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Dynamic Optimisation of Nitrogen Fertilisation of Citrus and the Value of Information from Leaf Tissue Analysis

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  • Feinerman, Eli
  • Voet, Hillary

Abstract

The optimal long-run fertilisation and irrigation of a perennial crop is approached via two stochastic dynamic optimisation models. The first model assumes that the ex-post level of the state variable--leaf nitrogen (LN)--is known with certainty. The second model assumes that the level of leaf nitrogen is not observed, but that the farmer has a prior probability distribution on the level of leaf nitrogen, which can be updated to yield a series of posterior probability distributions conditioned on past input decisions. Comparison of the values of the objective functions of both models yields an expected economic value of complete and costless information of leaf tissue analysis. The analysis is illustrated for a mature citrus grove. The impact of improved information on nitrogen use and leaching is also examined empirically. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Feinerman, Eli & Voet, Hillary, 1995. "Dynamic Optimisation of Nitrogen Fertilisation of Citrus and the Value of Information from Leaf Tissue Analysis," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 22(1), pages 103-118.
    • Handle: RePEc:oup:erevae:v:22:y:1995:i:1:p:103-18
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    Cited by:

    1. Carpentier, Alain & Gohin, Alexandre & Sckokai, Paolo & Thomas, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 131-165, March.
    2. Eli Feinerman & Marinus Komen, 2005. "The Use of Organic vs. Chemical Fertilizer with a Mineral Losses Tax: The Case of Dutch Arable Farmers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(3), pages 367-388, November.
    3. Farquharson, Robert J. & Cacho, Oscar J. & Turpin, J.E., 2000. "Agricultural response analysis in a longer term framework," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123634, Australian Agricultural and Resource Economics Society.

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