rates varied greatly between countries with the Netherlands and Belgium+Luxembourg having extreme values of 57 and 42 kg P ha-1 y-1 respectively. West and East Germany and Czechoslovakia also had large net fertilisation rates of well above 20 kg P ha-1 y-1.

Table 4. P removed in animal products (milk, eggs, animals for slaughter, dead animals), P in excreta (faeces + urine) from various animal groups, use of P in mineral fertilizers and total P fertilisation over the total agricultural area in 1989.

 Country  animal  in excreta from  miner.  all
   prods.  cattle sheep goats horses  pigs  poultry

all

animals
 fert. fert.
   ------------------------------- kg P ha-1 y-1 ------------------------------
Iceland 0.1 0.4 0.0 0.0 0.5 1.1 1.6
Norway 4.4 12.0 2.2 0.6 14.8 16.2 31.0
Sweden 2.6 5.7 2.3 0.4 8.4 8.9 17.3
Finland 2.5 6.1 1.8 0.3 8.2 24.3 32.5
Denmark 6.7 10.1 10.8 0.7 21.5 15.6 37.2
               
Ireland 2.7 8.3 0.6 0.2 9.1 11.5 20.6
U.K. 2.9 6.8 1.4 0.9 9.0 10.5 19.4
Netherlands 19.5 31.7 25.1 4.8 61.6 17.5 79.0
B.+ Luxemb. 11.7 22.4 13.1 2.1 37.6 25.4 63.0
France 2.9 6.9 1.5 0.7 9.1 22.1 31.3
               
W. Germany 6.8 14.9 6.7 0.9 22.4 22.2 44.6
E. Germany 5.2 10.0 6.2 0.7 17.0 26.2 43.2
Poland 2.5 5.3 2.5 0.4 8.2 17.8 26.0
Czechoslov. 3.6 7.3 3.6 0.7 11.7 31.4 43.1
Switzerland 4.6 11.2 3.6 0.3 15.1 8.5 23.7
               
Austria 3.2 7.0 3.0 0.4 10.4 9.4 19.8
Hungary 2.9 3.1 4.4 1.0 8.5 19.8 28.3
Portugal 1.8 3.7 1.5 0.5 5.7 9.7 15.3
Spain 1.4 2.1 1.6 0.5 4.3 9.5 13.8
Italy 3.3 6.6 2.2 1.2 10.0 19.1 29.1
               
Yugoslavia 1.5 2.8 1.5 0.4 4.7 7.5 12.2
Romania 1.4 2.1 1.6 0.5 4.1 11.0 15.1
Bulgaria 1.8 3.3 1.8 0.5 5.7 16.4 22.1
Albania 1.4 4.2 0.2 0.3 4.7 10.8 15.4
Greece 0.9 2.0 0.5 0.3 2.8 10.1 12.9
               
Europe 2.9 6.0 2.6 0.7 9.3 15.6 24.9
EC-12 3.3 6.9 2.7 0.8 10.4 15.6 26.0

 

Figure 4. Net P fertilisation for all agricultural land (total fertilisation minus crop removal) in European countries in 1989.

 

FODDER P

The use of fodder in the Netherlands and Belgium+Luxembourg was much greater than the amounts produced on their own land, requiring a large import of fodder (Table 5). Also Norway, Denmark, W.Germany, E.Germany and Switzerland showed a net import of fodder whereas France and Sweden appeared to be net exporters. For all Europe fodder use and production seemed to balance.

 

Evaluation of P flows and environmental loads

The P flows presented are naturally open to debate as there are many approximations and limitations in calculations of this scale. However, the net fertilisation rates calculated compare reasonably well with net import calculations for E.Germany (Harenz, 1989 a,b), W.Germany (Isermann, 1990) and Ireland (Tunney, 1990). The 57 kg P ha-1 y-1 calculated here for the Netherlands is greater than the 36 kg P ha-1 y-1 calculated by Isermann (1990). Part of the reason for this discrepancy may be that Dutch agriculture has been addressing the P-surplus problem now for some years. Fine-tuning of P feeding norms and increasing utilization of phytate P in the fodder may have reduced the fraction of P excreted from the animals (Jongbloed and Lenis, 1992). In the Netherlands a small part of the manure is also processed into marketable fertilizers part of which may leave agriculture.

 

Table 5. P removed in crops (harvested or grazed), net P fertilisation (all fertilizer P minus P removed in crops), and P in fodder. Net import or export of P in fodder is the difference between P amounts in total fodder used, and potential fodder available from crop removal, 1989.

