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Corn Producers´ Response To The 2001 Nitrogen Fertilizer Price Increase

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  • Daberkow, Stan G.
  • McBride, William D.

Abstract

During the past few years, nitrogen fertilizer prices and price volatility have increased. Producers of nitrogen-intensive crops, such as corn, who are faced with increased nitrogen prices or price volatility, can adopt either cost-reducing or price variability-reducing strategies. Using a behavioral model in the logit specification and data from a 2001 national survey of U.S. corn producers, we found that the probability of forward pricing nitrogen fertilizer and the probability of using nitrogen more efficiently were linked to operator occupation, farm size, yield goal, and farm location.

Suggested Citation

  • Daberkow, Stan G. & McBride, William D., 2004. "Corn Producers´ Response To The 2001 Nitrogen Fertilizer Price Increase," 2004 Annual meeting, August 1-4, Denver, CO 20271, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea04:20271
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    File URL: http://purl.umn.edu/20271
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    References listed on IDEAS

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    1. Fernandez-Cornejo, Jorge & Daberkow, Stan G. & McBride, William D., 2001. "Decomposing The Size Effect On The Adoption Of Innovations: Agrobiotechnology And Precision Farming," 2001 Annual meeting, August 5-8, Chicago, IL 20527, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Dhuyvetter, Kevin C. & Albright, Martin L. & Parcell, Joseph L., 2001. "Forecasting and Hedging Crop Input Prices," 2001 Conference, April 23-24, 2001, St. Louis, Missouri 18951, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    4. Haydu, John J. & Myers, Robert J. & Thompson, Stanley R., 1992. "Why Do Farmers Forward Contract In Factor Markets?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(01), pages 145-151, July.
    5. Haydu, John J. & Myers, Robert J. & Thompson, Stanley R., 1992. "Why Do Farmers Forward Contract In Factor Markets?," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(01), July.
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    Cited by:

    1. Roman Keeney & Thomas W. Hertel, 2008. "U.S. Market Potential For Dried Distillers Grain With Solubles," Working Papers 08-13, Purdue University, College of Agriculture, Department of Agricultural Economics.

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    Keywords

    Farm Management;

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