Date of this Version
Cornhuskers Economics, University of Nebraska- Lincoln Extension, September 9, 2014.
With the ever changing value of hay and input costs, those producers who use their subirrigated meadows to produce hay may often wonder if they should apply fertilizer and, if so, how much and what type? The biological research needed to answer these queries has been completed decades ago, but because hay values and fertilizer prices are constantly changing, it becomes necessary to revisit the topic and answer these questions using current economic information. This analysis uses the classical approach where the value gained from increased production is at least as much as the cost of applying the additional fertilizer, marginal cost equals marginal revenue, and where profits, or in this case net returns, are maximized.