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Economic and Environmental Implications of Soil Nitrogen Testing: A Switching-Regression Analysis

Keith Fuglie () and Darrell Bosch

American Journal of Agricultural Economics, 1995, vol. 77, issue 4, 891-900

Abstract: A simultaneous equations, or "switching-regression," model is developed to assess the impact of soil nitrogen (N) testing on N fertilizer use, crop yields, and net returns in corn growing areas of Nebraska. The results indicate that when there is uncertainty about the quantity of available "carry-over" N, N testing enables farmers to reduce fertilizer use without affecting crop yields. However, the value of information from N tests depends critically on cropping history and soil characteristics. These findings have implications for environmental and technology transfer policies designed to reduce nonpoint source water pollution.

Date: 1995
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