Impacts of Terrain Attributes on Economics (including variable rate nitrogen) and the Environment: Costs of Reducing Potential Nitrogen Pollution in Wheat Production

Authors

Cory Walters, University of Nebraska-LincolnFollow

Date of this Version

2017

Document Type

Article

Citation

Cornhusker Economics, March 22, 2017, agecon.unl.edu/cornhuskereconomics

Comments

Copyright 2017 University of Nebraska

Abstract

Understanding the influence of variable rate nitrogen technology in other areas can help inform Nebraska producers. The economic cost of achieving desired environmental outcomes from uniform and variable rate fertilizer application technologies depends both on market forces and agronomic properties. Using spatial econometric methods, we analyze the impact of nitrogen fertilizer supply by terrain attribute on the yield and protein content of hard red spring wheat grown in Eastern Washington as well as the impact on residual nitrogen. We find significant association with all three. The economic impact of nitrogen restrictions depends critically on both prices and level of the restriction. Uniform application of nitrogen was found to economically outperform variable rate application, but variable rate application provided positive environmental benefits due to less residual nitrogen.