ECONOMIC ANALYSIS APPROACHES TO POTATO-BASED INTEGRATED CROP SYSTEMS: ISSUES AND METHOD
In response to stagnating yields and mounting pest problems, Michigan potato growers are investigating ways to bring manure and cover crops back into potato production systems. The alternative systems bring benefits and costs for monetary net returns, the variability of net returns, and environmental impacts. This paper reviews the likely yield and biological system effects of alternative potato production systems that incorporate manure and cover crops. After briefly considering research designs for gathering experimental versus farm field data, it reviews four economic analysis methods for evaluating alternative systems. All methods are illustrated with examples. First, for evaluating comparative average profitability, it reviews a) enterprise budgets, b) partial budgets, and c) break-even analysis. Second, for integrating environmental impacts into profitability analysis by using monetary measures of environmental effects, it introduces "green" budgets. Third, for evaluating efficiency trade-offs between profitability and environmental impacts, it covers trade-off frontiers. Finally, for comparing the variability of returns across systems (including for risk-averse decision makers), it introduces analysis of variance and stochastic dominance. These methods provide a basic set of tools for the economic analysis of changes in potato-based crop systems that should be adequate for most static comparisons of annual crop management practices.
Are cover crops worth it? It depends
Leirer, Joshua S. M.S., Purdue University, May 2015. Are Cover Crops Worth It? It Depends. Major Professor: Wallace E. Tyner. Society is becoming increasingly more aware of the environmental consequences of agricultural production. Farmers today are under increasing pressure to adopt more sustainable farm management practices. One method to improve the sustainability of crop production is the use of cover crops. Cover crops are planted “off-season” to provide agronomic and environmental benefits. The objective of this research is to quantify the impacts of cover crops and determine where and under which management practices cover crops provide the greatest benefit. Management practices include different crop rotations, tillage practices and residue removal rates. This paper will focus on soil erosion, nitrate leaching and soil organic carbon. To quantify the impact of cover crops, a dummy variable model was used to estimate the amount of soil erosion, nitrate leaching and soil organic carbon change for a combination of different management practices on soils with different land capability class ratings. Once the environmental outcomes have been determined, the benefits of cover crops can be quantified. Data for the environmental outcomes are simulated by the Landscape Environmental Assessment Framework (LEAF). To determine if cover crops are worth the cost, estimates for the price of soil erosion, nitrate leaching and soil organic carbon are combined with the environmental outcomes. From this analysis we find that: (1) cover crops improve environmental outcomes (2) reduced till benefits more from cover crops than no till (3) continuous corn rotations benefits more from cover crops than corn soybean rotations (4) soils with higher land
Did the metamorphosis from Export Processing Zones to Special Economic Zones improve the efficiency of trade enclaves in India?
In this paper, the efficiency of seven conventional Special Economic Zones in India is analyzed, by adopting a stochastic production frontier technique, for the period between 1986–1987 and 2007–2008.Results indicate that although the efficiency scores of these enclaves have improved over the years, specifically with the introduction of the SEZ policy (2000–2001), it is far below the threshold level as identified in the literature. Besides, one can also observe a discrepancy emerging between better export earning zones and efficient zones. On the determinants side, policy intervention and large geographical area, accompanied by clustering of units, are found to have impacted the efficiency scores of these enclaves positively.