IDEAS home Printed from https://ideas.repec.org/a/ags/joaaec/117949.html
   My bibliography  Save this article

Determining Optimal Levels of Nitrogen Fertilizer Using Random Parameter Models

Author

Listed:
  • Tumusiime, Emmanuel
  • Brorsen, B. Wade
  • Mosali, Jagadeesh
  • Johnson, Jim
  • Locke, James
  • Biermacher, Jon T.

Abstract

The parameters of yield response functions can vary by year. Past studies usually assume yield functions are nstochastic ‘‘limited’’ stochastic. In this study, we estimate rye– ryegrass yield functions in which all parameters are random. The three functional forms considered are the linear response plateau, the quadratic, and the Spillman-Mitscherlich. Nonstochastic yield models are rejected in favor of stochastic parameter models. Quadratic functional forms fit the data poorly. Optimal nitrogen application recommendations are calculated for the linear response plateau and Spillman-Mitscherlich. The stochastic models lead to smaller recommended levels of nitrogen, but the economic benefits of using fully stochastic crop yield functions are small because expected profit functions are relatively flat for the stochastic yield functions. Stochastic crop yield functions provide a way of incorporating production, uncertainty into input decisions.

Suggested Citation

  • Tumusiime, Emmanuel & Brorsen, B. Wade & Mosali, Jagadeesh & Johnson, Jim & Locke, James & Biermacher, Jon T., 2011. "Determining Optimal Levels of Nitrogen Fertilizer Using Random Parameter Models," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(4), pages 1-12, November.
    • Handle: RePEc:ags:joaaec:117949
    DOI: 10.22004/ag.econ.117949
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/117949/files/jaae417-Tumusiime.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.117949?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Coulibaly, Nouhoun & Bernardo, Daniel J. & Horn, Gerald W., 1996. "Energy Supplementation Strategies for Wheat Pasture Stocker Cattle Under Uncertain Forage Availability," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 28(1), pages 172-179, July.
    2. Bruce A. Babcock, 1992. "The Effects of Uncertainty on Optimal Nitrogen Applications," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 14(2), pages 271-280.
    3. Taylor, Karen W. & Epplin, Francis M. & Brorsen, B. Wade & Fieser, Brian G. & Horn, Gerald W., 2010. "Optimal Grazing Termination Date for Dual-Purpose Winter Wheat Production," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(01), pages 1-17, February.
    4. Pollak, Robert A. & Wales, Terence J., 1991. "The likelihood dominance criterion : A new approach to model selection," Journal of Econometrics, Elsevier, vol. 47(2-3), pages 227-242, February.
    5. Jon T. Biermacher & B. Wade Brorsen & Francis M. Epplin & John B. Solie & William R. Raun, 2009. "The economic potential of precision nitrogen application with wheat based on plant sensing," Agricultural Economics, International Association of Agricultural Economists, vol. 40(4), pages 397-407, July.
    6. Kaitibie, Simeon & Epplin, Francis M. & Brorsen, B. Wade & Horn, Gerald W. & Krenzer, Eugene G. & Paisley, Steven I., 2003. "Optimal Stocking Density for Dual-Purpose Winter Wheat Production," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 35(1), pages 29-38, April.
    7. Gelson Tembo & B. Wade Brorsen & Francis M. Epplin & Emílio Tostão, 2008. "Crop Input Response Functions with Stochastic Plateaus," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 424-434.
    8. B. Brorsen & Francisca Richter, 2012. "Experimental designs for estimating plateau-type production functions and economically optimal input levels," Journal of Productivity Analysis, Springer, vol. 38(1), pages 45-52, August.
    9. Davidson, Russell & MacKinnon, James G, 1981. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Econometrica, Econometric Society, vol. 49(3), pages 781-793, May.
    10. Coulibaly, Nouhoun & Bernardo, Daniel J. & Horn, Gerald W., 1996. "Energy Supplementation Strategies For Wheat Pasture Stocker Cattle Under Uncertain Forage Availability," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(01), pages 1-8, July.
    11. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    12. Roberts, David C. & Brorsen, B. Wade & Solie, John B. & Raun, William R., 2011. "The effect of parameter uncertainty on whole-field nitrogen recommendations from nitrogen-rich strips and ramped strips in winter wheat," Agricultural Systems, Elsevier, vol. 104(4), pages 307-314, April.
    13. Rajdeep Grewal & Gary L. Lilien & Girish Mallapragada, 2006. "Location, Location, Location: How Network Embeddedness Affects Project Success in Open Source Systems," Management Science, INFORMS, vol. 52(7), pages 1043-1056, July.
