Abstract
A linear programming model of a dairy farm is used to estimate the minimum subsidy rate necessary to induce dairy farmers to implement less--polluting manure management systems. The estimated rate is considerably below rates offered by current cost-sharing programs and depends on the rules controlling the use of subsidy funds. Agricultural runoff is a leading cause of water pollution throughout the United States [1]. A major component of that runoff in the upper Midwest is animal waste [6, p.12]. The nutrients contained in these wastes accelerate the process of eutrophication in waterways, detracting from recreational and other uses provided by water
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