Financial and environmental consequences of a voluntary farm environmental assurance program in Michigan

Abstract

The Michigan Agriculture Environmental Assurance Program is a voluntary environmental management program for Michigan farms. The Michigan Agriculture Environmental Assurance Program encourages farm managers to become better environmental stewards through writing Comprehensive Nutrient Management Plans and incorporating changes to comply with regulations as well as generally accepted management practices and recommendations. Early-adopting livestock producers with verified operations were interviewed to identify and measure costs incurred, environmental outcomes achieved, and producer attitudes and perceptions as a result of verification. The average total cost to become verified was $120,600 per farm, of which the average producer paid $104,423, with the remaining $16,177 provided through cost-share funds. Much of this cost was for long-term investments such as manure storage and facilities improvements. Producers realized an average postverification annual cost savings of $2,792 by curtailing unnecessary use of commercial fertilizer. The financial values had large amounts of variation in every case. The per animal unit costs of verification were generally in the same range as the US Environmental Protection Agency estimates for cost of compliance with similar (but mandatory) proposed regulations. With respect to environmental outcome, after verification, average operation mass balance improved. The primary motivation to participate in the program stemmed from existing or potential environmental regulations.