The Economics of Carbon Markets for Dairy Industry

Purpose

Dairy farmers in Washington state have been under significant pressure to reduce their carbon footprint in recent years. Dairy cooperative sustainability initiatives such as achieving carbon neutrality by 2050 have left many producers wondering what will be required of them to help their cooperatives meet this goal. Coupled with regulatory pressures to report on their greenhouse gas emissions and the threat of regulation to reduce them, uncertainty remains for producers around the types of climate-smart practices that will enable them to reduce their carbon footprint while remaining economically viable.

Without a thorough understanding of the costs and risks, pressures, or requirements to implement climate-smart practices may inadvertently drive consolidation and the accelerated loss of small to medium sized farms.

What Did We Do?

Utilizing Washington state dairy facility data, I conducted an economic cost benefit analysis of two climate-smart practices that capture GHGs from anaerobic storage: anaerobic digestors and the covered lagoon and flare system and the size of operation needed to implement both practices based on current and historic market conditions and technology costs. Private and public investment in climate-smart practices can have a substantial impact on whether they are economically feasible for producers to implement. I considered the impacts of various levels of cost-share on the size of farm able to adopt the technology based on several economic indicators.

What Have We Learned?

Most dairy farms cannot simply raise their prices to offset the costs of climate-smart practices, therefore it is critical to understand the broad economic impacts of imposing emissions reductions mandates. With consolidation being a well-documented trend across dairy farms in the United States, it is possible that climate regulations will only further exacerbate this trend due to the high capital costs and market risk associated with climate-smart farming that only facilities of scale can take on.

Future Plans

I am actively assisting research right now in Washington state with university and private researchers into dairy farm carbon intensities, across various farm sizes and facility types. An overview of this research may be available by Summer of 2025. Once this work is completed, we will have a better understanding of overall farm emissions and what climate-smart practices may be necessary for farms to implement to help achieve cooperative net zero targets.

Authors

Presenting & corresponding author

Nina Gibson, Agricultural Economist and Policy Specialist, Washington State Department of Agriculture, KGibson@agr.wa.gov

Additional Information

Link to Podcast I hosted, the Carbon and Cow$ Podcast, which covers the risks and opportunities associated with carbon markets for dairy and livestock producers: https://csanr.wsu.edu/program-areas/climate-friendly-farming/carbon-and-cows-podcast/

Link to my program’s homepage at WSDA: https://agr.wa.gov/manure

My Linkedin: https://www.linkedin.com/in/nina-gibson-b482a8119/

The authors are solely responsible for the content of these proceedings. The technical information does not necessarily reflect the official position of the sponsoring agencies or institutions represented by planning committee members, and inclusion and distribution herein does not constitute an endorsement of views expressed by the same. Printed materials included herein are not refereed publications. Citations should appear as follows. EXAMPLE: Authors. 2025. Title of presentation. Waste to Worth. Boise, ID. April 711, 2025. URL of this page. Accessed on: today’s date.

Evolution of material mixtures for leachate absorption during on-farm disposal of animal mortalities

Purpose

The safe and biosecure disposal of livestock mortalities is a vital concern for livestock producers and the environment. Traditional on-farm livestock disposal methods include composting and land burial, with burial posing environmental risks if leachate generated during carcass decomposition moves through the soil profile to reach groundwater. A 1995 study on the groundwater quality around six poultry mortality piles found elevated concentrations of ammonia and nitrate in the surrounding wells, demonstrating the risk of water contamination from carcass disposal (1). Moreover, the risk of disease transmission to nearby animal facilities associated with an outbreak and large mortality event, particularly due to a foreign animal disease outbreak, dictates that on-farm mortality disposal be conducted in a way that contains and eliminates pathogenic organisms. In the case of a large mortality event, landfills or rendering facilities may not have capacity to receive mortalities or they might refuse to accept them.

On-farm methods accepted in most states include land burial, composting, and incineration. While burial of mortalities often requires less labor and capital cost than composting or incineration, it comes with unique challenges, namely having sufficient space to bury large quantities of animals, adequate soil structure to contain leachate produced during decomposition, and sufficient depth to groundwater to avoid groundwater contamination. Composting is a valuable method as it can destroy many pathogens because of the heat produced in the process, and the by-product is useful. Some of its downsides include the nuisance odor produced and insects such as flies that often accompany the piles. Incineration, while highly effective at reducing volume of carcasses and disease-causing organisms, relies on access to a portable incinerator and sufficient fuel to operate it (2).

