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Nitrogen-Fixing Winter Cover Crops and Production Risk: A Case Study for No-Tillage Corn

Author

Listed:
  • Larson, James A.
  • Roberts, Roland K.
  • Tyler, Donald D.
  • Duck, Bob N.
  • Slinsky, Stephen P.

Abstract

Winter legumes can substitute for applied nitrogen fertilization of corn. Stochastic dominance was used to order net revenues from legume and applied nitrogen alternatives. Stochastic dominance orderings indicate that systems combining vetch with low applied nitrogen fertilization (50 and 100 pounds/acre, respectively) were risk inefficient. By contrast, vetch and 150 pounds/acre applied nitrogen maximized expected net revenue and was risk efficient for a wide range of risk-averse and risk-seeking behavior. Farmers with these risk attitudes may not reduce applied nitrogen if they switch to a vetch cover. Extremely risk-averse or risk-seeking farmers would not prefer winter legumes.

Suggested Citation

  • Larson, James A. & Roberts, Roland K. & Tyler, Donald D. & Duck, Bob N. & Slinsky, Stephen P., 1998. "Nitrogen-Fixing Winter Cover Crops and Production Risk: A Case Study for No-Tillage Corn," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(1), pages 163-174, July.
    • Handle: RePEc:cup:jagaec:v:30:y:1998:i:01:p:163-174_00
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    Cited by:

    1. Bergtold, Jason S. & Duffy, Patricia A. & Hite, Diane & Raper, Randy L., 2008. "Demographic and Management Factors Affecting the Perceived Benefit of Winter Cover Crops in the Southeast," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6424, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Bergtold, Jason S. & Duffy, Patricia A. & Hite, Diane & Raper, Randy L., 2012. "Demographic and Management Factors Affecting the Adoption and Perceived Yield Benefit of Winter Cover Crops in the Southeast," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(1), pages 99-116, February.

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