Nitrogen Fertilizer Prices Research Articles

Agronomic performance of out-of-season maize crop in response of application N-fertilizer combined with biological inoculant in Mato Grosso

The high price of nitrogen fertilizer is an aggravating factor for the corn production costs in the out season and its use may be lead environmental damages. Diazotrophic bacteria have the ability to associate with different plant species and nitrogen supply. Thus, the objective of this study was to evaluate the agronomic performance of winter maize inoculated with Azospirillum brasilense grown with nitrogen levels in the state of Mato Grosso. The experiment was carried out and scaled the field with six treatments: 42 kg N ha-1 with inoculant; 31.5 kg N ha-1 with inoculant; 21 kg N ha-1 with inoculant; 0 kg N with inoculant; 0 kg N without inoculation; 42 kg N ha-1 without inoculation. The inoculant tested contained two strains of A. brasilense. Nine variables were evaluated after harvest and the data were assessed by Kruskal-Wallis test (p ≤ 0.01) test. The variables productivity, number of rows of grains of corn, number of kernels per row, diameter spike, spike weight and weight of the cob responded positively to inoculation with 42 Kg of N. The variables mass of thousand grains, diameter of cob and weight of straw did not change according to the treatments. The productivity in the treatments with reduced N doses was equal to high N doses without inoculation. Those results showed the inoculant use associated with low N doses may be a new way to reduce the N use without decrease the corn productivity in the out season in Mato Grosso.

Pricing and Industry Structure when Demand Elasticity Changes

This paper examines the economics of pricing under imperfect competition. It studies how industry concentration interacts with the elasticity of demand to affect pricing. When the demand elasticity decreases with increased market concentration, it can have significant effects on pricing. This issue is investigated empirically in an analysis of the determinants of nitrogen fertilizer prices in the US. The U.S. nitrogen fertilizer industry is an interesting case study for two reasons: First, it has exhibited increasing concentration over the last few decades. Second, the elasticity of U.S. demand for nitrogen fertilizer has decreased over that time period. Our analysis documents how a more inelastic demand for fertilizer—in addition to increased market concentration—has contributed to higher fertilizer prices.

Nitrogen Fertilizer Prices and Costs Lower for 2018

Nitrogen Fertilizer Prices and Costs Lower for 2018

Financial tradeoffs of energy and food uses of algal biomass under stochastic conditions

The industrial cultivation of microalgae can produce oil and protein rich biomass at areal yields higher than those of conventional agriculture. Given that algae has been demonstrated as both a potential biofuel and a food product, it is important to consider the environmental and economic tradeoffs associated with these uses. Here we evaluate the financial value of capital options for three processing strategies that produce food and fuel from algae. We show, in stochastic price regimes for production inputs and outputs, that the greatest returns are achieved when algal biomass is valorized as a high value fishmeal replacement. A co-production technology strategy that valorizes extracted oils as fuel and residual biomass as fishmeal replacement can enable the economic production of a renewable biofuel. Consistent with other studies, fuel-only production remains uneconomical, but becomes preferred if a low value commodity crop substitute is considered as the rendered food product. Potential improvements in capital and operational costs to enable economic production of fuel and low-value food are explored. Multimodal biorefineries ensure continued production during periods that are economically unfavorable with a single-mode approach, but have lower returns due to larger upfront capital investment. An analysis of a biorefinery with fuel, food, and coproduction modes demonstrated that mode selection was mostly influenced by output product prices when food and energy prices were competitive. Nitrogen fertilizer prices had a moderate influence on mode selection, while other inputs (phosphorus, electricity, natural gas) had negligible influence. The application of a carbon tax places a penalty on food production, but improves returns when renewable electricity is utilized in production. This analysis demonstrates an approach for evaluating financial tradeoffs at the food-energy nexus under uncertain market conditions.

Rising nitrogen fertilizer prices and projected increase in maize ethanol production: the future of forage production and the potential of legumes in forage production systems

AbstractNitrogen (N) fertilizers are critical in today's agriculture especially in the United States. Leaching, methane and nitrous oxide emissions from N fertilizer use and the implications for global climate and water pollution raised serious concerns among environmentalists and agronomists. Prices of N fertilizers increased geometrically over the past few years. The projected increase in maize (Zea mays L.) ethanol production is expected to increase N fertilizer demand and prices. Hay prices are, however, staggering and producers are looking for alternatives to N fertilizers. This review paper assessed trends in fertilizer use and prices as well as factors affecting fixation and transfer of dinitrogen (N2) in forage production systems. Additionally, economic implications of using N fertilizers and grass‐legume mixtures are discussed. From the review, it was apparent that legumes have the potential to replace N fertilizers or at least complement the use of N fertilizers in forage production systems. However, N transfer in forage production systems is low. A lot more research is needed to answer the question “Why legumes fix so much N2 and transfer just a small proportion to other crops.” Similarly, identifying compatible grass‐legume species that enhance N2 fixation will be a giant step towards reduced N fertilizer use and ensuring environmental sustainability. With the sharp increase in N fertilizer prices, the use of legumes in forage production systems seems promising.

