AbstractIn a dynamic environment with imperfect information, education contributes to production as an “allocative effect,” arising from enhanced ability to acquire and process information efficiently, as well as a “worker effect.” This study focuses on a single dimension of allocative ability: adjustment of Midwestern U. S. farmers to the changing optimum quantity of nitrogen fertilizer in corn production. Results support the hypothesis that rate of adjustment can be explained by economic variables; the rate is positively related to education of farmers, availability of information (agricultural extension), and scale incentive to be informed (acres of corn). Also, education and extension are substitute sources of allocative efficiency.