Source: UNIVERSITY OF TENNESSEE submitted to NRP
ECONOMIC ANALYSIS OF SYSTEMS FOR THE PRODUCTION OF AGRICULTURAL COMMODITIES IN TENNESSEE
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
HATCH
Reporting Frequency
Annual
Accession No.
0191250
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 1, 2001
Project End Date
Sep 30, 2006
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIVERSITY OF TENNESSEE
2621 MORGAN CIR
KNOXVILLE,TN 37996-4540
Performing Department
AGRICULTURAL ECONOMICS
Non Technical Summary
Much agricultural production research develops new technologies and practices to increase yields while ignoring economic tradeoffs. This project uses a multidisciplinary approach to evaluate new and currently available data sets for crop and livestock systems to develop decision criteria for economically optimal production.
Animal Health Component
90%
Research Effort Categories
Basic
10%
Applied
90%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6011510301020%
6011542301015%
6011710301035%
6011820301020%
6013410301010%
Knowledge Area
601 - Economics of Agricultural Production and Farm Management;

Subject Of Investigation
1510 - Corn; 1542 - Soft red wheat; 1820 - Soybean; 3410 - Dairy cattle, live animal; 1710 - Upland cotton;

Field Of Science
3010 - Economics;
Goals / Objectives
1) Determine the economic feasibility of ultra-narrow row stripper cotton in Tennessee, 2) determine yield and net revenue differences among alternative at-planting in-furrow treatments of granules and sprays and seed treatments for early-season insect control in cotton and break-even lint prices and cost differences among the treatments, 3) evaluate the effects of nitrogen source, time of application, application method, and starter nitrogen fertilization on corn yields and profits for Memphis and Collins soils, 4) evaluate the effects of harvest-aid timing on cotton yields and profitability, 5) evaluate the effects on wheat yields and profits of alternative nitrogen sources, application rates, timing of application, and planting dates, 6) evaluate the economic and environmental benefits and costs of variable rate input technology in Tennessee crop production, 7) determine the current status of precision farming technology adoption by cotton farmers in Tennessee, Alabama, Florida, Georgia, Mississippi, and North Carolina; identify the factors that influence precision farming technology adoption by cotton farmers; evaluate the demand for cotton yield monitors; and identify the factors that influence cotton farmers' perceptions about the environmental benefits of precision farming in those states, 8) evaluate the benefits and costs of Pirlimycin Hydrochloride for treatment of experimentally-induced acute and chronic mastitis in lactating dairy cattle, and 9) evaluate the economic cost and benefits of alternative potassium application rates on cotton produced at three locations in Tennessee.
Project Methods
Data are currently available from field experiments or will be generated from additional field trials and through simulation modeling. The objectives will be addressed using standard methods for estimating yield response functions (e.g., multiple regression), budgeting (e.g., partial budgeting), profit maximization (e.g., calculus), and risk analysis procedures (e.g., stochastic dominance), simulation modeling (e.g., EPIC), and other methods of economic analysis as appropriate.

Progress 10/01/01 to 09/30/06

Outputs
The nitrogen (N) rate and date of application did not affect wheat yield risk but disease affected risk. Ammonium nitrate (AN) and urea affected risk the same but urea-ammonium nitrate (UAN) significantly reduced risk. Still, AN was the optimal N source whether or not Glume Blotch and Take-All infections were high and whether or not the farmer was risk averse. Long-term field trials indicated that half the recommended lime rate performed as well as the full lime rate for seven years in optimizing cotton net revenues. Foliar N fertilization of cotton following 2/3 the recommended surface application rate produced at least as much yield and net revenue as applying the full surface rate without foliar application. Cotton farmers in six states who adopted precision soil sampling sooner than others were younger, more educated, had larger farms, owned more of the land they farmed, were more informed about the economics of precision farming, and were optimistic about the future profitability and importance of precision farming. Computer use was not important in the timing of adoption because precision soil sampling is typically custom hired, shifting the burden of computer use to agribusiness firms. The data also showed that an increase in planted area by 405 ha increased farmers' perceptions of environmental benefits from precision farming 6.7%. A 112 kg/ha increase in lint yield increased perceptions of improved environmental quality by 4.3%. Farmers who used computers (24%), placed higher importance on reducing input usage (22%), and thought precision farming was profitable (36%) also had higher perceptions of improved environmental quality. An economic framework to help farmers with decisions about variable rate technology (VRT) showed that if interactions exist among inputs, profit maximization may require significant adjustments in the uniform rates of inputs that are not applied with VRT. A significant interaction was found between the adoption of conservation-tillage and herbicide-resistant cotton seed. Land in herbicide-resistant seed increased 4.29% when the proportion of cotton land in conservation tillage increased 1%, while land in conservation tillage increased 0.26% when the proportion of cotton land in herbicide-resistant seed increased 1%. The indirect benefits of reduced erosion from using herbicide-resistant seed adoption and from reduced residual herbicide use from conservation tillage adoption should not be ignored when considering the costs and benefits of these technologies. A 1% increase in the hay price increased hay land by 0.08% and 0.16% in the short and long runs, respectively; thus, Tennessee hay farmers are fairly unresponsive to changes in the hay price when making planting and removal decisions. Hay yield was not responsive to hay or input prices, but was affected by rainfall and improved technology. A 1% increase in hay production decreased the hay price by 0.31%, suggesting that hay price is fairly unresponsive to quantity. Kenaf would not compete with traditional crops at prices below $49/ton, while profit-maximizing farmers could supply as much as 1.4 million tons of kenaf if the price were $55/ton.