Shallow burial with carbon (SBC) is an emerging method for carcass disposal that combines the more common methods of composting and burial. With this method, a shallow pit is excavated in soil and 24 in of carbon material is placed in the trench prior to placing carcasses. The carcasses are then covered using the excavated soil. A field study comparing performance characteristics of SBC and composting for swine carcass disposal (3) found that SBC maintained thermophilic temperatures that met EPA 503(b) time-temperature standards (4), produced less leachate per unit mass of carcasses, and yielded lower contaminant loads (e.g. E. coli) than compost units, suggesting it may also be a suitable mortality disposal method during a foreign animal disease (FAD) outbreak. Further, SBC is a desirable mortality disposal option because it requires less carbon material than composting and does not require management beyond the establishment of the disposal site.

While the previous field study demonstrated lower leachate production from SBC than composting units, the potential may exist to further limit leachate production by identifying carbon materials with greater capacity to absorb liquid produced during carcass decomposition. The primary purpose of establishing a base of carbon material in SBC or composting disposal units is to absorb leachate released during decomposition, reducing the transport of contaminants to water sources. Therefore, this study explored absorbency of several organic materials for inclusion in SBC or mortality compost piles to reduce leachate losses.

What Did We Do?

Our team identified several alternative organic materials for pile construction including wood chips, silty clay loam soil, corn stover, recycled paper pulp (SpillTech(R) Loose Absorbent), and cellulose fiber (Pro Guard Cellulose Fiber). These were tested alone and in combination with 1% by mass (of base material) of sodium and potassium polyacrylate crystals, and 2-mm water gel beads (ZTML MS brand). Hydrogels (HG), sodium polyacrylate (SP), and potassium polyacrylate (PP) were demonstrated in previous studies to retain water in experimental greenhouses (5).

Five replicates of each treatment were enclosed in 4×6 inch cotton mesh bags (TamBee Disposable Tea Filter Bags, Amazon.com) and weighed prior to being submerged in deionized (DI) water at pH 7 for two hours (Figure 1). Bags were removed from the water and allowed to drain for 5 minutes before being weighed again. The bags were resubmerged for an additional 22 hours after which they were removed, allowed to drain for 5 minutes, and weighed again.

Figure 1. Methodology to evaluate absorptivity of treatments
Figure 1. Methodology to evaluate absorptivity of treatments

Five replicates of each combination of base material and absorbent additive were also evaluated using DI water adjusted to pH 3, 5, 7, 8, 10 and using 0.01M NaCl to evaluate the effect of pH on absorbency.

The swelling ratio (SR) of each treatment was calculated using the following formula:

SR = Ww – Wd

where Ww is the wet weight and Wd is the dry weight.

The expected water holding capacity (C) was calculated for each combination.

C = SR ⋅ D

Where C is measured in gallons of water per lb of treatment material and D is the density of base material.

The average of the SR value for the five replications of each combination was further used to determine economic feasibility for retaining leachate from a large-scale mortality compost or burial pile. This was done by first determining the average amount of leachate produced from the mortality piles during the preceding year-long field study in eastern Nebraska (6,030 gallons). This was considered the target volume of material held by an alternative material or combination of materials in the economic assessment.

The volume of leachate was converted to mass, and the swelling ratio average values were used to calculate the mass of base material needed to hold the target quantity of water. These values were then used to calculate the total cost (based on pricing from various sellers) to build a pile of each of these materials that would hold the target volume of leachate. Table 1 shows the price per pound of each material tested; the price of the wood chips, corn stover, and soil were estimated based on these sources, though true price will vary based on region and supplier.

Table 1. Costs of materials evaluated

Material $/lb Source
Wood Chips   0.05 Evans Landscaping
Corn Stover   0.02 MSU Extension
Soil      0.004 Dirt Connections
Recycled Paper   1.84 Grainger
Cellulose Fiber   7.00 Pro Guard
Hydrogel 15.09 ZTML MS
Sodium Polyacrylate   3.71 Sandbaggy
Potassium Polyacrylate 11.38 A.M. Leonard

What Have We Learned?

Results from an analysis of variance (ANOVA) of the SR data showed that SR was not significantly impacted by the soaking time or by pH of the soaking solution. The results also showed that only the addition of 1% SP had a significant effect among the three superabsorbent additives when compared to no additive in the same base material. This effect was relatively equal between all base materials. The other super absorbents (1% HG and 1% PP) did not have a significant effect due to the high variability in the results. The most meaningful differences in absorptive capacity were attributed to base material (Figure 2). On average, the swelling ratio of cellulose fiber (no additives, 24-hour soak, pH 7) is 0.577 gallons water/lb base material. For corn stover, this value is only slightly lower, at 0.447 gallons water/lb base material. Wood chips, the material used in compost piles in the preceding study, had much worse results at only 0.188 gallons water/lb base material.

