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Economic and Environmental Implications of Soil Nitrogen Testing: A Switching-Regression Analysis

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  • Keith O. Fuglie
  • Darrell J. Bosch

Abstract

A simultaneous equations, or "switching-regression," model is developed to assess the impact of soil nitrogen (N) testing on N fertilizer use, crop yields, and net returns in corn growing areas of Nebraska. The results indicate that when there is uncertainty about the quantity of available "carry-over" N, N testing enables farmers to reduce fertilizer use without affecting crop yields. However, the value of information from N tests depends critically on cropping history and soil characteristics. These findings have implications for environmental and technology transfer policies designed to reduce nonpoint source water pollution.

Suggested Citation

  • Keith O. Fuglie & Darrell J. Bosch, 1995. "Economic and Environmental Implications of Soil Nitrogen Testing: A Switching-Regression Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 891-900.
  • Handle: RePEc:oup:ajagec:v:77:y:1995:i:4:p:891-900.
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