Fuel and Fertilizer Price Impacts on Crop Mix and Returns in the Louisiana Delta
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Fuel and fertilizer price
increases in 2006 have had a
significant impact on crop
production costs and net
returns. Analysis of crop returns
and enterprise selection for the
Louisiana Delta, a mixed
cropping area in the
northeastern part of the state,
indicates that increased diesel
and nitrogen fertilizer prices
would be expected to shift
acreage away from crops with
relatively high diesel and
nitrogen requirements as well as
increase the risk or variability of
net returns above variable costs
for crop enterprise
combinations.