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Analyzing higher moments of nitrogen response for risk efficient fertilizer application in wheat and corn production

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  • Meyer-Aurich, Andreas
  • Gandorfer, Markus
  • Rajsic, Predrag

Abstract

• The question of optimal fertilizer intensity has a long history and is still relevant from several perspectives. • While it is obvious that the optimal input use contributes to economic benefits for the farmer, understanding the economically optimal use of nitrogen fertilizer may help to address environmental policies more efficiently. • Literature shows that nitrogen (N) fertilizer applications to agricultural crops often exceed the rate recommended by officials or advisors. One possible explanation is farmers’ response to uncertainty. • This study contributes to this question based on long term crop response data in Canada and Germany.

Suggested Citation

  • Meyer-Aurich, Andreas & Gandorfer, Markus & Rajsic, Predrag, 2013. "Analyzing higher moments of nitrogen response for risk efficient fertilizer application in wheat and corn production," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150220, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150220
    DOI: 10.22004/ag.econ.150220
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    References listed on IDEAS

    as
    1. Moschini, Giancarlo & Hennessy, David A., 2001. "Uncertainty, risk aversion, and risk management for agricultural producers," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 2, pages 88-153, Elsevier.
    2. J. Brian Hardaker & James W. Richardson & Gudbrand Lien & Keith D. Schumann, 2004. "Stochastic efficiency analysis with risk aversion bounds: a simplified approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 253-270, June.
    3. Jutta Roosen & David A. Hennessy, 2003. "Tests for the Role of Risk Aversion on Input Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 30-43.
    4. repec:ags:agsaem:288652 is not listed on IDEAS
    5. Mark W. Rosegrant & James A. Roumasset, 1985. "The Effect Of Fertiliser On Risk: A Heteroscedastic Production Function With Measurable Stochastic Inputs," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 29(2), pages 107-121, August.
    6. S. SriRamaratnam & David A. Bessler & M. Edward Rister & John E. Matocha & James Novak, 1987. "Fertilization under Uncertainty: An Analysis Based on Producer Yield Expectations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 349-357.
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