Simulation data fom the Erosion Productivity Calculator Model (EPIC) and entreprise budget elaborated from the Oklahoma State University Budget Generator were used to study the long-term onsite and offsite effects of soil erosion on wheat production in Garfield County, Oklahoma. A discrete dynamic economic model was used to determine the private and social optimum rate of nitrogen application and choice of reduced tillage systems under different assumptions of market prices of wheat and nitrogen, cost of erosion and nitrogen loss, and discount rate. It was found that optimal system was different from private versus social choice.
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