Abstract
The consolidation of US dairy farming has led to concentrated manure production, resulting in manure management challenges and GHG emissions from unmanaged manure. Policies such as subsidizing compost production and implementing Strict Nutrient Application Standards incentivize composting of manure and mitigate these emissions while impacting compost demand and herd size. Our theoretical model indicates that both policies positively influence composting by lowering prices, increasing sales, reducing leftover manure, and cutting emissions. However, when considering the economic viability and size of the farm, subsidizing compost production and stringent Nutrient Application Standards have different impacts. Nutrient Application Standards, aimed at reducing runoff, increase the cost of managing excess manure, leading to smaller herd sizes.