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Strategic Study of CAE >> 2018, Volume 20, Issue 5 doi: 10.15302/J-SSCAE-2018.05.017

Analysis of the Reasons for Overuse of Chemical Fertilizer from a Seller’s Perspective

1. Institute of Agricultural Economics and Development, Chinese Academy of Agricaltural Sciences, Beijing 100081, China;

2. Research Center for Rural Economy, Ministry of Agriculture and Rural Affairs of the PRC, Beijing 100810, China;

3. Institute of Agricultural Resources and Regional Planning, Chinese Academy of Agricaltural Sciences, Beijing 100081, China

Funding project:CAE Advisory Project “Research on Key Strategic Issues of Agricultural Resource and Environment in China” (2016-ZD-10); topic of National Key R&D Program of China “Research on the Design of Management Policy for Application Decrease and Efficiency Increase of Fertilizer” (2016YFD0201304). Received: 2018-09-10 Revised: 2018-09-20 Available online: 2018-11-30

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Abstract

This paper analyzes the reasons for the overuse of chemical fertilizers from the aspect of fertilizer circulation. This paper introduces the traditional bi-level fertilizer distribution model and the current status of fertilizer circulation, and conducts an empirical analysis of the behaviors of fertilizer distributors by using field research data of the fertilizer distributors. Analyses show that the phenomenon of credit sales in fertilizer circulation is serious, which has greatly increased the cost of circulation and made the price of fertilizers unrealistically high. The promotion of fertilizer products and the financial risks arising from credit buying of farmers have increased the operating costs of the distributors. To make profit, the distributors tend to elevate the recommended dosage of fertilizer, resulting in excessive use of fertilizer by farmers. In addition, fertilizer distributors usually have a low level of expertise and thus need agricultural technical trainings to recommend a more scientific fertilizer dosage. To this end, it is recommended to raise the threshold for market access of fertilizer distributors, optimize trainings of the fertilizer distributors, and ease the pressure caused by credit sales in fertilizer circulation.

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