Impact of corn production on the price of fertilizer

Impact of corn production on the price of fertilizer
(Annotated Bibliography)
Agriculture and Agri-food Canada. (nd.) Fertilizer Pricing in Canada. Literature Review
and Model Selection.  Retrieved on February 27, 2010 from
 HYPERLINK httpwww4.agr.gc.caAAFC-AACdisplay- httpwww4.agr.gc.caAAFC-AACdisplay-afficher.doid1179235422243langeng

The literature review will summarize the relevant studies and analysis that have been carried out on the fertilizer industry to the present time, and show how they have contributed to the current understanding of the industry.  The first section reviews some of the studies that examine the factors that underlie the demand for fertilizer, and that look at the structural and behavioral aspects of the fertilizer industry. The second section reviews the literature on the appropriate models or functional forms to analyze spatial pricing in the fertilizer industry.

Babcock, B.  McPhail, L. (2009). Crop Outlook for 2009. Center for Agricultural and
Rural Development, 15, 2. Retrieved on February 27, 2010 from  HYPERLINK httpwww.card.iastate.eduiowa_ag_reviewspring_09article4.aspx httpwww.card.iastate.eduiowa_ag_reviewspring_09article4.aspx
Demand for corn and soybeans remains high despite cutbacks in corn exports, feed use, and the financial difficulties of the biofuels industry.  This paper examine various aspects of corn yield such as the fertilizer cost and price through time, impact of bio-fuels on corn and soybean prices and the outlook toward energy policy.

Business Mirror. (2009).  HYPERLINK httpwww.agriculture-ph.com200806nutriplant-ag-foliar-fertilizer.html RP Corn Production Up. Agriculture Philippines. Retrieved on
February 27, 2010 from httpwww.agriculture-ph.com200904rp-corn-
production-up.html
Despite high-fertilizer prices and the damage wrought by typhoons on corn plantations, Republic of the Philippines corn production has increased by an average of 5.8 percent in the last seven years according to Agriculture Secretary Arthur Yap.  The DA will continue to promote the use of organic and microbial fertilizers, expand farmlands devoted to corn by opening up new corn areas nationwide, and step up the nationwide inter-cropping program in coconut plantations.

Dale, B.  Kim, S. (2008). Effects of Nitrogen Fertilizer Application on Greenhouse Gas
Emissions and Economics of Corn Production. American Chemical Society.
Nitrogen fertilizer plays an important role in corn cultivation in terms of both economic and environmental aspects. Nitrogen fertilizer positively affects corn yield and the soil organic carbon level, but it also has negative environmental effects through nitrogen.  Ecoefficiency analysis is used to determine an economically and environmentally optimal nitrogen application rate (NAR).  The trends of the ecoefficiency index are similar to those of economic return to nitrogen and greenhouse gas emissions associated with corn grain. Therefore, an appropriate NAR could enhance profitability as well as reduce greenhouse gas emissions associated with corn grain.

Demeke, M, Govereh, J., Jayne, T.,  Wanzala, M. (2003). Fertilizer market
development a comparative analysis of Ethiopia, Kenya, and Zambia. Food Policy, 28,4.
This article synthesizes case studies from Kenya, Zambia, and Ethiopia to assess how differences in the implementation of fertilizer marketing policies have affected the costs and risks borne by marketing actors, the investment response by private traders, and fertilizer consumption.

Dhuyvetter, K., Mikkelsen, R., Schlegel, A.  Stewart M. Nitrogen Price and
Fertilization Decisions Examples from the Central Great Plains. International Plant Nutrition Institute. Retrieved on February 27, 2010 from httpwww.ipni.netppiwebppibase.nsfwebindexarticle32C4656785256CE10072C7869DAAA864
This research contrasted many beliefs that the changes in the fertilizers price affect the crops production.  Anytime fertilizer prices increase, farmers and suppliers begin to wonder how much, if any, to cut back on rates of application. Research has shown over and over again that while fertilizer price affects economic optimum rates of application, the effect is not as great as one might expect. Examples follow for winter wheat and irrigated corn in the central Great Plains.

