Reduction In Profits Research Articles

Maximize Profitability by Choosing the Right Corn Hybrid

The most expensive seed is not always the best when trying to achieve profitability over yield. Dr. Matt Stockton uses data from the University of Nebraska-Lincoln’s TAPS farm management competition to illustrate why buying the wrong corn seed may be more costly than you think. Prior to working with the UNL TAPS farm management program (Testing Ag Performance Solutions), I had not fully understood the economic impact that the seed selection decision potentially has on farm profitability. Sure, I knew that paying too much for seed relative to its return results in a reduction of profit, and yes, I recognized that a certain degree of productivity is required to cover expenses and have a healthy cash flow, but it was a surprise to me to find out just how large the decision using the right seed at the right price is and that it can significantly alter profitability. When TAPS competitions started, I assumed that most competitors’ seed choices would not play as a major role in determining the economic winner as they have and that seed selections would likely result in somewhat similar yield outcomes. After examining and analyzing the 2018 TAPS results, it became evident to me that I have underestimated the impact and value of this choice. A solid-performing hybrid at the right price makes a considerable difference in both costs and returns. In the next few pages, an economic analysis of the 2018 TAPS seed decisions is presented. This comparison is made using the profit relationship, measured by the change in revenue due to the yield difference in hybrids, minus the change in costs due to planting a different hybrid.

Introduction to Economic Analysis of Pest Management: Concepts of Partial Budgeting Analysis

Pests have long posed a serious challenge in agricultural ecosystems, inflicting substantial economic losses on a global scale. In agricultural production, pests are often associated with crop yield losses, leading to a reduction in farm profits. This initial publication in the An Introduction to Economic Analysis of Pest Management series aims to educate agricultural producers, Extension agents, and researchers in other disciplines about partial budgeting analysis. Partial budgeting analysis is a fundamental tool widely used to analyze the economic viability of adopting various pest-management strategies.

ANALISIS PENGENDALIAN PERSEDIAAN SIMPLISIA PRODUK WEDANG UWUH (STUDI KASUS: CV SALAMA NUSANTARA)

CV Salama Nusantara had not conducted calculations regarding inventory, and there were still raw materials accumulating in the warehouse (overstock), which could result in a reduction in profit and an increase in company expenses. Additionally, it was observed that there was a shortage of raw materials (stockout), leading to production interruptions and the company incurring higher costs for reordering in smaller quantities. This research aimed to understand the inventory system when using ABC and EOQ methods and the difference in Total Inventory Cost (TIC) values between the company’s and EOQ methods The study showed that the ABC method in the simplisia inventory system classified category A with 66.58% of the investment value for one type of simplisia, requiring greater control compared to categories B and C. The use of EOQ for ginger simplisia resulted in the highest EOQ value of 134.72 kg with an ordering frequency of 7 times. The comparison of Total Inventory Cost (TIC) for simplisia such as red ginger, cardamom, sappanwood, cinnamon, cloves, and nutmeg showed that the EOQ method resulted in a lower TIC compared to the company’s policy, with differences of Rp2,365, Rp12,973, Rp14,116, Rp65,494, Rp4,768, Rp16,055, and Rp66,048, respectively.

Aspects concerning the factorial diagnostic of the breakeven point

The purpose of the article consists in applying breakeven point as a forecasting method to estimate the ability of the entity to fully cover expenses in business start up or in day-to-day diagnostics, identifying influencing factors. The calculation of the breakeven point shall be carried out in value and natural terms according to the heterogeneous and homogeneous charcter of production, on the basis of the division of the expenditure into variable and constant. The results allowed us to infer that at the entity the breakeven point in dynamics has an increasing trend. Thus, compared to the previous year , it increased by 14,7%, which proves an unfavorable situation. The security margin decreased by 29,7%, and the reduction in operational profit is 26,0%, which signals that the entity is in an unstable situation.

