Abstract

Abstract This paper is concerned with a farmer's decision on the timing of nitrogen fertilizer application. It shows that for dryland cotton production, a split application of nitrogen fertilizer whereby some fertilizer is applied before and some after planting is the optimal strategy. Additionally, a risk‐averse cotton farmer, as compared to a risk‐neutral farmer, will apply more nitrogen fertilizer prior to planting. Finally, for irrigated cotton, the application of nitrogen fertilizer during the growing season is the optimal strategy. The results of the analysis explain the observed nitrogen fertilizer timing decision of cotton farmers.

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