The adoption of innovative cropping systems under price and production risks: a dynamic model of crop rotation choice

Abstract : We investigate the role played by both production and market risks on farmers' decision to adopt long rotations considered as innovative cropping systems. We build a multi-period dynamic farm model which arbitrates each year between conventional and innovative rotations. With discrete stochastic programming, the production risk is accounted for as an intra-year risk, yearly farming operations being declined according to a decision tree where probabilities are assigned. The simulations for a sample of 13 farmers who are currently experimenting this innovation in south-western France, show that substantive sunk costs act as incentives to remain in the long rotation when the farmer is supported for his engagement. They also show that both a high risk aversion and a highly positive market trend tend to slow down the conversion towards innovative systems.
Document type :
Other publications
Complete list of metadatas

Cited literature [21 references]  Display  Hide  Download

https://hal-agrocampus-ouest.archives-ouvertes.fr/hal-00840981
Contributor : Céline Martel <>
Submitted on : Tuesday, October 15, 2013 - 11:47:35 AM
Last modification on : Friday, June 14, 2019 - 6:31:02 PM
Long-term archiving on : Wednesday, April 5, 2017 - 6:56:13 AM

File

WP12-07_2_.pdf
Publisher files allowed on an open archive

Identifiers

  • HAL Id : hal-00840981, version 1

Citation

Aude Ridier, Karim Chaib, Caroline Roussy. The adoption of innovative cropping systems under price and production risks: a dynamic model of crop rotation choice. 2012, 26 p. ⟨hal-00840981⟩

Share

Metrics

Record views

273

Files downloads

395