Estimating Economically Optimal Levels of Nitrogen Fertilizer in No-Tillage Continuous Corn

Alexis H. Villacis, A. Ford Ramsey, Jorge A. Delgado, Jeffrey R. Alwang

Research output: Contribution to journalArticlepeer-review

Abstract

Stochastic plateau production functions provide improved fertilizer recommendations based on multi-year agronomic experiments where weather and other stochastic variables change over time. This research assesses the profitability of no-Tillage corn production in northeastern Colorado and determines economically optimal nitrogen fertilizer rates. It also proposes an alternative parameterization of the linear response stochastic plateau model which provides a robustness check against traditional parameterizations. Results show the current use of nitrogen fertilizer in the area exceeds estimated economically optimal levels. This suggests that a reduction in nitrogen use could increase expected profits and simultaneously reduce environmental costs.

Original languageEnglish (US)
Pages (from-to)613-623
Number of pages11
JournalJournal of Agricultural and Applied Economics
Volume52
Issue number4
DOIs
StatePublished - Nov 2020

Keywords

  • Monte Carlo
  • corn
  • linear response stochastic plateau
  • nitrogen
  • no-Tillage
  • non-linear mixed-effects models
  • random parameters
  • switching regression

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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