Impacts
Results regarding farmers' perceptions about environmental benefits of precision farming can be used to provide decision-making information to farmers who can then choose among environmentally friendly precision farming practices that are profitable for them to use. Variable-rate input prescriptions typically have been formulated for a single input. Not accounting for interactions among inputs provides less than optimum profit. Results can help farmers make more accurate decisions about the profitability of VRT application of inputs when interactions exist. Cotton farmers can reduce lime cost by applying half the recommended rate without sacrificing yield or net revenue. Conservation-tillage (CT) directly reduces soil erosion, and herbicide-resistant (HR) seed directly reduces residual herbicide use. Use of HR seed indirectly reduces soil erosion by encouraging farmers to use CT, and use of CT indirectly reduces residual herbicide use by encouraging farmers to use HT seed. Policymakers can attribute greater environmental benefits to the adoption of these technologies than if each were considered separately. Quantitative results about the Tennessee hay market will improve the decision-making ability of livestock and hay farmers as they anticipate changes in hay prices, yields, and harvested area. Switchgrass research will contribute to reduced dependence on foreign oil, increased development in rural areas, and reduced negative environmental impacts. Substituting nitrogen applied to cotton leaves for soil application can improve the efficiency of nitrogen fertilization.

Publications

  • Roberts, R.K., English, B.C. and Larson, J.A. 2006. The Variable-Rate Application Decision or Multiple Inputs with Interactions. Journal of Agricultural and Resource Economics. 31:391-413.
  • Bazen, E.F., Roberts, R.K. and English, B.C. 2006. Economic Feasibility of Kenaf Production in Three Tennessee Counties. J. Agbus. 24:135-154.
  • English, B.C., Roberts, R.K., Larson, J.A., Cochran, R.L., Larkin, S.L., Marra, M.C., Martin, S.W., Paxton, K.W., Shurley, W.D., Goodman, W.R. and Reeves, J.M. 2006. Aggregate Findings from a 2005 Precision Farming Survey of Cotton Farmers in Eleven States. In P. Dugger and D. Richter (eds.), Proceedings 2006 Beltwide Cotton Conferences, pp. 198-199. National Cotton Council of America, Memphis, TN, 2006. Published online at: http://www.cotton.org /beltwide /proceedings/2006/pdfs/198-199.pdf.
  • Larson, J.A., Roberts, R.K., English, B.C. and Cochran, R.L. 2006. Tennessee Findings from a 2005 Precision Farming Survey of Cotton Farmers. In P. Dugger and D. Richter (eds.), Proceedings 2006 Beltwide Cotton Conferences, pp. 188. National Cotton Council of America, Memphis, TN, 2006. Published online at: http://www.cotton.org/beltwide /proceedings/2006/pdfs/188-188.pdf.
  • English , B.C., Roberts, R.K., Larson, J.A., Cochran, R.L., Larkin, S.L., Marra, M.C., Martin, S.W., Paxton, K.W., Shurley, W.D., Goodman, W.R. and Reeves, J.M. 2006. Comparison of Precision Farming Technology Adoption between 2000 and 2004: An Analysis of Cotton Producers in the South. In Proceedings of the Eight International Conference on Precision Agriculture. July 23-26, 2006. Minneapolis, MN.
  • Roberts, R.K., Kenty, M.M., Thomas, J.M. and Howard, D.D. 2006. Economic Evaluation of Soil and Foliar Applied Nitrogen Fertilization Programs for Cotton Production. J. Cot. Sci. 10:193-200.
  • English , B.C., Roberts, R.K., Larson, J.A., Cochran, R., Larkin, S.L., Marra, M.C., Martin, S.W., Paxton, K.W., Shurley, W.D., Goodman, W.R. and Reeves, J.M. 2006. Comparison of Precision Farming Technology Adoption between 2000 and 2004: An Analysis of Cotton Producers in the South. Eight International Conference on Precision Agriculture Conference. Abstracts, pp. 37. July 23-26. Minneapolis, MN.
  • Larson, J.A., Roberts, R.K. and English, B.C. 2006. A Framework for Evaluating Investment in Precision Pest Control in Cotton Production. Eight International Conference on Precision Agriculture Conference. Abstracts, pp. 18. July 23-26. Minneapolis, MN.
  • Larson, J.A., Roberts, R.K., Cochran, R.L. and Tyler, D.D. 2006. Lime and Nitrogen Fertilization Effects on Cotton Profitability for Alternative Winter Cover and Tillage Systems. Soil and Water Conservation Society 2006 Conference. Abstracts, pp. 58. July 22-26. Keystone, CO.
