United States
 Environmental Protection
 Agency
Environmental Research
Laboratory
Athens G A 30613
 Research and Development
EPA-6CX)/S3-82-031  Sept. 1983
 Project Summary
 Resource  and  Environmental
 Impacts  of Trends in  U.S.
 Agriculture
 P. Crosson and S. Brubaker
  Trends in demand for agricultural
production and agricultural technology
in the United States suggest increasing
pressure on the nation's  land and
water resources over the next several
decades. The expected consequences
would be rising economic costs of
production and damages to the envi-
ronment. This study analyzes these
trends, assesses their economic and
environmental impacts, and discusses
policies for dealing with their impacts.
  The quantities of land, water, and
other resources farmers use to increase
production  depend basically  on the
kinds of technologies they employ.
Two categories of technology are
distinguished — land-using technolo-
gies and land-saving technologies.
Farmers' choices from the spectrum
of technologies are conditioned by the
prices and productivities of the
alternatives. The  present trend to
land-using technologies  should con-
tinue if energy and fertilizer prices
increase as expected.
  Analysis of trends indicates that an
additional 60 to 70 million acres will
be brought into production by 2010
and that erosion will emerge as the
most serious environmental problem
of agriculture. Erosion on the projected
scale would pose a significant threat
to national water quality as well as to
the  productivity of the land. A slower
rise in inputs  of fertilizer per acre is
expected and the total quantity of
insecticide applied  to crops  should
decline. Herbicide use is expected to
decrease markedly.
  More effective  programs to gain
farmer cooperation in controlling
erosion may be required along with
research to develop new technologies
that serve both the farmers' economic
interest  and the  social  interest in
reducing environmental damages.
Development of improved land-saving
technologies, such as a higher yielding
variety of soybean, would  reduce
pressure on the land.
  This Project Summary was developed
by EPA's Environmental Research
Laboratory, Athens, GA, to announce
key findings of the research project
that is fully documented in a separate
report of the same title (see Project
Report ordering information at back).

Introduction
  The future resource and environmen-
tal impacts of agricultural expansion in
the United States depend fundamentally
upon the growth of agricultural produc-
tion, the kinds of technologies farmers
employ, and the policies adopted in
response  to resulting resource  and
environmental  problems. This study
deals with these three key components
of the emerging agricultural situation.
The period covered extends to 2010.

Projections of Agricultural
Production
  The focus is  on wheat, feedgrains,
soybeans and  cotton.  These crops
consistently account for 70  to 75
percent  of the  land harvested  in the
United States and for high percentages

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 of the fertilizers and pesticides applied.
 Moreover, if the growth of agricultural
 production in the United  States puts
 substantial pressure on the  resource
 base and environment,  it will  be
 because of the growth of production of
 these crops, particularly in response to
 export demand. Production of all other
 commodities  will grow primarily in
 response to United States population
 growth, expected to be less than 1
 percent annually over the next several
 decades.
  The projections are shown in Table 1.
 Those for 2010 for grains and soybeans
 were made in three steps: (1) project
 growth in world trade in each commodity;
 (2) project the United States percentage
 of trade; and (3) project domestic use.
 The projections for cotton were derived
 separately  from  a study by  the U.S.
 Department of Agriculture  (USDA).
  The projections of domestic demand
 for feedgrains make no special allowance
                        for use of corn to produce ethanol for
                        combination with  gasoline  to make
                        gasohol. Gasohol is presently competi-
                        tive with gasoline  only because  it is
                        heavily subsidized by exemption from
                        federal and state gasoline taxes. The
                        climate  for federal and  state fiscal
                        policies suggests that these subsidies
                        may be reduced, if not eliminated. More
                        important over the long run, a number
                        of studies indicate that by the end of the
                        century,  or even before, coal likely will
                        be a more economical source of liquid
                        fuel than ethanol from grain.

                         The projections to 2010 make no
                        explicit allowance for changes in prices.
                        However, the USDA projections to 1985
                        and 1990 incorporate increases in real
                        prices from 1979 levels. The trajectory
                        of these projections fits well with that of
                        the projections to 2010. We assume,
                        therefore, that the 2010 projections are
                        consistent  with some increase in  real
                                                     prices of commodities but we do  not
                                                     specify the amount of increase.


