The document discusses how to make optimal nitrogen input decisions for farmers by considering diminishing marginal returns. It shows that marginal input-output analysis, rather than average input-output analysis, should guide nitrogen application rates to maximize profits. The principles of diminishing marginal returns and marginal analysis are demonstrated using experimental data and graphs showing relationships between nitrogen application rates and dry matter production, marginal costs and revenues, and returns on nitrogen investment.
This document discusses energy efficiency programs and opportunities for farms. It provides an overview of Alliant Energy, which serves over 1,000 cities and towns in its territory. Alliant offers free farm energy audits and rebates to help farmers identify and implement energy efficient equipment upgrades. The document then discusses common on-farm energy uses, when to invest in efficiency, key equipment to examine, and how energy audits can document savings opportunities from switching to higher efficiency lighting, ventilation systems, and other equipment.
The document explores using optimal nutrient densities in broiler diets to maximize performance, yield, and profit. It finds that a high protein prestarter diet, males, and diets with 97% ME and 102% protein from Cobb recommendations optimize breast meat yield and economic returns. Precision nutrition strategies can help poultry producers balance multiple objectives of broiler production.
The case study examines Everbrite LLC's proposal to install a new powder coat paint line to replace its current wet spray system. The new system would reduce environmental emissions and employee exposure to chemicals while improving product quality and productivity. A cost-benefit analysis over five years found that the powder coat system would result in lifetime net savings of over $2 million by lowering costs for shipping, paints, waste disposal, and labor.
The document discusses strategies for improving nitrogen use efficiency on dairy farms. It suggests capturing more nitrogen through increasing soil organic matter and vegetation. Some key strategies mentioned include intensifying forage productivity through species with large root mass and nitrogen uptake, diversifying crops to explore more nutrient resources, and improving nitrogen management practices to reduce excess available nitrogen and improve water use efficiency. The document examines ways to trim nitrogen inputs, tap into existing nitrogen flows, and plug nitrogen losses to achieve high and stable farm profitability while minimizing environmental footprint.
Improving N Efficiency through Managing Soil NitrateDairyNforProfit
Presentation given by Dr. Michael Russelle to the PICCC Strategic Science Think Tank - Nitrogen efficiency. Thursday 16 August 2012, 10 am – 7 pm, at the University of Melbourne
http://www.piccc.org.au/news/2012/aug/29/piccc-strategic-science-think-tank-nitrogen-efficiency
The project aims to (1) develop improved predictions of pasture production responses to nitrogen fertilizer, (2) use economic methods to inform nitrogen fertilizer investment decisions, (3) develop a nitrogen fertilizer decision calculator using new knowledge, and (4) engage industry and manage the project. The project will analyze experimental data, collect data from case study farms, develop probabilistic economic models and a decision calculator, and train industry in efficient nitrogen use. This is expected to benefit the dairy industry by saving up to 20% of the $200 million spent annually on nitrogen fertilizer in Australia.
1) An externality is an action that affects others but is not accounted for in market prices, creating economic inefficiency. Government intervention like taxes can correct this.
2) Policies to reduce emissions include emissions standards, emissions fees, and transferable emissions permits. Standards set legal limits while fees charge per unit of emissions. Permits grant property rights over emissions.
3) The best policy depends on factors like abatement costs and benefits and whether firms' costs are similar. Standards generally work better when costs are similar while fees allow lower-cost abatement. Permits can achieve efficiency when costs vary between firms.
The document presents the financial performance of Brand Pipe Company for different types of plastics produced - Poly, PVC, ABS, and Styrene. It includes production quantities, revenue share, sales price, costs involved, and profit/loss for each plastic type. Recommendations are provided on various market segments based on the plastic type used, current and forecasted sales, and growth rates.
This document discusses energy efficiency programs and opportunities for farms. It provides an overview of Alliant Energy, which serves over 1,000 cities and towns in its territory. Alliant offers free farm energy audits and rebates to help farmers identify and implement energy efficient equipment upgrades. The document then discusses common on-farm energy uses, when to invest in efficiency, key equipment to examine, and how energy audits can document savings opportunities from switching to higher efficiency lighting, ventilation systems, and other equipment.
The document explores using optimal nutrient densities in broiler diets to maximize performance, yield, and profit. It finds that a high protein prestarter diet, males, and diets with 97% ME and 102% protein from Cobb recommendations optimize breast meat yield and economic returns. Precision nutrition strategies can help poultry producers balance multiple objectives of broiler production.