Balancing Environmental Sustainability and Economic Viability in Luxembourgish Farms: An Agent-Based Model with Multi-Objective Optimization

To curb the impacts arising from the agricultural sector, the actions undertaken by policymakers, and ultimately by the farmers, are of paramount importance. However, finding the best strategy to reduce impacts, and especially assessing the effects of the interactions and mutual influence among farmers, is very difficult. To this aim, this paper shows an application of an agent-based model (ABM) coupled with life cycle assessment (LCA), which also includes multi-objective optimization of farming activities (including both crop cultivation and livestock breeding) from an economic and environmental perspective. The environmental impacts are assessed using the impact assessment scores calculated with the Environmental Footprint 3.0 life cycle impact assessment method and the study is conducted “from cradle to farm gate”. The model is applied to all the farms in Luxembourg, whose network is built utilizing neighborhood interactions, through which a parameter known as farmer’s green consciousness is updated at each time step. The optimization module is instantiated at the end of each time step, and decision variables (the number of livestock units and land allocation) are assigned based on profitability and specified environmental impact categories. If only profit optimization is considered (i.e., when farmers’ green consciousness is de-activated), the results show a 9% reduction in the aggregated environmental impacts (obtained as the Environmental Footprint single score) and a 5.5% increase in overall profitability. At the farm level, simulations display a clear trade-off between environmental sustainability and financial stability, with a 25% reduction in overall emissions possible if farming activities are carried out using the single score impact in the objective function, though this results in an 8% reduction in profitability over 10 years.

Methodology for improving the assessment of the economic efficiency of transport infrastructure development

Transport infrastructure, especially railway infrastructure, plays a key role in economic development, ensuring efficient movement of goods and people. It is characterised by high capital intensity, long operational lifespans, and generation of socio-economic effects. Therefore, there is a need to improve the methodology for assessing the economic efficiency of creating and developing transport infrastructure objects. The traditional approach to evaluation is based on discounting cash flows. When applying this method, significant capital investments are compared with devalued effects in subsequent years due to discounting, during which the infrastructure object reaches the specified estimated load. Moreover, it does not consider the fact that the transport infrastructure benefits and holds value not only for the current generation but also for the future one. Additionally, it, as an economic good, cannot be seen as a one-timely consumed product: this transportation service cannot be accumulated. For a more accurate and comprehensive assessment of the efficiency, particularly in the case of railway transport, it is proposed to consider the results of long-term operation of the transport infrastructure at full (estimated) load not in the future but in the present (present сontinious). The economic assessment indicators include initially invested and adjusted capital, annual effect, efficiency ratio, and the value of the transport infrastructure object. The research results aim to provide an adequate assessment of project implementation efficiency in the field in question. In the future, the methodology can be enhanced by defining risks of not ensuring normal infrastructure load throughout the entire calculation period as well as by assessing the reduction in profitability or increase in transportation costs.

The Effect of Working Capital, Sales, and Operating Expenses on Net Profit on Bengkel Sejahtera Motor Source Cirebon

. This study was driven by a decline in net profit at Bengkel Sejahtera Motor Sumber Cirebon during the 2019-2023 period. The reduction in net profit suggests that working capital has not been utilized optimally, and operational expenses have risen each year. Therefore, this research seeks to explore how workshop owners can maximize the use of their working capital and minimize operational costs effectively to boost net profit at Bengkel Sejahtera Motor Sumber Cirebon. The aim of this research is to analyze the influence of working capital, sales, and operational expenses on the net profit of the workshop. This study employs a quantitative approach, with a population of 144 financial data entries, and uses random sampling as the sampling method. The data analysis techniques applied include descriptive statistics, multiple linear regression analysis, and a series of data quality tests, such as validity tests, reliability tests, and classical assumption tests (normality, multicollinearity, and heteroscedasticity tests). Hypothesis testing is conducted using the t-test (partial) and F-test (simultaneous). The findings of this research reveal that working capital has a significant negative impact on net profit, sales have a significant positive effect, and operational costs exert a significant negative influence on net profit. Furthermore, working capital, sales, and operational costs together significantly affect the net profit.

