Journal ofAgricultural and Resource Economics 23(2):445-467 Copyright 1998 Western Agricultural Economics Association An Analysis of On-Farm Costs of Timing N Applications to Reduce N Losses

Timing nitrogen applications to the biological needs of a crop is an effective way to reduce nitrogen losses to the environment. However, this strategy may carry a production risk and conflict with farmers ' economic objectives. A field-level production decision model was used to estimate on-farm costs associated with timing nitrogen applications for crop needs in Indiana. For a risk-neutral farmer, the estimated cost is less than $1 per acre with a reduction of 11 pounds of residual nitrogen. For a risk-averse farmer, the estimated cost is up to $37 per acre with a reduction of 96 pounds of residual nitrogen. Key words: application timing, compliance costs, environmental impacts, nitroge