Estimating Economically Optimal Levels of Nitrogen Fertilizer in No-Tillage Continuous Corn. (14th November 2020)

• Record Type: Journal Article
• Authors: Villacis, Alexis H.; Ramsey, A. Ford; Delgado, Jorge A.; Alwang, Jeffrey R.
• Is Part Of: Journal of agricultural and applied economics. Volume 52:Number 4(2020)
• Page Start: 613
• Page End: 623
• Publication Date: 2020-11-14
• Subjects: corn, -- linear response stochastic plateau, -- Monte Carlo, -- nitrogen, -- no-tillage, -- non-linear mixed-effects models, -- random parameters, -- switching regression; C12, -- D24, -- Q10, -- Q12, -- Q14; Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/aae.2020.23
• Languages: English
• ISSNs: 1074-0708

Abstract

Abstract: Stochastic plateau production functions provide improved fertilizer recommendations based on multi-year agronomic experiments where weather and other stochastic variables change over time. This research assesses the profitability of no-tillage corn production in northeastern Colorado and determines economically optimal nitrogen fertilizer rates. It also proposes an alternative parameterization of the linear response stochastic plateau model which provides a robustness check against traditional parameterizations. Results show the current use of nitrogen fertilizer in the area exceeds estimated economically optimal levels. This suggests that a reduction in nitrogen use could increase expected profits and simultaneously reduce environmental costs.