Abstract
This paper concerns factors affecting a farmer's decision about the timing of nitrogen fertilizer application. These factors include expected nitrogen loss associated with different application times, 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. The analysis indicates that a split application of nitrogen fertilizer is an optimal strategy for both a risk-neutral and a risk-averse cotton farmer if the farmer perceives that he or she may be unable to apply nitrogen fertilizer after planting.
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