Agricultural nuisances and right-to-farm laws: implications of changing liability rules

Abstract

In many areas, conflicts between agricultural and nonagricultural land uses are increasing because of urban sprawl and the extension of residential land uses into rural areas. Most conflicts between agricultural producers and residential homeowners focus on such waste by-products of agricultural production as noise, odor, and dust that are emitted into the environment. In this paper, the implications of changing liability rules with respect to agricultural nuisances are examined. The discussion begins by examining agricultural nuisances within economic externality theory. The effects of holding producers liable for damages caused by waste by-products are then considered. The discussion then turns to public concern over the loss of agricultural capacity due to nuisance actions authorized by legislation known as "right-to-farm' laws. As discussed in the final section, the effectiveness of right-to-farm laws is dependent on the implicit assignment of initial property rights to the atmosphere. -from Authors