Abstract
This paper is concerned with factors affecting a farmer's decision concerning the timing of nitrogen ferilizer application. These factors include the expected nitrogen loss associated with different application times, the expected seasonal fluctuations in nitrogen fertilizer prices and operating costs, and the perceived risk of not being able to apply nitrogen fertilizer during the growing season. This paper shows that a split application of nitrogen fertilizer is an optimal strategy for both risk-neutral and risk-averse cotton farmers in the United States if there is a possibility that they may be unable to apply nitrogen fertilizer after planting. Furthermore, a risk-averse cotton farmer relative to a risk neutral farmer will apply more nitrogen fertilizer prior to planting.
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