                                                     Farmers' Choices Among
                                                     Technology
                                                      Two categories of technology  are
                                                     distinguished: (1) land-saving (low ratio
                                                     of land to non-land inputs); and (2) land-
                                                     using (high ratio of land to non-land
                                                     inputs). We think of technologies as
                                                     lying along  a spectrum from land-
                                                     saving at one end to land-using at  the
                                                     other.
                                                      Farmers' choices from the spectrum
                                                     are determined fundamentally by  the
                                                     relative prices and productivities of  the
                                                     alternatives. From the end of World War
                                                     II until the early 1970s,  low prices of
                                                     energy, fertilizer and irrigation water
                                                     combined with high productivity of
                                                     these inputs  to favor land-saving
                                                     technologies. The quantities  of these
                                                     inputs rose rapidly and the amount of
Table 1.    U.S. Production. Export, and Domestic Use of Wheat, Feedgrains and Cotton. 1978/80 and Projections to 1985, 1990
           and 2010 (millions metric tons)

                                                                                 	RFF: 2010	
                                                                                             U.S. Share

Wheat
Prod.
Export
Dom. Use
1978
48.3
32.5
22.8
1979
58.1
37.4
21.3
1980
64.5
41.5
22.9
Average
1978/80
57.0
37.1
22.3
USDA
1985
67.6
42.4
25.2
1990
77.1
50.4
26.7
Constant
(D
98
70
28
(2)
100
72
28
Reduced
(1)
84
56
28
(2)
85
57
28
Feedgrains*
  Prod.
  Export
  Dom. Use

Soybeans
  Prod.
  Export\
  Dom. Use
222.1
 60.2
157.2
 50.9
 27.7
 23.5
238.8
 71.4
161.9
 61.7
 32.9
 23.7
198.7
 74.3
155.8
 49.4
 29.5
 24.0
219.9
 68.6
158.3
 54.0
 30.0
 23.7
253.7
 81.0
172.7
 61.7
 27.8
 33.9
282.0
 97.1
184.9
 72.1
 33.8
 38.3
354
167
187
120
 76
 44
428
241
187
129
 85
 44
316
129
187
104
 60
 44
372
185
187
112
 68
 44
Cotton
Prod.
Export
Dom. Use

2.4
1.4
1.3

3.2
2.0
1.4

2.4
1.2
1.2

2.7
1.5
1.3

2.6
1.1
1.5

2.7
1.2
1.5
(share not calculated)
3.5-3.9


Sources:  1978-1980 from the U.S. Department of Agriculture (USDA). 1985 and 1990. USDA projections provided by Leroy Quance,
done in the summer of 1980. The projections are preliminary and not official.
  The RFF projections to 2010 are by Pierre Crosson. Constant U.S. shares means that the U.S. maintains the same percentage of
world trade in the various commodities as in 1976/79; share reduced means a smaller percentage, as described in the text. The
columns (1) assume that the Common Agricultural Policy of the European Community remains unchanged. The columns (2) assume
that the policy is changed to permit more imports.
  For 1978-80  the difference between production and the sum of exports and domestic use is the change in stocks. In the
projections, stock changes are assumed to be zero.
* Corn and sorghum for grain, oats and barley.
•\The USDA projections are beans only.  The 1978-80 figures are RFF projections to 2010 are beans plus soybean meal and oil
 exports converted to the bean equivalent.

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cropland declined. Both crop yields and
total productivity rose at unprecedented
rates.
  Since the early 1970s, real prices of
energy and fertilizer have risen. The rise
in energy prices increased the cost of
pumping water for  irrigation,  and
increasing competition  for water  for
non-agricultural  uses  in the West
increased the opportunity cost  of the
resource. Farmers shifted toward more
land-using technologies. The amount of
cropland increased  over  50 million
acres from 1972 to 1980 and the ratio of
non-land inputs to  land  rose  more
slowly than in the two previous decades.
The rate of increase of crop yields and
total productivity slowed dramatically.
  Between 1980 and 2010, real prices
of energy and fertilizer are expected to
rise and rising pumping  costs and
opportunity costs should make irrigation
water in the West  more  expensive.
There is considerable potential  for
expanded irrigation in  the  Mississippi
Delta and, to a lesser extent in Georgia
and Florida.  Nonetheless,  rising real
costs of energy and  fertilizer and  of
western  irrigation would favor  more
land-using technologies in the future as
they have in  the 1970s, unless  new
land-saving technologies are developed
and adopted by farmers.