  • Larson, J.A., Roberts, R.K. and Gwathmey, C.O. 2006. Economics of Herbicide-Resistant Technology Fees in Conservation Tillage Systems Cotton Production. Soil and Water Conservation Society 2006 Conference. Abstracts, pp. 71. July 22-26. Keystone, CO.
  • Larson, J.A., Roberts, R.K. and Gwathmey, C.O. 2006. Effects of Herbicide-Resistant Technology Fees on the Plant Population Decision for Cotton Production. Selected paper presented at the 2006 American Agricultural Economics Association Annual Meeting. July 23-26. Long Beach, CA. Published on AgEcon Search at: http://agecon.lib.umn.edu/cgi-bin/pdf_view.pl?paperid =21725&ftype=.pdf.
  • Roberts, R.K., English, B.C., Gao, Q. and Larson, J.A. 2006. Adoption of No-tillage Practices, Other Conservation Tillage Practices and Herbicide Resistant Cotton Seed and Their Synergistic Environmental Impacts. Selected paper presented at the 2006 American Agricultural Economics Association Annual Meeting. July 23-26. Long Beach, CA. Published on AgEcon Search at: http://agecon.lib.umn.edu/cgi-bin/pdf_view.pl?paperid =21715&ftype=.pdf.
  • Roberts, R.K, English, B.C., Gao, Q. and Larson, J.A. 2006. Adoption of Conservation-Tillage Methods and Genetically Modified Cotton. Selected paper presented at the 2006 Southern Agricultural Economics Association Annual Meeting. Feb. 5-8. Orlando, FL. Abstract: Journal of Agricultural and Applied Economics 38:459. Published on AgEcon Search at: http://agecon.lib.umn.edu/cgi-bin/pdf_view.pl?paperid=19367 &ftype=.pdf.
  • Roberts, R.K., English, B.C., Larson, J.A., Cochran, R.L., Larkin, S.L., Marra, M.C., Martin, S.W., Paxton, K.W., Shurley, W.D., Goodman, W.R. and Reeves, J.M. 2006. Use of Precision Farming Technologies by Cotton Farmers in 11 States. In P. Dugger and D. Richter (eds.), Proceedings 2006 Beltwide Cotton Conferences. pp. 288-295. National Cotton Council of America, Memphis, TN, 2006. Published online at: http://www.cotton.org/beltwide /proceedings/2006 /pdfs/288-295.pdf.
  • Larson, J.A., Roberts, R.K. and Gwathmey, C.O. 2006. Profitability of Ultra-Narrow-Row Cotton under Different Roundup Ready Technology Fee Regimes. In P. Dugger and D. Richter (eds.), Proceedings 2006 Beltwide Cotton Conferences. pp. 281-282. National Cotton Council of America, Memphis, TN, 2006. Published online at: http://www.cotton.org /beltwide/proceedings /2006/pdfs/281-282.pdf.
  • Roberts, R.K., Kenty, M.M., Thomas, J.M. and Howard, D.D. 2006. Relative Profitability of Soil and Foliar Nitrogen Fertilization Alternatives in Cotton. In P. Dugger and D. Richter (eds.), Proceedings 2006 Beltwide Cotton Conferences, pp. 2088-2091. National Cotton Council of America, Memphis, TN, 2006. Published online at: http://www.cotton.org/beltwide /proceedings/2006/pdfs/2088-2091.pdf.
  • Larson, J.A., Roberts, R.K. and English, B.C. 2006. A Framework for Evaluating Investment in Precision Pest Control in Cotton Production. In Proceedings of the Eight International Conference on Precision Agriculture. July 23-26. Minneapolis, MN.
  • Torbett, C. 2006. Perceived Importance of Precision Farming Technologies in Improving the Efficiency of Phosphorus, Potassium, and Nitrogen in Southeastern Cotton Production. MS Thesis, The University of Tennessee, May 2006.
  • Martin, S., Bryant, K., Shurley, D., Paxton, K., Larson, J., Roberts, R., Hogan, R., Davis, T., Johnson, J. and Hewitt, T. 2006. Current Economic Status of Conservation and No-till Cotton Production in the Southeastern United States. pp. 210-211. In Cotton Incorporated Agricultural Research Projects: Summary Reports 2005. October.
  • Larson, J.A., Roberts, R.K., English, B.C., Cochran, R.L. 2006. Current Status and Future Adoption of Precision Farming Technologies by Cotton Farmers in Tennessee. pp. 178-179. In Cotton Incorporated Agricultural Research Projects: Summary Reports 2005. October.
  • Roberts, R.K., English, B.C., Larson, J.A., Cochran, R.L., Larkin, S.L., Marra, M.C., Martin, S.W. and Paxton, K.W. 2006. Economics of Precision Farming Working Group: Tennessee, Florida, North Carolina, Mississippi, and Louisiana, pp. 183-184. In Cotton Incorporated Agricultural Research Projects: Summary Reports 2005. October.
  • Roberts, R.K., English, B.C., Gao, Q. and Larson, J.A. 2006. Simultaneous Adoption of Herbicide-Resistant and Conservation-Tillage Cotton Technologies. JAAE 38(2006).


