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Valuing a Test for Nitrogen Status in Rice

Author

Listed:
  • Singh, Rajinder Pal
  • Williams, Robert L.
  • Mullen, John D.
  • Faour, Khaled
  • Lewin, Laurie

Abstract

Nitrogen is a crucial input for the efficient production of rice and is generally applied in two split treatments, before flooding the rice paddocks at sowing time and within a week after the beginning of the panicle initiation stage. There is no pre-sowing test to estimate nitrogen requirements and farmers use cropping history to make this decision. The aim of this study was to first value the information to growers provided by a nitrogen test for soils of rice paddocks and then estimate the returns to the industry from investments in R&D to develop this test. In our approach the information provided by the test allowed growers to revise their expectations about soil nitrogen status according to Bayesian decision theory and consequently to use nitrogen more profitably. We found that the test is likely to provide information potentially valuable to growers at around $2/ha and that research in developing the test has been a profitable investment for the Rice CRC with a benefit cost ratio just above one. As the accuracy of the test is improved to current industry standards, its use will become more profitable.

Suggested Citation

  • Singh, Rajinder Pal & Williams, Robert L. & Mullen, John D. & Faour, Khaled & Lewin, Laurie, 2005. "Valuing a Test for Nitrogen Status in Rice," Australasian Agribusiness Review, University of Melbourne, Melbourne School of Land and Environment, vol. 13.
  • Handle: RePEc:ags:auagre:126552
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    File URL: http://purl.umn.edu/126552
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    References listed on IDEAS

    as
    1. Chambers,Robert G. & Quiggin,John, 2000. "Uncertainty, Production, Choice, and Agency," Cambridge Books, Cambridge University Press, number 9780521622448, March.
    2. Schimmelpfennig, David E. & Norton, George W., 2000. "What Value Is Agricultural Economics Research?," 2000 Annual meeting, July 30-August 2, Tampa, FL 21773, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. David E. Schimmelpfennig & George W. Norton, 2003. "What is the Value of Agricultural Economics Research?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 81-94.
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