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Do farmers overuse nitrogen fertilizer to the detriment of the environment?

Author

Listed:
  • Satya Yadav
  • Willis Peterson
  • K. Easter
Abstract
Increasing use of nitrogen fertilizer in U.S. agriculture has led to nitrate contamination of water resources. The main objective of the study is to determine if the current use of nitrogen exceeds the profit-maximizing level, since reducing such discrepancy, if any, could raise farmers' profitability and enhance water quality making it a win-win situation. Specific objectives of the study, however, are two-fold. First, develop an appropriate methodology for estimation of an agronomic production function utilizing panel data with several treatments from experimental plots. Second, using experimental data from 1987 through 1990 for three farm sites in southeastern Minnesota, empirically estimate the production function and profit maximizing level of nitrogen application. Our results show that both the current recommended rate, 150 1b/acre, and farmers' use, 176 1b/acre, of nitrogen exceed the profit maximizing level of nitrogen in the region. It is shown that the recommended rate needs to be revised and made more site or area specific rather than a general figure for the entire region. The study shows considerable residual nitrogen build-up in the soil profile, implying that farmers have been applying more nitrogen than could be utilized by corn plants. The later finding highlights the importance of soil testing for plant nutrients when making decisions on fertilizer application. Copyright Kluwer Academic Publishers 1997

Suggested Citation

  • Satya Yadav & Willis Peterson & K. Easter, 1997. "Do farmers overuse nitrogen fertilizer to the detriment of the environment?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(3), pages 323-340, April.
    • Handle: RePEc:kap:enreec:v:9:y:1997:i:3:p:323-340
    DOI: 10.1007/BF02441403
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    References listed on IDEAS

    as
    1. Vroomen, Harry, 1989. "Fertilizer Use and Price Statistics, 1960-88," Statistical Bulletin 154682, United States Department of Agriculture, Economic Research Service.
    2. Alain De Janvry, 1972. "The Generalized Power Production Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(2), pages 234-237.
    3. Griffin, Ronald C. & Montgomery, John M. & Rister, M. Edward, 1987. "Selecting Functional Form In Production Function Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(2), pages 1-12, December.
    4. W. J. Spillman, 1923. "Application of the Law of Diminishing Returns to Some Fertilizer and Feed Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 5(1), pages 36-52.
    5. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
    6. Michael D. Frank & Bruce R. Beattie & Mary E. Embleton, 1990. "A Comparison of Alternative Crop Response Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 597-603.
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