Monday, November 5, 2007
51-11
Flat Profit Functions Associated with Variable Nitrogen Rates – Implications for Producers, Researchers and Policy-Makers.
Bill Deen1, Ken Janovicek1, Alfons Weersink2, and Predrag Rajsic3. (1) University of Guelph, University of Guelph, Crop Science Building, Guelph, ON N1G 2W1, CANADA, (2) Food, Agriculture and Resource Economics, University of Guelph, 5 Stone Rd., Guelph, PE N1G 2W1, Canada, (3) Food, Agriculture, and Resource Economics, University of Guelph, 5 Stone Rd., Guelph, ON N1G 2W1, Canada
Efforts to optimize nitrogen rates assume that deviations from the optimal nitrogen rate have significant impact on profitability. The objective of this research is to examine the profitability impacts of deviating nitrogen rate from the maximum economic rate of nitrogen (MERN). Nitrogen response datasets for maize and wheat were used to estimate MERN, and producer return to nitrogen at rates greater than and less than MERN. For both maize and wheat datasets, relatively large deviations from MERN, had limited impact on producer profitability. For wheat and maize, a rate range of 85 and 110 kg ha-1, respectively existed for which the producer was able to achieve within $25 ha-1 of the profitability associated with the MERN. The existence of a flat profit function has implications for assessing value to nitrogen optimizing techniques, precision farming technologies, and justification for over application of nitrogen by producers.