INTEGRATED MODELS OF ECOSYSTEM

 

 

Session 2B4

THE ECONOMIC AND ENVIRONMENTAL PERFORMANCE OF AGRICULTURAL PRODUCERS IN THE SOUTH FLORIDA EVERGLADES AGRICULTURAL AREA

Room

Mary C. Ahearn (Economic Research Service U.S. Department of Agriculture), Gerald W. Whittaker (U.S. Department of Agriculture), Rolf Fare

The South Florida ecosystem of the USA encompasses more than 18,000 square miles and supports a diverse set of ecological communities. The Everglades National Park, for example, is recognized by several environmental organizations as a unique and valuable area. Human activity from development and farming, in particular, have degraded the environmental richness of the area in a number of ways over time. Beginning in 1948, a plan was put in place to significantly reshape the natural hydrology of the area for multiple objectives, including to control the ground water levels for agricultural uses. A Federal-State partnership has been established to embark upon a study of the area to determine alternatives for restoring some of the lost environmental quality of the area. An important area for agricultural production is the Everglades Agricultural Area, just south of Lake Okeechobee. The agriculture there is dominated by sugar cane production. Nutrient use in the Everglades Agricultural Area has likely been a major contributor to the environmental degradation. This paper provides an integrated economic and environmental assessment of the environmental performance of sugarcane producers in the Everglades Agricultural Area of South Florida, USA. An indicator of environmental performance provides public-decision makers with information to identify firms which are leaders. The model also provides information on the shadow price of the environmental bad in terms of reduced value of production or increased cost of inputs, which will aid policy makers in efficiently formulating policies to address poor environmental performance. The measurement of environmental performance is accomplished by linking a nonparametric production model to a physical model of agriculture in the Everglades Agricultural Area. The economic data are firm level observations from a USDA survey, and physical data include daily weather, soil characteristics, and nutrient fate and transport.