Profitability Of Fertilizer Use Research Articles

The role of active soil carbon in influencing the profitability of fertilizer use: Empirical evidence from smallholder maize plots in Tanzania.

We use recent plot‐level panel data from Tanzanian smallholder farmers to investigate maize yield responses to inorganic fertilizer under variable soil carbon conditions. Unlike many prior studies which consider total carbon measurements, we focus on active soil carbon, which is a component strongly related to key soil functions, such as nutrient cycling and availability. Active soil carbon is found to be a strong predictor of maize yield response to nitrogen fertilizer. These results highlight important sources of variation in the returns to fertilizer investments across plots and smallholder farmers in the region. When farmgate prices for maize and fertilizer are incorporated into calculations of economic returns, we find that the profitability of fertilizer use is strongly dependent upon farmgate price ratio assumptions: under our most optimistic agronomic response estimates, 39% of farmer plots have an average value‐cost ratio greater than 1.5 at a maize‐nitrogen price ratio of 0.15. That share drops to 4% at a price ratio of 0.12 and 0% at a price ratio of 0.09. Our findings provide insights into the intertwined biophysical and economic underpinnings of low levels of fertilizer use in Tanzania and elsewhere in the region. Raising active carbon stocks in smallholder systems may be a strategic priority in many areas for incentivizing greater use of inorganic fertilizer, reversing land degradation, and achieving sustainable agricultural intensification.

IS INCREASING INPUT USE FOR RICE PRODUCTION A PROFITABLE PROPOSITION IN TANZANIA?

Demand for food staples particularly rice has been increasing tremendously especially in Sub-Saharan Africa relative to supply attributed by a continued rise in population. The shortfall in supply is generally considered to be caused by low use of inputs particularly inorganic fertilizer and improved seed among others. Meanwhile, there is limited empirical evidence to support this notion. This paper aimed at estimating the profitability and yield response to inorganic fertilizer and improved rice seed using cross-section data collected from 256 smallholder rice farmers in Mbarali district -Tanzania. Data was analysed using treatment effect model while instrumental variable was used for robustness check. Results shows that inorganic fertilizer use in the study area is not low as generalized by previous studies. It was further revealed that increasing fertilizer and seed use by 1 kg leads to an increase in yield by 6.2 kgha-1 and 9.2 kgha-1 respectively. Furthermore, rice production is a profitable business though low marginal physical product and high fertilizer price significantly reduce the profitability of fertilizer use. Thus, reducing input costs through well-managed subsidy programs, timely accessibility of inputs coupled with irrigation facilities and good agronomic practices are crucial for sustainable and profitable agricultural development.

Profitability of fertilizer use in pineapple production in Benin

With a contribution of 4.3% to agricultural gross domestic product (GDP) behind cashew (7.4%) and cotton (25%), pineapple has become the third export crop in Benin. However, its yields are still below the potential. Sub-optimal potassium/nitrogen (K/N) ratio in fertilizer use is leading to low fruit quality and limited market outreach. Therefore, an experimental research project was implemented to determine an optimal fertilizer usepractice. This paper compares the profitability of the best experimental fertilizer use practice with that of farmers’ practices using relevant indicators. Experimental and socioeconomic data were collected from 89 randomly selected pineapple growers among 5381 growers in Ze district. The findings revealed that fertilizer use had a positive marginal effect on pineapple production with both practices. Most importantly, the experimental practice was 2-3 times more profitable than farmers’ fertilizer use practice and could be recommended. The rate of pineapple’s response to fertilizer almost doubled from 13.42 kg fruit/kg fertilizer with farmers’ practices to 23.07 kg fruit/kg fertilizer with the experimental practice. While the profit rate of pineapple production was almost the same (86%) without fertilizer use in both practices, it rather increased more than 2-fold with the experimental practice, reaching 290% against 121% with farmers’ practices. Fertilizer use therefore enabled pineapple production profitability to increase from 39% with farmers’ practices to 238% with the experimental practice. This practice doubled the marginal effect of fertilizer use and doubled the classic value/cost ratio. However, farmers cannot yet harvest the promised gold as only 1% among them presently apply that high-dose best practice. Labour availability and costs for fractioning the optimum dose over the crop’s growing cycle remains a challenge. Further, pineapple’s high perishability is another challenge which calls for building strong value chains to enable growers readily direct their harvests to more rewarding markets. Further research is still needed to factor those constraints’ alleviation into determining the “real” or affordably relevant optimal doses of fertilizer on pineapple in poor farming settings as the Ze district of Benin. Growers’ perceptions on innovative practices and their own financing strategies will be critical to foster the adoption of improved fertilizer use technologies and boost agricultural productivity in Benin. In the meantime, access to credit and offfarm activities are likely to enable a larger adoption of the optimal dose. Key words: fertilizer use, pineapple production practices, adoption, marginal profit, value-cost ratio, poverty reduction