Integrated analysis of profitable stocking‐rate decisions in pasture‐based dairy systems

AbstractA nonlinear optimization model of a pasture‐based dairy farm, located in the Waikato region of New Zealand, is used to provide an integrated analysis of profitable stocking‐rate decisions for pasture‐based dairy production, across a range of alternative milk and nitrogen fertilizer prices. Previous research has identified that operating profit increases either in a linear or concave fashion as stocking rate is lifted. This study shows that both views are relevant, depending on the magnitude of milk and nitrogen fertilizer prices. A lower milk price and/or higher per‐unit cost for nitrogen fertilizer reduces profit at higher stocking rates, as the cost of maintaining a larger herd through pronounced feed deficits is magnified. In contrast to previous research, nitrogen fertilizer and imported supplement are shown to be highly complementary strategies under profitable farm management. Model output demonstrates that decreasing stocking rates to reduce leaching, in most cases, will impose a cost in terms of both production and profit. Overall, this work indicates the key importance of stocking‐rate decisions to profitable grazing strategies, relative to those concerning milk per cow. Nevertheless, it is the inherent linkages between stocking rate and the multiple elements of a grazing system that infers this importance, highlighting the need to carefully consider all management levers.

Balancing the economic, social and environmental dimensions of agro-ecosystems: An integrated modeling approach

There is an increasing need to view agro-ecosystems and to identify remedial management practices in a holistic way. An integrated model based on the driving force–pressure–state–impact–response approach was developed as a tool to assess the effects of policies for improving decision making for the sustainability of agro-ecosystems. An economic model was linked to a process-based biophysical model by a meta-model. Then, a holistic indicator-based impact assessment system was linked to the integrated model to assess policy instruments. The integrated model was applied in the intensive irrigated wheat–maize cropping system of the North China Plain in which water and nitrogen fertilizer management are known to be critical issues for sustainable resource management. The results show there is a trade-off relationship between economic return and environmental outcome. It was shown that water pricing is a more effective policy instrument for improving the sustainability of agro-ecosystem than increasing the price of nitrogen fertilizer. When the water price is raised to 1.0 Yuan/m 3 under a two-tariff system, the sustainability indicators for the irrigation water use efficiency was found to increase from 0.37 to 0.77, groundwater use sustainability increased from 0.05 to 0.60, nitrate leaching increased from 0.48 to 0.55 while the indicators for the farm gross margin, food self-sufficiency, and soil nitrogen balance remain unchanged. The results suggest the modeling approach developed here is very useful for evaluating policy options for complex natural resource management issues.

Fossil-fuel carbon emission control in irrigated maize production

To evaluate optimal management strategies which reduce fossil-fuel carbon emissions, an idealized gross returns objective function was developed for the production of irrigated maize with the inclusion of a disincetive carbon-taxing term. The gross returns objective function is multivariant and optimized through a gradient search procedure. Carbon emissions emanating from maize production stem from the utilization of fossil-fuel energy on the farm as well as the utilized to manufacture many of the production inputs (i.e. fertilizers and pesticides). Particular emphasis was placed on determining fertilizer (nitrogen) and irrigation (furrow) management strategies which reduced fossil-fuel carbon emissions at a minimum reduction in gross returns. Total emissions and optimal maize yield were reduced slightly at high carbon-taxing rates, whereas gross returns decreased considerably. Decreases in optimal maize yield were a consequence of reducing applied water and nitrogen fertilizer, both of which are energy-intensive production inputs. The most effective means of reducing fossil-fuel carbon emissions associated with maize production at minimum reductions in gross returns is increasing the price of nitrogen fertilizer rather than levying a carbon tax.

Cointegration analysis and the UK demand for nitrogen fertilizer

Nitrogen fertilizer taxes have been proposed as a means of controlling agricultural ‘over-production’ and nitrate pollution of water courses in the EC. This paper constructs time-series models of fertilizer demand which provide quantitative information relevant to this issue. Time-series data on the use of nitrogen fertilizer in UK agriculture is found to have a unit root with non-zero drift coupled with a one-time change in drift after testing against the alternative hypothesis that the process is trend-stationary with a break in trend. The stochastic component of the nitrogen use series is cointegrated with the ratio of the price of nitrogen fertilizer to the price of agricultural output. Appropriate error correction models are estimated. Both the short-run and long-run price elasticities of the response of nitrogen use are found to be rather low. Some brief policy conclusions are drawn.

The application timing of nitrogen fertilizer

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.

The timing of nitrogen fertilizer application: the case of cotton production in the United States

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.

A short-run forecasting model for nitrogen fertilizer prices

Regression and time-series analysis are integrated to develop a short-run price forecasting model for the retail prices of major nitrogen fertilizer materials. Time-series analysis is conducted to generate future values of the wholesale price of anhydrous ammonia, the source of nearly all nitrogen fertilizers used in the United States. These forecasts are incorporated as an explanatory variable into regression equations to forecast the retail prices of five nitrogen fertilizer materials for the spring, the peak demand season for fertilizer. Results show that this method can perform with reasonable accuracy for short-term forecasting purposes.

Energy efficiency in nitrogen fertilizer production

This paper deals with estimating energy consumption and potential energy savings by improving energy efficiency for production of selected nitrogen fertilizers. The paper also discusses economic importance, economic consequences, and policy implications of improving energy efficiency for nitrogen fertilizer production. Improving energy efficiency is one of the most important and viable policy options to lower nitrogen fertilizer prices. Three strategies to improve energy efficiency for nitrogen fertilizer production are discussed: (1) energy-efficient retrofits; (2) energy-efficient new processes; and (3) operational efficiency and energy management. Efficient operations and energy management are not only desirable but also an economically feasible strategy in most developing countries. The developing countries should be careful in adopting exotic energy-efficient innovations.