Trends in Productivity and
Crop Yields
  The assertion that the trend of crop
yields and total  productivity slowed in
the  1970s can be  challenged.  The
evidence shown in  Table  2 strongly
supports  the assertion. In  every year
from 1973 to 1980, except productivity
in 1975, both yields and total productivity
fell short of the trend values established
in 1950  to 1972. In 1978 the weather
was  highly favorable in major crop
producing regions, and in 1979 it was
even better. Crop yields set successive
records in those two years. Their failure
to match trend values of yields, there-
fore, is especially strong evidence that
the trend slowed after 1972.
  Analysis of trends  in  yields of corn
and soybeans in the  Corn Belt and of
wheat in  the Plains States supports this
conclusion for corn and wheat but not
for  soybeans.  After  adjustment for
effects of weather, soybean yields in the
Corn Belt continued to increase at the
trend rate set in 1950 to 1972. Weather,
however, does not explain slower
growth in corn and wheat yields. Two
other factors bearing  on the  trend of
yields of these crops were examined:
expansion of cropping to inferior land
and improvements in technology.
  It was concluded that expansion of
the amount of land in wheat would have
slowed the increase of wheat yields, but
that this could not account for more
than  10 percent  of the difference
between actual wheat yields and the
trend values of yields. The two principal
elements of technology examined were
fertilizer use per acre and irrigation. Per
acre application  of fertilizer to  wheat
land increased more slowly after 1972
and this would have slowed the increase
in yields. The percentage of wheat land
fertilized before and after 1972, however,
is not enough for this to have been very
important. Precise data are lacking, but
it is known that irrigation continued to
expand  in major wheat growing areas
after  1972.  So, irrigation  does  not
explain  the slower growth  of  wheat
yields. No satisfactory explanation for
this behavior is known.
  The expansion of the amount of land
in corn apparently explains a major part
of the shortfall in corn  yields.  Slower
growth in fertilizer application per acre
also  played a role, but irrigation
evidently did  not.
  On  balance, there is  no conclusive
evidence that slower growth of yields
and total productivity after 1972  was
                             owed to declining productivity potential
                             of the technologies that farmers em-
                             ployed. There clearly is  no evidence,
                             however, that this potential was increas-
                             ing.  There is no  reason, therefore, to
                             expect the productivity of present
                             technologies to  rise fast  enough to
                             offset  the prospective higher prices of
                             energy, fertilizer and water. In this case,
                             the  trends of  productivity and crop
                             yields established in the  1970s  are
                             better  guides to future trends than the
                             trends established before the 1970s.
                             The  implication is  that  to meet  the
                             projected  levels  of  crop  production
                             farmers will have to bring in much
                             additional cropland.

                             The Demand for and Supply
                             of Cropland
                               The  demand  for cropland in  the ten
                             USDA producing regions was projected
                             in two steps. First, regional shares of
                             production of wheat,  feedgrains,  soy-
                             beans  and cotton were projected on the
                             basis of historical shares, with a few
                             exceptions. The share of Texas in cotton
                             production has been  increasing  for
                             some  years at the expense  of  the
                             Southeast and the Mississippi Delta.
                             This reflects important  economic  ad-
                             vantages  of Texas, particularly in  pest
                             management, and is expected to con-
7able 2.
Indexes of Crop Yields and Total Agricultural Productivity in the U.S.
                     (1967=100)
                      Yields
                                          Productivity

1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
Actual
102
99
100
105
110
104
112
118
113
103
110
110
115
119
126
114
Trend*
99
101
103
1O6
108
110
112
114
117
119
121
123
126
128
130
132
Actual
Minus
Trend
3
-3
-3
-1
2
-6
0
4
-4
-16
-11
-13
-11
-9
-4
-18
Actual
1OO
97
100
1O2
103
102
110
110
111
105
115
115
114
116
119
115
Trend*
97
99
101
1O3
104
106
108
110
112
113
115
117
119
121
122
124
Actual
Minus
Trend
3
-2
-1
-1
-1
-4
2
0
-1
-8
0
-2
-5
-3
-3
-9
     Average deviation from Trend
                                Average deviation from Trend
           1950-1972:  2.9
           1973-1980: 12.5
*Trend of actual data in 1950-1972.
                                      1950-1972:  1.7
                                      1973-1980: 5.5

