Understanding farmer heterogeneity regarding nutrient management decisions is crucial for the success of any nonpoint source pollution prevention programs. Data from a farm- level experiment of cover crops in corn production were used in the Stochastic Efficiency with Respect to a Function framework to examine preference for nitrogen strategies over a range of risk aversion levels. We show the highest net return and certainty equivalent to the consideration of N supplied by cover crops. The results provide insights into policy discussions about the level of conservation incentives and plans that offer solutions to mitigate nonpoint source pollution.
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Wang et al. (2021) studied this question.
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