The case study examines Everbrite LLC's proposal to install a new powder coat paint line to replace its current wet spray system. The new system would reduce environmental emissions and employee exposure to chemicals while improving product quality and productivity. A cost-benefit analysis over five years found that the powder coat system would result in lifetime net savings of over $2 million by lowering costs for shipping, paints, waste disposal, and labor.
The document discusses strategies for improving nitrogen use efficiency on dairy farms. It suggests capturing more nitrogen through increasing soil organic matter and vegetation. Some key strategies mentioned include intensifying forage productivity through species with large root mass and nitrogen uptake, diversifying crops to explore more nutrient resources, and improving nitrogen management practices to reduce excess available nitrogen and improve water use efficiency. The document examines ways to trim nitrogen inputs, tap into existing nitrogen flows, and plug nitrogen losses to achieve high and stable farm profitability while minimizing environmental footprint.
Improving N Efficiency through Managing Soil NitrateDairyNforProfit
Presentation given by Dr. Michael Russelle to the PICCC Strategic Science Think Tank - Nitrogen efficiency. Thursday 16 August 2012, 10 am – 7 pm, at the University of Melbourne
http://www.piccc.org.au/news/2012/aug/29/piccc-strategic-science-think-tank-nitrogen-efficiency
The project aims to (1) develop improved predictions of pasture production responses to nitrogen fertilizer, (2) use economic methods to inform nitrogen fertilizer investment decisions, (3) develop a nitrogen fertilizer decision calculator using new knowledge, and (4) engage industry and manage the project. The project will analyze experimental data, collect data from case study farms, develop probabilistic economic models and a decision calculator, and train industry in efficient nitrogen use. This is expected to benefit the dairy industry by saving up to 20% of the $200 million spent annually on nitrogen fertilizer in Australia.
1) An externality is an action that affects others but is not accounted for in market prices, creating economic inefficiency. Government intervention like taxes can correct this.
2) Policies to reduce emissions include emissions standards, emissions fees, and transferable emissions permits. Standards set legal limits while fees charge per unit of emissions. Permits grant property rights over emissions.
3) The best policy depends on factors like abatement costs and benefits and whether firms' costs are similar. Standards generally work better when costs are similar while fees allow lower-cost abatement. Permits can achieve efficiency when costs vary between firms.
The document presents the financial performance of Brand Pipe Company for different types of plastics produced - Poly, PVC, ABS, and Styrene. It includes production quantities, revenue share, sales price, costs involved, and profit/loss for each plastic type. Recommendations are provided on various market segments based on the plastic type used, current and forecasted sales, and growth rates.
The document provides highlights and results from FY12 for an unnamed company. Key points include:
- Revenues grew 10.4% to €1,806 million and EBITDA rose 13% to €1,390 million.
- Capex reached a record €1,235 million. Non-traditional activities contributed €64 million to EBITDA.
- Regulatory frameworks set incentive schemes for battery projects, with 8 pilot projects eligible for a 2% incentive.
1) The document reports Total's 2012 results and outlook for 2013. It highlights improvements in safety performance, environmental impact reduction, and financial results.
2) Total achieved an adjusted net income of $16 billion in 2012 and a return on average capital employed of 16%, outperforming its peers. It generated $29 billion in cash flow.
3) Total is on track to execute its $15-20 billion divestment program to simplify its portfolio and unlock value, having already closed $6 billion in asset sales in 2012.
xcel energy 2007 Earnings Release Presentation10252007finance26
The document summarizes Xcel Energy's third quarter 2007 earnings results and provides guidance for 2007 and 2008. Some of the accomplishments in the third quarter included strong earnings results, regulatory approvals, and an S&P credit rating upgrade. Earnings per share for the third quarter were $0.58 compared to $0.53 the previous year. For 2007, utility operations are expected to contribute $1.51-$1.55 per share while total earnings are forecasted to be $1.31-$1.35 per share. The 2008 guidance estimates utility operations will contribute $1.61-$1.71 per share and total earnings of $1.45-$1.55 per share.
xcel energy 2007 Earnings Release Presentation10252007finance26
The document summarizes Xcel Energy's third quarter 2007 earnings results and provides guidance for 2007 and 2008. Some of the accomplishments in the third quarter included strong earnings results, regulatory approvals, and an S&P credit rating upgrade. Earnings per share for the third quarter were $0.58 compared to $0.53 the previous year. For 2007, utility operations are expected to contribute $1.51-$1.55 per share while total earnings are forecasted to be $1.31-$1.35 per share. The 2008 guidance estimates utility operations will contribute $1.61-$1.71 per share and total earnings of $1.45-$1.55 per share.
