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Estimating Economically Optimal Levels of Nitrogen Fertilizer in No-Tillage Continuous Corn

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  • Villacis, Alexis H.
  • Ramsey, A. Ford
  • Delgado, Jorge A.
  • Alwang, Jeffrey R.

Abstract

Stochastic plateau production functions provide improved fertilizer recommendations based on multi-year agronomic experiments where weather and other stochastic variables change over time. This research assesses the profitability of no-tillage corn production in northeastern Colorado and determines economically optimal nitrogen fertilizer rates. It also proposes an alternative parameterization of the linear response stochastic plateau model which provides a robustness check against traditional parameterizations. Results show the current use of nitrogen fertilizer in the area exceeds estimated economically optimal levels. This suggests that a reduction in nitrogen use could increase expected profits and simultaneously reduce environmental costs.

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  • Villacis, Alexis H. & Ramsey, A. Ford & Delgado, Jorge A. & Alwang, Jeffrey R., 2020. "Estimating Economically Optimal Levels of Nitrogen Fertilizer in No-Tillage Continuous Corn," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 52(4), pages 613-623, November.
    • Handle: RePEc:cup:jagaec:v:52:y:2020:i:4:p:613-623_7
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