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Using Insurance to Enhance Nitrogen Fertilizer Application Timing to Reduce Nitrogen Losses

Published online by Cambridge University Press:  28 April 2015

Wen-Yuan Huang
Wen-Yuan Huang*
Affiliation:
USDA, Economic Research Service, 1800 M Street NW, Washington D.C. 20036
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Abstract

Nitrogen applied before planting is more vulnerable to loss to the environment than nitrogen applied during the growing season, but the growing season application can increase the risk of lower yields caused by adverse weather that prohibits farmers to complete N application. An expected utility framework is used to illustrate the potential economic benefit of insurance for a farmer to reduce this risk cost. An expected-value variance analysis is used to illustrate the potential benefit of insurance to Iowa corn growers who apply N fertilizer only during the growing season.

Keywords

insurancenitrogen fertilizerapplication timings
Type
Original Articles
Information
Journal of Agricultural and Applied Economics , Volume 34 , Issue 1 , April 2002 , pp. 131 - 148
Copyright
Copyright © Southern Agricultural Economics Association 2002

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