The document summarizes research on the impact of sustainable land and watershed management (SLWM) practices in Ethiopia's Blue Nile basin. The research found that:
1) Households that adopted SLWM practices like stone terraces and check dams on their private land for at least 7 years experienced higher agricultural production values in the medium term compared to non-adopting households.
2) The longer households sustained SLWM practices, the higher the marginal benefit of sustaining those practices for an additional year.
3) A benefit-cost analysis found that the benefits of SLWM investments did not outweigh the costs immediately, suggesting the need to provide initial packages of investments and consider other adoption factors.
This document discusses methodologies for assessing the non-energy benefits of energy efficiency programs and measures in the United States. It provides examples of US efficiency programs where non-energy benefits have been important, such as appliance standards and low-income weatherization assistance. It also provides an overview of various types of non-energy benefits and costs, including energy affordability, economic stimulus, health and environmental impacts, business productivity, and utility system impacts. The document concludes that properly accounting for impacts on the benefit-cost assessment of efficiency investments is important, with quantitative monetary effects usually increasing total benefits by 10-30% beyond energy cost savings alone.
Lewes District Council - Business Rates and Council Tax - Town & Parish Confe...LewesDistrictCouncil
The document discusses proposals for business rates retention and localizing support for council tax in the UK. It proposes that local authorities will retain a portion of business rates collected locally and be given new powers over council tax discounts and exemptions. This is expected to impact council tax bases and the amounts collected locally versus nationally. Concerns are raised about the impacts on vulnerable groups from reduced support and the disproportionate effects on the working poor.
Building a Business Case for Lean by John Darlington and Daniel T JonesLean Enterprise Academy
Why is it so hard to see the financial impact of lean?
The problem with identifying the bottom line impact of lean is disturbing on two fronts;
firstly because if we cannot measure the impact properly then we probably cannot
direct it effectively either and secondly, because failure to make a predictable impact
is likely to lead to the marginalisation and the eventual demise of the lean
deployment.
Team 16 business plan submission (financial appendix)Iskandar Muda
The document outlines revenue projections for years 1 through 5 from sales of protos, jatropha oil fuel, used oil, and spiritus. It provides information on sales volumes, pricing assumptions which increase yearly based on 6.7% inflation, and the projected revenue and percentage of total revenue from each product line. Key assumptions include currency conversion rates and an initial fee per CDM project of €75,000.
Team 16 business plan submission (financial appendix)Iskandar Muda
The document outlines the assumptions and projections for a biodiesel production business in Indonesia over 5 years, including currency exchange rates, inflation, production capacity, sales projections, revenues, and carbon credit earnings. It estimates sales, costs, and profits for producing and selling protos, jatropha oil, used oil, and spiritus. The business is projected to become increasingly profitable over the 5 years as production and sales volumes increase substantially.
The town hall meeting covered the following topics:
1. Plant and production performance updates were provided.
2. News from various product lines including washing machines, commercial washers, and kitchen appliances was shared.
3. Updates from operations departments like R&D, SCM, QC, benchmarking and training were presented.
4. Improvements to the Corlim cell were discussed.
5. A question and answer session was held.
Financial Analysis - EDF SA (Electricite de France) produces, transmits, dist...BCV
Financial Analysis - EDF SA (Electricite de France) produces, transmits, distributes, imports and exports electricity. The Company, using nuclear power, coal and gas, provides electricity for French energy consumer
This document summarizes Great River Energy's demand side management programs. Great River Energy is a not-for-profit generation and transmission cooperative providing electricity to 28 distribution cooperatives in Minnesota and Wisconsin, serving almost 1.7 million people. The document discusses how demand side management programs help utilities advocate for members by managing electric bills, and provides details on Great River Energy's 2011 portfolio and spending on conservation and load management programs.
- Revenue for the company declined 21.3% in the first six months of the fiscal year due to short term market factors impacting results. EBITA and earnings per share also declined.
- The company incurred £13.6 million in exceptional restructuring costs related to redundancies and property exits in response to reduced government funding.
- While activity levels were lower in the first half, they are expected to significantly increase in the second half of the fiscal year. The company remains focused on opportunities in renewable energy, energy efficiency, and managed services.
The FY 2013 County Executive Recommended Operating Budget summary is as follows:
1) The total recommended operating budget is $108.4 million, a 1.5% increase from FY 2012. This budget allocates 9.6% to personnel costs, 89.8% to operating costs, and 0.6% to capital costs.
