Journal of Agricultural and Resource Economics
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This paper examines the expected payoff to variable rate technology for fertilizer application in terms of a Bayesian expectation of the value of sample information (EVSI). The optimal variable rate for each cell in a field is conditioned on a signal in the form of the electrical conductivity of soil at that cell. Using corn response to nitrogen data from ten on-farm field-level experiments, we calculate the expected payoff from variable rate technology versus a uniform rate applied to all cells to be about $1.81/acre.
We develop a temporal and spatial partial equilibrium model to evaluate the welfare impact of new technology on the apple industry to control fire blight. We show significant benefits of GM technology relative to conventional methods and other new methods such as microencapsulation of biological agents. We also show that the cost-reduction benefits of the technology exceed the yield-increasing benefits.
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