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The Role of Information and Prices in the Nitrogen Fertilizer Management Decision: New Evidence from the Agricultural Resource Management Survey

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  • Williamson, James M.

Abstract

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 lbs/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.

Suggested Citation

  • Williamson, James M., 2011. "The Role of Information and Prices in the Nitrogen Fertilizer Management Decision: New Evidence from the Agricultural Resource Management Survey," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-21.
    • Handle: RePEc:ags:jlaare:119180
    DOI: 10.22004/ag.econ.119180
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    6. Chouaib Jouf & Laté Lawson, 2021. "European farmers’ responses to higher commodity prices: cropland expansion or forestlands preservation?," EconomiX Working Papers 2021-10, University of Paris Nanterre, EconomiX.
    7. Hua Lu & Hualin Xie & Qianru Chen & Jinfa Jiang, 2018. "Impact of Agricultural Labor Transfer and Structural Adjustment on Chemical Application: Comparison of Past Developments in the Ecological Civilization Pilot Zones of China and Their Future Implicatio," Sustainability, MDPI, vol. 10(6), pages 1-14, June.
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    9. Jie Cai & Xianli Xia & Haibin Chen & Ting Wang & Huili Zhang, 2018. "Decomposition of Fertilizer Use Intensity and Its Environmental Risk in China’s Grain Production Process," Sustainability, MDPI, vol. 10(2), pages 1-15, February.

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