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Evaluation of Costs and Cost Effectiveness of Agricultural BMPs
Dr. Doug Parker is the PI. Project duration is July 1, 2008 – March 31, 2009 with $201,360 in funding. The objective of this study is a comprehensive review of the costs of implementing agricultural non-point source BMPs that aim to reduce nutrient and sediment loads to the Chesapeake Bay. Using available information, the researchers will review existing estimates of those costs and, using new information regarding technical efficiencies and current prices, will develop total and unit costs for the range of BMPs. Costs will include capital and construction costs, annual costs, and the opportunity cost of fixed production factors. Ancillary to the estimate of costs, the review will distinguish between public funding available to offset BMP costs and private costs, net of any private benefits that might be attached to the BMP. All costs and cost efficiencies will be fully documented with respect to information sources, uncertainty and the range of technical efficiencies.
The study will begin with a review of the Economic Analysis and the technical efficiencies work posted on the Tributaries Strategies Website under Tributary Strategy tools. Weaknesses in the estimation of the Economic Analysis costs will be identified and the set of BMPs needing focused project effort will be developed. Criteria for selection into this set will include: 1) lack of published empirical data on either costs or technical efficiencies; 2) large variances for costs and efficiencies under existing conditions; and 3) significant changes in public support and/or factor prices. The new efficiencies reported in the Tributary Strategy Tools will be used to inform this work.
Following the initial separation of BMP costs and efficiencies into those that can be easily updated and those that will need focused background work, the project will undertake a literature review to improve the documentation of costs and efficiencies for both sets of BMPs and, where necessary, make recommendations for research requirements to improve those in the “focused revisions” set of practices for which existing research is lacking. We will also seek information concerning pubic funding sources for these BMPs. We will review existing and expected legislation and interview agencies that provide cost share and other means of support. This effort will generate a report providing specific research findings for identification of costs and predictable funding sources for those BMPs.
As BMP cost and efficiency are being developed, each will be tabulated in a spreadsheet framework that, when completed, will provide a second project output. These BMP cost/efficiency spreadsheets will be linked to an updateable list of costs so that, as factor costs change for BMP implementation, total and unit costs can be updated. A complete set of these spreadsheets will provide managers with a means of maintaining updated cost estimates for BMPs over time, as costs and funding opportunities change.
For more information, contact Dr. Doug Parker
Last updated: 04/9/2009
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