Risk Efficiency of Site-Specific Nitrogen Management with Respect to Grain Quality
Profitability analyses of site-specific nitrogen management strategies have often failed to provide reasons for adoption of precision farming implements. However, often effects of precision farming on product quality and price premiums were not taken into account. This study aims to evaluate comparative advantages of site-specific nitrogen management over uniform nitrogen management with respect to aspects of risk, considering fertilizer effects on grain quality and price premiums. We developed a model field with two subfields representing different yield classes to investigate how consideration of grain quality affects the economic potential of site-specific nitrogen management and to what extent site-specific nitrogen management can have a risk-reducing effect compared to uniform nitrogen management. Results show that higher crop yields as well as higher protein contents of the grains can be achieved with site-specific nitrogen management compared to uniform nitrogen management. Higher grain quality and associated higher product prices result in higher economic benefit. Furthermore, a risk-reducing effect can be expected with site-specific nitrogen management by maintaining a certain grain quality with a higher probability.