Does Information Matter? Assessing the Role of Information and Prices in the Nitrogen Fertilizer Management Decision
This article investigates the impact of agronomic, environmental, and price information on the management decision of nitrogen fertilizer. Because excessive nitrogen originating from agricultural production activities can cause environmental degradation, understanding how information influences the nutrient application decision on the field is important for developing strategies for nitrogen load mitigation. I investigate the value farmers place on information about N management they receive from several sources. In particular, I evaluate how farmers use information from soil N-tests to make decisions about the rate of N to apply to the field. My results show that soil N-testing can be an effective management practices for reducing excess N applications. I find farmers who use a soil test reduce their use of commercial N by up to 14 lbs/ac relative to non-testers. I also find new evidence that rising fertilizer prices encourage farmers to manage N more carefully. I estimate a price elasticity of demand of between -0.6 and -1.29. I also show prices play a role in other forms of N management behavior, including application method and timing.
|Date of creation:||2010|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Don Fullerton & Gilbert E. Metcalf, 2001.
Discussion Papers Series, Department of Economics, Tufts University
0106, Department of Economics, Tufts University.
- Gilbert E. Metcalf, 2006. "Tax Incidence," Discussion Papers Series, Department of Economics, Tufts University 0607, Department of Economics, Tufts University.
- Don Fullerton & Gilbert E. Metcalf, 2002. "Tax Incidence," NBER Working Papers 8829, National Bureau of Economic Research, Inc.
- Satya Yadav & Willis Peterson & K. Easter, 1997. "Do farmers overuse nitrogen fertilizer to the detriment of the environment?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(3), pages 323-340, April.
- Roosen, Jutta & Hennessy, David A., 2001.
"Tests For The Role Of Risk Aversion On Input Use,"
2001 Annual meeting, August 5-8, Chicago, IL
20498, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Bruce A. Babcock, 2011.
"The Impact of Ethanol and Ethanol Subsidies on Corn Prices: Revisiting History,"
Food and Agricultural Policy Research Institute (FAPRI) Publications
11-pb5, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Bruce A. Babcock, 2011. "The Impact of Ethanol and Ethanol Subsidies on Corn Prices: Revisiting History," Center for Agricultural and Rural Development (CARD) Publications 11-pb5, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Hansen, Lars Gårn, 2004. "Nitrogen Fertilizer Demand from Danish Crop Farms - Regulatory Implications of Farm Heterogeneity," MPRA Paper 48366, University Library of Munich, Germany.
- JunJie Wu & Bruce A. Babcock, 1998. "The Choice of Tillage, Rotation, and Soil Testing Practices: Economic and Environmental Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 494-511.
- Glenn Sheriff, 2005. "Efficient Waste? Why Farmers Over-Apply Nutrients and the Implications for Policy Design," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(4), pages 542-557.
- Predrag Rajsic & Alfons Weersink & Markus Gandorfer, 2009. "Risk and Nitrogen Application Levels," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(2), pages 223-239, 06.
- Chad Lawley & Erik Lichtenberg & Doug Parker, 2009. "Biases in Nutrient Management Planning," Land Economics, University of Wisconsin Press, vol. 85(1), pages 186-200.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea10:60892. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.