    14. Earl O. Heady & John Pesek, 1954. "A Fertilizer Production Surface with Specification of Economic Optima for Corn Grown on Calcareous Ida Silt Loam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 36(3), pages 466-482.
    15. Mooney, Daniel F. & Roberts, Roland K. & English, Burton C. & Tyler, Donald D. & Larson, James A., 2008. "Switchgrass Production in Marginal Environments: A Comparative Economic Analysis across Four West Tennessee Landscapes," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6403, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mkondiwa, Maxwell Gibson, 2015. "Whither Broad or Spatially Specific Fertilizer Recommendations?," Master's Theses and Plan B Papers 237344, University of Minnesota, Department of Applied Economics.
    2. Klaus Moeltner & A. Ford Ramsey & Clinton L. Neill, 2021. "Bayesian Kinked Regression with Unobserved Thresholds: An Application to the von Liebig Hypothesis," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1832-1856, October.
    3. Harmon, Xavier & Boyer, Christopher N. & Lambert, Dayton M. & Larson, James A., 2017. "Temporal Frequency Of Soil Test Information Effects On Returns To Potassium Fertilization In Cotton Production," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 49(2), pages 251-272, May.
    4. Park, Seong Cheol & Vitale, Jeffrey D. & Turner, Jason Clemn & Stoecker, Arthur L. & Hattey, Jeffory A., 2011. "Economic Potential of Swine Effluent in Intensified Forage Systems in the Southern Plains," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2011, pages 1-22, June.
    5. Frederic Ouedraogo & B. Wade Brorsen, 2018. "Hierarchical Bayesian Estimation of a Stochastic Plateau Response Function: Determining Optimal Levels of Nitrogen Fertilization," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(1), pages 87-102, March.
    6. Harmon, Xavier & Boyer, Christopher N. & Lambert, Dayton M. & Larson, James A. & Gwathmey, C. Owen, 2016. "Comparing the Value of Soil Test Information Using Deterministic and Stochastic Yield Response Plateau Functions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.
    7. Boyer, Christopher N. & Larson, James A. & Roberts, Roland K. & McClure, Angela T. & Tyler, Donald D. & Zhou, Vivian, 2013. "Stochastic Corn Yield Response Functions to Nitrogen for Corn after Corn, Corn after Cotton, and Corn after Soybeans," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(4), pages 669-681, November.
    8. McFadden, Brandon R. & Brorsen, B. Wade, 2015. "Pr - Nitrogen Fertilizer Recommendations Based On Precision Sensing And Bayesian Updating," 20th Congress, Quebec, Canada, 2015 345756, International Farm Management Association.
    9. Brorsen, B. & Ouedraogo, Frederic, 2015. "Using Bayesian Estimation Methods to Determine Optimal Levels of Nitrogen Fertilization," 2015 Conference, August 9-14, 2015, Milan, Italy 211373, International Association of Agricultural Economists.
    10. Park, Seong C. & Brorsen, B. Wade & Stoecker, Arthur L. & Hattey, Jeffory A., 2012. "Forage Response to Swine Effluent: A Cox Nonnested Test of Alternative Functional Forms Using a Fast Double Bootstrap," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(4), pages 593-606, November.
    11. Du, Qianqian & Mieno, Taro & Bullock, David S., 2023. "Measuring the Estimation Bias of Yield Response to N Using Combined On-Farm Experiment Data," Land, Farm & Agribusiness Management Department 344222, Harper Adams University, Land, Farm & Agribusiness Management Department.
    12. Boyer, Christopher N. & Larson, James A. & Roberts, Roland K. & McClure, Angela T. & Tyler, Donald D. & Smith, S. Aaron, 2014. "Probability of Irrigated Corn Being Profitable in a Humid Region," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162470, Southern Agricultural Economics Association.
    13. Agarwal, Sandip Kumar, 2017. "Subjective beliefs and decision making under uncertainty in the field," ISU General Staff Papers 201701010800006248, Iowa State University, Department of Economics.
    14. Du, Qianqian & Mieno, Taro & Bullock, David S., 2023. "Measuring the Estimation Bias of Yield Response to N Using Combined On-Farm Experiment Data," Agri-Tech Economics Papers 344222, Harper Adams University, Land, Farm & Agribusiness Management Department.
    15. Du, Qianqian & Mieno, Taro & Bullock, David S., 2024. "Measuring the Estimation Bias of Yield Response to N Using Combined On-Farm Experiment Data," 2024 Annual Meeting, July 28-30, New Orleans, LA 344051, Agricultural and Applied Economics Association.
    16. Rashki, Paria & piri, halimeh & Khamari, Eisa, 2022. "Determining the production function and optimal irrigation depth of Roselle in deficit irrigation conditions and using potassium fertilizer," Agricultural Water Management, Elsevier, vol. 271(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Frederic Ouedraogo & B. Wade Brorsen, 2018. "Hierarchical Bayesian Estimation of a Stochastic Plateau Response Function: Determining Optimal Levels of Nitrogen Fertilization," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(1), pages 87-102, March.
