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Fertilizer Demand Functions For Specific Nutrients Applied To Three Major U.S. Crops

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  • Roberts, Roland K.
  • Heady, Earl O.

Abstract

Several past studies used time series data to estimate price elasticities of demand for fertilizer or nutrient use on all crops in the United States or by region. In this study, demand functions for nitrogen, phosphorous and potassium applied per acre of corn, wheat and soybeans in the United States were estimated, using a combination of autoregressive least squares and seemingly unrelated regression techniques. The results suggest that the demands for nitrogen, phosphorous and potassium applied to corn are price elastic, while similar responses for wheat and soybeans are price inelastic. Nitrogen and phosphorous applied per acre of corn were found to be positively related to government sponsored acreage diversion. The estimated elasticities could provide policymakers with insight for developing fertilizer and crop policies.

Suggested Citation

  • Roberts, Roland K. & Heady, Earl O., 1982. "Fertilizer Demand Functions For Specific Nutrients Applied To Three Major U.S. Crops," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(2), pages 1-14, December.
    • Handle: RePEc:ags:wjagec:32277
    DOI: 10.22004/ag.econ.32277
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    References listed on IDEAS

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    1. Carman, Hoy F., 1979. "The Demand For Nitrogen, Phosphorous And Potash Fertilizer Nutrients In The Western United States," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 4(1), pages 1-10, July.
    2. Stoecker, Arthur Louis, 1974. "A quadratic programming model of United States agriculture in 1980: theory and application," ISU General Staff Papers 197401010800007309, Iowa State University, Department of Economics.
    3. Earl O. Heady & Martin H. Yeh, 1959. "National and Regional Demand Functions for Fertilizer," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 41(2), pages 332-348.
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    Cited by:

    1. Williamson, James M., 2010. "Does Information Matter? Assessing the Role of Information and Prices in the Nitrogen Fertilizer Management Decision," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 60892, Agricultural and Applied Economics Association.
    2. Kim, C.S. & Hallahan, Charles B. & Taylor, Harold & Schluter, Gerald E., 2002. "Market Power And Cost-Efficiency Effects Of The Market Concentration In The U.S. Nitrogen Fertilizer Industry," 2002 Annual meeting, July 28-31, Long Beach, CA 19674, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Denbaly, Mark & Vroomen, Harry, 1991. "Elasticities of Fertilizer Demands for Corn in the Short and the Long Run: A Cointegrated and Error-Correcting System," Staff Reports 278575, United States Department of Agriculture, Economic Research Service.
    4. Williamson, James M., 2011. "The Role of Information and Prices in the Nitrogen Fertilizer Management Decision: New Evidence from the Agricultural Resource Management Survey," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-21.
    5. Roberts, Roland K. & Garrod, Peter V., 1987. "Demand For Plant Nutrients In Tennessee Disaggregated By Mixed Fertilizers And Direct Application Materials," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(2), pages 1-7, December.
    6. B. A. Larson & H. Vroomen, 1991. "Nitrogen, Phosphorus And Land Demands At The Us Regional Level: A Primal Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 354-364, September.
    7. Onianwa, Odili & Alderfer, Richard & Levins, Richard A., 1992. "Taxation As A Means Of Reducing Nitrogen Fertilizer Use In Minnesota Corn Production," Staff Papers 13281, University of Minnesota, Department of Applied Economics.
    8. Acheampong, Kwame & Dicks, Michael R., 2012. "Fertilizer Demand for Biofuel and Cereal crop Production in the United States," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119798, Southern Agricultural Economics Association.
    9. Gyawu, Emanuel A. & Jones, Larry D. & Debertin, David L. & Pagoulatos, A., 1984. "An Ecouometric Model Of The Nitrogen Fertilizer Industry In The United States," 1984 Annual Meeting, August 5-8, Ithaca, New York 279074, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Borisova, Tatiana & Shortle, James S. & Horan, Richard D. & Abler, David G., 2003. "The Value Of Ecological And Economic Information In Water Quality Management," 2003 Annual meeting, July 27-30, Montreal, Canada 22180, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Mahmuda Nasrin & Pooja Vortia & Shakila Salam & Md. Salauddin Palash, 2022. "Is fertilizer demand elastic to its own price? Assessing the consequences of fertilizer subsidy policy in Bangladesh," SN Business & Economics, Springer, vol. 2(8), pages 1-15, August.
    12. Roberts, Roland K., 1986. "Plant Nutrient Demand Functions For Tennessee With Prices Of Jointly Applied Nutrients," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(2), pages 1-6, December.

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