Effects of Swiss Needle Cast on the Profitability and Optimal Management of Douglas-fir Plantations in Western Oregon

Abstract This study conducts an economic analysis to evaluate the impact of Swiss needle cast (SNC) caused by Nothophaeocryptopus gaeumannii on Douglas-fir (Pseudotsuga menziesii) plantations at the stand level in western Oregon. We examine timber and nontimber benefits across varying degrees of SNC severity considering timber benefits and carbon sequestration benefits. By comparing these values with unaffected Douglas-fir stands, our aim is to quantify the economic losses associated with SNC in terms of the land expectation values. The total land expectation value for a stand affected by SNC ranges from $556 to $2,179/ac, representing an average decrease of 50% ($1,066/ac) in economic revenues compared with a Douglas-fir stand without SNC infestation. Engaging in cost-effective annual management activities, with maximum costs of $43–$56/ac, could offset the profitability decline. On average, the total losses in profits for the current plantations affected by SNC are estimated to be around $206.5–430 million. Study Implications: In this study, we examine the economic impacts of Swiss needle cast (SNC) on the profitability of western Douglas-fir in Oregon. Our results reveal that profits for landowners can be, on average, reduced by $1,066/ac when their stand is infested by SNC, representing a 50% loss in profitability. Landowners could potentially mitigate these losses by engaging in annual management activities aimed at preventing Douglas-fir infestation, incurring a cost ranging between $43–56/ac, which could offset the reduction in profitability.

Taxation of MNE profits in an R&D driven economy: Beneficial tax havens and minimum taxes

AbstractResearch and development (R&D) by multinational enterprises (MNEs) generates substantial positive cross‐country spillovers. With R&D incentives primarily provided by the MNEs' host countries, these nations bear the entire cost of incentivising R&D but only reap a fraction of the benefits, resulting in inefficiently low R&D incentives and investment from a global perspective. Allowing MNEs to shift their profit to a tax haven shelters the firms' profit from foreign taxation and increases the net returns to R&D without reducing the domestic tax base. In this setting, tax havens can be welfare beneficial because they help to internalise the positive cross‐country spillovers of R&D. The optimal effective minimum tax balances a reduction in wasteful profit shifting and more efficient R&D incentives for MNEs. Regardless of the welfare effect of R&D, a strictly positive minimum tax is optimal for each country. Uncoordinated minimum taxes may be excessively high, if R&D investment has a strong impact on productivity. Under certain circumstances, IP boxes are a welfare‐improving substitute for tax havens.

Early Feeding Strategy Mitigates Major Physiological Dynamics Altered by Heat Stress in Broilers.

Heat stress is one of the stressors that negatively affect broiler chickens, leading to a reduction in production efficiency and profitability. This reduction affects the economy in general, especially in hot and semi-hot countries. Therefore, improving heat tolerance of broiler chicks is a key to sustained peak performance, especially under adverse environmental heat stress conditions. The present study investigated three early feed withdrawal regimes (FWD) as a potential mitigation for thermal stress exposure. A total of 240 unsexed one-day-old Cobb-500 chicks were randomly recruited to one of four experimental groups using a completely randomized design (10 birds × 6 replicates). The experimental groups included the control group with no feed withdrawal (control), while the other three groups were subjected to early feed withdrawal for either 24 h on the 5th day of age (FWD-24), 12 h on the 3rd and 5th day of age (FWD-12), or 8 h on the 3rd, 4th, and 5th day of age (FWD-8), respectively. Production performance was monitored throughout the experiment. Meanwhile, blood and liver samples were taken at the end of the experimental period to evaluate major physiological dynamic changes. Our findings demonstrated that under chronic heat stress conditions, FWD treatments significantly improved broilers' production performance and enhanced several physiological parameters compared with the control. Serum levels of thyroid hormones were elevated, whereas leptin hormone was decreased in FWD groups compared with the control. Moreover, serum total protein, globulin, and hemoglobin levels were higher, while total cholesterol and uric acid were lower in the FWD groups. Furthermore, FWD groups showed significantly higher antioxidant marker activity with a significantly lower lipid peroxidation level. Immunoglobulin levels, lysozyme, complement factor C3, and liver heat shock protein 70 (HSP70) concentration were also elevated in FWD compared with the control. Also, serum interleukin-1β (IL-1β) and interferon-gamma (IFN-γ) significantly increased with FWD. Based on our findings, early feed withdrawal can be applied as a promising non-invasive nutritional strategy for broilers reared under chronic heat stress conditions. Such a strategy promotes the alleviation of the deleterious effects of heat stress on broiler performance, immunity, and redox status, owing to the onset of physiological adaptation and the development of thermotolerance ability.