Progress 01/01/05 to 12/31/05

Outputs
Using data from a survey of cotton farmers in six southern states, factors were identified that influenced farmers' perceptions of improved environmental quality following adoption of precision farming. For each 405 ha increase in planted area, a farmer's probability of perceiving environmental benefits from precision farming increased 0.67%. An increase in cotton lint yields of 112 kg/ha was allocated with an increase in probability of perceived improvements in environmental quality of 4.3%. Farmers who used computers, placed higher importance on reducing input usage, and thought precision farming was profitable were 24%, 22%, and 36% more likely to perceive improvements in environmental quality. Results from research on lime rates required to optimize net revenues from cotton production indicate that half the recommended lime rate performed as well as the full recommended lime rate for seven years after lime application. A framework was developed to help farmers with decisions about using variable-rate (VRT) or uniform-rate (URT) technologies to apply two or more inputs that interact in crop production. Results showed that if interactions exist among inputs and some inputs are applied with VRT, profit maximization may require significant adjustments in the uniform rates of inputs that are not applied with VRT. To date, interactions among inputs have been ignored in research and in decision aids that emphasize VRT application of a single input. Other research found a significant interaction between the adoption of conservation-tillage cotton and herbicide-resistant cotton seed. The area in herbicide-resistant seed increased 4.29% when the proportion of cotton area in conservation tillage increased 1%. Conversely, the area in conservation tillage increased 0.26% when the proportion of cotton area in herbicide-resistant seed increased 1%. A 1% decrease in the ratio of herbicide-resistant-to-conventional cotton seed prices resulted in a 1.18% increase in the area in herbicide-resistant seed. The area in conservation tillage increased 0.81% when the ratio of chemical-to-fuel prices declined 1%. Conservation-tillage cotton increased 0.71% when rainfall during April and May increased 1%. The Tennessee hay market was evaluated to discover and quantify the factors that influence hay area, yield, and price. A 1% increase in the price farmers expect for hay encouraged a 0.08% increase in hay area in the short run and a 0.16% increase in the long run, both of which indicate that Tennessee hay farmers were fairly unresponsive to changes in the expected hay price when making planting and removal decisions. Tennessee hay yield was not responsive to the expected hay price or input prices, but yield was affected by rainfall and improved technology. When hay production increased 1%, hay price decreased 0.31%. Tennessee hay price was most responsive to real per capita income, which increased the hay price 1.55% when it increased 1%. Increases in real per capita income influenced the hay price through increases in the demand for livestock products (eg., beef, milk), which in turn increased the demand for hay as an input.

Impacts
Results regarding farmers' perceptions about environmental benefits of precision farming can be used by extension personnel to provide decision-making information to farmers who can then choose among those environmentally friendly precision farming practices that are profitable for them to use. Variable-rate (VRT) input prescriptions typically have been formulated without regard to interactions among inputs. Not accounting for interactions provides less than optimum profit. Programs can be developed to help farmers make more accurate decisions about the profitability of VRT application of inputs when interactions exist. Lime research suggests that cotton farmers may be able to reduce lime cost by applying half the recommended rate without sacrificing yield. Conservation-tillage (CT) directly reduces soil erosion, and herbicide-resistant (HR) seed directly reduces residual herbicide use. Evidence indicates that use of HR seed indirectly reduces soil erosion by encouraging farmers to use CT, and that CT indirectly reduces residual herbicide use by encouraging farmers to use HT seed. Thus, policymakers can attribute greater environmental benefits to the adoption of these two technologies than if each were considered separately. Quantitative results about the Tennessee hay market will improve the decision-making ability of livestock and hay farmers as they try to anticipate changes in hay prices, yields, and harvested area.