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tinue. The potential for  irrigation  in
the Delta and Southeast is expected to
increase  those region's shares  of
soybean production at the expense of
the Corn Belt. Doublecropping of wheat
with soybeans also will increase their
shares of wheat land at the expense of
the Northern Plains.
  The second step was to project crop
yields.  This was done on the general
assumption  that  yield  trends  in the
1970s provide the best guide to future
yields,  except for soybeans for which
the trends established since 1950 were
used.
  Dividing the regional projections  of
production by regional projections  of
yields gave projections of the demand for
cropland by region. For the nation as a
whole,  477  million acres  of cropland
would be demanded by 2010. In 1977
there were 413 million acres, according
to the  National Resources Inventory
(NRI) published by the Soil Conservation
Service. The NRI  showed that there
were 125 million acres  of land  in
pasture, forest and range with economic
potential  for conversion to  crops,
suggesting an ample supply to  accom-
modate the projected increase  in
demand.  However, urban and other
non-agricultural  uses will  claim 25 to
30 million  acres  of  cropland and
potential  cropland  between 1977 and
2010. The land now in pasture, forest
and range with potential for crops,
therefore,  would have to accommodate
additional cropland and non-agricultural
demands of 90 to 95 million acres. We
expect this could not be done without a
significant increase in the real economic
cost of agricultural land.


The Demand for Fertilizer and
Pesticides
  The continuing adoption by farmers
of land-using technologies  implies that
per acre applications of fertilizers will
rise generally in the pattern established
in the 1970s, which was much slower
than in the 1950s and 1960s. By the
end of the 1970s most farmers showed
close to optimal  per  acre uses  of
fertilizers. If fertilizer  prices  rise as
expected, farmers will have  strong
incentive to use fertilizer more sparingly.
There are  several ways to do this, e.g.,
improved knowledge of the amount of
naturally  occurring nitrogen made
available by mineralization, split applica-
tions to time more closely the availability
of nutrients to the plants'need for them,
slow release fertilizer and nitrification
inhibitors to reduce nitrogen losses to
leaching and volatilization.

  Since the late 1960s the amount of
organochlorine  insecticides  used has
declined  sharply and the  amount  of
organophosphorous and carbamate
compounds increased. The organochlo-
rines generally  are not highly toxic to
mammals but  they  persist for  long
periods. The  organophosphorous and
carbamate  compounds generally are
acutely toxic but relatively non-persis-
tent. The switch from the organochlo-
rine began because  of increasing
resistance  of cotton insects  to the
materials and was hastened by EPA
banning principal organochlorines,
beginning with DDT in 1972.

  The future  amounts  of insecticides
used by farmers will depend heavily on
trends  in use on cotton and corn.  In
1976, 40 percent of all insecticides
used on crops were used on cotton and
another 20 percent were used on corn.
  Two trends suggest that the amount
of insecticides  used on cotton will
decline over the next several decades.
One is the continuing  shift  of cotton
production from the Southeast and
Mississippi Delta to  Texas. In Texas,
integrated pest management (IPM)
based on a short season  variety  of
cotton and complementary  insect
management practices makes it possible
to achieve  satisfactory insect  control
with a small per acre use of insecticides.
By  comparison, per  acre use  in the
Southeast and  Delta is several times
higher. The continuing shift of cotton
production to Texas will lower average
use  of insecticides even if per acre
amounts used  in all  three regions
remain the same.
  But IPM is spreading also in the Delta
and the Southeast, indicating that per
acre use of insecticides on cotton will
decline in those regions also. Growing
conditions  in those regions  are more
favorable to insects and yields are
higher. Both conditions suggest that per
acre use of insecticides will continue
higher than in Texas. Some decline is
likely, however.
  IPM is less well developed to control
insects  of  corn,  and may  have less
potential. The principal insect  pest of
corn is the rootworm which, being a soil
dwelling  organism, is  not  so  readily
controlled by IPM, at least as currently
practiced.  Nonetheless, the  use  of
"scouts" to provide better information
about when and how much  to spray to
control corn  insects  is spreading and
should lead to  a  decline in per acre
amounts of insecticides.
  The prospective decline in per acre
amounts  of  insecticides applied to
cotton and corn implies a decline intotal
amount of  insecticides used on  crops,
unless amounts used on wheat  and
soybeans increase dramatically. Neither
wheat nor soybeans presently  are
seriously threatened by insects  and
amounts of insecticides applied to these
crops are low. The prospective relative
shift of soybeans to the Mississippi
Delta and  Southeast may result in a
doubling in the total amount of insecti-
cides used on soybeans, but this  would
be far more than offset by the decreased
use on cotton and corn. On balance, a
significant decline is expected over the
next several decades.
  The use  of herbicides, however,  is
expected to increase substantially, both
because of the  expansion of cropland
and  increasing  per acre applications
associated with the spread of conserva-
tion tillage. Conservation tillage means
a variety of tillage technologies with
three characteristics in  common:  (1)
they use some  implement other than
the moldboard plow to  prepare  the
seedbed, (2)  they leave  enough crop
residue on the  land to  significantly
reduce erosion, and (3) they rely more
on herbicides and less on cultivation
than  conventional tillage to control
weeds.
  Conservation tillage expanded rapidly
after the mid-1960s and in 1980 it was
used on about one-quarter of  the
nation's cropland. With  conservation
tillage non-land  costs  per acre  are
roughly 5 to 10 percent less than with
conventional tillage. Thus, where yields
are comparable, conservation tillage
has  an economic advantage  over
conventional  tillage. In general,  yields
are comparable on  reasonably well
drained soils where the growing season
is not too short and where weeds can be
adequately controlled with herbicides.
These  conditions are widely enough
met that conservation tillage probably
would be  economical on 50  to  60
percent of cropland even if there are no
technical breakthroughs, e.g., that
would make yrelds comparable to those
of conventional tillage on poorly drained
soils.

