THE ON-FARM COSTS OF REDUCING GROUNDWATER POLLUTION

Agricultural chemicals are a source of groundwater pollution in some areas. Regulatory options to reduce such nonpoint pollution imply costs to producers. By integrating plant simulation, hydrologic, and economic models of farm-level processes, this study evaluates on-farm costs of strategies to reduce nitrate groundwater pollution. The empirical focus is on intensively managed, irrigated farms in the Columbia Basin of Oregon. Results suggest that changes in timing and application rates of nitrogen and water reduce nitrate pollution with little loss in profits. Once such practices are adopted, further reductions in nitrates can be achieved only at increasing costs to producers.