Publications

  • Larkin, S.L., Perruso, L., Marra, M.C., Roberts, R.K., English, B.C., Larson, J.A., Cochran, R.A. and Martin, S.W. 2005. Factors Affecting Perceived Improvements in Environmental Quality from Precision Farming. Journal of Agricultural and Applied Economics. 37:577-588.
  • Park, W.M., Warren, L.M., Roberts, R.K. and Goan, H.C. 2005. The Role of Poultry Litter Handlers in Tennessee's Off-Farm Litter Market. Journal of Applied Poultry Research. 14:246-253.
  • Cochran, R.L., Larson, J.A., Roberts, R.K. and Tyler, D. 2005. Influence of Winter Cover Crop, Nitrogen, Lime, and Tillage on Cotton. pp. 398-400. In P. Dugger and D. Richter (eds.). Proceedings 2005 Beltwide Cotton Conferences. National Cotton Council of America, Memphis, TN.
  • Cochran, R.L., Larson, J.A., Roberts, R.K. and Tyler, D. 2005. Effects of Alternative Lime Application Rates on Cotton Profitability with Varying Cover Crops, Nitrogen, and Tillage. Abstract in Journal of Agricultural and Applied Economics. 37:508-509.
  • Cochran, R.L., Larson, J.A., Roberts, R.K. and Tyler, D. 2005. Economics of Lime in Alternative Cotton Cover Crop and Tillage Systems. Paper presented at The 27th Southern Conservation Tillage Systems Conference, June 27-29, 2005, Clemson University Pee Dee Research and Education Center, Florence, SC. Abstract in The 27th Annual Southern Conservation Tillage System Conference, pp. 22.
  • Cochran, R.L., Larson, J.A., Roberts, R.K. and Tyler, D. 2005. Economics of Lime in Alternative Cotton Cover Crop and Tillage Systems. Paper presented at The 27th Southern Conservation Tillage Systems Conference, June 27-29, 2005. Clemson University Pee Dee Research and Education Center, Florence, SC. Paper: In W. Busscher, J. Frederick, and S. Robinson (ed.), The 27th Annual Southern Conservation Tillage Systems Conference-The Science of Conservation Tillage: Continuing the Discoveries, pp. 122-123.
  • English, B.C., Gao, Q., Roberts, R.K. and Larson, J.A. 2005. The Use of Bayes' Theorem to Explore Adoption of Herbicide-Tolerant Cotton Seed and No-Tillage Production Practices. Paper presented at The 27th Southern Conservation Tillage Systems Conference, June 27-29, 2005, Clemson University Pee Dee Research and Education Center, Florence, SC. Paper: In W. Busscher, J. Frederick, and S. Robinson (ed.), The 27th Annual Southern Conservation Tillage Systems Conference-The Science of Conservation Tillage: Continuing the Discoveries, pp. 42-46.
  • English, B.C., Roberts, R.K. and Larson, J.A. 2005. Multiple Variable Rate Input Application: A Decision Framework. pp. 849-855. In (J.V. Stafford ed.) Precision Agriculture 05. Proceedings of the 5th European Conference on Precision Agriculture, 9-12 Jun. 2005, Uppsala, Sweden.
  • English, B.C., Larson, J.A., Roberts, R.K. and Cochran, R.L. 2005. When Do Cotton Yield Monitors Pay? Paper presented at the 2005 American Society of Agricultural Engineers Annual International Meeting, July 17-20, 2005, Tampa, FL. Paper No. 051130, American Society of Agricultural and Biological Engineers, St. Joseph, MI. Available online at: http://asae.frymulti.com/request.asp?JID=5&AID=18868&CID=tfl2005&T=2.
  • Roberts, R.K., English, B.C. and Larson, J.A. 2005. The Variable-Rate Decision for Multiple Management Zones. Abstract in Journal of Agricultural and Applied Economics. 37:506.
  • Roberts, R.K., English, B.C. and Larson, J.A. 2005. An Economic Decision Framework for Precision Application of Two Inputs. Paper presented at The 27th Annual Southern Conservation Tillage Systems Conference, June 27-29, 2005, Clemson University Pee Dee Research and Education Center, Florence, SC. Paper: In W. Busscher, J. Frederick, and S. Robinson (ed.), The 27th Annual Southern Conservation Tillage Systems Conference-The Science of Conservation Tillage: Continuing the Discoveries, pp. 70-72.
  • Tyler, D.D., English, B.C., Roberts, R.K., Walsh, M. and Steckel, L. 2005. Management of No-Tillage Switchgrass to be Used as a Biomass Energy Source. Poster presented at the 2005 Environmental Management Conference of the Soil and Water Conservation Society Annual Conference, July 30-August 4, 2005, Rochester, NY. Abstract available online at: http://www.swcs.org/en/swcs_international_conference/2005_annual conference/.
  • Roberts, R.K. 2005. Economic Evaluation of a Soil and Foliar Applied Fertility Program. pp. 3141-3143. In P. Dugger and D. Richter (eds.), Proceedings 2005 Beltwide Cotton Conferences. National Cotton Council of America, Memphis, TN, 2005. Available online at: http://www.cotton.org/beltwide/proceedings/2005/pdfs/206.pdf.
  • Travis, J.E. 2005. Tennessee Hay Supply and Demand Response to Prices and Other Factors. MS Thesis. University of Tennessee, December.


Progress 01/01/04 to 12/31/04

Outputs
Some cotton farmers in the Southeastern U.S. have chosen to adopt precision farming technologies earlier than others. Factors were identified that influenced Southeastern cotton farmers to adopt precision soil sampling and variable-rate fertilizer and/or lime application earlier rather than later. Data were obtained from a mail survey of cotton farmers in Alabama, Florida, Georgia, Mississippi, North Carolina, and Tennessee. Results showed that cotton farmers who adopted precision soil sampling technology earlier than others were younger, more educated, operated larger farms, owned more of the land they farmed, were more informed about the costs and potential benefits of precision farming, and were optimistic about the future profitability and importance of precision farming. Computer use for farm management was not an important factor influencing the timing of adoption perhaps because precision soil sampling technology is typically custom hired, shifting much of the burden of computer use to agribusiness firms. Results also indicated that age appeared to be the only factor affecting cotton farmers' decisions to adopt variable-rate fertilizer and/or lime application earlier rather than later. Younger cotton farmers adopted variable-rate application earlier than older farmers. Extension programs that teach farmers how to use and evaluate precision soil sampling technology and agribusiness firms that sell their precision soil sampling services to cotton farmers will likely have larger, more immediate impacts on farmers who are younger, more educated, operate larger farms, own more of the land they farm, are more informed about the costs and potential benefits of precision farming, and are optimistic about the future profitability and importance of precision farming. Younger farmers will likely be more affected than older farmers by agribusiness promotional efforts and Extension programs that teach farmers about variable-rate fertilizer and/or lime application.

