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Australian Journal of Agricultural Economics, Vol. 31, No. 1 (April 1987), pp. 65-73 SOME ESTIMATES OF THE PRICE ELASTICITY OF DEMAND FOR PHOSPHATIC AND NITROGENOUS FERTILISERS JAMMIE H. PENM and D. P. VINCENT* Industries Assistance Commission, Belconnen, ACT 261 6 Manufactured phosphatic and nitrogenous fertilisers are used extensively in Australian agriculture to improve crop and pasture yields. Phosphatic fertilisers are applied mainly to pastures and those crops such as cereal grains which are extensive in their use of land. A little less than half of phosphatic fertiliser consumption is on pastures and the remainder on crops, mainly wheat. Nitrogenous fertilisers are applied mainly to the traditionally high return per area crops such as sugar cane and vegetables. About one-third of the nitrogenous fertiliser used is applied to sugar cane, about one-third to fruit and vegetables and about one-third to pasture and cereals. In recent years the use of nitrogenous fertilisers on cereal crops has been increasingly combined with phosphorus in the form of ammonium phosphates. Various schemes have operated intermittently since the early 1930s to encourage the consumption of these fertilisers. Current arrangements involve subsidies paid on the quantity of available phosphorus and nitrogen per tonne. The effectiveness of
The Australian Journal of Agricultural Resource Economics – Wiley
Published: Apr 1, 1987
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