Estimating Economically Optimal Levels of Nitrogen Fertilizer in No-Tillage Continuous Corn

Alexis Villacis (), Austin Ramsey, Jorge A. Delgado and Jeffrey Alwang

Journal of Agricultural and Applied Economics, 2020, vol. 52, issue 4, 613-623

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.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jagaec:v:52:y:2020:i:4:p:613-623_7

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