Economic Effects of Nitrogen in Rainfall on Cropland

One goal of the U.S. Government's policy to reduce air pollution is to reduce the application (deposition) of nitrogen to the Earth's surface by placing controls on the emissions of oxides of nitrogen to the atmosphere. This report evaluates what the environmental and economic effects would be in the future if less nitrogen were applied to the Earth's surface. Agronomic estimates were made of the impacts of the assumed withdrawal of all rainfall nitrogen on the trendline yields of eight crops over an 8-year period (1993-2000). Largely because of price increases accompanying reduced yields from less nitrogen, results show that consumers of the eight crops would be worse off, but the producers would be better off. Without the rainfall nitrogen, Government farm program payments could be about $2.4 billion less over the 8-year period than if current levels of nitrogen in rain continued. Changes in nitrogen use could stem from public policies or widespread private decision making by farmers, or both