A Spatial Econometric Approach to the Economics of Site-Specific Nitrogen Management in Corn Production

The objective of this study is to determine the potential for using spatial econometric analysis of combine yield monitor data to estimate the site-specific crop response functions. The specific case study is for site-specific nitrogen (N) application to corn production in Argentina. Spatial structure of the yield data is modeled with landscape variables, spatially autoregressive error and groupwise heteroskedasticity. Results suggest that N response differs by landscape position, and that site-specific application may be modestly profitable. Profitability depends on the model specification used, with all spatial models consistently indicating profitability, whereas the nonspatial models do not.