     

 

P in fodder

 

Country

Crop

removal

Net fertilisation

 

Total

Net

import

Net

export
           
  ------------------------- kg P ha-1 y-1 -------------------------
Iceland 0.9 0.7 0.6   0.3
Norway 15.0 15.9 19.2 4.2  
Sweden 15.0 2.3 11.0   4.1
Finland 11.9 20.6 10.7   1.2
Denmark 21.7 15.5 28.3 6.6  
           
Ireland 12.2 8.4 11.8 0.4  
United Kingdom 14.1 5.4 11.9   2.2
Netherlands 21.8 57.2 81.0 59.2  
Belgium+Luxemb. 21.5 41.5 49.3 27.8  
France 16.6 14.6 12.0   4.6
           
W. Germany 20.2 24.4 29.2 9.0  
E. Germany 17.7 25.5 22.1 4.4  
Poland 12.0 14.0 10.8   1.2
Czechoslovakia 16.5 26.6 15.3   1.2
Switzerland 13.1 10.6 19.7 6.6  
           
Austria 13.5 6.3 13.6 0.1  
Hungary 12.8 15.5 11.3   1.5
Portugal 7.8 7.5 7.5   0.3
Spain 7.3 6.5 5.7   1.6
Italy 12.1 17.0 13.3 1.2  
           
Yugoslavia 7.6 4.6 6.2   1.4
Romania 7.6 7.5 5.5   2.1
Bulgaria 9.5 12.6 7.5   1.9
Albania 7.9 7.5 6.1   1.8
Greece 5.7 7.3 3.7   2.0
           
Europe 12.3 12.6 12.3   0.1
EC - 12 13.2 12.8 13.7 0.5  

 

There is, however, no doubt that agricultural land in many parts of Europe receives much more P than needed by the crops with the effect that the soil is accumulating P. It should be borne in mind that the figures presented are averages and that the surplus P is unevenly distributed. Some regions within a country, farms within a region and fields within a farm receive much more P than the country rates presented. At farm level, the arable land generally receives more animal manure than permanent grassland. The aforementioned paradox that countries producing much excreta P also use much mineral fertilizer P is due to a division of different regions and farms into cereal and animal production. Transport of animal manure is costly and therefore limited. Therefore, animal producers are inclined to spread their animal manure on their own land and grain growers are inclined to use mineral fertilizer P. For many years the common agricultural policy in EC countries guaranteed high prices for cash crops like cereals and rapeseed, which enabled farmers in the more fertile areas to live solely by this production. This resulted in a "movement" of the animal production towards less fertile, regions with sandy soils, so that sandy soils generally receive more animal manure than clay soils. In Denmark this clearly shows in the soil-P test values determined according to Olsen et al. (1954). They are greater and increase at a higher rate in the sandy regions of Vestjylland and Nordjylland than in more loamy Østjylland, Fyn and Zjælland (Figure 5). The average Olsen P value for Denmark is 46 mg P kg-1 soil, a level which indicates that crop responses to further P application are not likely (Johnston et al., 1986). In the Netherlands in the sandy districts Salland-Twente, West Veluwe, Meijerij and South Peel about half the maize and grassland should now be saturated with P due to many years of surplus addition of animal manure (Breuwsma and Silva, 1992). In the Italian Po region environmental problems due to intensive animal production have been reported (Breuwsma and Silva, 1992), although the national Italian production of excreta P is low (Table 4). High local nutrient loads are also found in France in Finistère and Côtes d'Armor (L. Gueguen, pers. comm.)

 

Figure 5. Average (Olsen, 1954) soil P test values for Denmark and regions.

Legislation on animal manure in Europe

Legislation has been introduced in a number of European countries to control application of animal manure. In some of them, e.g. in Denmark, France and W. Germany the primary aim seems to be to control nitrogen losses. In others, e.g. the Netherlands and Belgium legislative regulations are based on P addition. Table 6 shows the maximum permissible P addition from animal manure in various countries, either stated or calculated from nutrient ratios. The permitted rates differ greatly between countries from 14 to 110 kg P ha-1 y-1, i.e. from a rate equivalent to crop uptake to five times the crop uptake. When an application rate of N is used as basis for the permissible application of animal manure it has the effect that more P can be applied as pig than as cattle manure (Table 6). Moreover, in some countries permissible rates differ between crops. This has traditional or technical reasons and is not based on differences in crop needs. For instance, in the Netherlands and Belgium very large rates of animal manure have traditionally been applied to maize because maize can tolerate it. In Germany, specific "ground water protection areas" have been created where crop choice and application of mineral fertilizers and organic manures are restricted, while income losses of farmers are compensated. These areas cover between 15 and 20% of the German land area, and have a major impact on environmental nutrient loads.

