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Using Insurance to Enhance Nitrogen Fertilizer Application Timing to Reduce Nitrogen Losses

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  • Huang, Wen-Yuan

Abstract

Nitrogen applied before planting is more vulnerable to loss to the environment than nitrogen applied during the growing season, but the growing season application can increase the risk of lower yields caused by adverse weather that prohibits farmers to complete N application. An expected utility framework is used to illustrate the potential economic benefit of insurance for a farmer to reduce this risk cost. An expected-value variance analysis is used to illustrate the potential benefit of insurance to Iowa corn growers who apply N fertilizer only during the growing season.

Suggested Citation

  • Huang, Wen-Yuan, 2002. "Using Insurance to Enhance Nitrogen Fertilizer Application Timing to Reduce Nitrogen Losses," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 34(1), pages 131-148, April.
    • Handle: RePEc:cup:jagaec:v:34:y:2002:i:01:p:131-148_00
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    Cited by:

    1. Asci, Serhat & Borisova, Tatiana & VanSickle, John J., 2015. "Role of economics in developing fertilizer best management practices," Agricultural Water Management, Elsevier, vol. 152(C), pages 251-261.
    2. Mitchell, Paul D., 2004. "Nutrient Best Management Practice Insurance and Farmer Perceptions of Adoption Risk," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(3), pages 657-673, December.
    3. Chai, Yuan & J. Pannell, David & G. Pardey, Philip, 2023. "Nudging farmers to reduce water pollution from nitrogen fertilizer," Food Policy, Elsevier, vol. 120(C).
    4. Lefebvre, Marianne & Midler, Estelle & Bontems, Philippe, 2020. "Adoption of environmentally-friendly agricultural practices with background risk: experimental evidence," TSE Working Papers 20-1079, Toulouse School of Economics (TSE).
    5. Glenn Sheriff, 2005. "Efficient Waste? Why Farmers Over-Apply Nutrients and the Implications for Policy Design," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(4), pages 542-557.
    6. Marianne Lefebvre & Estelle Midler & Philippe Bontems, 2020. "Adoption of Environment-Friendly Agricultural Practices with Background Risk: Experimental Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(2), pages 405-428, July.
    7. Marianne Lefebvre & Estelle Midler & Philippe Bontems, 2020. "Adoption of environment-friendly agricultural practices with background risk: experimental evidence," Post-Print hal-03050486, HAL.

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