Impacts
Knowing the factors that affect early adoption and estimating their impacts on the timing of precision farming technology adoption will help Extension and agribusiness personnel anticipate the future demand for their educational programs and precision farming products and help them target their products and programs more efficiently.

Publications

  • Roberts, R.K., Walters, J.T., Larson, J.A., English, B.C. and Howard, D.D. 2004. Effects of Disease, Nitrogen Source, and Risk on Optimal Nitrogen Fertilization Timing in Winter Wheat Production. Agronomy Journal. 96:792-799.
  • Walters, J.T., Roberts, R.K., Larson, J.A., English, B.C. and Howard, D.D. 2004. Effects of Risk, Disease, and Nitrogen Source on Optimal Nitrogen Fertilization Rates in Winter Wheat Production. Abstract in Journal of Agricultural and Applied Economics. 36:525.
  • Roberts, R.K., English, B.C., Larson, J.A. and Cochran, R.L. 2004. Factors Influencing Southeastern Cotton Farmers to Adopt Precision Farming Technologies Earlier than Later. Proceedings of the Seventh International Conference on Precision Agriculture and Other Precision Resources Management. July 25-28. Minneapolis, MN.
  • Roberts, R.K., English, B.C., Larson, J.A. and Cochran, R.L. 2004. The Effects of Farm and Farmer Characteristics on the Timing of Precision Soil Sampling Technology Adoption. Seventh International Conference on Precision Agriculture Conference Abstracts. pp. 120. July 25-28. Minneapolis, MN.
  • Roberts, R.K., English, B.C. and Larson, J.A. 2004. Deciding on Variable Rate Input for Multiple Inputs for Multiple Management Zone. PowerPoint Presentation published in the Proceeding of the 2004 Crop Management Seminar. Grand Casino Tunica Resort Convention Center, Robinsonville, MS. November 9-11.
  • Roberts, R.K., English, B.C., Larson, J.A., Cochran, R.L., Goodman, W.R., Larkin, S., Marra, M., Martin, S.W., Paxton, K., Reeves, J. and Shurley, D. 2004. 2005 Cotton Precision Farming Survey. PowerPoint Presentation published in the Proceeding of the 2004 Crop Management Seminar. Grand Casino Tunica Resort Convention Center. Robinsonville, MS. November 9-11.
  • Cochran, R.L., Larson, J.A., Roberts, R.K. and English, B.C. 2004. Will Providing Custom Variable Rate Application Services be Profitable for Your Agribusiness? Abstract in Journal of Agricultural and Applied Economics. 36:509.
  • Roberts, R.K., English, B.C., Larson, J.A., Cochran, R.L., Goodman, W.R., Larkin, S.L., Marra, M.C., Martin, S.W., Shurley, W.D. and Reeves, J.M. 2004. Adoption of Spatial Information Gathering Technologies and Variable Rate Input Application Technologies by Cotton Farmers in the Southeast. Abstract in Journal of Agricultural and Applied Economic. 36:524.
  • Roberts, R.K., English, B.C., Larson, J.A., Cochran, R.L., Goodman, W.R., Larkin, S.L., Marra, M.C., Martin, S.W., Shurley, W.D. and Reeves, J.M. 2004. Factors Affecting Adoption of Cotton Precision Farming Technologies in the Southeast. Proceedings of the 2004 Cotton Economics and Marketing Conference. Beltwide Cotton Conferences. San Antonio, Texas. January 5-9.
  • Cochran, R.L., Larson, J.A., Roberts, R.K. and English, B.C. 2004. Will Providing Custom Variable Rate Application Services be Profitable for Your Agribusiness? Proceedings of the 2004 Cotton Economics and Marketing Conference. Beltwide Cotton Conferences. San Antonio, Texas. January 5-9.
  • Marra, M.C., Wu, E., Roberts, R.K., English, B.C., Larson, J.A., Cochran, R.L., Goodman, W.R., Larkin, S.L., Martin, S.W. and Shurley, W.D. 2004. Estimating Demand for Precision technology in an Emerging Market: Cotton Yield Monitors in the Southeastern U.S. Proceedings of the 2004 Cotton Economics and Marketing Conference. Beltwide Cotton Conferences. San Antonio, Texas. January 5-9.
  • Roberts, R.K., English, B.C., Larson, J.A., Cochran, R.L., Goodman, W.R., Larkin, S.L., Marra, M.C., Martin, S.W., Shurley, W.D. and Reeves, J.M. 2004. Adoption of Site-Specific Information and Variable Rate Technologies in Cotton Precision Farming. Journal of Agricultural and Applied Economics. 36:143-158.
  • Roberts, R.K., Walters, J.T., Larson, J.A., English, B.C. and Howard, D.D. 2004. Optimal Nitrogen Fertilization Rates in Winter Wheat Production as Affected by Risk, Disease, and Nitrogen Source. Journal of Agricultural and Applied Economics. 36:199-211.
  • Larson, J.A., Gwathmey, C.O., Roberts, R.K. and Hayes, R.M. 2004. Effects of Plant Population Density on Net Revenues from Ultra-Narrow-Row Cotton. Journal of Cotton Science. 8:69-82.