Environmental Impacts
  The prospective increases in resources
used by farmers indicate that damages
to the environment may rise. Four types
of damage are considered: (1) effects of

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fertilizer on water quality, (2) effects of
pesticides on  unintended targets, (3)
salinity resulting from irrigation, and (4)
erosion.
  Data are  inadequate for warranted
quantification of these damages. Instead,
we make judgments of  whether  the
damages are  likely  to increase from
present  levels and,  if so, whether the
increase  likely would call for new
policies.

Fertilizer
  The principal environmental damages
of fertilizers are to human and animal
health  from nitrate-IM  in ground and
surface  water and from  nitrogen and
phosphorus in accelerating eutrophica-
tion of lakes, reservoirs and other still
bodies of water.
  Except occasionally in some streams
in the Midwest, nitrate-N concentrations
in surface waters are less than the 10
ppm standard set by the U.S. Public
Health Service. This is  true  also of
groundwater except for  some "hot
spots" in California and Nebraska. The
projections of  nitrogen fertilizer  use,
taking account  of improved practices
and  materials in  reducing  losses,
suggest  a  nationwide  increase of
perhaps 30 percent in nitrate-N entering
ground  and surface waters.  Given •
present  nitrate-N concentrations in
these waters,  this  is not a seriously
threatening increase. In some regions,
however, particularly where  irrigated
production  on sandy soils  is likely to
increase  (parts  of the Southeast and
Northern Plains), the projected increases
in nitrogen applied and consequent
losses may give cause for concern.
  Phosphorus  typically is the critical
nutrient  accelerating eutrophication.
Municipal and industrial wastes provide
more phosphorus to surface waters
than agriculture. These wastes are
expected to decline more than enough
to offset  any increase in agriculture's
contribution of phosphorus.

Pesticides
  The projected decline in the quantity
of insecticides applied implies a lessen-
ing of the environmental damages from
these materials.  The substitution of
synthetic pyrethroids for  organophos-
phorous compounds  also should ease
the problem. The pyrethroids  are  not
toxic to mammals. They may be highly
toxic to fish, but they are  used in such
small quantity and  are so quickly
dissipated that  the probability  of their
reaching water bodies in significant
amount is low.
  Although the organophosphorous
and  carbamate compounds  are  more
toxic than the organochlorines they are
replacing, the change may  not  imply
increased environmental damage. The
organophosphorous and carbamate
materials are much less persistent than
the organochlorines and do not accumu-
late  in body tissue. These are strongly
positive factors. And the acute toxicity
of the  organophosphates and carba-
mates may actually make it easier to
control damages from these  materials.
Because the damages are immediate
and  obvious,  design of practices to
assure safe use and to fix responsibility
for misuse is facilitated.
  Present evidence does not suggest
that  the prospective  large increase in
use  of  herbicides is cause  for major
concern. Most herbicides are not toxic
to animals and studies of their effects
on soil microorganisms show no lasting
damage. Not all pathways  by which
herbicides may impact on the-environ-
ment have been investigated, but based
on present knowledge the greater use of
herbicides is not so threatening  as to
require  measures to prevent  it.

