Determining Optimal Levels of Nitrogen Fertilizer Using Random Parameter Models

The parameters of yield response functions can vary by year. Past studies usually assume yield functions are nonstochastic or ‘limited’ stochastic. In this study, we estimate rye-ryegrass yield functions where all parameters are random. Optimal nitrogen rates are calculated for two yield response functions: linear response plateau and quadratic. Nonstochastic models are rejected in favor of stochastic parameter models. However, the economic benefits of using fully stochastic models are small since optimal nitrogen rates do not differ greatly between stochastic and nonstochastic models.