Progress 01/01/03 to 12/31/03

Outputs
A visual disease rating system developed over the years by Melvin Newman at the West Tennessee Agricultural Experiment Station in Jackson, Tennessee was shown to be nonlinearly related to yield losses caused by glume blotch and take-all root rot infections in winter wheat production. A zero rating indicated no detectable symptoms in the plot; a one indicated that minimal visible symptoms were discovered in the plot; a two indicated that 20% of plants in the plot were symptomatic; a three indicated that 30% of plants were symptomatic; and so on up to a ten indicting that 100% of plants in the plot were symptomatic. Results suggest that increases in ratings at the lower end of the scale (e.g., from 1 to 2) reduced yields by more than increases in ratings at the upper end of the scale (e.g., from 9 to 10). In conjunction with estimation of yield response functions that account for variation in yield due to nitrogen source, timing of nitrogen application, and production risk, these findings can be used to predict wheat yield losses from glume blotch and take-all root rot infections. Findings suggest that ammonium nitrate is the optimal nitrogen source regardless of whether glume blotch and take-all root rot infections are at low or high levels and regardless of whether the farmer is a risk avoider or not. Precision soil sampling (grid or management zone soil sampling) technology allows the creation of variable rate fertilizer and lime application maps to meet site-specific crop needs within a field for optimal profit. These technologies provide farmers with a wealth of information about their fields for making more informed production decisions. Factors were identified that influenced Southeastern cotton farmers to adopt precision soil sampling technology sooner than later. Data were obtained from a mail survey of cotton farmers in Alabama, Florida, Georgia, Mississippi, North Carolina, and Tennessee conducted under this project in 2001 and partially funded by Cotton Incorporated. The dependent variable was the number of years a farmer had used precision soil sampling technology. Results showed that cotton farmers who adopted precision soil sampling technology sooner than others were younger, more educated, operated larger farms, owned more of the land they farmed, were more informed about the costs and potential benefits of precision farming, and were optimistic about the future profitability and importance of precision farming. Computer use for farm management was not an important factor influencing the timing of adoption perhaps because precision soil sampling technology is typically custom hired, shifting much of the burden of computer use to agribusiness firms.

Impacts
Results suggest that disease severity and risk do not affect the optimal nitrogen source. Wheat farmers in West Tennessee and surrounding areas can apply ammonium nitrate to winter wheat in the spring at about 101 kg ha-1 around 8 March for optimal profit and utility. Precision soil sampling (grid or management zone soil sampling) technology allows the creation of variable rate fertilizer and lime application maps to meet site-specific crop needs within a field for optimal profit. Cotton farmers who adopted precision soil sampling technology sooner than others were younger, more educated, operated larger farms, owned more of the land they farmed, were more informed about the costs and potential benefits of precision farming, and were optimistic about the future profitability and importance of precision farming. If Extension programs and agribusiness firms targeted farmers with these characteristics, they could increase the likelihood of successfully educating those cotton farmers who are most likely to benefit from their programs and purchase and use these technologies.

