An Expected Value of Sample Information (EVSI) Approach for Estimating the Payoff from a Variable Rate Technology

Pedro W.V. Queiroz; Richard K. Perrin; Lilyan E. Fulginiti; David S. Bullock

doi:10.22004/ag.econ.320680

An Expected Value of Sample Information (EVSI) Approach for Estimating the Payoff from a Variable Rate Technology

Pedro W.V. Queiroz, Richard K. Perrin, Lilyan E. Fulginiti, David S. Bullock

Research output: Contribution to journal › Article › peer-review

Abstract

This paper examines the expected payoff to variable rate technology for fertilizer application in terms of a Bayesian expectation of the value of sample information (EVSI). The optimal variable rate for each cell in a field is conditioned on a signal in the form of the electrical conductivity of soil at that cell. Using corn response to nitrogen data from ten on-farm field-level experiments, we calculate the expected payoff from variable rate technology versus a uniform rate applied to all cells to be about $1.81/acre.

Original language	English (US)
Pages (from-to)	1-13
Number of pages	13
Journal	Journal of Agricultural and Resource Economics
Volume	48
Issue number	1
DOIs	https://doi.org/10.22004/ag.econ.320680
State	Published - Jan 2023

Keywords

Bayesian decision making
EVSI
VRT
precision agriculture

ASJC Scopus subject areas

Animal Science and Zoology
Agronomy and Crop Science
Economics and Econometrics

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10.22004/ag.econ.320680

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abstract = "This paper examines the expected payoff to variable rate technology for fertilizer application in terms of a Bayesian expectation of the value of sample information (EVSI). The optimal variable rate for each cell in a field is conditioned on a signal in the form of the electrical conductivity of soil at that cell. Using corn response to nitrogen data from ten on-farm field-level experiments, we calculate the expected payoff from variable rate technology versus a uniform rate applied to all cells to be about $1.81/acre.",

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AU - Bullock, David S.

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AB - This paper examines the expected payoff to variable rate technology for fertilizer application in terms of a Bayesian expectation of the value of sample information (EVSI). The optimal variable rate for each cell in a field is conditioned on a signal in the form of the electrical conductivity of soil at that cell. Using corn response to nitrogen data from ten on-farm field-level experiments, we calculate the expected payoff from variable rate technology versus a uniform rate applied to all cells to be about $1.81/acre.

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An Expected Value of Sample Information (EVSI) Approach for Estimating the Payoff from a Variable Rate Technology

Abstract

Keywords

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