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An Evaluation of Soil Test Information in Agricultural Decision Making

Author

Listed:
  • Babcock, Bruce A.
  • Carriquiry, Alicia L.
  • Stern, Hal S.

Abstract

The value of soil-test information in planning fertilizer application levels is determined by using agricultural field-plot data to estimate the posterior distribution of mean soil-nitrate concentrations at a give location. Optimal decisions concerning fertilizer application levels are made with respect to this posterior distribution. Average reductions in fertilizer application rates range from 15 to 41 percent, depending on the form of prior information that is available. These reductions are achieved by increasing the variability of application rates over time. Disregarding the uncertainty that remains after the soil testing significantly overstates the expected benefits of soil testing.

Suggested Citation

  • Babcock, Bruce A. & Carriquiry, Alicia L. & Stern, Hal S., 1996. "An Evaluation of Soil Test Information in Agricultural Decision Making," Hebrew University of Jerusalem Archive 18633, Hebrew University of Jerusalem.
    • Handle: RePEc:ags:hebarc:18633
    DOI: 10.22004/ag.econ.18633
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    1. is not listed on IDEAS
    2. Babcock, Bruce A. & Pautsch, Gregory R., 1998. "Moving From Uniform To Variable Fertilizer Rates On Iowa Corn: Effects On Rates And Returns," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(2), pages 1-16, December.
    3. Pautsch, Gregory R. & Babcock, Bruce A. & Breidt, F. Jay, 1999. "Optimal Information Acquisition Under A Geostatistical Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-25, December.
    4. Swinton, Scott M. & Jones, Kezelee Q., 1998. "From Data To Information: The Value Of Sampling Vs. Sensing Soil Data," Staff Paper Series 11674, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Isik, Murat & Khanna, Madhu & Winter-Nelson, Alex, 2000. "Sequential Investment In Site-Specific Crop Management Under Output Price Uncertainty: Implications For Nitrogen Pollution Control," 2000 Annual meeting, July 30-August 2, Tampa, FL 21875, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. repec:isu:genstf:1999010108000013154 is not listed on IDEAS
    7. Fleming, Ronald A., 1997. "The Role Of Soil Test Information In Reducing Groundwater Pollution," 1997 Annual meeting, July 27-30, Toronto, Canada 21031, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Murat Isik & Madhu Khanna, 2003. "Stochastic Technology, Risk Preferences, and Adoption of Site-Specific Technologies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 305-317.
    9. Theobald, Chris M. & Talbot, Mike, 2004. "Bayesian selection of fertilizer level when crop price depends on quality," Computational Statistics & Data Analysis, Elsevier, vol. 47(4), pages 867-880, November.
    10. Queiroz, Pedro W. V. & Perrin, Richard K. & Fulginiti, Lilyan E. & Bullock, David S., 2023. "An Expected Value of Sample Information (EVSI) Approach for Estimating the Payoff from a Variable Rate Technology," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(01), January.
    11. Lukin, Vladimir & Epplin, Francis M., 1999. "Value Of Soil Test Information For Crop Production," 1999 Annual meeting, August 8-11, Nashville, TN 21586, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Jon T. Biermacher & B. Wade Brorsen & Francis M. Epplin & John B. Solie & William R. Raun, 2009. "The economic potential of precision nitrogen application with wheat based on plant sensing," Agricultural Economics, International Association of Agricultural Economists, vol. 40(4), pages 397-407, July.
    13. Pautsch, Gregory R. & Babcock, Bruce A. & Breidt, F. Jay, 1998. "Optimal Sampling Under a Geostatistical Model," Hebrew University of Jerusalem Archive 18424, Hebrew University of Jerusalem.
    14. Isik, Murat & Khanna, Madhu & Winter-Nelson, Alex, 2001. "Sequential Investment In Site-Specific Crop Management Under Output Price Uncertainty," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), pages 1-18, July.
    15. Olson, Kent D., 1998. "Precision Agriculture: Current Economic And Environmental Issues," Conference Papers 14487, University of Minnesota, Center for International Food and Agricultural Policy.
    16. Mitchell, Paul D., 2003. "Value of imperfect input information in agricultural production," Agricultural Systems, Elsevier, vol. 75(2-3), pages 277-294.
    17. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313, Elsevier.
    18. Fleming, Ronald A. & Adams, Richard M. & Ervin, David E., 1998. "The Role Of Soil Test Information In Reducing Groundwater Pollution," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), pages 1-19, July.

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