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Nitrogen-Fixing Winter Cover Crops and Production Risk: A Case Study for No-Tillage Corn

Published online by Cambridge University Press:  28 April 2015

James A. Larson ,
Roland K. Roberts ,
Donald D. Tyler ,
Bob N. Duck  and
Stephen P. Slinsky
James A. Larson
Affiliation:
Department of Agricultural Economics and Rural Sociology, The University of Tennessee, Knoxville
Roland K. Roberts
Affiliation:
Department of Agricultural Economics and Rural Sociology, The University of Tennessee, Knoxville
Donald D. Tyler
Affiliation:
The University of Tennessee, West Tennessee Experiment Station, Jackson
Bob N. Duck
Affiliation:
Plant and soil science, The University of Tennessee, Martin
Stephen P. Slinsky
Affiliation:
Agricultural Policy Analysis Center, The University of Tennessee, Knoxville
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Abstract

Winter legumes can substitute for applied nitrogen fertilization of corn. Stochastic dominance was used to order net revenues from legume and applied nitrogen alternatives. Stochastic dominance orderings indicate that systems combining vetch with low applied nitrogen fertilization (50 and 100 pounds/acre, respectively) were risk inefficient. By contrast, vetch and 150 pounds/acre applied nitrogen maximized expected net revenue and was risk efficient for a wide range of risk-averse and risk-seeking behavior. Farmers with these risk attitudes may not reduce applied nitrogen if they switch to a vetch cover. Extremely risk-averse or risk-seeking farmers would not prefer winter legumes.

Keywords

legume winter cropsnitrogenrisk premiumsstochastic dominance
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 30 , Issue 1 , July 1998 , pp. 163 - 174
Copyright
Copyright © Southern Agricultural Economics Association 1998

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