The Role of Information and Prices in the Nitrogen Fertilizer Management Decision: New Evidence from the Agricultural Resource Management Survey
2011
James M. Williamson
This article investigates the impact of agronomic and price information on nitrogen fertilizer management. Excessive nitrogen applications can cause environmental degradation, and it is important to understand how information influences the application decision in order to develop effective conservation policies. The impact of soil N-tests on the rate of applied nitrogen is estimated. Farmers who use a soil test reduce their use of commercial nitrogen by up to 83 lb/acre relative to non-testers. New evidence indicates that rising fertilizer prices encourage farmers to manage nitrogen more carefully. Estimated price elasticities of quantity demanded range from -1.67 to -1.87.
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