Salinity with irrigation
  The buildup of salt on irrigated land
and  in irrigation return flow already is
a  problem  in  parts of the arid West,
particularly in the lower Colorado River
basin and in California. The problem is
endemic in arid areas where irrigation
is used. It can be contained, however.
One  possibility is  construction of
evaporation ponds or drains  to remove
excessively salt-laden waters. There
also are various management practices
which reduce evaporation losses, thus
permitting achievement of given yields
with  less water and  less residual salt.
Development of more salt resistant crop
varieties also holds promise.
  These various alternatives should
hold the salinity problem within accept-
able  limits  over the  next several
decades.

Erosion
  Erosion impairs water quality, pollutes
the air and damages the productivity of
the land. In 1977, sheet and rill erosion
(i.e. by water)  from cropland was 1.9
million tons.  Erosion by wind in the
Plains States was 900  million  tons.
On a per acre  basis, sheet and rill
erosion  of cropland was 4.7 tons and
total  erosion was 6.8 tons, 1.8 tons
more than the  maximum consistent
with maintaining the productivity of the
land, according to the SCS.
  There are no good estimates of either
the  off-farm  or  on-farm (productivity)
damages of erosion. Whatever the
latter  may have been, they were
masked  by the strong  advance  of
technology in the 35 years following the
end of World War II.
  The  projections of production  and
cropland indicate  that  sheet and rill
erosion would increase from 1.9 billion
tons in 1977 to 3.5 billion tons in 2010.
No attempt was made to  project wind
erosion.  Erosion per  acre of cropland
would  rise from 4.7 tons to 7.4 tons.
Sediment delivered from cropland  to
the nation's  surface waters would
about double.
  It was believed that erosion on the
projected scale  would  be viewed  as
significantly worse than at present and
as a problem of major  national concern.
By comparison with it, the problems of
fertilizer  and pesticide pollution and of
salinity would be judged of secondary
importance.

Policy Issues
  The Federal  Government has taken
three approaches to  control environ-
mental impacts of agriculture. One, the
oldest, assigns  responsibility to  the
Department of Agriculture for programs
to control erosion. The prime objective
has been soil  conservation to protect
the productivity of the land, so these
programs have  not  been concerned
with environmental  quality, strictly
defined.  However,  soil conservation
often benefits water quality, and in any
case, in this discussion, environmental
quality incorporates the productivity
dimension.
  The  second approach  has been
through  Section 208 of  the  Federal
Water Pollution Control Act. The
purpose  of  Section 208 is to improve
water quality by controlling  non-point
sources  of pollution. The  EPA  has
principal responsibility for  programs
under Section  208.
  The third approach  is for  control  of
pesticides under the Federal Insecticide,
Fungicide and  Rodenticide Act (FIFRA)
as  amended.  This act gives the EPA
authority to suspend or ban  pesticides
found to  threaten environmental dam-
ages greater than the  benefits of these
materials. The EPA's actions can be
challenged  in the courts, but the record
shows  that its  authority under FIFRA is
substantial. It should be quite adequate