Economic incentives to use fertilizer on maize under differing agro-ecological conditions in Burkina Faso

Increasing agricultural productivity while protecting natural resources depends on proper understanding of farmers’ incentives to use intensification strategies, including fertilizer. Using a large-scale household dataset collected in rural Burkina Faso, we examined how the response of maize yield to fertilizer, and thus the economic incentives for its use, varied according to agro-ecological conditions. We employed a Control Function Approach with Correlated Random Effects in order to test and control for endogeneity of fertilizer use, measuring agro-ecological conditions at several scales. We investigated the profitability of fertilizer use with value-cost ratios. We found that productivity and marginal effects of fertilizer differ significantly according to agro-ecological conditions. Micro-variation appeared to be more critical than the definition of agro-ecological zone. Burkinabe soils are severely degraded and would benefit from greater application of fertilizer. However, at full market prices, fertilizer use was unprofitable. Though it was profitable with subsidized prices, transaction costs diminish the benefits of the subsidy. Profitability of fertilizer use with maize varied across agro-ecological conditions, even for field plots located in the same agro-ecological zone. Our results confirm that policy makers need to be cautious when generalizing across regions or drawing policy recommendations from a single agro-ecological zone because crop responses and economic incentives vary widely.

Fertilizer Use Efficiency and Profitability of Irrigated Rice in Mali and Niger

Nutrient response functions for irrigated rice in the Sahel were determined. Yield response of irrigated rice to applied N and P has good profit potential. Response to micronutrients occurred in Mali but not in Niger. The response functions can be used in fertilizer use optimization decision tools. Rice (Oryza sativa L. and O. glaerrima Steud.) is an important food crop in Africa. Maximizing profitability of fertilizer use requires determination of nutrient response functions. Five trials were conducted in the Niger River valley of Mali and Niger. The objectives included determination of nutrient response functions for irrigated rice, other nutrient deficiencies, and profitability of fertilizer use. Average trial grain yields were 3.07, 4.09 and 5.49 Mg ha−1 in Niger and on Danga and Moursi soil types in Mali, respectively. Nitrogen response was curvilinear to plateau in all cases except for a linear response for Danga soil in Mali. Yield increases with 150 kg ha−1 N ranged from 0.7 to 1.7 Mg ha−1. Responses to P were curvilinear with grain yield increases of approximately 0.3 and 1.7 Mg ha−1 in Niger and Mali, respectively, with 30 kg ha−1 P. The economically optimal rate (EOR) for N when fertilizer use cost was 4.5 times the value of rice grain (kg kg−1) ranged from 62 to >150 kg ha−1. The EOR of P ranged from 27 to 33 kg ha−1 in Mali and from 12 to 16 kg ha−1 in Niger, depending on the relative cost of fertilizer P. Agronomic efficiency of N varied from <10 to 20 kg kg−1, and of P with 10 kg ha−1 P from 49 to 95 kg kg−1, depending on location. Net returns to N and P use exceeded 100%. This information is applicable in nutrient management decision tools oriented to farmer profitability in Mali and Niger.

Maize (Zea mays L.) Response to Secondary and Micronutrients for Profitable N, P and K Fertilizer Use in Poorly Responsive Soils

Deficiencies of secondary and micronutrients (SMNs) are major causes of low maize yields in poorly responsive soils. This phenomenon minimizes the agronomic efficiency of N, P and K fertilizers and consequently result in a dwindling economic benefit associated with their use. Therefore, 18 on-farm trials were conducted in western Kenya during two cropping seasons to assess maize response to three NPK amendments; (i) N, P, K, Ca, Zn and Cu (inorganic and organic); (ii) N, P, K, Ca, Zn and Cu (inorganic) and (iii) N, P K, Zn and Cu (inorganic) and evaluate the profitability of their use compared to additions of only N, P and K fertilizers. In this set of experiments, maize response to any amendment refers to a yield increase of ≥2 t ha−1 above control and could be categorized in three clusters. Cluster 1, comprising of nine sites, maize responded to all amendments. Cluster 2, holding six sites, maize responded only to one amendment, N, P, K, Ca, Zn and Cu (inorganic). In this cluster, (2), emerging S, Mg and Cu deficiencies may still limit maize production. Cluster 3; consisting of three sites, maize responded poorly to all amendments due to relatively high soil fertility (≥17 mg P kg−1). Profitability of using NPK amendments is limited to Cluster 1 and 2 and the largest Value Cost Ratio (VCR) of 3.1 is attainable only when soil available P is below 4.72 mg kg−1. These variable responses indicate the need for developing site-specific fertilizer recommendations for improved maize production and profitability of fertilizer use in poorly responsive soils.