WORKING CAPITAL AND TAX PAYABLE: ANALYSIS OF INTERRELATIONSHIP IN MANUFACTURING COMPANIES

Most of the manufacturing firms are blamed for the inability to fulfill their obligations to the government on working capital inadequacy and ineffective plan, control and monitoring which led to business failures, and profitability reduction which invariably reduced tax payable to the government in the past. To this effect, therefore, this study examined working capital effect on tax payable in Nigeria manufacturing companies. Ten manufacturing companies were selected from listed manufacturing companies in the Nigeria stock exchange jurisdiction from 2010 to 2022. The data sourced were: receivable, inventory, payable, profit before tax, and the firm size (the net asset of the companies) from published annual financial statement from 2010 to 2022. After the data arrangement, we employed panel data analysis to gauge working capital effect on tax payable in Nigerian manufacturing companies. We conducted unit root test (Panel) to examine the stationary of the variables. Pearson correlation, panel regression analysis, Feasible Generalized Least Squares (FGLS), and other post estimation tests like autocorrelation, heteroskedasticity test, and Hausman test was also launched to gauge the model suitability between random and fixed effect while Breusch – Pagan LM was further launched to select between random and Pooled OLS. The outcome shows that receivable, inventory, and payable are favourably significant to TAXPAB which ultimately divulges the significance of working capital components on tax payable. Conclusively, working capital significantly, statistically and progressively influences tax payable in Nigeria manufacturing companies. We further recommended that more efforts should be expended by manufacturing companies to effectively utilize their working capital in their custody because a goodexploitation of working capital enhances company’s profitability and augments the strength for markets competitiveness, firm value, and shareholders’ wealth.

Influence of subsidy policies against insurances on controlling the propagation of epidemic security risks in networks

Subsidies are used to further control the propagation of epidemic security risks as they offer users incentives to practice security investment behaviors. However, previously proposed subsidy policies have typically been studied without insurance, and it is still challenging to build effective subsidy strategies when users can transfer some of the infection loss to the insurer by purchasing insurance, because these external incentives may alter users' decisions to purchase insurance. To this end, we designed three subsidy policies in a scenario where purchasing insurance is one of the available strategies to users: under SPIns and SPInsp, the subsidies are used as the insurance funds and the risk precaution aspect of the insurance funds, respectively, and under SPInsd, a fraction of the subsidies are used to support some free-riding users with high node importance in their purchase of insurance, and the remaining subsidies are used as the precaution aspect of the insurance funds. The subsidy policies are studied with a formulated security investment game model on scale-free networks from the perspectives of the public and insurer. The results show that SPInsd can always work effectively and outperforms others in limiting the extent of an epidemic outbreak with similar or lower social costs, and without a reduction in profit for the insurer. More importantly, an interesting phenomenon emerges in the SPInsp scenario: under specific insurance parameters, the increase in subsidy funding has a negative impact on preventing the risk spread, leading to larger final epidemic sizes. In addition, the effectiveness of SPInsd on scale-free networks with larger average degree or network size and random networks are also studied. We anticipate this work can provide useful insights for policy makers with respect to design and implementation of optimal subsidy policies related to the control of epidemic security risks under an insurance scenario.