2) Single family and multi-family residential solid waste fees are increasing by an average of 3-8% depending on services received. Nonresidential fees are increasing by 3.2-5.6% on average.
3) Several program budgets are decreasing due to onetime expenditures in FY 2012 including Administration, Debt Service, and Waste
The document provides highlights and results from FY12 for an unnamed company. Key points include:
- Revenues grew 10.4% to €1,806 million and EBITDA rose 13% to €1,390 million.
- Capex reached a record €1,235 million. Non-traditional activities contributed €64 million to EBITDA.
- Regulatory frameworks set incentive schemes for battery projects, with 8 pilot projects eligible for a 2% incentive.
1) The document reports Total's 2012 results and outlook for 2013. It highlights improvements in safety performance, environmental impact reduction, and financial results.
2) Total achieved an adjusted net income of $16 billion in 2012 and a return on average capital employed of 16%, outperforming its peers. It generated $29 billion in cash flow.
3) Total is on track to execute its $15-20 billion divestment program to simplify its portfolio and unlock value, having already closed $6 billion in asset sales in 2012.
xcel energy 2007 Earnings Release Presentation10252007finance26
The document summarizes Xcel Energy's third quarter 2007 earnings results and provides guidance for 2007 and 2008. Some of the accomplishments in the third quarter included strong earnings results, regulatory approvals, and an S&P credit rating upgrade. Earnings per share for the third quarter were $0.58 compared to $0.53 the previous year. For 2007, utility operations are expected to contribute $1.51-$1.55 per share while total earnings are forecasted to be $1.31-$1.35 per share. The 2008 guidance estimates utility operations will contribute $1.61-$1.71 per share and total earnings of $1.45-$1.55 per share.
xcel energy 2007 Earnings Release Presentation10252007finance26
The document summarizes Xcel Energy's third quarter 2007 earnings results and provides guidance for 2007 and 2008. Some of the accomplishments in the third quarter included strong earnings results, regulatory approvals, and an S&P credit rating upgrade. Earnings per share for the third quarter were $0.58 compared to $0.53 the previous year. For 2007, utility operations are expected to contribute $1.51-$1.55 per share while total earnings are forecasted to be $1.31-$1.35 per share. The 2008 guidance estimates utility operations will contribute $1.61-$1.71 per share and total earnings of $1.45-$1.55 per share.
The document summarizes research on the impact of sustainable land and watershed management (SLWM) practices in Ethiopia's Blue Nile basin. The research found that:
1) Households that adopted SLWM practices like stone terraces and check dams on their private land for at least 7 years experienced higher agricultural production values in the medium term compared to non-adopting households.
2) The longer households sustained SLWM practices, the higher the marginal benefit of sustaining those practices for an additional year.
3) A benefit-cost analysis found that the benefits of SLWM investments did not outweigh the costs immediately, suggesting the need to provide initial packages of investments and consider other adoption factors.
This document discusses methodologies for assessing the non-energy benefits of energy efficiency programs and measures in the United States. It provides examples of US efficiency programs where non-energy benefits have been important, such as appliance standards and low-income weatherization assistance. It also provides an overview of various types of non-energy benefits and costs, including energy affordability, economic stimulus, health and environmental impacts, business productivity, and utility system impacts. The document concludes that properly accounting for impacts on the benefit-cost assessment of efficiency investments is important, with quantitative monetary effects usually increasing total benefits by 10-30% beyond energy cost savings alone.
Lewes District Council - Business Rates and Council Tax - Town & Parish Confe...LewesDistrictCouncil
The document discusses proposals for business rates retention and localizing support for council tax in the UK. It proposes that local authorities will retain a portion of business rates collected locally and be given new powers over council tax discounts and exemptions. This is expected to impact council tax bases and the amounts collected locally versus nationally. Concerns are raised about the impacts on vulnerable groups from reduced support and the disproportionate effects on the working poor.
Building a Business Case for Lean by John Darlington and Daniel T JonesLean Enterprise Academy
Why is it so hard to see the financial impact of lean?
The problem with identifying the bottom line impact of lean is disturbing on two fronts;
firstly because if we cannot measure the impact properly then we probably cannot
direct it effectively either and secondly, because failure to make a predictable impact
is likely to lead to the marginalisation and the eventual demise of the lean
deployment.
