A Model of the Impact of Protein Payments on Nitrogen Application

Robert Fraser

No 170817, 1995 Conference (39th), February 14-16, 1995, Perth, Australia from Australian Agricultural and Resource Economics Society

Abstract: This paper develops a model of the impact of introducing a protein payments system on a farmer's nitrogen application. The model. specifies a relationship between yield, protein, nitrogen and seasonal conditions and incorporates this relationship into a decision framework of optimal nitrogen application. The introduction of a protein payments system is shown to have a positive impact on nitrogen application if the critical protein level for extra payments is less than or equal to the farmer's existing expected protein level. However, if the reverse situation applies, the nitrogen response is ambiguous and dependant on both the critical protein level and the level of yield uncertainty. Further empirical work is required.

Keywords: Crop Production/Industries; Production Economics; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 18
Date: 1995-02
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Citations: View citations in EconPapers (1)

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Working Paper: A Model of the Impact of Protein Payments on Nitrogen Application (1995)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aare95:170817

DOI: 10.22004/ag.econ.170817

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