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Economics of Management Zone Delineation in Cotton Precision Agriculture


  • Velandia, Margarita M.
  • Rejesus, Roderick M.
  • Segarra, Eduardo
  • Bronson, Kevin


This paper develops a management zone delineation procedure based on a spatial statistics approach and evaluates its economic impact for the case of Texas cotton production. With the use of an optimization model that utilizes a yield response function estimated through spatial econometric methods, we found that applying variable N rates based on the management zones delineated would result in higher cotton yields and higher net returns, above Nitrogen cost, relative to uniformly applying a single N rate for the whole field. In addition, a variable rate N application using the delineated management zones produced higher net returns, above Nitrogen cost, relative to a variable N rate system where the zones are based solely on landscape position. This is indicative of the potential economic value of using a spatial statistics approach to management zone delineation.

Suggested Citation

  • Velandia, Margarita M. & Rejesus, Roderick M. & Segarra, Eduardo & Bronson, Kevin, 2006. "Economics of Management Zone Delineation in Cotton Precision Agriculture," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35387, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saeaso:35387
    DOI: 10.22004/ag.econ.35387

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    References listed on IDEAS

    1. Luc Anselin & Rodolfo Bongiovanni & Jess Lowenberg-DeBoer, 2004. "A Spatial Econometric Approach to the Economics of Site-Specific Nitrogen Management in Corn Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 675-687.
    2. Lambert, Dayton M. & Lowenberg-DeBoer, James & Bongiovanni, Rodolfo, 2003. "Spatial Regression Models For Yield Monitor Data: A Case Study From Argentina," 2003 Annual meeting, July 27-30, Montreal, Canada 22022, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Bullock, David S. & Lowenberg-DeBoer, Jess & Swinton, Scott M., 2002. "Adding value to spatially managed inputs by understanding site-specific yield response," Agricultural Economics, Blackwell, vol. 27(3), pages 233-245, November.
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    Crop Production/Industries;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets


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