AN ECONOMIC ANALYSIS OF THE DAIRY ENVIRONMENTAL COOPERATIVE IN NORTHEAST KANSAS
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In 1997, the Black Vermillion Dairy Environmental Cooperative (DEC) was started with an EPA 319A grant. Ten Kansas dairies located in the Kansas Black Vermillion Watershed were studied to evaluate the on-farm manure structures cost-shared by the DEC. Net present value (NPV) analysis was used to evaluate the profitability associated with the manure structures. The NPV analysis showed that in most cases, investing in a manure storage structure is a worthwhile venture and can be profitable for the dairy. However, cost-share assistance often will be needed in order to have positive pre-tax and after-tax NPVs.