Agricultural Economics & Economics

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Author: search.filters.author.Engel, Richard E.

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    Net Returns from Terrain-Based Variable-Rate Nitrogen Management on Dryland Spring Wheat in Northern Montana
    (2015-04) Long, Dan S.; Whitmus, Jeffrey D.; Engel, Richard E.; Brester, Gary W.
    Agricultural producers can use variable‐rate application technology to vary N fertilizer within fields. This study was conducted to estimate changes in net returns from implementation of variable‐rate N management (VNM) on hard red spring wheat (Triticum aestivum L.) in a summer‐fallow region in northern Montana. Net return from uniform N management (UNM) traditionally used by producers was compared with that from VNM in eight dryland fields between 1994 and 2004. Field experiments consisted of a replicated series of four to six N rates applied within strips oriented with the length of each field. Management zones (MZs) were created by dividing the fields into upper slopes, south‐facing middle slopes, north‐facing middle slopes, and lower slopes. Nitrogen recommendations for MZs were based on soil N testing and expected yields. Grain yield data were obtained using a production‐size combine equipped with a yield monitor. Mean grain protein and yield were similar between VNM and UNM. Yield differences were <223 kg ha−1 and averaged only 18 kg ha−1. Grain yield did not differ significantly among N rates within MZs. In seven of the eight sites, net returns from VNM were up to US$27.97 ha−1 less than from UNM and were not profitable if Environmental Quality Incentive Program payments of US$6.36 ha−1 were considered as part of net income. Little evidence existed that VNM based on constructed MZs and predetermined N recommendations improves grain yields and profits or reduces N use in water‐limited, summer‐fallow systems of northern Montana.
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    Pea in Rotation with Wheat Reduced Uncertainty of Economic Returns in Southwest Montana
    (2015-01) Miller, Perry R.; Bekkerman, Anton; Jones, Clain A.; Burgess, Macdonald H.; Holmes, Jeffrey A.; Engel, Richard E.
    Pea (Pisum sativum L.) is increasingly being rotated with wheat (Triticum aestivum L.) in Montana. Our objective was to compare economic net returns among wheat-only and pea–wheat systems during an established 4-yr crop rotation. The experimental design included three wheat-only (tilled fallow–wheat, no-till fallow–wheat, no-till continuous wheat) and three no-till pea–wheat (pea–wheat, pea brown manure–wheat, and pea forage–wheat) systems as main plots, and high and low available N rates as subplots. Net returns were calculated as the difference between market revenues and operation and input costs associated with machinery, seed and seed treatment, fertilizer, and pesticides. Gross returns for wheat were adjusted to reflect grain protein at “flat” and “sharp” discount/premium schedules based on historical Montana elevator schedules. Cumulative net returns were calculated for four scenarios including high and low available N rates and flat and sharp protein discount/premium schedules. Pea–wheat consistently had the greatest net returns among the six systems studied. Pea fallow–wheat systems exhibited greater economic stability across scenarios but had greater 4-yr returns (US$287 ha–1) than fallow–wheat systems only under the low N rate and sharp protein discount schedule scenario. We concluded that pea–wheat systems can reduce net return uncertainties relative to wheat-only systems under contrasting N fertility regimes, and variable wheat protein discount schedules in southwestern Montana. This implies that pea–wheat rotations, which protected wheat yield and/or protein levels under varying N fertility management, can reduce farmers’ exposure to annual economic variability.
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