Appendix 5. Calculation of Trading Values for Phase
and Phase
Appendix 5
Values for Phase and Phase II
Calculation of
1.
Phase Trading Value
The nutrient trading value used under Phase of the Tar-Pamlico Nutrient
Trading Agreement was per kilogram of nutrient. In other words, it is
result of providing in cost-share monies to a
assumed that, on
farmer would be to reduce nutrient loading by 1 kilogram. This
derived
by NCDEM based on
implementation data collected in the
River
basin from 1985 to 1989 (NCDEM, 1990). This section summarizes the approach
taken in determining this value.
Essentially, the cost-per-kilogram figure was determined by dividing the total
amount of cost-share money expended on
in the basin by the resulting
annual reduction in nutrient mass loading. The cost-share funding data were
available in State records. The process used to estimate nutrient load reductions
is summarized below.
Estimation of BMP Nutrient Load Reductions
For the purpose of the analysis,
were grouped into three categories:
Animal Waste Management Practices
l
Practices without Water Control Structures
Practices with Water Control Structures.
Animal Waste Management Practices
NCDEM used the following equation to estimate nitrogen and phosphorus load
reductions from animal waste
where
1989 total N (or P) load reduction attributable to animal
1982 total N (or P) load attributable to agricultural
sources
A
Percent of
attributable to animals
E
Treatment effectiveness
Percent of animals treated.
C
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