MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz...

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MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi State University

Transcript of MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz...

Page 1: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

MS©

The Financial Feasibility of Using Shelterbelts for Swine Odor

Mitigation

Photos: P. Schultz

John Tyndall, Iowa State University

Robert Grala, Mississippi State University

Page 2: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

Analysis Assumptions

Four test hog finishing farms:

• 2 primary odor sources

– 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

Iowa’s summer winds :

south, southeast, and southwest

May – August

Page 3: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

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

Manure Storage 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

Number of Application Field Trees

2,145 1,045 835 395

Page 4: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

Two row Shelterbelt in Ogden, Iowa Photo: G. Horvath

Shelterbelt Assumptions

Page 5: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

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

Page 6: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

Cost Scenarios

Two row shelterbelt planted around an manure lagoon in Central Iowa Photo: A. Hawkins

Page 7: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

Cost Scenarios

Two row shelterbelt planted around an manure lagoon in Central Iowa

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

Photo: A. Hawkins

Page 8: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

100’x15’

100’x15’

Tunnel Vents

ConcreteManure Store

Access Road

Pit Vents

Snow Deposition zone – min 150’

Minimum of 10 H between tree row

and building wind rose for Central Iowa

June – Aug

N N

Nov – Feb

Min 10 x diameter of fans Tunnel Ventilation 10,500 head/year

Main H

ighway

Not to scale

= R. Osier Dogwood

= E. Red Cedar

= Austree willow

Farm = 530 trees &

120 shrubs

Field = 2,145 trees

Example

Page 9: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

Wind rose for Central Iowa

June – Aug

N N

Nov – Feb

Natural Ventilation1,500 head/yr

Access road

Hog Building

Pit vents

Wider spacing between trees (25’ +)

Minimum of 10 Hbetween tree row and building

Main summer wind filter zone and winter windbreakMin 150’

Snow deposition area

Not to scale

= R. Osier Dogwood

= E. Red Cedar

= Austree willow

Farm = 122 trees & 145 shrubs

Field = 394 trees

Example

Page 10: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

Basic Financial Models

1) PVC = PVSBSP + PVSBE + PVSBM

2) PVC = PVSBSP + PVSBE + PVSBM - PVCShare

Converted toEqual Annual Value (EAV) over 20 yrs

@ Real Alternative Rate of Return = 7 %

’s#

Page 11: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

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

Page 12: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

Shelterbelt Cost vs. Odor Mgt Expenditures

Seedling Price Scenarios

$ 0.24

$ 0.37

$ 0.69

$ 0.24

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Farm A -

10,500 Head

Farm B -

2,500 Head

Farm C -

2,000 Head

Farm D -

1,500 Head

Do

llars

($)

per

hea

d

Expenditures

W/out EQIP

EQIP

Data: Tyndall and Grala, 2007 and USDA, 1996

VEB Economics

Page 13: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

Shelterbelt Cost vs. Odor Mgt Expenditures

Seedling Price Scenarios

$ 0.24

$ 0.37

$ 0.69

$ 0.24

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Farm A -

10,500 Head

Farm B -

2,500 Head

Farm C -

2,000 Head

Farm D -

1,500 Head

Do

llars

($)

per

hea

d

Expenditures

W/out EQIP

EQIP

Shelterbelt Cost vs. Odor Mgt Expenditures

High Price Scenarios

$ 0.37

$ 0.69

$ 0.24

$ 0.24

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Farm A -

10,500 Head

Farm B -

2,500 Head

Farm C -

2,000 Head

Farm D -

1,500 Head

Do

llars

($)

per

hea

d

Expenditures

W/o EQIP

EQIP

Data: Tyndall and Grala, 2007 and USDA, 1996

VEB Economics

Page 14: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

25% of Iowa’s ProducersWTP = 0

75% of Iowa’s Producers are Willing To Pay for VEB’s

Iowa Pork Producer Demand Curve for VEB’s

0

20

40

60

80

100

120

Percent of Producers

Will

ing

ne

ss

to

Pa

y

(ce

nts

pe

r h

ea

d)

60% 13%

Data: Tyndall, 2007

VEB Costs $0.03/ Head

VEB Costs $0.33/ Head

Page 15: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

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

Page 16: MS© The Financial Feasibility of Using Shelterbelts for Swine Odor Mitigation Photos: P. Schultz John Tyndall, Iowa State University Robert Grala, Mississippi.

Contact Info:

Dr. John TyndallPhone: [email protected]