Publications

  • Roberts, R.K., English, B.C., Larson, J.A., Cochran, C.L., Goodman, W.R., Larkin, S.L., Marra, M.C., Martin, S.W., Shurley, W.D. and Reeves, J. 2003. Use of Precision Farming Technologies in Cotton Production as Influenced by Producer and Farm Characteristics. Web publication of presentation at the Fourth European Conference on Precision Agriculture, http://www.ecpa-berlin.org/index.php?Menue=Program&go =shownewprogramtable
  • English, B.C., Larson, J.A., Roberts, R.K. and Fitchpatrick, A. 2003. Characteristics of Early Cotton Yield Monitor Adopters. pp. 388-389. In P. Dugger and D. Richter (eds.) Proceedings of the Beltwide Cotton Conferences, Nashville, TN, January 6-10, 2003. National Cotton Council of America, Memphis, TN, 2003
  • Oliver, S.P., Lewis, M.J., Gillespie, B.E., Dowlen, H.H., Jaenicke, E.C. and Roberts, R.K. 2003. Milk Production, Milk Quality and Economic Benefit Associated with Prepartum Antibiotic Treatment of Heifers. Journal of Dairy Science 86(2003):1187-1193.
  • Roberts, R.K., English, B.C., Larson, J.A., Cochran, R.L., Goodman, W.R., Larkin, S.L., Marra, M.C., Martin, S.W., Shurley, W.D. and Reeves, J.M. 2003. Cotton Precision Farming Technology Adoption as Influenced by Farm Attributes and Farmer Characteristics and Perceptions. Tennessee Agricultural Experiment Station, Department of Agricultural Economics, Staff Paper No. SP 01-03 (R11-1216-044-001-04), 2003.
  • Cochran, R.L., Larson, J.A., Roberts, R.K. and English, B.C. 2003. CYMIDA: Cotton Yield Monitor Investment Decision Aid. Tennessee Agricultural Experiment Station, Department of Agricultural Economics, Brochure, July 2003.
  • Cochran, R.L., Larson, J.A., Roberts, R.K. and English, B.C. 2003. Will Variable Rate Application Technology Pay in Tennessee: A Breakeven Analysis. Tennessee Agricultural Experiment Station, Department of Agricultural Economics, Research Series 03-03, 2003.
  • Roberts, R.K., English, B.C., Larson, J.A., Cochran, R.L. 2003. Use of Precision Farming Technologies by Cotton Farmers. Proceedings of the Annual Meeting of the American Society of Agricultural Engineers, July 27-30, 2003, Las Vegas, Nevada.
  • Larson, J.A., Gwathmey, C.O. and Roberts, R.K. 2003. Optimal Plant Population for Ultra-Narrow-Row Cotton Production as Influenced by Lint and Transgenic Seed Prices. Abstract J. Ag. and Resource Econ. 28:2003:forthcoming.
  • Walters, J., Roberts, R.K., Larson, J.A. and English, B.C. 2003. Effects of Risk on Optimal Nitrogen Fertilization Dates in Winter Wheat Production as Affected by Disease and Nitrogen Source. Abstract J. Ag. and Applied Econ. 35:2003:425.
  • Larson, J.A., Roberts, R.K., English, B.C. and Cochran, C.L. 2003. Analysis of Breakeven Yield Gains and Input Cost Savings for a Cotton Yield Monitoring Information System. Abstract J. Ag. and Applied Econ. 35:2003:444.
  • Roberts, R.K., English, B.C., Larson, J.A. and Cochran, R.L. 2003. Use of Precision Farming Technologies in Cotton Production as Influenced by Producer and Farm Characteristics. pp. 295-296. In (eds. A. Werner and A. Jarfe) Programme Book of the Joint Conference of ECPA-ECPLF. Wageningen, The Netherlands: Wageningen Academic Publishers, 2003.
  • Roberts, R.K., English, B.C., Larson, J.A., Cochran, R.L., Goodman, W.R., Larkin, S.L., Marra, M.C., Martin, S.W., Reeves, J. and Shurley, W.D. 2003. Factors Affecting Use of Precision Soil Sampling and Variable Rate Lime Application. pp. 394-395. In P. Dugger and D. Richter (eds.) Proceedings of the Beltwide Cotton Conferences, Nashville, TN, January 6-10, 2003. National Cotton Council of America, Memphis, TN, 2003
  • Larson, J.A., Roberts, R.K., English, B.C. and Cochran, R.L. 2003. Breakeven Analysis for a Cotton Yield Monitor Information System. pp. 390-393. In P. Dugger and D. Richter (eds.) Proceedings of the Beltwide Cotton Conferences, Nashville, TN, January 6-10, 2003. National Cotton Council of America, Memphis, TN, 2003
  • Larson, J.A., Roberts, R.K., Cooney, M. and Gwathmey, C.O. 2003. Yield and Net Revenue Response to Plant Population for UNR Cotton. pp. 436-437. In P. Dugger and D. Richter (eds.) Proceedings of the Beltwide Cotton Conferences, Nashville, TN, January 6-10, 2003. National Cotton Council of America, Memphis, TN, 2003
  • Larson, J.A., English, B.C., Roberts, R.K. and Cochran, R.L. 2003. A Cotton Yield Monitor Investment Decision Aid. pp. 532-533. In P. Dugger and D. Richter (eds.) Proceedings of the Beltwide Cotton Conferences, Nashville, TN, January 6-10, 2003. National Cotton Council of America, Memphis, TN, 2003


Progress 01/01/02 to 12/31/02

Outputs
The effects of disease, nitrogen rate, date of nitrogen fertilization, and source of nitrogen fertilizer on risk in winter wheat production were evaluated using the Just-Pope econometric method. Nitrogen rate and date of application did not affect risk as measured by variance of wheat yield; however, the presence of Gloom-Blotch and Take-All affected risk. Ammonium Nitrate (AN) and Urea did not affect risk differently but Urea-Ammonium-Nitrate (UAN) significantly reduced risk compared with the other two sources. The risk reducing effect of UAN did not offset the higher net returns from fertilizing with AN, making AN the utility-maximizing nitrogen source for risk neutral and risk averse decision-makers under all levels of risk aversion evaluated in the analysis.

Impacts
When accounting for costs, returns, and risk, AN was identified as the optimal nitrogen fertilizer source in wheat production compared with fertilizing with UAN or Urea. Thus, this research suggests that wheat farmers would be better off using AN than UAN or Urea for nitrogen fertilization of winter wheat.

Publications

  • WALTERS, J. 2002. Effects of Risk on Optimal Nitrogen Fertilization Rates and Dates in Winter Wheat Production as Affected by Disease and Nitrogen Source. MS Thesis, The University of Tennessee, 2002, Roland K. Roberts (Major Professor).