Campus Units

Economics, Center for Agricultural and Rural Development, Statistics

Document Type

Article

Publication Version

Published Version

Publication Date

5-1999

Journal or Book Title

Journal of Agricultural and Resource Economics

Volume

24

Issue

2

First Page or Article ID Number

342

Last Page

366

Abstract

Studies examining the value of switching to a variable rate technology (VRT) fertilizer program assume producers possess perfect soil nitrate information. In reality, producers estimate soil nitrate levels with soil sampling. The value of switching to a VRT program depends on the quality of the estimates and on how the estimates are used. Larger sample sizes, increased spatial correlation, and decreased variability improve the estimates and increase returns. Fertilizing strictly to the estimated field map fails to account for estimation risk. Returns increase if the soil sample information is used in a Bayesian fashion to update the soil nitrate beliefs in nonsampled sites.

Comments

This is an article from Journal of Agricultural and Resource Economics, 24(2) 1999; 342-366. Posted with permission.

Copyright Owner

Western Agricultural Economics Association

Language

en

File Format

application/pdf