Factors affecting farmers’ decisions on fertilizer use: A case study for the Chaobai watershed in Northern China

The Chaobai watershed in northern China is the most important source of drinking water for Beijing. The level of fertilizer use, especially overuse, as well as farming practices in the region have a great impact on the water quality downstream and affect an enormous number of people. This study analyzes the factors influencing the farmers’ decisions on fertilizer use and the implications for water quality. The analysis is based on a survey of 349 farm households. It takes into consideration both farm and farmer specific characteristics and farmers’ subjective evaluations of factors shaping their decisions. Regression models are used to examine the determinants of fertilizer use intensity across farm households and to investigate the factors influencing the overuse of nitrogen. The results suggest that many of these subjective factors have great significance in determining famers’ decisions. The results also show that irrigation, gains in crop yield and higher earning goals are positively correlated with fertilizer use intensity, while farm size, manure application, soil fertility and the distance to fertilizer markets are negatively correlated. Investigation of the overuse problem shows that higher education level significantly reduces the probability of over-fertilization. Based on these findings a few policy relevant implications are discussed.