Economic Consequences of Sub-Optimal Nitrogen Application in Denmark: Comparing Ex-Ante and Ex-Post Analyses

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Abstract

Denmark was the first country to introduce obligatory fertiliser accounts for
all farms in 1987. In 1993 legally binding nitrogen norms were introduced
in order to reduce the use of mineral fertiliser. The suboptimal nitrogen
norms were introduced in 1998 and this has lowered the N-application 10%
to 20% under the optimum for several years. The sub optimal norms have
led to lower yields and lower protein content and the economic
consequences have been discussed over many years. Following the Food
and Agricultural package from 2015 the N-norms were, over a two-year
period, increased to the economic optimal level in 2017. This has given a
unique possibility to compare expected yield changes with actual yield
changes 2016-2019 compared to the yield in 2013-2015 in order to estimate
the yield increase from higher norms. The findings suggest that the actual
yield loss from lower norms has been a little higher than expected based on
trials. The increase in yields after the increase in application has been
around 2-3 HKg/ha (4%) for wheat and barley and the protein increase has
been 0.8-1.0% units for the same crops. The costs of lower norms are
estimated to have been around 460-900 million DKK per year for a 16-19%
norm reduction.
Original languageEnglish
Title of host publication24th Congress of the International Farm Management Association: Resilience through Innovation : Conference Proceedings - Academic
Publication date2024
Pages144-158
Publication statusPublished - 2024
EventInternational Farm Management Association Congress: Resilience through Innovation - Saskatoon, Canada
Duration: 7 Jul 202412 Jul 2024
Conference number: 24
https://www.ifma2024.org/

Conference

ConferenceInternational Farm Management Association Congress
Number24
Country/TerritoryCanada
CitySaskatoon
Period07/07/202412/07/2024
Internet address

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