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Risk and Nitrogen Application Decisions in Florida Potato Production

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  • Asci, Serhat
  • Borisova, Tatiana
  • VanSickle, John J.
  • Zotarelli, Lincoln

Abstract

This study focuses on development of agricultural best management practices (BMPs) for potato production areas in Northeast Florida, and presents the results of the initial situation assessment. BMP implementation is the primary strategy used by agencies and farmers to improve the efficiency and to ensure environmental sustainability of agricultural production. Although BMPs are defined as “economically feasible” and “cost-effective”, economic analysis conducted as a part of BMP development has been limited, leaving the room for disagreement about economic impacts of specific BMPs. As a part of the situation assessment, we used interviews, group discussions, a survey, and a field trip to collect information about farmers’ production practices and to examine farmers’ opinions about BMP development process. Then, partial budget analysis was used determine the relative impacts of various factors (including the implementation of nitrogen fertilization management BMP) on production returns. Finally, an economic model is proposed to incorporate production risk analysis in BMP evaluation process.

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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama with number 119797.

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Date of creation: 2012
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Handle: RePEc:ags:saea12:119797

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Web page: http://www.saea.org/
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Related research

Keywords: Florida potato production; partial budget analysis; risk analysis; best management practice; nitrogen fertilization; Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Environmental Economics and Policy; Farm Management; Production Economics; Risk and Uncertainty;

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  1. Feather, Peter M. & Amacher, Gregory S., 1994. "Role of information in the adoption of best management practices for water quality improvement," Agricultural Economics, Blackwell, vol. 11(2-3), pages 159-170, December.
  2. Babcock, Bruce A. & Chalfant, James A. & Collender, Robert N., 1987. "Simultaneous Input Demands And Land Allocation In Agricultural Production Under Certainty," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(02), December.
  3. David J. Pannell, 2006. "Flat Earth Economics: The Far-reaching Consequences of Flat Payoff Functions in Economic Decision Making," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(4), pages 553-566.
  4. Babcock, Bruce A. & Pautsch, Gregory R., 1998. "Moving From Uniform To Variable Fertilizer Rates On Iowa Corn: Effects On Rates And Returns," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December.
  5. Predrag Rajsic & Alfons Weersink & Markus Gandorfer, 2009. "Risk and Nitrogen Application Levels," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(2), pages 223-239, 06.
  6. James S. Shortle & Andrew Laughland, 1994. "Impacts Of Taxes To Reduce Agrichemical Use When Farm Policy Is Endogenous," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 3-14.
  7. Murat Isik, 2002. "Resource Management under Production and Output Price Uncertainty: Implications for Environmental Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 557-571.
  8. Feinerman, Eli & Kwan, E. & Johnson, Stanley R., 1990. "Uncertainty and Split Nitrogen Application in Corn Production," Staff General Research Papers 328, Iowa State University, Department of Economics.
  9. Glenn Sheriff, 2005. "Efficient Waste? Why Farmers Over-Apply Nutrients and the Implications for Policy Design," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(4), pages 542-557.
  10. Feinerman, Eli & Choi, E. Kwan & Johnson, Stanley R., 1990. "Uncertainty and Split Nitrogen Application in Corn Production," Staff General Research Papers 10598, Iowa State University, Department of Economics.
  11. Babcock, Bruce A., 1992. "Effects of Uncertainty on Optimal Nitrogen Applications (The)," Staff General Research Papers 10588, Iowa State University, Department of Economics.
  12. Horan, Richard D. & Shortle, James S. & Abler, David G., 1998. "Ambient Taxes When Polluters Have Multiple Choices," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 186-199, September.
  13. Houston, Jack E. & Sun, Henglun, 1999. "Cost-Share Incentives And Best Management Practices In A Pilot Water Quality Program," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(01), July.
  14. Babcock, Bruce A. & Blackmer, A. M., 1994. "Ex Post Relationship Between Growing Conditions and Nitrogen Fertilizer Levels (The)," Staff General Research Papers 10582, Iowa State University, Department of Economics.
  15. Paudel, Krishna P. & Gauthier, Wayne M. & Westra, John V. & Hall, Larry M., 2008. "Factors Influencing and Steps Leading to the Adoption of Best Management Practices by Louisiana Dairy Farmers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(01), April.
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