MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz...
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Transcript of MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz...
MS©
The Financial Feasibility of Using Shelterbelts for Swine Odor
Mitigation
Photos: P. Schultz
John Tyndall, Iowa State University
Robert Grala, Mississippi State University
Analysis Assumptions
Four test hog finishing farms:
• 2 primary odor sources
– Farm (buildings & storage)
– Manure application field
• C. Iowa wind patterns
• Manure Application field
– Liquid = 2,500 gals/acre
– Solid = 46 tons/acre Iowa’s summer winds :
south, southeast, and southwest
Iowa’s summer winds :
south, southeast, and southwest
May – August
Model Swine Farm and shelterbelt system details.
Farm A – Full confinement
facility
Farm B– Full confinement
facility
Farm C– Full confinement
facility
Farm D – Hoop Barn
Facility
Annual Pig Production 10,500 2,500 2,000 1,500
Building Ventilation Type Tunnel Mechanical Natural Natural
Manure Storage Above ground
concrete
Earthen manure pit
Above ground concrete
Solid/bedding
Farm Acreage 2.39 1.38 0.90 0.83
Number of trees Planted 530 250 380 221
Number of Shrubs Planted 120 50 150 75
Application Field Acreage 660 160 100 25
Number of Application Field Trees
2,145 1,045 835 395
Two row Shelterbelt in Ogden, Iowa Photo: G. Horvath
Shelterbelt Assumptions
Two row Shelterbelt in Ogden, Iowa Photo: G. Horvath
Shelterbelt Assumptions
•Farm Shelterbelts = 5’ – 6’ b/w trees, 4’ – 5’ b/w shrubs
•Field Shelterbelts (two rows) = 10’ b/w trees
•About 10% mortality Yrs 2 - 6
•Specific species not designated
Cost Scenarios
Two row shelterbelt planted around an manure lagoon in Central Iowa Photo: A. Hawkins
Cost Scenarios
Two row shelterbelt planted around an manure lagoon in Central Iowa
Planting Stock:
Seedling Price scenario = $0.75/ tree & shrub
Weighted Ave High price = $9.59Average / tree & shrub
Maintenance: i.e. mowing, spraying
“treatment” strip = 10’ x 5820’
Cost Share Programs:
EQIP = 75% establishment cost share
CRPIowa = 90% cost share + incentives/acre
Photo: A. Hawkins
100’x15’
100’x15’
Tunnel Vents
ConcreteManure Store
Access Road
Pit Vents
Snow Deposition zone – min 150’
Minimum of 10 H between tree row
and building wind rose for Central Iowa
June – Aug
N N
Nov – Feb
Min 10 x diameter of fans Tunnel Ventilation 10,500 head/year
Main H
ighway
Not to scale
= R. Osier Dogwood
= E. Red Cedar
= Austree willow
Farm = 530 trees &
120 shrubs
Field = 2,145 trees
Example
Wind rose for Central Iowa
June – Aug
N N
Nov – Feb
Natural Ventilation1,500 head/yr
Access road
Hog Building
Pit vents
Wider spacing between trees (25’ +)
Minimum of 10 Hbetween tree row and building
Main summer wind filter zone and winter windbreakMin 150’
Snow deposition area
Not to scale
= R. Osier Dogwood
= E. Red Cedar
= Austree willow
Farm = 122 trees & 145 shrubs
Field = 394 trees
Example
Basic Financial Models
1) PVC = PVSBSP + PVSBE + PVSBM
2) PVC = PVSBSP + PVSBE + PVSBM - PVCShare
Converted toEqual Annual Value (EAV) over 20 yrs
@ Real Alternative Rate of Return = 7 %
’s#
Economics: Cost Summary
• Examining upfront costs for site prep, planting stock, planting & maintenance costs over time:
– Low Cost scenario (≈$0.75/tree) over 20 years:
• Seedling stock ≈ $0.03/pig produced
– High Cost scenario (≈$11/tree) over 20 years:
• Larger, balled and burlaped stock ≈ $0.33/pig produced
• With extensive drip irrigation add ≈ $0.008/pig
Shelterbelt Cost vs. Odor Mgt Expenditures
Seedling Price Scenarios
$ 0.24
$ 0.37
$ 0.69
$ 0.24
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Farm A -
10,500 Head
Farm B -
2,500 Head
Farm C -
2,000 Head
Farm D -
1,500 Head
Do
llars
($)
per
hea
d
Expenditures
W/out EQIP
EQIP
Data: Tyndall and Grala, 2007 and USDA, 1996
VEB Economics
Shelterbelt Cost vs. Odor Mgt Expenditures
Seedling Price Scenarios
$ 0.24
$ 0.37
$ 0.69
$ 0.24
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Farm A -
10,500 Head
Farm B -
2,500 Head
Farm C -
2,000 Head
Farm D -
1,500 Head
Do
llars
($)
per
hea
d
Expenditures
W/out EQIP
EQIP
Shelterbelt Cost vs. Odor Mgt Expenditures
High Price Scenarios
$ 0.37
$ 0.69
$ 0.24
$ 0.24
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Farm A -
10,500 Head
Farm B -
2,500 Head
Farm C -
2,000 Head
Farm D -
1,500 Head
Do
llars
($)
per
hea
d
Expenditures
W/o EQIP
EQIP
Data: Tyndall and Grala, 2007 and USDA, 1996
VEB Economics
25% of Iowa’s ProducersWTP = 0
75% of Iowa’s Producers are Willing To Pay for VEB’s
Iowa Pork Producer Demand Curve for VEB’s
0
20
40
60
80
100
120
Percent of Producers
Will
ing
ne
ss
to
Pa
y
(ce
nts
pe
r h
ea
d)
60% 13%
Data: Tyndall, 2007
VEB Costs $0.03/ Head
VEB Costs $0.33/ Head
Bottom Line Conclusions
•Inexpensive technology – But it IS a cost
•In most cases, well below producer WTP
•Monetary room for multiple odor
management strategies
•Cost Share programs very important
•Shelterbelts as an EQIP BMP