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Cited by 148 publications
(96 citation statements)
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References 17 publications
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“…Farmers often use more than the profit-maximizing level of fertilizers (Babcock, 1992). They use decision criteria such as "fertilizing for the good years" or "applying a little extra fertilizer just in case it is needed".…”
Section: Agricultural Technology and Ferti-lizer Usementioning
confidence: 99%
See 1 more Smart Citation
“…Farmers often use more than the profit-maximizing level of fertilizers (Babcock, 1992). They use decision criteria such as "fertilizing for the good years" or "applying a little extra fertilizer just in case it is needed".…”
Section: Agricultural Technology and Ferti-lizer Usementioning
confidence: 99%
“…In this case, when farmers use more nutrients than needed given average soil nutrients, they gain much when soil nutrients are below average and lose only little when soil nitrogen is average or above. This is true for many functions, such as the Cobb-Douglas and the Mitscherlich production function (Babcock, 1992). Summarizing, uncertainty on weather conditions and soil quality will induce risk-averse farmers to apply more fertilizers than the static profit-maximization amount.…”
Section: Agricultural Technology and Ferti-lizer Usementioning
confidence: 99%
“…If the marginal product of nitrogen is a convex function, increasing uncertainty about the availability of soil nitrogen will increase nitrogen application. This is true for many continuous functions, such as the Cobb-Douglas, and for those that contain a plateau (Babcock, 1992). The intuition of this result is that increasing nitrogen usage above the amount that is needed on average imposes less loss when soil nitrogen is abundant than the gain when soil nitrogen is deficient.…”
Section: Environment and Development Economics 491mentioning
confidence: 96%
“…Nevertheless, SriRamaratnam et al (1987) found that ten out of 12 Texas sorghum producers considered nitrogen fertiliser to be risk reducing. Consequently, typical US farmers apply more nitrogen than the profit-maximizing level (Babcock, 1992). This is rational, if ex post optimal fertiliser rates are positively correlated with yield.…”
Section: Environment and Development Economics 491mentioning
confidence: 99%
“…Low NUE is due substantially to producers' response to the uncertainty of nitrogen (N) requirements across space and time (Babcock 1992;Tembo et al 2008). Producers 'over-apply' N in most years and fields because they want to ensure that enough N is available if crop N requirements are higher than expected.…”
Section: Introductionmentioning
confidence: 99%