The Role of Information and Prices in the Nitrogen Fertilizer Management Decision: New Evidence from the Agricultural Resource Management Survey
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This article investigates the impact of agronomic and price information on nitrogen fertilizer
management. Excessive nitrogen applications can cause environmental degradation, and it is
important to understand how information influences the application decision in order to develop
effective conservation policies. The impact of soil N-tests on the rate of applied nitrogen is
estimated. Farmers who use a soil test reduce their use of commercial nitrogen by up to 83 lbs/acre
relative to non-testers. New evidence indicates that rising fertilizer prices encourage farmers to
manage nitrogen more carefully. Estimated price elasticities of quantity demanded range from
-1.67 to -1.87.