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An Economic Analysis of Fertility Experiments With Coastal and Common Bermudagrasses. ( Cynodon dactylon ( L. ) Peirs.) 1
Author(s) -
Ibach Donald B.,
Adams William E.
Publication year - 1965
Publication title -
agronomy journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.752
H-Index - 131
eISSN - 1435-0645
pISSN - 0002-1962
DOI - 10.2134/agronj1965.00021962005700010006x
Subject(s) - agricultural experiment station , soil fertility , production (economics) , cynodon dactylon , agriculture , agricultural economics , agricultural science , geography , agronomy , economics , environmental science , archaeology , biology , ecology , soil water , macroeconomics
"ECONOMIC analysis of yield response to fertilizer rests •*-* on the physical input-output relationship—the additional yield resulting from application of each of a series of increments of a plant nutrient. Each increment of application is a "marginal" one, but the intensive margin per acre in economic terms is the one at which the added return just equals the added cost. Marginal returns are higher but net returns per acre are lower, at lower rates. There are many facets to economic analysis because "most profitable" use of fertilizer is not a static concept even under a condition where the physical relationship between use of more fertilizer and crop yields is constant. When restricted to the crop in question, analysis of profitable levels of fertilizer use is a matter of estimating either the most profitable rate per acre, or of finding the rate for highest return on the total outlay needed to grow the crop. The former represents the "maximum" economic rate —that for most profit with respect to fertilizer applied on a specified acreage. The latter may be regarded as the "minimum" economic rate—that for most profit on a specified amount of capital used to grow the crop, or the rate for minimum unit cost. Determination of this rate involves knowledge of the other costs.