AN ECONOMIC ANALYSIS OF BARLEY PRODUCTION RESPONSE TO DIFFERENT LEVELS OF NITROGEN AND PHOSPHORUS FERTILIZERS

Abstract

The objective of this work was to estimate the optimum levels of nitrogen and phosphorus. To achieve these different forms of production functions were estimated. The quadratic function was the best function according to statistical, econometrical, economical and biological criteria. The results had shown that the optimum quantity of nitrogen was 200.56 kg/ha while the optimum quantity of phosphorus was 149.35 kg/ha. Other economic derivatives were derived for these functions such as isoquant equations, marginal rates of substitution and isoclines. The results showed also that there were differences between the quantities of the two fertilizers used in barley fertilization that were recommended by agricultural researchers and the optimum quantities that were estimated by this paper. It was recommended that there should be a coordination between agricultural specialists and economists to decide which level to use according to food security situation of the country concerned. Also it was recommended that small farmers should be followed up by extension workers to advise them in using fertilizers and supplying them with these fertilizers.