Moving in the right direction? The role of price subsidies in fertilizer use and maize productivity in Ghana

Despite major maize programs in the last two decades and costly investments in a price subsidy program in Ghana, maize productivity remains very low. Utilizing cross-sectional data on 645 maize plots in Ghana, this paper provides empirical evidence on the responsiveness of maize yield to fertilizer application, profitability of fertilizer use, and how the economics of fertilizer use have changed with the subsidy program. There was a statistically significant maize yield response to increased fertilizer application (i.e. 1-kg of nitrogen leads to a yield increase of 22–26 kg per hectare), higher than those estimated in other countries in Africa. Value-cost ratio shows that maize production with fertilizer is profitable both at market and subsidized prices in different locations and with different farming practices, even after incorporating risk into the estimation and analysis. However, despite subsidized prices and profitable fertilizer use, the actual application rate (at 44 kg/ha of nitrogen on average) is much lower than research institute’s and government recommendation and far off the computed economically “optimal” levels (at 225 kg/ha of nitrogen; where the fertilizer price intersects the value of marginal physical product derived from the yield response model). Results suggest that fertilizer prices do not seem to be the binding constraint in greater fertilizer application and productivity increases in maize; other factors appear to be major bottlenecks to greater fertilizer application and productivity increases including accessibility to modern varieties, mechanization, and hired labor. This result shows the limits to fertilizer subsidy as the focus strategy and suggests a more integrated and holistic approach to encourage greater fertilizer application, productivity and income among maize farmers in Ghana.

Is increasing inorganic fertilizer use for maize production in SSA a profitable proposition? Evidence from Nigeria

Inorganic fertilizer use across Sub-Saharan Africa is generally considered to be low. Yet, the notion that fertilizer use is too low is predicated on the assumption that it is profitable to use rates higher than currently observed. There is, however, limited empirical evidence to support this. Using a nationally representative panel dataset, this paper empirically estimates the profitability of fertilizer use for maize production in Nigeria. We find that fertilizer use in Nigeria is not as low as conventional wisdom suggests. Low marginal physical product and high transportation costs significantly reduce the profitability of fertilizer use. Apart from reduced transportation costs, other constraints such as soil quality, timely access to the product, and availability of complementary inputs such as improved seeds, irrigation and credit, as well as good management practices are also necessary for sustained agricultural productivity improvements.

Understanding Fertilizer Effectiveness and Adoption on Maize in Zambia

As populations continue to rise and land becomes scarcer in Africa’s rural areas, there is increasing urgency for farmers to adopt land management practices that sustainably raise land and labor productivity. Considerable effort has focused on promoting inorganic fertilizers, but it is increasingly recognized that smallholder farmers’ demand for fertilizer can be depressed by soil conditions that reduce crop response to and the profitability of fertilizer use. This article quantifies the impacts of soil characteristics on maize response to fertilizer in Zambia using a nationally representative sample of 1,453 fields. In addition to economic and farm management surveys, composite soil samples were collected and analyzed for several characteristics at the Zambia Agricultural Research Institute.

Enhancing inorganic fertilizer use in Imo State, Nigeria

For the period covering 1990 to 2011, more than USD 9 million was spent per day to import food in Nigeria. In the face of dwindling foreign reserve, and the population of Nigeria projected to be 400 million by 2050 this expenditure is not sustainable. The challenge of feeding this number of people is enormous but is achievable if the full agricultural potential of each state in the country is attained. The desired increase in crop yield is possible through sustained efforts towards increasing crop output per hectare rather than bringing more arable land into cultivation. Increased and more efficient fertilizer use hold the key to increase in crop yield per hectare, but there are limitations. This work, therefore, attempts a review of constraints to fertilizer use in Imo state including: high cost and unavailability of fertilizers; profitability of fertilizer use; lack of soil test; dependence on unpredictable rainfall due to climate change; traditional cropping system; tillage practices; and available fertilizer blends among others. A more efficient fertilizer use requires site-specific fertilizer recommendation. This will be facilitated by establishment of standard soil testing laboratories across the agricultural zones for easy access to farmers in addition to the use of appropriate soil test kits. It may also be necessary to have fertilizers packaged in quantities less than 50 kg bags which may be more affordable to farmers considering their small farm holdings. While irrigation should be used to augment rainfall, efficiency of fertilizer use can be improved by the use slowand controlled-release fertilizers in order to counteract fertilizer nutrient losses through leaching, volatilization and the consequent debilitating effect in the environment.Keywords: fertilizer use, Imo State, soil test, cropping system, irrigation, rain fed

