Economic Assessment of Compliance Costs for Ontario Pig Producers under Nutrient Management Regulations

This study investigates the impact of nutrient management regulations on pig farms in Ontario, Canada. Using mathematical programming, small, medium and large farrow to finish and finishing pig farms are examined using uniform and crop requirement based manure application. The model scenarios characterize the cost of compliance when nutrient application standards are applied from the Nutrient Management Act and a previously proposed standard from the Clean Water Act. Compliance costs for scenarios with uniform manure application are ≤6.47%; while compliance costs for scenarios with crop requirement based manure application are ≤0.25%. The Nutrient Management Act has two calculations for nutrient application standards, producers must comply with the less binding calculation. Compliance costs for producers under the less binding standard following a uniform manure application strategy are ≤1.53%; while producers following a crop requirement based manure application strategy have no compliance costs. The proposed Clean Water Act standard is more restrictive than the Nutrient Management Act standards.