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Production Response and Input Demand in Decision Making: Nitrogen Fertilizer and Wheat Growers

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  • Farquharson, Robert J.

Abstract

The use of economic analysis to aid farm input investment decisions has been contentious because of observed flatness of economic response in the region of the optimum input. In this paper an application of a crop simulation model, to specify the production response, in conjunction with production economic theory has been used to develop fertiliser input demand functions. These have been combined with return on investment criteria in a graphical presentation for wheat growers in making nitrogen fertilization decisions at a particular location. The approach provides objective information to which growers can apply their own subjective preferences in making fertilizer input decisions.

Suggested Citation

  • Farquharson, Robert J., 2006. "Production Response and Input Demand in Decision Making: Nitrogen Fertilizer and Wheat Growers," Australasian Agribusiness Review, University of Melbourne, Melbourne School of Land and Environment, vol. 14.
  • Handle: RePEc:ags:auagre:126105
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    File URL: http://purl.umn.edu/126105
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    References listed on IDEAS

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    1. Kennedy, John O.S. & Whan, Ian F. & Jackson, R. & Dillon, John L., 1973. "Optimal Fertilizer Carryover And Crop Recycling Policies For A Tropical Grain Crop," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 17(02), August.
    2. McCown, R. L. & Hammer, G. L. & Hargreaves, J. N. G. & Holzworth, D. P. & Freebairn, D. M., 1996. "APSIM: a novel software system for model development, model testing and simulation in agricultural systems research," Agricultural Systems, Elsevier, vol. 50(3), pages 255-271.
    3. Richard K. Perrin, 1976. "The Value of Information and the Value of Theoretical Models in Crop Response Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(1), pages 54-61.
    4. Pannell, David J. & Malcolm, Bill & Kingwell, Ross S., 2000. "Are we risking too much? Perspectives on risk in farm modelling," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(1), June.
    5. Kennedy, John O.S., 1981. "An Alternative Method for Deriving Optimal Fertilizer Rates: Comment and Extension," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 49(03), December.
    6. Godden, David P. & Helyar, K.R., 1980. "An Alternative Method for Deriving Optimal Fertilizer Rates," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 48(02), August.
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    Cited by:

    1. Hussnain Shah & Muhammad Azeem Khan & Tariq Azeem & Abdul Majid & Abid Mehmood, 2012. "The Impact of Gypsum Application on Groundnut Yield in Rainfed Pothwar: An Economic Perspective," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(1), pages 83-100, Jan-June.
    2. Farquharson, Robert J. & Scott, J. Fiona & Sareth, Chea, 2008. "Upland crop technologies in Cambodia: economic evaluations and some adoption issues," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6008, Australian Agricultural and Resource Economics Society.
    3. Ahodo, Kwadjo & Freckleton, Robert P. & Oglethorpe, David, 2015. "Investigation of factors affecting arable farming profit, crop complexity and risk under the single farm payment policy," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204231, Agricultural Economics Society.

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