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Comparing the Value of Soil Test Information Using Deterministic and Stochastic Yield Response Plateau Functions

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  • Harmon, Xavier
  • Boyer, Christopher N.
  • Lambert, Dayton M.
  • Larson, James A.
  • Gwathmey, C. Owen

Abstract

We determined the value of soil test information for potassium (K) in upland cotton production using the linear response plateau (LRP) and linear response stochastic plateau (LRSP) functions. A stochastic dynamic programming model was used to determine the net present value to K fertilizer when optimal K was applied with knowledge about K carryover. Using K carryover information for K application decisions increased net present value and helped maintain steady levels of soil K. The LRSP function fit the data better than the LRP, and the value of soil testing was $27 ha-1 lower over ten years using the LRSP.

Suggested Citation

  • Harmon, Xavier & Boyer, Christopher N. & Lambert, Dayton M. & Larson, James A. & Gwathmey, C. Owen, 2016. "Comparing the Value of Soil Test Information Using Deterministic and Stochastic Yield Response Plateau Functions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.
    • Handle: RePEc:ags:jlaare:235192
    DOI: 10.22004/ag.econ.235192
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    References listed on IDEAS

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    2. Frederic Ouedraogo & B. Wade Brorsen, 2018. "Hierarchical Bayesian Estimation of a Stochastic Plateau Response Function: Determining Optimal Levels of Nitrogen Fertilization," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(1), pages 87-102, March.

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