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to deal  with future environmental
threats of pesticides.
  Under Section 208 each state  has
drawn up a plan (or plans) to deal with
non-point pollution. The EPA Adminis-
trator must approve the plans. So far the
plans have relied overwhelmingly upon
voluntary measures of the sort long
promoted by the USDA to secure farmer
cooperation  in measures  to  reduce
erosion.  Because the objective of these
measures was to  protect productivity,
they  are not always optimal for  the
water quality objective specified in
Section 208.
  To induce voluntary cooperation,  the
USDA programs  share the  cost of
erosion  control measures  with  the
farmer. The  past performance of  the
programs has been criticized  for  not
being targeted on the farmers  causing
the  most  erosion and for funding
productivity improvements rather than
just protecting against erosion damage.
Whatever the limitations of these
programs in  the past, they  likely will
be much more limited in dealing with
future erosion if  it emerges on  the
projected level. If properly targeted,  the
voluntary approach  may give satisfactory
results at reasonable cost when com-
modity prices are low  and farmers'
incentives for intensive use of the land
correspondingly weak. In the projected
scenario, however, commodity prices
are relatively high, giving strong incentive
to use the land intensively. In these
circumstances, cost-sharing programs
to induce farmers to adopt conservation
programs on  the necessary  scale may
be prohibitively expensive.
  The  voluntary approach  likely will
appear inadequate in  these  circum-
stances. Section 208 authorizes  the
EPA to  take stronger measures to
achieve water quality objectives. Where
erosion is the main threat, regulations
limiting the amount of soil loss or a  soil
loss tax are possibilities. Such measures
could  leave  the  design of  control
practices to the farmer, but they would
hold him responsible for compliance
under the threat of court action.
  The EPA  thus would apply the
"polluter pays" principle to farmers just
as  it  now does  to  industrial  and
municipal polluters. Application of  the
principle, however, would run against
the long tradition  of how the Federal
Government deals with farmers to
control erosion. Although the principle
clearly applies to  controlling  off-farm
effects,  its departure  from tradition
likely would  arouse strong  opposition
from farmers. Its political and adminis-
trative costs likely would be high.
  Moreover, the principle is not appro-
priate for  dealing  with productivity
effects  of  erosion. While  control to
protect water quality often will benefit
productivity also, this is not necessarily
the case. Where productivity is threat-
ened and water quality is not, the legal
basis  for non-voluntary approaches is
weak, if not non-existent.
  It is likely that the voluntary  and
regulatory approaches, taken singly or
in some combination, will  prove in-
adequate to deal  with both  the water
quality  and productivity damages of
erosion if these emerge on the projected
scale. Alternative approaches should be
considered. One is a research strategy
to develop technologies which  will
simultaneously  serve  the  farmers'
economic interest  in  meeting rising
demand and society's interest in limiting
erosion  damages. Two lines of  techno-
logical development satisfy these condi-
tions. One is to find inexpensive  high
yielding  substitutes  for fossil fuels,
chemical fertilizers and irrigation water
since it is the rising cost of these inputs
which pushes farmers to adopt land-
using technologies. And the spread of
these technologies is  the principal
cause of the large projected increase in
erosion.  Research to improve  photo-
synthetic efficiency in main crops and to
build  nitrogen fixing  capacity  in  corn
could eventually develop new, econom-
ically competitive land-saving  techno-
logies.
  The other line of research would aim
at extending the economic limits of
conservation tillage, making it possible
  to contain the erosion costs of bringing
  more fragile lands under crops. Devel-
  opment of seed varieties that perform
  well in poorly drained soil would help to
  overcome present limits of conservation
  tillage, as would new herbicides or
  application techniques *to deal  with
  weeds  now controlled only  by  deep
  plowing  and cultivation. And a  short
  season variety of corn would extend the
  northern limits of conservation tillage.
    A research strategy to develop  tech-
  nologies of the sort described would not
  be  a substitute for traditional voluntary
  programs  to control erosion or for
  stringent regulatory approaches where
  these are appropriate and feasible. Over
  the long term, however —  and the
  erosion  problem is long term  — a
  research strategy could be a  valuable
  supplement to other programs. Its great
  strength is that it seeks to harmonize
  the farmer's interest and society's
  interest  in the use  of land, not by
  payment of expensive subsidies or the
  threat of legal  sanctions, but through
  the economic  forces of the market
  place. One need not have a philosophical
  preference for market solutions to
  recognize the market's advantages in
  flexibility and speed of response  com-
  pared with management by government
  intervention. But the  market solution
* will be  acceptable  only if  it serves
  society's interest in erosion control as
  well as the farmer's interest in produc-
  tion. A carefully conceived and sustained
  research program to develop economi-
  cally attractive technologies along the
  lines specified  could be the socially
  most efficient  way  to  achieve  this
  coincidence of  interest.
  P. Crosson and S. Brubaker are with Resources for the Future, Washington, DC
    20036.
  G. W. Bailey is the EPA Project Officer (see below).
  The complete report, entitled "Resource and Environmental Impacts of Trends in
    U. S. Agriculture," (Order No. PB 83-200 634; Cost: $20.50, subject to change)
    will be available only from:
          National Technical Information Service
          5285 Port Royal Road
          Springfield,  VA 22161
          Telephone: 703-487-4650
  The EPA Project Officer can be contacted at:
          Environmental Research Laboratory
          U.S. Environmental Protection Agency
          College Station Road
          Athens, GA  30613

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