| dc.description | At the time of this article 1969, farmers were using an increasing amount of fertilizer in North Dakota each year. Determining the balance where added fertilizer and profitability and yields best optimized is the task. Narrowing profit margins point to a more intensive cropping program. As prices for other factors of production increase, fertilizer becomes a more inviting alternative for capital investment. To realize a profitable response from fertilizer, the crop must respond sufficiently in terms of quantity and/or quality to cover all costs involved. The decision as to how much and what kind of fertilizer to use to maximize returns is much more involved than the added cost — added returns approach. Profits from fertilizer application are uncertain. Many factors affecting crop response from applied fertilizer are unpredictable. The question is, how much fertilizer should you use in a given year?. The term “risk” in everyday conversation includes both risk and uncertainty. However, there is a difference between the two. Risk can be measured, while uncertainty cannot. Probability theories can, therefore, be applied to fertilizer response statistics to help reduce the degree of uncertainty and improve decision-making on the part of the farmer regarding fertilizer use. What farm management economists need for economic analysis of fertilizer use are a large number of observations of many combinations of soil moisture, soil test level, type of fertilizer, amount of fertilizer, crop, cultural practices and soil type. | |
