An Economic Analysis of the Pre-Sidedress Nitrogen Test for Pennsylvania Corn Production

Abstract

The impacts of agriculture on water quality are receiving a high level of public attention. For example, the U. S. Environmental Protection Agency recently concluded that agriculture is the leading contributor to nonpoint source pollution, and possibly the leading source of water pollution in the United States. Water quality issues associated with agriculture are nitrogen, phosphorous, soil, and pesticide pollution. This concern about the impact of agriculture on water quality has stimulated interest in production methods that reduce farm pollution. One approach to addressing the problem is adoption of Best Management Practices (BMP's) that would reduce water pollution relative to conventional practices. Assuming that farmers are motivated by profits, adoption of BMP's will occur only if farmers expect higher profits. If BMP's do not increase profits, then adoption requires regulatory measures. The usual assumption of BMP's is that conventional production practices are technically and/or allocatively inefficient relative to BMP's. Under this assumption, farmers may be able to both reduce pollution and improve farm profits. Soil testing is a BMP that has long been used t manage phosphorous and potassium availability for crop production. Until recently, soil tests were considered to be of little value in