So far, permissible rates only apply to P in animal manure. Phosphorus in mineral fertilizers is not included in the regulations although there is little or no long-term difference between the two P sources after incorporation into the soil. More than 85% of the P in animal slurry is inorganic (Gerritse and Vriesma, 1984). Irrespective of P source, less than 10% of the P applied is taken up by the crops in the application year. The rest accumulates in the soil and contributes to the increased P fertility, or load of soils. In addition to limiting application rates, most countries stipulate time periods when spreading of animal manure is not allowed, mainly to limit nitrogen losses. To prevent surface runoff of animal manure it is generally not allowed to apply it to snow-covered or frozen ground. Most countries also prescribe immediate incorporation of applied animal manure.

The EC Council put forward an EC Nitrate Directive (EEC/91/676) in 1991 prescribing actions to control nitrate leaching from vulnerable regions. Member states are committed to formulate codes for good agricultural practices and to establishes rules for time periods for applying animal manure, for storage of animal manure and for limitations on total nutrient application. A maximum permissible rate for animal manure equivalent to 170 kg N ha-1 y-1 has been stipulated. This equals 19 and 43 kg P ha-1 y-1 respectively for cattle and pig manure. However, during a transitional period of four years 210 kg N ha-1 y-1 equivalent to 24 and 53 kg P ha-1 y-1 is allowed, and higher application rates will be permitted if they can be justified.

The EC Commission recently hosted an expert workshop on codes of good agricultural practices (Bonde, 1992). The Commission expressed concern about the negative impact on the environment of present animal husbandry practices, intensive use of fertilizers and degree of mechanisation. The experts agreed that a combined use of regulatory, advisory and financial instruments was necessary to regulate agriculture efficiently. As to regulatory measures the experts concluded that a maximum livestock density of animal holdings should be based on a maximum application rate of P (or potassium) in animal manure corresponding to the average need of common crop rotations of the EC member states.

 

Table 6. Legislative permissible addition of P through animal manure. P rates with asterisk are calculated from permissible animal density or permissible nitrogen addition through animal manure assuming excretion of 127 kg N y-1 and 14.5 kg P y-1 from one dairy cow and 4.0 kg N and 1.0 kg P from one fattening pig delivered (Koefoed and Hansen, 1990).
 Country  Year  Crops

 Permissible

animal density

 Permissible addition of nutrients in

animal manure
          Nitrogen Phosphorus
     

Cows1

Pigs2
 

Cows

Pigs

Avg.
     

numbers ha-1

------------- kg ha-1 y-1 -----------
                 
Norway 1989 all 2.54

84
 

36*

24*3

32*
Sweden 1995 all 1.65

105
 

23*

30*3

27*
Denmark 1993 all 2.36

13.66
 

33*

41*3

37*
Netherlands 1991 arable          

557
    maize          

1107
    grassland          

887
  1995 arable          

557
    maize          

767
    grassland          

767
Belgium                
Flanders 1991 arable          

658
    maize+grassland  

878
France                
Finistère 1991 arable    

2008

23*

50*

37*
    grassland    

3508

40*

88*

64*
C. d'Armor 1991 arable    

2008

23*

50*

37*
    grassland    

3508

40*

88*

64*
W.Germany                
Schlesw.-H 1991 all    

1608

18*

40*

29*
NR Westf. 1993 all    

2008

23*

50*

37*
Nd-Sachs. 1993 all    

2008

23*

50*

37*
Bd.Würt. 1991 maize    

1258

14*

31*

23*
    grassland    

2248

26*

56*

41*

1 Dairy cows with no young stock. 2 Number of places for fattening pigs.
3 Assuming three pigs delivered per place and year. 4 Landbruksdepartementet (1989).
5 Lantbruksstyrelsen (1989). 6 Miljøministeriet (1992). 7 Van Boheemen (1987).
8 Schröder (1992).

 

Economic aspects of policy interventions to reduce P emission in livestock intensive production area

The high P emissions from animal intensive farming systems in parts of Europe create a need to reduce P-flows from soils to water bodies at a cost acceptable to society. Environmental economics provides different solutions ranging from statutory government interventions (bans or regulations) to more market oriented instruments (taxes, quotas, pollution certificates, direct negotiations) (Pearce and Turner, 1990; Cropper and Oates, 1992). Most economists prefer the market approach while most governments opt for legislative measures. There is no clear evidence that any one approach is superior (Scheele et al., 1992).

The suitability of any intervention depends on certain characteristics of the environmental problem to be tackled which affect transaction costs and control costs. Negotiations, as a market oriented instrument, may not be practicable. It will be difficult to identify specific people who are affected by phosphate pollution since surface waters are more or less public goods. Current consumer wealth may be affected by effects on tourism or property values near eutrophic lakes, but the environmental damage may only occur after a considerable time lag so that the interests of future generations are violated. In general, the large number of people who are affected results in great transaction costs for negotiations. It is therefore justifiable that the government take the initiative as a 'custodian' of the interests of current consumers and future generations.

