Date of this Version
Gardner, G., Taro, M. (2019). The Economic Evaluation of Input Use Prescription Maps: Are You Paying to Make Less Profit?. Digital Commons @ The University of Nebraska-Lincoln.
Variable Rate Prescriptions used by farmers to apply agricultural inputs are largely privatized and are normally seen only by the farmer that applies the prescription and the consultants whom create the prescription maps. Farmers need a way to evaluate the prescriptions that are being applied to fields. This paper explores modeling techniques which could be applied by farmers to determine the profitability of a particular consultant. Regression modeling is used on field trials which have been divided into site-specific management zones (SSMZ) based on a consultant’s variable rate prescriptions. Production functions are created for each management zone. The production functions are used to find the economically optimum rates or the rates which maximize profit. The consultant’s rates are also explored to determine how close this particular consultant is to the economically optimum rates. The consultant that is evaluated in this paper produces a profit that is $11 less than the economically optimum rates.
Advisor: Taro Mieno