A Spatial Econometric Approach to the Economics of Site‐Specific Nitrogen Management in Corn Production

The objective of this study is to determine the potential for using spatial econometric analysis of combine yield monitor data to estimate the site-specific crop response functions. The specific case study is for site-specific nitrogen (N) application to corn production in Argentina. Spatial structure of the yield data is modeled with landscape variables, spatially autoregressive error and groupwise heteroskedasticity. Results suggest that N response differs by landscape position, and that site-specific application may be modestly profitable. Profitability depends on the model specification used, with all spatial models consistently indicating profitability, whereas the nonspatial models do not.

[1]  F. C. Bauer,et al.  Test your soil for acidity , 1929 .

[2]  A. Ullah,et al.  Handbook of Applied Economic Statistics , 2000 .

[3]  L. Anselin,et al.  Toward Spatially Integrated Social Science , 2000 .

[4]  Zvi Griliches,et al.  Specification Bias in Estimates of Production Functions , 1957 .

[5]  J. A. Seagraves,et al.  The “Cost of the Wrong Decision” as a Guide in Production Research , 1962 .

[6]  Dan Pennock,et al.  The Feasibility of Variable Rate N Fertilization in Saskatchewan , 1996 .

[7]  Sheilah C. Nolan,et al.  Yield Response to Nitrogen within Landscape Classes , 1999 .

[8]  J. Lowenberg-DeBoer,et al.  Average Returns and Risk Characteristics of Site Specific P and K Management: Eastern Corn Belt On‐Farm Trial Results , 1999 .

[9]  L. Anselin.  SPATIAL DEPENDENCE AND SPATIAL STRUCTURAL INSTABILITY IN APPLIED REGRESSION ANALYSIS , 1990 .

[10]  G. Judge,et al.  Agricultural Production Functions. , 1961 .

[11]  J. Thornley.  The Analysis of Response in Crop and Livestock Production. , 1990 .

[12]  David S. Bullock,et al.  Adding value to spatially managed inputs by understanding site‐specific yield response , 2002 .

[13]  Luc Anselin,et al.  Spatial Externalities, Spatial Multipliers, And Spatial Econometrics , 2003 .

[14]  Relationship of Nitrogen and Topography , 1996 .

[15]  J. Šroller.  Robert, P.C., Rust, R.H., Larson, W.E. (ed.): Site Specific Management for Agricultural Systems , 1997, Biologia Plantarum.

[16]  D. Long.  Spatial autoregression modeling of site-specific wheat yield , 1998 .

[17]  F. J. Pierce,et al.  The state of site specific management for agriculture. , 1997 .

[18]  Terrance M. Hurley,et al.  The Value of Information For Variable Rate Nitrogen Applications: A Comparison of Soil Test, Topographical, and Remote Sensing Information , 2001 .

[19]  D. Pennock,et al.  Yield Response of Wheat and Canola to a Topographically Based Variable Rate Fertilization Program in Saskatchewan , 1999 .

[20]  H. Kelejian,et al.  A Generalized Spatial Two-Stage Least Squares Procedure for Estimating a Spatial Autoregressive Model with Autoregressive Disturbances , 1998 .

[21]  W. J. Spillman,et al.  Farm Management , 2017, Nature.

[22]  Luc Anselin,et al.  Small Sample Properties of Tests for Spatial Dependence in Regression Models: Some Further Results , 1995 .

[23]  L. Anselin.  Spatial Econometrics: Methods and Models , 1988 .

[24]  Luc Anselin,et al.  Rao's score test in spatial econometrics , 2001 .

[25]  Spatial Statistical Analysis of On-Site Crop Yield and Soil Observations for Site-Specific Management , 1999 .

[26]  I. Ohlsson.  Book reviewSite-specific management for agricultural systems: P.C. Robert, R.H. Rust and W.E. Larson (Editors). American Society of Agronomy, Crop Science Society of America, and Soil Science Society of America, Madison, WI, 1995. ISBN 0-89118-127-X, Paperback, 993 pp., US$ 39 , 1996 .

[27]  R. Bongiovanni,et al.  Economics of Variable Rate Lime in Indiana , 2000, Precision Agriculture.

[28]  P. C. Robert,et al.  Variability of corn/soybean yield and soil/landscape properties across a southwestern Minnesota landscape , 1999 .

[29]  James Lowenberg-DeBoer,et al.  NITROGEN MANAGEMENT IN CORN USING SITE-SPECIFIC CROP RESPONSE ESTIMATES FROM A SPATIAL REGRESSION MODEL , 2000 .

[30]  James Lowenberg-DeBoer,et al.  Evaluating the profitability of site-specific farming , 1998 .

[31]  Antonio P. Mallarino,et al.  Multivariate Analysis as a Tool for Interpreting Relationships Between Site Variables and Crop Yields , 1996 .

[32]  Luc Anselin,et al.  Spatial Effects in Econometric Practice in Environmental and Resource Economics , 2001 .

[33]  Badi H. Baltagi,et al.  A companion to theoretical econometrics , 2003 .

[34]  David S. Bullock,et al.  From Agronomic Research to Farm Management Guidelines: A Primer on the Economics of Information and Precision Technology , 2004, Precision Agriculture.

[35]  Harry H. Kelejian,et al.  A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model , 1999 .

[36]  Luc Anselin,et al.  Spatial Dependence in Linear Regression Models with an Introduction to Spatial Econometrics , 1995 .

[37]  Earl O. Heady,et al.  Agricultural Production Functions , 1962 .

[38]  Raymond J.G.M. Florax,et al.  Spatial dimensions of precision agriculture: a spatial econometric analysis of millet yield on Sahelian coversands , 2002 .

[39]  Remote sensing to identify spatial patterns in optimal rates of nitrogen fertilization , 1996 .

[40]  Luc Anselin,et al.  Under the hood , 2002 .

[41]  James Lowenberg-DeBoer,et al.  Economics of Site‐Specific Management in Agronomic Crops , 1997 .