A Spatial Econometric Approach to the Economics of Site‐Specific Nitrogen Management in Corn Production

The objective of this study is to determine the potential for using spatial econometric analysis of combine yield monitor data to estimate the site‐specific crop response functions. The specific case study is for site‐specific nitrogen (N) application to corn production in Argentina. Spatial structure of the yield data is modeled with landscape variables, spatially autoregressive error and groupwise heteroskedasticity. Results suggest that N response differs by landscape position, and that site‐specific application may be modestly profitable. Profitability depends on the model specification used, with all spatial models consistently indicating profitability, whereas the nonspatial models do not.