Determining Profitable Use of Fertilizer (Classic Reprint)

Determining Profitable Use of Fertilizer (Classic Reprint)

Author: Donald Bryan Ibach

Publisher: Forgotten Books

Published: 2017-11-18

Total Pages: 84

ISBN-13: 9780260721198

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Excerpt from Determining Profitable Use of Fertilizer Fertilizer has been important in increasing yields of crops and total farm output. Increases in yields brought about by use of more fertilizer have meant higher returns not only per acre, but also per hour of labor. For small farmers particularly, wise use of ferti lizers means a substantial increase in size of business. Overhead costs per acre are usually higher on small farms than on large ones. Therefore, in order for small farms to obtain the same net return per acre as large farms they have to obtain high yields. A knowledge of yield response at different rates and combinations is necessary in order to decide upon the most profitable application of fertilizer° 'widespread information of this type would guide farmers in making choices as to expenditures. In periods of declining prices, returns from.all expenditures are reduced, but it is particularly important to maintain the practices that contribute most to net returns. Farmers who have followed good practices, including profitable use of fertilizers, know about what yields represent the most profi table levels for their own farms, but they may not be aware of the effect of changes in prices and costs on rates that should be applied for maximmm.returns. Also, there are often different ways of reach ing these yieldso For example, different combinations of plant nutri ents may result in the same yield, but one combination may cost less per acre than another. This aspect of the most profitable use of fertilizer has general implications as well as implications for indi 'vidual farms. For example, if sulfur, which is used in the manufac ture of phosphate fertilizer, should cost more in the future relative to other materials used in manufacturing fertilizers than it has in the past, it might influence recommendations that should be made as to plant nutrient ratios for specific purposes. If, for example, more nitrogen and less phosphate will result in the same yield of a given crop, recommendations should reflect this fact if reserves of sulfur should become relatively short. Such questions as this can be answered only by adequate information as to yield response at different rates and combinations of plant nutrients. Economic interpretation can then provide answers as to the most profitable rates and combinations for any cr0p price-fertilizer cost relationship. It can also determine the least-cost combination at which to obtain a stated yield. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.


Revisiting the demand and profitability of chemical fertilizers amid global fuel-food-fertilizer crisis: Evidence from Ethiopia

Revisiting the demand and profitability of chemical fertilizers amid global fuel-food-fertilizer crisis: Evidence from Ethiopia

Author: Assefa, Thomas

Publisher: Intl Food Policy Res Inst

Published: 2024-07-16

Total Pages: 40

ISBN-13:

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We revisit the state of smallholder fertilizer demand and profitability in Ethiopia in the face of the recent global fuel–food–fertilizer price crisis triggered by the Russian–Ukraine war and compounded by other domestic supply shocks. We first examine farmers’ response to changes in both fertilizer and food prices by estimating price elasticity of demand. We then revisit the profitability of fertilizer by computing average value–cost ratios (AVCRs) associated with fertilizer application before and after these crises. We use three-round detailed longitudinal household survey data, covering both pre-crisis (2016 and 2019) and post-crisis (2023) production periods, focusing on three main staple crops in Ethiopia (maize, teff, and wheat). Our analysis shows that fertilizer adoption, use, and yield levels were increasing until the recent crises, but these trends seem halted by these crises. We also find relatively large fertilizer price elasticity of demand estimates, ranging between 0.4 and 1.1, which vary across crops and are substantially larger than previous estimates. We find suggestive evidence that households with smaller farm sizes are relatively more responsive to changes in fertilizer prices. We also document that farmers’ response to increases in staple crop prices is not as strong as perceived and hence appears to be statistically insignificant. Finally, we show important dynamics in the profitability of chemical fertilizer. While the AVCRs show profitable trends for most crops, the share of farmers with profitable AVCRs declined following the fertilizer price surge. Our findings offer important insights for policy focusing on mitigating the adverse effects of fertilizer price shocks.