CERTAINTY EQUIVALENCE FOR DETERMINATION OF OPTIMAL FERTILIZER APPLICATION RATES WITH CARRY-OVER

Abstract

This note demonstrates that a certain class of stochastic problems for determination of optimal fertilizer application rates in the presence of fertilizer carry-over can be simplified to static, certainly equivalent problems. Conditions required for certainty equivalence to hold are: (1) fertilizer carry-over is agronomically equivalent to applied fertilizer; and (2) some addition of fertilizer is optimal in every decision period.

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