    2. Brorsen, B. Wade, 2013. "Using Bayesian Estimation and Decision Theory to Determine the Optimal Level of Nitrogen in Cotton," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142951, Southern Agricultural Economics Association.
    3. Brorsen, B. & Ouedraogo, Frederic, 2015. "Using Bayesian Estimation Methods to Determine Optimal Levels of Nitrogen Fertilization," 2015 Conference, August 9-14, 2015, Milan, Italy 211373, International Association of Agricultural Economists.
    4. Klaus Moeltner & A. Ford Ramsey & Clinton L. Neill, 2021. "Bayesian Kinked Regression with Unobserved Thresholds: An Application to the von Liebig Hypothesis," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1832-1856, October.
    5. Park, Seong C. & Brorsen, B. Wade & Stoecker, Arthur L. & Hattey, Jeffory A., 2012. "Forage Response to Swine Effluent: A Cox Nonnested Test of Alternative Functional Forms Using a Fast Double Bootstrap," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(4), pages 593-606, November.
    6. Ng'ombe, John, 2019. "Economics of the Greenseeder Hand Planter, Discrete Choice Modeling, and On-Farm Field Experimentation," Thesis Commons jckt7, Center for Open Science.
    7. Christopher N. Boyer & B. Wade Brorsen & Emmanuel Tumusiime, 2015. "Modeling skewness with the linear stochastic plateau model to determine optimal nitrogen rates," Agricultural Economics, International Association of Agricultural Economists, vol. 46(1), pages 1-10, January.
    8. Ng'ombe, John, 2019. "Economics of the Greenseeder Hand Planter, Discrete Choice Modeling, and On-Farm Field Experimentation," Thesis Commons jckt7_v1, Center for Open Science.
    9. Michel Dumont, 2006. "Foreign Outsourcing, Labour Demand and the Choice of Functional Form," Journal of Applied Economics, Taylor & Francis Journals, vol. 9(2), pages 255-273, November.
    10. Venkatesh Shankar & Pablo Azar & Matthew Fuller, 2008. "—: A Multicategory Brand Equity Model and Its Application at Allstate," Marketing Science, INFORMS, vol. 27(4), pages 567-584, 07-08.
    11. Marmer, Vadim & Otsu, Taisuke, 2012. "Optimal comparison of misspecified moment restriction models under a chosen measure of fit," Journal of Econometrics, Elsevier, vol. 170(2), pages 538-550.
    12. Burton, Diana M. & Love, H. Alan, 1996. "A Review of Alternative Expectations Regimes in Commodity Markets: Specification, Estimation, and Hypothesis Testing Using Structural Models," Agricultural and Resource Economics Review, Cambridge University Press, vol. 25(2), pages 213-231, October.
    13. Silva João M. C. Santos & Tenreyro Silvana & Windmeijer Frank, 2015. "Testing Competing Models for Non-negative Data with Many Zeros," Journal of Econometric Methods, De Gruyter, vol. 4(1), pages 29-46, January.
    14. Luis Orea & David Roibás & Alan Wall, 2004. "Choosing the Technical Efficiency Orientation to Analyze Firms' Technology: A Model Selection Test Approach," Journal of Productivity Analysis, Springer, vol. 22(1), pages 51-71, July.
    15. Boyer, Christopher N. & Larson, James A. & Roberts, Roland K. & McClure, Angela T. & Tyler, Donald D., 2014. "The impact of field size and energy cost on the profitability of supplemental corn irrigation," Agricultural Systems, Elsevier, vol. 127(C), pages 61-69.
    16. Rosas, Juan Francisco, 2012. "Essays on the environmental effects of agricultural production," ISU General Staff Papers 201201010800003744, Iowa State University, Department of Economics.
    17. McFadden, Brandon R. & Brorsen, B. Wade, 2015. "Pr - Nitrogen Fertilizer Recommendations Based On Precision Sensing And Bayesian Updating," 20th Congress, Quebec, Canada, 2015 345756, International Farm Management Association.
    18. Mur, Jesús & Angulo, Ana, 2009. "Model selection strategies in a spatial setting: Some additional results," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 200-213, March.
    19. Richards, Timothy J. & Patterson, Paul M., 2002. "Strategic Interaction With Multiple Tools: A New Empirical Model," Working Papers 28545, Arizona State University, Morrison School of Agribusiness and Resource Management.
    20. MARK J. McCABE & CHRISTOPHER M. SNYDER, 2014. "Identifying The Effect Of Open Access On Citations Using A Panel Of Science Journals," Economic Inquiry, Western Economic Association International, vol. 52(4), pages 1284-1300, October.

    More about this item

    Keywords

    Production Economics;

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:joaaec:117949. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.