Thursday, 21 September 2017
This paper discusses the value of manure as a soil amendment/fertilizer source. An often asked question is “what is the price of manure?” This question is difficult to answer because price is determined by markets. In the absence of markets for manure, its price is unknown. The best that can be done is to estimate the potential price of manure for a specific purpose. The estimation process is called hedonic pricing. In the absence of a market, the sum of the value of various manure components approximates a price for the manure itself. Hedonic pricing is heavily dependent on the many assumptions imposed on the use of manure. Any change in assumptions will result in a change in the approximate price of the manure. Because this type of estimation of the price of manure is dependent on its many assumptions, rather than on market supply and demand, it is only a starting point for negotiations in a developing market. A person with an estimate of potential manure price can use it to interest another in buying the manure, thus creating a market that establishes a price for manure.
Posted by KisanMarket at 22:00