Risk management on application of minimum-cost feed ration for nitrogen and phosphorus reduction on dairy farm

Juma K. Salim, Carl R. Dillon and Jack McAllister

No 21274, 2006 Annual meeting, July 23-26, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: The traditional mathematical programming model with the objective function of feed ration cost minimization is used to accommodate risk management responses to price variability associated with feeding a particular feed ration over time. The model incorporated biophysical simulation data using Cornell Net Carbohydrate and Protein System (CNCPS) software in addressing nutrient requirements and excretions. In addition, it used historic feedstuff prices in a mean-variance (E-V) framework analysis. The optimized seasonal feeding indicated to have a lower mean ration cost and lowest nutrient loading followed by optimized uniform feeding program. The feed cost optimization proved to be a better strategy in minimizing ration cost and reducing excretions both manure and nutrients. The results in this study can be used as guidelines for making nutrient. The information in this study can be used by a producer facing feed price risk to select optimal ration while reducing environmental pollution.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Pages: 24
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea06:21274

DOI: 10.22004/ag.econ.21274

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