Figure 2. Mean swelling ratios for organic base materials tested (without additives) after 24-hours soaking in water, pH 7. Letters denote significant differences in water holding capacity, error bars show standard error.
Figure 2. Mean swelling ratios for organic base materials tested (without additives) after 24-hours soaking in water, pH 7. Letters denote significant differences in water holding capacity, error bars show standard error.

The results of the economic analysis are included in Table 2. The corn stover (without super absorbents) emerged as the most cost-effective material, with an estimated $258 total cost of material required to absorb the average amount of leachate observed in a previous yearlong field study that evaluated leachate volume produced from six disposal piles, each containing 20 pigs with a mean weight of 5,826 lb (±90.8 lb). The next most economical option was soil alone ($392) and then corn stover with sodium polyacrylate added ($782).

Table 2. Material cost to retain a leachate volume of 6,030 gallons

Material Mass Required of Base Material (lb) Cost
Woodchips 36,425 $  1,655
Woodchips + SP 36,126 $  2,993
Corn Stover 14,202 $      258
Corn Stover + SP 14,060 $      782
Cellulose Fiber 10,442 $73,085
Cellulose Fiber + SP 10,338 $72,742
Soil 86,462 $      392
Soil + SP 85,597 $  3,596
Recycled Paper 27,289 $50,256
Recycled Paper + SP 27,016 $50,766

SP: sodium polyacrylate

Future Plans

To confirm the swelling ratios calculated in the lab are realistic, further testing of the effectiveness of the recommended base construction will be needed at field-scale. Additionally, analysis of evapotranspiration, rainfall, and temperature in the piles should be collected to build a working relationship of the leachate rates to important environmental conditions and provide insight into the variable water quantities that change with geographical location. Combining these measurements with climate information will form a better predictive model for broader applicability.

Authors

Presenting author

Alexis Samson, Undergraduate Researcher, Department of Biological Systems Engineering, University of Nebraska-Lincoln

Corresponding author

Amy Schmidt, Professor, Department of Biological Systems Engineering and Department of Animal Science, University of Nebraska-Lincoln, aschmidt@unl.edu

Additional authors

Mara Zelt, Research Technologist, University of Nebraska-Lincoln

Gustavo Castro Garcia, Graduate Research Assistant, University of Nebraska-Lincoln

Additional Information

    1. Ritter, W. F. & Chirnside A. E. M. (1995). Impact of Dead Bird Disposal Pits on Groundwater Quality on the Delmarva Peninsula, Bioresource Technology. https://www.researchgate.net/publication/256637308_Impact_of_dead_bird_disposal_pits_on_ground-water_quality_on_the_Delmarva_Peninsula.
    2. Costa, T. & Akdeniz, N. (2019). A review of the animal disease outbreaks and biosecure animal mortality composting systems, Waste Management. https://www.sciencedirect.com/science/article/pii/S0956053X19302600?via%3Dihub.
    3. Castro, G., Schmidt, A. (2023). Evaluation of Swine Cadaver Disposal through Composting and Shallow Burial with Carbon (poster presentation). ASABE AIM. Omaha, NE.
    4. Code of Federal Regulations, Chapter 40, Part 503. 1993. Standards for the Use or Disposal of Sewage Sludge. Appendix B.   https://www.ecfr.gov/current/title-40/chapter-I/subchapter-O/part-503.
    5. Demitri, C., Scalera, F., Madaghiele, M., Sannino, A., & Maffezzoli, A. (2013). Potential of Cellulose-Based Superabsorbent Hydrogels as Water Reservoir in Agriculture, International Journal of Polymer Science. https://onlinelibrary.wiley.com/doi/10.1155/2013/435073?msockid=06caea3aa704636306b4f95fa67a62b8.

Acknowledgements

This project was partially supported by the National Pork Board Award #22-073. The technical assistance of Maddie Kopplin and Josh Mansfield was critical to the completion of this study.

 

The authors are solely responsible for the content of these proceedings. The technical information does not necessarily reflect the official position of the sponsoring agencies or institutions represented by planning committee members, and inclusion and distribution herein does not constitute an endorsement of views expressed by the same. Printed materials included herein are not refereed publications. Citations should appear as follows. EXAMPLE: Authors. 2025. Title of presentation. Waste to Worth. Boise, ID. April 711, 2025. URL of this page. Accessed on: today’s date. 

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