APPLICATION OF AN ENVIRONMENTAL AND ECONOMIC MODELING SYSTEM FOR WATERSHED ASSESSMENTS 1

ABSTRACT: A National Pilot Project (NPP) on Livestock and the Environment was initiated in 1992 to help provide solutions to environmental problems associated with livestock production. A major development of the NPP was the Comprehensive Economic and Environmental Optimization Tool‐Livestock and Poultry (CEEOT‐LP), an integrated modeling system designed to produce economic and environmental indicators for alternative policy scenarios applied to intensive livestock production watersheds. The system consists of a farm‐level economic model (FEM) and two environmental models: the field‐scale APEX model and the watershed‐level SWAT model. To date, CEEOT‐LP has been applied to two watersheds in Texas and one in Iowa. Predicted reductions in P losses for two P‐based manure application rate scenarios, relative to baseline conditions, ranged from −4 to −54 percent across the three watersheds; however, N loss impacts ranged from a decrease of 34 percent to an increase of 79 percent. For five other alternative scenarios that were simulated for only one watershed, N and P loss impacts ranged between a reduction of 78 percent to an increase of 20 percent. Aggregate watershed‐level economic impacts of the seven scenarios spanned a spectrum of a 27 percent decrease to a 25 percent increase in profit, relative to the baseline.