Dynamic Optimization of Nitrogen in Plateau Cotton Yield Functions with Nitrogen Carryover Considerations

Chandra Dhakal, Kelly Lange, Megha N. Parajulee and Eduardo Segarra ()

Journal of Agricultural and Applied Economics, 2019, vol. 51, issue 3, 385-401

Abstract: This study utilizes a dynamic programming decision model, considering an intertemporal nitrogen carryover function, combined with both linear stochastic and deterministic plateau response functions to evaluate optimal nitrogen fertilizer decision rules and net present values (NPVs) in Texas High Plains cotton production. Nitrogen recommendations and NPVs are influenced by response function choice and nitrogen-to-cotton price ratios. Results indicate the stochastic plateau function better describes the data; the optimum nitrogen recommendation is to apply approximately 40 lb. of nitrogen for each bale of cotton production when considering nitrogen carryover information.

Date: 2019
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