Diversification of crops: Assessment of managerial flexibility and economic impact on sugarcane medium-sized farms

Abstract

The aim of this study is to assess the economic viability of a medium-sized sugarcane farm applying a diversification strategy, including the possibility of managerial flexibility in changing its portfolio over time. There is a theoretical gap in the economic evaluation of diversified production systems in farm space. We assessed one diversified structure for the sugarcane agricultural farm that included land areas dedicated to the rotational cultivation of soybean/corn, corn/peanut, and corn/green manure. We considered the managerial flexibility when replacing sugarcane culture. Primary and secondary data were used based on the agricultural context of São Paulo State, Brazil, where the modal profile of medium-sized producers in the region was defined with the support of technicians from the leading agricultural cooperative and sugarcane suppliers association. The results indicate that the diversification strategy for the investigated context generates: lower financial risk for the farm, higher potential return on investment, and higher economic value added.

An investigation into the relationship between sugarcane and grain prices in Brazil: a fractional cointegration approach

“…Adequate planting flexibility between both would tend to minimize risk and increase revenue. Furthermore, the results are also in line with those obtained by Santos and Gomes, 54 who found that the diversification and rotation of crops in the planting of sugarcane in the state of São Paulo, including soybeans and corn, also tends to maximize return and reduce the risks of individual investment projects.…”

Large Cardamom Farming in Eastern Nepal: Identifying Strengths, Weaknesses, Opportunities and Threats

“…Farmers may show reluctance to this shift due to a lack of knowledge and expertise in modern techniques (Dorjee et al, 2003). Government support and guidance are crucial to successfully assist farmers through this transition as also mentioned in Fauzi et al, (2019);Felix & Ramappa, (2023) ;Ganguli, (2006);Indrawanto et al, (2021); Kurdyś-Kujawska, (2021); Mzyece et al, (2023); Santos & Gomes, (2022); Tashi & Wangchuk, (2016). The availability of skilled manpower and resources will encourage farmers to continue the large cardamom farming, which will in turn, will contribute to the nation's economic goals.…”