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A Model of the Impact of Protein Payments on Nitrogen Application

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  • Fraser, Rob

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.

Suggested Citation

  • Fraser, Rob, 1995. "A Model of the Impact of Protein Payments on Nitrogen Application," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 170817, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare95:170817
    DOI: 10.22004/ag.econ.170817
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    File URL: https://ageconsearch.umn.edu/record/170817/files/1995-05-18-19.pdf
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    Cited by:

    1. Konstantinos Giannakas & Richard Gray & Nathalie Lavoie, 1999. "The impact of protein increments on blending revenues in the Canadian wheat industry," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 5(1), pages 121-136, February.

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