Team 16 business plan submission (financial appendix)Iskandar Muda
The document outlines revenue projections for years 1 through 5 from sales of protos, jatropha oil fuel, used oil, and spiritus. It provides information on sales volumes, pricing assumptions which increase yearly based on 6.7% inflation, and the projected revenue and percentage of total revenue from each product line. Key assumptions include currency conversion rates and an initial fee per CDM project of €75,000.
Team 16 business plan submission (financial appendix)Iskandar Muda
The document outlines the assumptions and projections for a biodiesel production business in Indonesia over 5 years, including currency exchange rates, inflation, production capacity, sales projections, revenues, and carbon credit earnings. It estimates sales, costs, and profits for producing and selling protos, jatropha oil, used oil, and spiritus. The business is projected to become increasingly profitable over the 5 years as production and sales volumes increase substantially.
The town hall meeting covered the following topics:
1. Plant and production performance updates were provided.
2. News from various product lines including washing machines, commercial washers, and kitchen appliances was shared.
3. Updates from operations departments like R&D, SCM, QC, benchmarking and training were presented.
4. Improvements to the Corlim cell were discussed.
5. A question and answer session was held.
Financial Analysis - EDF SA (Electricite de France) produces, transmits, dist...BCV
Financial Analysis - EDF SA (Electricite de France) produces, transmits, distributes, imports and exports electricity. The Company, using nuclear power, coal and gas, provides electricity for French energy consumer
This document summarizes Great River Energy's demand side management programs. Great River Energy is a not-for-profit generation and transmission cooperative providing electricity to 28 distribution cooperatives in Minnesota and Wisconsin, serving almost 1.7 million people. The document discusses how demand side management programs help utilities advocate for members by managing electric bills, and provides details on Great River Energy's 2011 portfolio and spending on conservation and load management programs.
- Revenue for the company declined 21.3% in the first six months of the fiscal year due to short term market factors impacting results. EBITA and earnings per share also declined.
- The company incurred £13.6 million in exceptional restructuring costs related to redundancies and property exits in response to reduced government funding.
- While activity levels were lower in the first half, they are expected to significantly increase in the second half of the fiscal year. The company remains focused on opportunities in renewable energy, energy efficiency, and managed services.
The FY 2013 County Executive Recommended Operating Budget summary is as follows:
1) The total recommended operating budget is $108.4 million, a 1.5% increase from FY 2012. This budget allocates 9.6% to personnel costs, 89.8% to operating costs, and 0.6% to capital costs.
2) Single family and multi-family residential solid waste fees are increasing by an average of 3-8% depending on services received. Nonresidential fees are increasing by 3.2-5.6% on average.
3) Several program budgets are decreasing due to onetime expenditures in FY 2012 including Administration, Debt Service, and Waste
2. DEPARTMENT OF
PRIMARY INDUSTRIES
THE BIG QUERY:
• To what extent do present research techniques result in findings
about nitrogen input use which tell the farmer "the direction to
adjust,“ "how far to go" and "how to get there.“
• To what extent do the findings correspond with known and
established economic models and technical relationships?
• In the explanation of the economic approach to thinking about
nitrogen inputs, the situation is that the farmer is facing the
decision choice:
‘How much N should I apply?
How much N and when - considering the alternatives?
3. DEPARTMENT OF
PRIMARY INDUSTRIES
‘Fitting’ N Response Function to a Paddock
Need to know information about:
-previous and planned grazing rotation
-previous N applied and residual soil N
-soil phosphorus status
-soil type and likely temperature during forth coming growth period
-pasture composition and stage of growth
-cost of N applied in paddock
-likely cost of alternative equivalent sources of DM/ME.
