Transcript Slide 1
The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi State University MS© Analysis Assumptions Four test hog finishing farms: • 2 primary odor sources May – August – 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 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 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 2,145 1,045 835 395 Manure Storage Number of Application Field Trees 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 Two row Shelterbelt in Ogden, Iowa Photo: G. Horvath Cost Scenarios Two row shelterbelt planted around an manure lagoon in Central Iowa Photo: A. Hawkins Cost Scenarios 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 Two row shelterbelt planted around an manure lagoon in Central Iowa Photo: A. Hawkins Example Snow Deposition zone – min 150’ Tunnel Ventilation Min 10 x diameter of fans 10,500 head/year Tunnel Vents Concrete Manure Store Main Highway 100’x15’ Pit Vents Farm = 530 trees & 120 shrubs Field = 2,145 trees = R. Osier Dogwood 100’x15’ = E. Red Cedar = Austree willow N N Access Road Minimum of 10 H between tree row and building Not to scale June – Aug Nov – Feb wind rose for Central Iowa Main summer wind filter zone and winter windbreak Min 150’ Example Natural Ventilation 1,500 head/yr Snow deposition area Farm = 122 trees & 145 shrubs Field = 394 trees Hog Building Pit vents Access road = R. Osier Dogwood Minimum of 10 H between tree row and building = E. Red Cedar = Austree willow N N Wider spacing between trees (25’ +) Not to scale June – Aug Nov – Feb Wind rose for Central Iowa Basic Financial Models 1) PVC = PVSBSP + PVSBE + PVSBM 2) PVC = PVSBSP + PVSBE + PVSBM - PVCShare Converted to Equal Annual Value (EAV) over 20 yrs # ’s @ Real Alternative Rate of Return = 7 % 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 ≈ $0.008/pig VEB Economics Shelterbelt Cost vs. Odor Mgt Expenditures Seedling Price Scenarios 0.8 Dollars ($) per head 0.7 $ 0.69 0.6 Expenditures 0.5 0.4 0.3 W/out EQIP $ 0.37 $ 0.24 EQIP $ 0.24 0.2 0.1 0 Farm A - Farm B - Farm C - 10,500 Head 2,500 Head 2,000 Head Farm D 1,500 Head Data: Tyndall and Grala, 2007 and USDA, 1996 VEB Economics Shelterbelt Cost vs. Odor Mgt Expenditures Seedling Price Scenarios High Price Scenarios 0.8 head perhead ($)per Dollars($) Dollars 0.7 $ $ 0.69 0.69 0.6 Expenditures Expenditures 0.5 0.4 0.3 W/o EQIP W/out 0.37 $$0.37 $$0.24 0.24 EQIP EQIP $$0.24 0.24 0.2 0.1 0 Farm A - Farm BB -Farm FarmCC- Farm FarmDD- Farm 2,500 Head Head 2,000 2,000Head Head 1,500 1,500Head Head 10,500 Head 2,500 Data: Tyndall and Grala, 2007 and USDA, 1996 75% of Iowa’s Producers are Willing To Pay for VEB’s 120 25% of Iowa’s Producers WTP = 0 Willingness to Pay (cents per head) 100 13% 80 60% 60 VEB Costs $0.33/ Head 40 20 VEB Costs $0.03/ Head Data: Tyndall, 2007 0 10 74 70 53 36 17 8 3 0 Percent of Producers Iowa Pork Producer Demand Curve for VEB’s 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 Contact Info: Dr. John Tyndall Phone: 515.294.4912 [email protected]