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Adaptive optimization of crop production and nitrogen leaching abatement under yield uncertainty

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  • Hyytiäinen, Kari
  • Niemi, Jarkko K.
  • Koikkalainen, Kauko
  • Palosuo, Taru
  • Salo, Tapio

Abstract

The study develops a bio-economic crop management model that internalizes the environmental cost of nitrate pollution, accounts for stochastic weather, and includes an option for split fertilization. The integrated model is designed to indicate whether a producer can benefit from applying fertilizer several times during the growing season, in response to crop needs, rather than a single time, at sowing. The model is parameterized for the cultivation of spring malting barley (Hordeum vulgare L.) in Southern Finland. The costs of negative externalities from nitrogen leaching are internalized in the landowner's decision problem through a pollution tax. The results indicate that without a pollution tax a single application of fertilizer gauged to meet the needs of the entire season is optimal. With a tax, the benefits of split application - applying varying amounts of fertilizer at selected stages of the growing season - increase significantly. In comparison to a single application of fertilizer at sowing, split fertilization improves yields, increases the total amount of fertilizer used, and reduces nitrogen leaching.

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  • Hyytiäinen, Kari & Niemi, Jarkko K. & Koikkalainen, Kauko & Palosuo, Taru & Salo, Tapio, 2011. "Adaptive optimization of crop production and nitrogen leaching abatement under yield uncertainty," Agricultural Systems, Elsevier, vol. 104(8), pages 634-644, October.
    • Handle: RePEc:eee:agisys:v:104:y:2011:i:8:p:634-644
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    2. Palosuo, Taru & Hoffmann, Munir P. & Rötter, Reimund P. & Lehtonen, Heikki S., 2021. "Sustainable intensification of crop production under alternative future changes in climate and technology: The case of the North Savo region," Agricultural Systems, Elsevier, vol. 190(C).
    3. Cai, Jianhu & Zhong, Man & Shang, Jennifer & Huang, Weilai, 2017. "Coordinating VMI supply chain under yield uncertainty: Option contract, subsidy contract, and replenishment tactic," International Journal of Production Economics, Elsevier, vol. 185(C), pages 196-210.
    4. Sihvonen, Matti & Pihlainen, Sampo & Lai, Tin-Yu & Salo, Tapio & Hyytiäinen, Kari, 2021. "Crop production, water pollution, or climate change mitigation—Which drives socially optimal fertilization management most?," Agricultural Systems, Elsevier, vol. 186(C).
    5. Kanthilanka, H. & Ramilan, T. & Farquharson, R.J. & Weerahewa, J., 2023. "Optimal nitrogen fertilizer decisions for rice farming in a cascaded tank system in Sri Lanka: An analysis using an integrated crop, hydro-nutrient and economic model," Agricultural Systems, Elsevier, vol. 207(C).
    6. Robert, Marion & Thomas, Alban & Bergez, Jacques Eric, 2016. "Processes of adpatation in farm decision-making models. A review," TSE Working Papers 16-731, Toulouse School of Economics (TSE).
    7. Lehmann, Niklaus & Finger, Robert & Klein, Tommy & Calanca, Pierluigi & Walter, Achim, 2012. "Adapting Towards Climate Change: A Bioeconomic Analysis of Winterwheat and Grain Maize," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126483, International Association of Agricultural Economists.

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