Reducing Crop Nutrient Applications: The Yield Reserve Program


A proposed Yield Reserve Program designed to compensate farmers for any reduced yields resulting from reduced nitrogen (N) application rates below recommended rates is evaluated. Assuming that farmers currently follow extension recommendations for applying N, Yield Reserve Program participation reduces expected net revenue by 10to10 to 13/ha. The Yield Reserve Program reduces expected net revenue by 17to17 to 20/ha for farmers who apply N to maximize expected net revenue. Farmers costs of participation increase with lower probabilities of inadequate rainfall and higher corn prices and decline with higher N prices. The Yield Reserve Program can significantly reduce N applications to cropland, which may reduce N content of surface waters, but the costs to taxpayers and farmers will depend on how the program is implemented.compliance cost, nitrogen fertilizer, nonpoint source pollution, policy, yield response function, Crop Production/Industries,

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