Techno-economic assessment of grid-connected residential photovoltaic systems considering overvoltage-induced generation curtailment

Grid-connected residential photovoltaic (PV) systems are continuously installed in worldwide communities, predominantly to reduce electricity bills. However, the rapid growth of distributed PV systems inevitably causes overvoltage in distribution networks. Conventionally, PV curtailment is implemented in a grid-connected inverter to prevent the system from overvoltage. Nevertheless, previous studies have failed to consider PV curtailment caused by overvoltage when conducting techno-economic assessments. Therefore, this study conducts a comprehensive techno-economic assessment of grid-connected residential PV systems, considering overvoltage-induced generation curtailment. A volt-watt curtailment strategy is designed based on a droop characteristic. Simulation studies are conducted using real-world load profiles and electricity tariffs retrieved from the Metropolitan Electricity Authority in Thailand. Furthermore, a typical low-voltage distribution feeder in Bangkok, Thailand, is employed using Thailand’s grid code. Simulation results indicate that the optimal PV size could be reduced by up to 58.33% (depending on the numbers and locations of PV systems) when considering overvoltage-induced generation curtailment, resulting in a profitability reduction of 21.34%. It is concluded that considering overvoltage-induced generation curtailment can accurately determine the PV size, preventing oversizing and overvoltage.

How medical insurance payment systems affect the physicians' provision behavior in China-based on experimental economics.

It introduced an artefactual field experiment to analyze the influence of incentives from fee-for-service (FFS) and diagnosis-intervention package (DIP) payments on physicians' provision of medical services. This study recruited 32 physicians from a national pilot city in China and utilized an artefactual field experiment to examine medical services provided to patients with different health status. In general, the average quantities of medical services provided by physicians under the FFS payment were higher than the optimal quantities, the difference was statistically significant. While the average quantities of medical services provided by physicians under the DIP payment were very close to the optimal quantities, the difference was not statistically significant. Physicians provided 24.49, 14.31 and 5.68% more medical services to patients with good, moderate and bad health status under the FFS payment than under the DIP payment. Patients with good, moderate and bad health status experienced corresponding losses of 5.70, 8.10 and 9.42% in benefits respectively under the DIP payment, the corresponding reductions in profits for physicians were 10.85, 20.85 and 35.51%. It found patients are overserved under the FFS payment, but patients in bad health status can receive more adequate treatment. Physicians' provision behavior can be regulated to a certain extent under the DIP payment and the DIP payment is suitable for the treatment of patients in relatively good health status. Doctors sometimes have violations under DIP payment, such as inadequate service and so on. Therefore, it is necessary to innovate the supervision of physicians' provision behavior under the DIP payment. It showed both medical insurance payment systems and patients with difference health status can influence physicians' provision behavior.

Proposed Marketing Strategy to Increase Sales Turnover at Retail Store X Using SWOT and QSPM Analysis

Toko Retail X, a retail store, provides a variety of daily needs. The Southeast Sulawesi province's Baubau City is home to Toko Retail X, which was formed in 2010. Toko Retail X has been around recently. As a result of Toko Retail X's strategy of constantly adding new products, it is believed that the reduction in profitability results from a need for more knowledge about internal and external elements that affect the business environment. Several techniques were used in the study process, such as the QSPM (quantitative strategic planning matrix), SWOT strategy matrix, and analysis of Toko Retail X's internal and external elements. Toko Retail X's advantages and disadvantages are among the identified internal factors. Porter's Five Forces Model, Toko Retail X prospects and threats, and the IE matrix are among the external aspects identified to ascertain the company's current situation. The SWOT and QSPM strategy matrices will also be utilized to develop and choose corporate strategies. Toko Retail X's position in Region II, where this position signifies growth and build, is indicated by the research results. This means that the developed strategy can concentrate on product development to increase the applications of the product, market penetration to grow the existing businesses, and market development to reach new markets with our current products. The eleven options that make up the final approach have been given a ranking. Developing social media to showcase Toko Retail X's details and answer customer inquiries about the products they wish to purchase is the highest ranking.

