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Abstract

A nitrogen balance model is used to investigate the adoption of a crop rotation and the limitation on the application of nitrogen fertilizer to reduce excess nitrogen. For a farmer initially planting corn continuously, the adoption of a soybeans-corn rotation will have a smaller compliance cost but it will not eliminate the excess application of nitrogen fertilizer under a relatively low nitrogen fertilizer to corn price ratio. An explicit limitation on nitrogen fertilizer use would be needed to achieve this objective. Limiting nitrogen fertilizer use on cropland susceptible to a high potential for leaching will have a smaller compliance cost than on cropland with a moderate potential for leaching.

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