Then, consider
-interaction with other inputs, management, tactics, strategies
4. DEPARTMENT OF
PRIMARY INDUSTRIES
Experimental N to DM Response Data
Ave Harvest 1 Harvest 2
N Olsen Colw Colwell Olsen
Plot applied P P K Soil N Response Response Cumulative P
A-
H3/
1 0 17.0 77 418 0.62 707 798 1504 17.6
A-
H3/
2 20 17.0 78 481 0.61 994 1070 2064 16.1
A-
H3/
3 40 17.0 73 521 0.67 898 1074 1972 17.7
A-
H3/
4 80 17.0 67 431 0.62 1128 1237 2365 16.6
A-
H3/
5 160 17.0 78 610 0.65 1081 1307 2388 16.9
5. DEPARTMENT OF
PRIMARY INDUSTRIES
Fitted response to Experimental N and DM Data y = -0.0454x2 + 11.576x + 1662.1
R2 = 0.9351
3000.0
2500.0
2000.0
DM kg/ha
1500.0
1000.0
500.0
0.0
1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101 106 111 116 121 126 131 136 141 146 151 156 161
N kg/ha
6. DEPARTMENT OF
PRIMARY INDUSTRIES
OUTPUT
Maximum
Diminishing
marginal Negative
returns returns
Total
Product
Increasing
returns
Average
product
INPUT
Too little Just right
input Marginal
product Too much input
7. DEPARTMENT OF
PRIMARY INDUSTRIES
Diminishing DM Responses to Extra Inputs of N
Marginal
response:5 kg
DM/kg N
Marginal
response:15kg
DM/kg N
Extra Average
response:10 kg
Pasture DM/kg N
DM
Amount of N
Linearity can lead to poor advice and decisions
8. DEPARTMENT OF
PRIMARY INDUSTRIES
Principle of Diminishing Marginal Returns means:
Marginal Input-Output Focus, not Average Input-Output Focus
• An extra kg of fertilizer may or may not add to total profit
because of the operation of the principle of diminishing
marginal returns. It will only do so as long as extra
revenue exceeds extra cost.
• Maximizing total product or maximum average product does
not maximize profit
• Average technical efficiency ratios do not guide decisions to
increasing profit, e.g. use N to where average yield
pasture/kg N is maximum will not make most profit
9. DEPARTMENT OF
PRIMARY INDUSTRIES
• Theoretically, with full information and no
limit on working capital, decision guide
would be: use variable inputs such as
nitrogen so that the marginal cost of
extra input of N = marginal revenue from
extra production of pasture
• In practice the decision rule is to use N
such that the return on the extra capital
invested in the N is high enough to allow
for the risk and uncertainty associated
with the size and value of the response
that may result
10. DEPARTMENT OF
PRIMARY INDUSTRIES
Average and Marginal Product from Extra N
30.00
25.00
20.00
15.00
DM kg/ha
Marginal Product
Average Product
10.00
5.00
0.00
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115 121 127 133 139 145 151
-5.00
N KG/ha
11. DEPARTMENT OF
PRIMARY INDUSTRIES
Marginal cost and revenue from extra N
1.40
1.20
1.00
0.80
$ extra revenue and cost
0.60
marginal cost of each extra unit of input
marginal revenue from each extra input used
0.40
0.20
0.00
11.00
18.00
38.61
45.67
66.67
24.61
31.61
52.67
59.67
73.67
80.67
87.67
94.67
101.67
108.67
122.67
129.67
136.67
143.67
157.67
115.67
150.67
-0.20
-0.40
N kg/ha
12. DEPARTMENT OF
PRIMARY INDUSTRIES
Percentage Return on Marginal N Capital
50%
30%
10%
-10% 1 8 15 22 29 36 43 50 57 64 71 78 85 92 99 106 113 120 127 134 141 148 155
% Return on Marginal Capital
-30%
-50%
PercentageReturn on marginal N capital
-70%
-90%
-110%
-130%
-150%
N kg/ha
13. DEPARTMENT OF
PRIMARY INDUSTRIES
Total Revenue, Total Cost, Net Gain from added N
140.00
120.00
100.00
80.00
60.00
total revenue
40.00 total cost
$
net gain
20.00
0.00
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115 121 127 133 139 145 151 157
-20.00
-40.00
-60.00
N kg/ha
14. DEPARTMENT OF
PRIMARY INDUSTRIES
Profit rule
If no uncertainty and no limit on working capital,
use N up to where
Marginal product from extra unit of N = ratio of price of N (cost of
N applied):price (value) of extra pasture DM grown
If N price is 60c/kg
Pasture price is 10c/kg
Maximum profit rule:
Extra product 6=Price ratio 60c/10c
In practice, and depending on the risk and uncertainty
involved, apply N to where extra return on extra cost
represents say 20-30% return on that capital
16. DEPARTMENT OF
PRIMARY INDUSTRIES
Uncertainty about response of N in paddock
u
output
Farm factors
Experiment estimate
Farm factors
nitrogen
Probability associated with the response curve
that will apply in a particular situation
17. DEPARTMENT OF
PRIMARY INDUSTRIES
Best Bet N application
The extra kg pasture from the 40th kg of extra N/ha is:
0.25 chance it will be 7 kg (3/1 against)
0.25 chance it will be 6 kg (3/1 against)
0.3 chance it will be 5 kg (7/3 against)
0.1 chance it will be 4.5 kg (9/1 against)
Expected Value of response=1.75+1.5+1.5+0.45=5.15