The Effect Of Paddy And Fertilizer Prices On The Optimum Rate Of Fertilizer Use And Farmer's Income

W. K. Oh

Economics and Finance in Indonesia, 1969, vol. 17, 14-38

Abstract: The optimum rate of fertilizer is commonly defined as the amount of fertilizer which gives the maximum profit to the farmer. As the response of a crop toward fertilizer usually follows the law of diminishing return, the maximum profit can be obtained when that amount of fertilizer is used at which the first derivative of the response function is equal to the ratio of the price of a unit of fertilizer to the price of a unit of the yield increase. Therefore, the optimum rate of fertilizer use will change as the prices of the product and fertilizer change. That is, the increase of fertilizer price and/or the decrease of paddy price will automatically bring down the optimum rate of fertilizer, which in turn will reduce the product, and in so doing decrease the income of the farmers.

Keywords: price; farmer; rate; income; fertilizer; profit (search for similar items in EconPapers)
Date: 1969
References: Add references at CitEc
Citations:

Downloads: (external link)
https://lpem.org/repec/lpe/efijnl/196902.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lpe:efijnl:196902

Access Statistics for this article

More articles in Economics and Finance in Indonesia from Faculty of Economics and Business, University of Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Muhammad Halley Yudhistira ( this e-mail address is bad, please contact ).