Sustaining power distribution network submerged in plug-in hybrid CNG-electric vehicles for future green transportation: A risk-constrained analysis

The urgent need to address environmental issues, particularly the reduction of greenhouse gas emissions, has become a global priority. In this pursuit, various technologies are being explored to facilitate the promotion of sustainability. This study focuses on a virtual energy hub (VEH) integrated with Plug-in hybrid gas-electric vehicles (PHGEVs), various energy sources, and storage devices. However, the presence of fossil-based energy sources like combined heat and power (CHP), diesel generation (DG), boilers, and gas-based operation modes of PHGEVs, resulted in the release of carbon emissions. In this concern, the power-to-gas (P2G) technology, with its immense potential, is being considered to absorb and recycle captured CO2 emissions into methane gas, thereby enhancing economic and sustainability perspectives. Furthermore, uncertain parameters including the charge and discharge of PHGEVs, the price of the day-ahead market for heat and power, energy demands, and wind speed are considered in the VEH, the management of which is achieved through the downside risk constraint (DRC) method. The proposed model is implemented and tested on an IEEE 33-bus test system. Results show that P2G reduces the CO2 level by a mean of 3.7 %. Also, for the minimum of 3.2 % profit reduction, the risk level has fallen by nearly 100 %.

Economic impact of peste des petits ruminants on small ruminant production in Senegal: Gender considerations within a system dynamics modelling approach

CONTEXTPeste des petits ruminants (PPR) remains a persistent challenge for small ruminant production in Senegal, leading to economic losses for livestock keepers. Gender dynamics and socio-cultural factors influence production decisions at the household level. Despite its relevance, economic impact models of PPR have not incorporated gender dynamics. OBJECTIVEThis paper seeks to redress this gap by disaggregating the farm-level impacts of PPR based on the gender of the household head and implementers of routine and management activities in small ruminant production at the household level. METHODSTo quantify the gendered economic impacts of PPR, a system dynamics model was developed with four modules: integrated production-epidemiology, economics and profitability, disease control, and marketing. The model was parameterised based on survey data from 747 households in 49 agro-pastoral and pastoral villages in Senegal and augmented by secondary data. The model was validated (structurally and behaviourally) and simulated for 30 years with a weekly timestep. A set of disease scenarios were run for ten different farm household typologies based on the gender of the household head and household members who perform production management activities (like purchasing, selling, gifting, and vaccinating animals) and routine activities (like feeding, cleaning pens, and caring for sick animals). RESULTS AND CONCLUSIONSModel results estimated annual reductions in farm profitability of 51% to 61% with a hypothetical 25% incidence rate of PPR, corresponding to an average of $1051 to $1246 USD lost per household per year. In the two most impacted household typologies, management activities were performed by either men only or women only, and in the three least impacted household typologies, management activities were shared by men and women. The least impacted household typology with the highest gross margins without PPR ($2429 USD per year) and the lowest percentage of loss (51%) was female-headed households with men and women doing management tasks and primarily women or girls doing routine activities. SIGNIFICANCESHouseholds with both women and men engaged in management activities were less impacted by PPR, highlighting the crucial role of women's agency in management decisions taken in small ruminant production at the farm level. The findings further provide the empirical grounding for considering gender dynamics in interventions to control PPR and other livestock diseases in small ruminant production systems.

On the fair scheduling of truck drivers in delivery companies: balancing fairness and profit

AbstractFairness is crucial in transportation systems to ensure that all drivers are treated equally and have the same opportunities. Fair payment policies, equal access to work opportunities, and fair scheduling are some of the policies delivery companies implement to ensure fairness between drivers. In this paper, we study a fair scheduling mixed-integer programming problem where we consider a bi-objective function that aims to maximize profit and improve fairness between drivers by minimizing the maximum deviation from the average driving time. To solve this problem, we employ the weighted comprehensive criterion method and propose an iterative population-based heuristic. The results show that the relative gap between the heuristic and exact approach is acceptable. We also report the fairness price which is the relative difference between total profit with and without incorporating fairness. We find out that improving fairness between drivers does not always lead to a significant reduction in total profit. When the reduction in total profit is important, we recommend formulating the scheduling problem differently where instead of minimizing the maximum deviation from the average driving time, drivers are rewarded when their driving times are longer than the average. We explore incorporating the cost of rewarding these drivers in the objective function.

