Farm level supply of short rotation woody crops: economic assessment in the long-term for household farming systems

Abstract : In this paper, we propose an analysis and modeling of farmers' decision to convert a part of their annual crops area into woody crops: short rotation coppices (SRCs). Different criteria--technical, economic, and financial--are highlighted in the farmers' decision to adopt this production. A farm-level model is proposed and incorporates these decision criteria. The objective is to test several incentive scenarios to encourage risk-averse cereal farmers to plant trees. A multiperiod model of investment is built and tests possible adoption by farmers based on financial and structural parameters and according to the outlook of agricultural markets. The simulations show that if the cash crop prices fluctuate in the future and if farmers are risk averse the strategy of on-farm diversification toward woody crops under contractual arrangements could be relevant for farmers to mitigate the risks in the long run.
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Aude Ridier. Farm level supply of short rotation woody crops: economic assessment in the long-term for household farming systems. Canadian Journal of Agricultural Economics / Revue canadienne d'agroeconomie, Wiley, 2012, 60 (3), pp.357-375. ⟨10.1111/j.1744-7976.2011.01240.x⟩. ⟨hal-00840980⟩

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