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Publication Date
1993
Location
New Zealand
Description
Use of a model to investigate the payback to alternative phosphate (P) fertiliser programmes is described. Input for the model is fertiliser history (kg P/ho/year) over 5-15 years. A site fertility index is established by summing discounted P applications. The index is related to relative pasture yield (annual yield/non P limited yield) for a soil type. The economics of P use are evaluated by scaling current gross margin/ha for changes in relative pasture yield and subtracting fertiliser costs. The model provides the decision maker with yearly cashflow information and a I 0-year net present value (NPV) analysis of the relative profitability of a strategy. A case study involving 3 options of increasing, maintaining or ceasing fertiliser input, shows how both cashflow and long term profit information can assist decision makers.
Citation
Johnston, T.J M.; McCall, D G.; and Marshall, P R., "Use of a Model to Investigate the Profitability of Fertilizer Application" (1993). IGC Proceedings (1985-2023). 1.
(URL: https://uknowledge.uky.edu/igc/1993/session19/1)
Included in
Agricultural Science Commons, Agronomy and Crop Sciences Commons, Plant Biology Commons, Plant Pathology Commons, Soil Science Commons, Weed Science Commons
Use of a Model to Investigate the Profitability of Fertilizer Application
New Zealand
Use of a model to investigate the payback to alternative phosphate (P) fertiliser programmes is described. Input for the model is fertiliser history (kg P/ho/year) over 5-15 years. A site fertility index is established by summing discounted P applications. The index is related to relative pasture yield (annual yield/non P limited yield) for a soil type. The economics of P use are evaluated by scaling current gross margin/ha for changes in relative pasture yield and subtracting fertiliser costs. The model provides the decision maker with yearly cashflow information and a I 0-year net present value (NPV) analysis of the relative profitability of a strategy. A case study involving 3 options of increasing, maintaining or ceasing fertiliser input, shows how both cashflow and long term profit information can assist decision makers.