EFFECTS OF NON-PERFORMING LOANS ON RETURN ON ASSETS OF SELECTED COMMERCIAL BANKS IN NIGERIA

The essence of creating Commercial banks is to act as intermediary between the surplus (supply side) and deficit (demand side) units of funds. This is, in addition to other crucial objectives of profitability, growth in assets, and growth in customer base. To achieve these objectives, commercial banks grant loans to individuals, business organizations and governments among other profit yielding ventures. Loan defaults could be rampant resulting from low quality of assets, high non-performing risk assets (credit risk) that may result in huge loan losses, and reduction in bank profitability leading to adverse effect on return on assets of commercial banks. This study investigates the effect of non-performing loans (using loan loss provision as proxy) on return on assets of selected commercial banks in Nigeria. Annual time series secondary data from 2010 to 2021 were sourced from Central Bank of Nigeria Statistical Bulletin and the Annual Financial Reports of affected bank, and panel least square method of analysis was used as our estimation technique. The results revealed that while loan loss provision has negative impact on return on assets of the selected commercial banks, interest rate has a positive impact on return on assets of the selected commercial banks within the period of study. The study recommends, amongst others that effective credit policy, reflected in flexible tenure; restructuring of credit terms; and conversion should be adopted in the selected commercial banks to minimize the negative impacts of loan defaults. This is because decline in loan default will lead to reduction in non-performing loans, and subsequently boost return on assets of affected banks in Nigeria.
 Keywords: Non-Performing Loan, Return on Asset, Interest Rates, Bank Performance, Bank Profitability, and Loan Loss Provisions.

Stacking nitrogen mitigation strategies for future pasture-based dairy farms: impacts on leaching and profit

Producers in New Zealand’s pasture-based, seasonal dairy sector are striving to reduce nitrogen (N) losses to the environment whilst maintaining or increasing farm profitability. This study examined the cost-effectiveness of stacking different combinations of five N leaching mitigation strategies within the whole farm system; 1) reduced N fertilizer input, 2) off-paddock infrastructure, 3) recycling N by growing maize silage on a dedicated area on the farm using effluent as a fertilizer source followed by a catch-crop, 4) dietary salt supplementation to dilute urinary N, and 5) applying a nitrification inhibitor (NI) to slow the release of nitrate in the soil. The reference point (baseline) was a typical current dairy farm (CF) system in the Waikato region of New Zealand. We modelled four Future Farm scenarios by stacking mitigation strategies as follows: baseline plus reduced N fertilizer input, reduced stocking rate, and off-paddock infrastructure (FF); FF plus a dedicated maize block (FFP); FFP plus dietary salt (FFPS); and FFPS plus NI (FFPSNI). These systems were modelled using the Whole Farm Model coupled with the Urine Patch Framework, and APSIM models, using observed climate and economic input data over five consecutive years from 2013-2018. Relative to CF, the FF system achieved a N leaching reduction of 31% with a reduction in profit of 16%. The FFP system had a smaller N leaching reduction (22%), but the reduction in profit was smaller (11%). The fully stacked system (FFPSNI) demonstrated the largest leaching reduction of 33%, but also the largest profit reduction of 27%, compared with the CF. Stacking these five N mitigation strategies can achieve substantial N leaching reductions at the farm-scale. Including a dedicated, effluent-fertilized maize block followed by a catch-crop as part of the stack can reduce the negative impact on profitability but has a trade-off in N leaching. Farmers will have to weigh up these compromises between profit and leaching, considering risk factors not modelled here.