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Nitrification inhibitors are an important mitigation practice for nitrate leaching since they reduce leaching loads and can potentially increase farm profit through promoting pasture production. This study investigated the role and value of a nitrification inhibitor on a representative dairy farm in the Waikato region using a whole-farm bioeconomic model. Given an assumed 10% pasture growth response, nitrogen inhibitors like dicyandiamide (DCD) are a critical component of the optimal set of mitigation practices required to satisfy regulatory goals. Model output highlights that the net benefits associated with nitrification inhibitors are positive, but are likely too low to warrant their widescale adoption for improved environmental outcomes without direct regulation. Thus, reliance on voluntary approaches to acquire high mitigation levels on New Zealand dairy farms continues to be inherently constrained by a lack of profitable practices.

System-level evaluation of dicyandiamide (DCD) for improved environmental outcomes on New Zealand dairy farms