Duffy, M. (nd.). Impact of Manure on Costs, Returns and Energy Use on Corn
Fields in lowa. Leopold Center for Sustainable Agriculture.  Retrieved on
February 27, 2010 from  HYPERLINK httpwww.p2pays.orgref2120995.htm httpwww.p2pays.orgref2120995.htm
Most manure studies compare manure to commercial fertilizer using standard, replicated methodologies. These studies have been conducted on farms, at research farms, and with varying rates of manure and so forth, but for the most part they have presented a controlled comparison of manure and commercial fertilizer.   This paper reports on the impacts of manure use shown in a cross-sectional survey. The purpose of this study was to determine whether or not manure, regardless of the source or rate, had any impacts on corn crops. The impacts examined are costs, returns, and energy use.

Ellis, S. (2009). Climate Legislation How Will It Impact Your Bottom Line Porkmag.
Retrieved on February 27, 2010 from
 HYPERLINK httpwww.porkmag.comdirectories.asppgID720ed_id8562 httpwww.porkmag.comdirectories.asppgID720ed_id8562
This article discusses how high costs for energy and eventually for fertilizer will increase crop production costs and reduce net farm income.  Initially, fertilizer cost are protected from rising, however, in the long term, it will go up and corn production costs will rise 25 per acre because of higher fertilizer and fuel costs.

Garcia, R.  Randall, A. (1994). A Cost Function Analysis to Estimate the Effects of
Fertilizer Policy on the Supply of Wheat and Corn. Review of Agricultural
Economics, 16, 215-230.
The study aims to test the hypothesis that fertilizer-reducing policies have a greater effect on crop supplies that use fertilizer more intensively, as well as fertilizer policy multilaterally imposed will give U.S. producers a relative competitive advantage to
French and English producers. The result was found true as the assumption implies.

Hofstrand, D. (2009). Using the Wind to Fertilize Corn. AgMRC Renewable Energy
Newsletter. Retrieved on February 28, 2010 from
httpwww.agmrc.orgrenewable_energyethanolusing_the_wind_to_fertilize_corn.cfm
This article shares the potential use of electrolysis in the production of ammonia.  Finding an alternative source for hydrogen in the ammonia production process could greatly reduce our dependence on foreign sources of natural gas and ammonia.  Moreover, if the hydrogen comes from a renewable source such as wind, green house emissions may be greatly reduced.
Huang, W. (2007). Impact of Rising Natural Gas Prices on US Ammonia Supply.
Economic ResearchUSDA.

This research focuses on the upward trend of US natural gas prices from 2000 to 2006 which led to a 17 percent decline in the national aggregate supply of ammonia.  Ammonia is vital in the production of fertilizers (natural gas is the main input used to produce ammonia..  Ammonia prices paid by farmers   increased from 227 per ton in 2000 to 521 per ton in 2006, an increase of 130 percent

Huang, W., Mcbride, W.  Vasavada, U. Recent Volatility in U.S. Fertilizer Prices.
Factors Contributing to the Recent Increase in U.S. Fertilizer Prices. AR-33, USDA, Economic Research Service. Amber Waves. Retrieved on February 29, 2010 from  HYPERLINK httpwww.ers.usda.govAmberWavesMarch09FeaturesFertilizerPrices.htm httpwww.ers.usda.govAmberWavesMarch09FeaturesFertilizerPrices.htm
This study discusses the vulnerability of fertilizer-intensive crops to the fluctuating price of the fertilizer and commodity prices.  It also looks into the limited ability of the farmers to ship crops or inputs.

Huang, W.  Uri, N. (2004). The effect of farming practices on reducing excess nitrogen
fertilizer use. Water, Air  Soil Pollution, 77, 1-2.
This research used a nitrogen balance model to investigate the adoption of crop rotation and the limitation on the application of nitrogen fertilizer to reduce excess nitrogen.  It was found out that for a farmer who is planting corn continuously, the adoption of a soybeans-corn rotation will have a smaller compliance cost but it will not eliminate the excess application of nitrogen fertilizer under a relatively low nitrogen fertilizer to corn price ratio.