Effects of Rice Quality on Profit-Maximizing Ratoon Crop Nitrogen Decisions

Troy N. Thompson, M. Edward Rister, Warren R. Grant, Garry N. McCauley, Fred T. Turner, James W. Stansel and Arlen D. Klosterboer

Review of Agricultural Economics, 1994, vol. 16, issue 2, 269-292

Abstract: Optimal nitrogen rates for the ratoon crop are derived utilizing estimated production functions for rice grain quantity and quality. Field-level data for 464 ratoon rice-cropped fields representing more than 50,000 acres were collected in Texas during 1987 to 1989. Returns above variable costs (RAVCR) are calculated using both a non-quality-dependent rice price and a price based on grain quality factors. When considering quality, maximization of RAVCR requires lower nitrogen rates and realizes lower RAVCR per acre than are projected based on non-quality dependent prices. Results reinforce existing recommendations and cast doubt on decisions to exceed recommended rates.

Date: 1994
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