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Yield Response to Nitrogen in Agricultural Production Models

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  • Gallagher, Nicholas
  • Kakimoto, Shunkei

Abstract

There is a growing need to develop a tool to evaluate the effectiveness of conservation policies aimed at reducing nitrogen loading in agricultural production. However, existing agricultural production models often fail to accurately represent farmers’ decision-making processes regarding nitrogen fertilizer use, particularly in relation to other crop management practices such as crop rotation and tillage. This paper presents a novel modeling framework that endogenizes the yield response to nitrogen in agricultural production models. By integrating a continuous yield response function based on the Mitscherlich-Baule formulation, the framework captures the interrelated decisions of nitrogen application, crop rotation, and tillage practices. Calibrated to Minnesota agriculture, the model successfully replicates observed land allocation, tillage choices, and nitrogen use while providing enhanced responsiveness to policy incentives. The results demonstrate that this approach not only improves the representation of farmer behavior but also serves as a valuable tool for evaluating conservation policies aimed at reducing environmental nitrogen loading.

Suggested Citation

  • Gallagher, Nicholas & Kakimoto, Shunkei, 2025. "Yield Response to Nitrogen in Agricultural Production Models," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360643, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea25:360643
    DOI: 10.22004/ag.econ.360643
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    References listed on IDEAS

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    2. Chai, Yuan & J. Pannell, David & G. Pardey, Philip, 2023. "Nudging farmers to reduce water pollution from nitrogen fertilizer," Food Policy, Elsevier, vol. 120(C).
    3. Ribaudo, Marc & Delgado, Jorge & Hansen, LeRoy T. & Livingston, Michael J. & Mosheim, Roberto & Williamson, James M., 2011. "Nitrogen in Agricultural Systems: Implications for Conservation Policy," Economic Research Report 118022, United States Department of Agriculture, Economic Research Service.
    4. Johansson, Robert & Peters, Mark & House, Robert, 2007. "Regional Environment and Agriculture Programming Model," Technical Bulletins 184314, United States Department of Agriculture, Economic Research Service.
    5. Sergei Schaub & Nadja El Benni, 2024. "How do price (risk) changes influence farmers’ preferences to reduce fertilizer application?," Agricultural Economics, International Association of Agricultural Economists, vol. 55(2), pages 365-383, March.
    6. Quirino Paris, 1992. "The von Liebig Hypothesis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 1019-1028.
    7. Richard E. Howitt, 1995. "A Calibration Method For Agricultural Economic Production Models," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(2), pages 147-159, May.
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