Economic viability of splitting nitrogen fertilizer in maize (<i>Zea mays</i> L.): case of Lubumbashi, southeastern DR Congo

Objectives: Fertilizers mineralize throughout the growing season and the availability of nitrogen may not always coincide with the cycle of crop growth. Thus, fractionation of nitrogen and its application on two improved varieties of maize, UNILU and PAN 53, was explored in order to contribute to increased productivity of maize, the main food crop in the region of Lubumbashi. Methods and results: A trial was set up at the farm Kasapa to study the profitability of the splitting of urea, considering the dose currently popularized by the firm Omnia (for a density of 33333 plants per hectare 400Kg NPK and 800Kg urea divided into two doses: 400kg of urea at 30 days after sowing and 400kg at 75 days). Different frequencies of urea fractionation, namely 2, 3, 4, 5 and the application to the single dose were tested. The observations related on the emergence rate, number of days to flowering male and female, the male inflorescence height and insertion of ear, the lodging resistance, number of ear by foot, the average weight of grains per spike, 1000 grain weight and yield. The results of the ANOVA showed that the agronomic parameters studied were not influenced by the varieties and frequency splitting of urea. Conclusion and potential application of research: the results of the acceptability index showed that fractionation is not advising against the costs of spreading and mounding that negatively affect the profitability of growing corn. Furthermore, this study is a contribution to the profitability of fertilizer use in maize, considering the high cost of work (including spreading and mounding) is an obstacle to increased maize cultivation in middle peasant. Keywords: split, variety, urea, UNILU, Pan 53, corn J. Appl. Biosci. 2013

Factors influencing the profitability of fertilizer use on maize in Zambia

AbstractFertilizer use remains very low in most of Africa despite widespread agreement that much higher use rates are required for sustained agricultural productivity growth. This study uses longitudinal farm survey data to estimate maize yield response functions in a relatively high‐potential zone of Zambia to determine the profitability of fertilizer use under a range of small‐farm conditions found within this zone. The theoretical framework used in this study incorporates agronomic principles of the crop growth process. We generalize the asymmetric production models and define a concept of yield scaling factors. The model distinguishes different roles of inputs and non‐input factors in crop production. We estimate the effects of conventional production inputs as well as of household characteristics and government programs on maize yield. The results indicate that recommended fertilizer application rates in the two specific years were often unprofitable, given observed price conditions and the yield response to fertilizer. However, there was substantial variability in yield response to fertilizer based upon the rate of application, the timeliness of fertilizer availability, the use of animal draught power during land preparation, and whether the household incurred the death of an adult member in the past three years. These modifying factors, as well as variations in input and output prices due to proximity to roads and markets, substantially affected the profitability of fertilizer use on maize.

Strategies for variable rate nitrogen fertilization in hummocky terrain

A study was conducted from 1994 to 1996 in a hummocky landscape near Prince Albert, Saskatchewan in the moist Black soil climatic zone to determine the best criterion for defining fertilizer management zones within a field and how much fertilizer to apply in each zone. A uniform rate fertilization (CF) treatment was compared with three variable rate fertilization (VRF) treatments that used management zones based on soil residual nitrate-N (VRFrn), organic carbon (VRFom) and topography (VRFt). For VRFom and VRFt, fertilizer recommendations were based on soil residual N levels within zones and yield potentials that differed between zones. Flax (Linum usitatissimum) was grown in 1994, spring wheat (Triticum aestivum) in 1995, and canola (Brassica rapa) in 1996. Fertilizer use efficiency (FUE), defined as kilograms seed per kilogram fertilizer N, was markedly higher for VRFom and VRFt than CF or VRFrn. This enhanced FUE resulted in net returns, defined as crop revenue minus fertilizer cost, of about $10 ha−1 more than that of CF. Three successive years of VRF in this study suggests that this practice can enhance the efficient use of fertilizer N and has potential to increase profitability of fertilizer use, by more closely matching fertilizer N inputs with crop nutrient requirements. Key words:Brassica rapa, Linum usitatissimum, Triticum aestivum, nitrogen, variable rate fertilization, precision agriculture