Develops a framework for incorporating estimation risk into a decision model to determine the optimal amount of soil test information when applying nitrogen fertilizer using a variable rate technology (VRT). Producers should acknowledge that the soil nitrate mapping is a collection of estimates and does not provide information at non-sampled sites. Switching from single rate technology to VTR is more plausible for fields with greatest soil nitrate variability.
This working paper was published as Pautsch, Gregory R., Bruce A. Babcock and F. Jay Breidt, "Optimal Information Acquisition Under a Geostatistical Model," Journal of Agricultural and Resource Economics 24 (1998): 342–366.
Pautsch, Gregory R.; Babcock, Bruce A.; and Breidt, F. Jay, "Optimal Information Acquisition under a Geostatistical Model" (1999). CARD Working Papers. 234.