Article
Readdressing the Fertilizer Problem
Journal of Agricultural and Resource Economics
Document Type
Article
Disciplines
Publication Version
Published Version
Publication Date
1-1-2010
Abstract
The production literature has shown that inputs such as fertilizer can be defined as riskincreasing. However, farmers also consistently overapply nitrogen. A model of optimal input use under uncertainty is used to address this paradox. Using experimental data, a stochastic production relationship between yield and soil nitrate is estimated. Numerical results show that input uncertainty may cause farmers to overapply nitrogen. Survey data suggest that farmers are risk averse, but prefer small chances of high yields compared to small chances of crop failures when expected yields are equivalent. Furthermore, yield risk and yield variability are not equivalent.
Copyright Owner
Western Agricultural Economics Association
Copyright Date
2010
Language
en
File Format
application/pdf
Citation Information
Nicholas D. Paulson and Bruce A. Babcock. "Readdressing the Fertilizer Problem" Journal of Agricultural and Resource Economics Vol. 35 Iss. 3 (2010) p. 368 - 384 Available at: http://works.bepress.com/bruce-babcock/285/
This is an article from Journal of Agricultural and Resource Economics, 2010; 35(3);368–384. Posted with permission.