Economics of fertilizer use on durum wheat
2000
Teklewold, A. H. | Ayele, G. (Debre Zeit Agricultural Research Center, Debre Zeit (Ethiopia))
Fanners in wheat growing areas of Ethiopia rely on wheat production for various purposes. Even though the role played by fertilizer use is increasing, economic use of fertilizer is not well addressed due to a wide range of factors. Economic use of fertilizer consists of among other things, choosing the right kind and quantity of fertilizer including both input and output prices. The relation between fertilizer and wheat price determines the level of profitability in the use of fertilizer and thereby effective demand for fertilizer by farmers. The multiple regression analysis is used to derive the mathematical wheat yield function for different application of nitrogen and phosphorous fertilizers. In the two nutrient case, profit maximization requires the value of marginal physical productivity of each nutrient be equal to its respective marginal nutrient cost times the investment cost. The economic optimum point is a dynamic concept, which is influenced by variation in relative price of input-output. This issue can be analyzed using sensitivity analysis. At the prevailing grain and nutrient prices, the study revealed that, using optimum rate of nutrients would give a 65% marginal rate of return over the traditional farmers' rate. As the ultimate success of fertilization of wheat depends on the prices of wheat and fertilizers, developing a fertilizer pricing policy that is based on cost-benefit analysis should be a prerequisite. Thus both policy makers and farmers should pay attention to the type and economic optimum use for fertilizer efficiency in durum wheat production.
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