Control costs are incurred in the supervision of any policy measure. A measure’s ability to solve an environmental problem depends primarily on the number and kind of polluting sources which also determine the environmental parameters to be monitored. Non-point sources of pollution are an important part of P fluxes since any agricultural field is a potential P source. Phosphorus losses from fields may be controlled by setting specific limits for maximum "mobile" soil P contents in relation to local characteristics such as soil type, topography etc. For cost reasons, only a limited number of checks on such soil-P levels can be made on agricultural lands. The number of checks necessary depends on the stability of the parameter to be monitored. Controls must also be accompanied by sanction mechanisms to be effective.

In practice, many governments prefer to intervene at the farm level by limiting the number of animals per hectare. In most cases of existing legislation, the number of livestock units per hectare is fixed irrespective the agricultural land use and the yield potential of the specific location. This may lead to substantial economic inefficiencies because the economic potential of many areas may not be optimally used and because it is not assured that organic manure is really distributed according to the location-specific capacity to store or assimilate P. Therefore, effective control measures must consider soil properties and include soil analyses. Current legislation is unlikely to address the P-problem effectively.

Legislative measures are often accompanied by market-oriented policy instruments like the taxation of nutrients provided through mineral fertilizer. The experience of different European countries shows that taxation is an effective measure to reduce the use of mineral fertilizer. Farm incomes have not been curtailed substantially by this measure which indicates that fertilizer, in particular organic manure, was used inefficiently before. Potential income declines can be reduced when such taxes are transferred back to the agricultural sector (Becker, 1992). A more drastic measure to reduce mineral fertilizer use is to impose fertilizer production and trade quotas at the national or regional level. This would lead to a general rise of fertilizer prices (Scheele et al., 1992). Although the general impact on the environment will be positive in Europe, neither measure addresses the P problem of intensive livestock production areas specifically.

More specific options to counteract the environmental threats of P are available. Subsidies for the investment into specific equipment can be used, e.g. for stores for organic manure etc. Certificates or licenses can be granted for any piece of agricultural land to allow the application of a certain amount of nutrients according to crop removal and to natural conditions of the field. The farmer has to keep records with regard to animal husbandry (livestock numbers, purchased feeds, products sold) and field-related information (timing of application and amount of animal manure, mineral fertilizer, crop rotations etc.). The farmer then has to ensure that the potential output of manure-P does not exceed the certified amount of P he can apply. Transfers of animal manure in exchange for the certificate to neighbouring farmers, other persons or companies will be explicitly allowed. In this market, anyone could buy certificates, for instance, in order to reduce the application of animal manure to agricultural land near areas where the amenity value of a clean lake is high. This system is costly for farmers who will have to keep records, but better information with respect to nutrient balances could substantially improve farmers' ability to manage natural resources more effectively and thereby reduce over-fertilisation (Schindler, 1990). 'Nutrient-bookkeeping' is likely to be introduced in the Netherlands at the beginning of 1995 when excessive amounts of P will be taxed (Agra-Europe, 1993).

Environmental problems have to be assessed holistically, otherwise, solving one environmental problem may create a new one at a different level. For instance, the introduction of licenses for the land-disposal of animal manure may increase intra-regional transport of animal manure. This will lead to higher emissions through increased rural traffic, and to new externalities, in particular, when transport is subsidised in rural areas (road network, tax abatement on agricultural vehicles and oil). Thus, careful examination of secondary effects of environmental policies is indispensable.

Phosphorus emissions from agricultural land from surface runoff and wind erosion can only partially be controlled through the determination of a maximum permissible soil P content. Agricultural practices also must be changed to reduce surface runoff and wind erosion to acceptable levels. Usually, surface runoff and wind erosion are checked by clearly visible cultural measures (e.g. crop choice, wind breaks, grass strips etc.), and government regulations ('good agricultural practice') with respect to such measures can be easily imposed and controlled.

It will not be easy to arrive at the most cost-effective combination of environmental policies, in particular when the interests and incomes of small, but well-organised pressure groups like the EC farmers are affected negatively. Social unrest may be the consequence as seen during the reform of the EC common agricultural policy associated with the GATT negotiations, or the opening of the common market for agricultural imports from the East. It must be noted that economic welfare theory does not provide an answer to the question how welfare gains of an efficient environmental policy are distributed among the members of the society as long as distributional policies do not affect the efficient allocation of resources. In principle, direct financial compensation of farmers does not influence the outcome of an environmentally efficient policy as long as no major administrative costs are involved.

 

Acknowledgment

Thanks are due to A. Metherell, AgResearch, New Zealand and L. Gueguen, INRA, France for valuable criticism of the manuscript.

Phosphorus in the Global Environment.

Edited by H. Tiessen

© 1995 SCOPE. Published in 1995 by John Wiley & Sons Ltd.

Last updated: 12.07.2001