Separating the Impacts of Crop Diversification and Rotations on Risk

Helmers, Glenn A.; Yamoah, Charles F.; Varvel, Gary E.

doi:10.2134/agronj2001.1337

Cited by 52 publications

(32 citation statements)

References 11 publications

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“…It is implemented by comparing cumulative distribution function curves of alternatives. This approach rests on the axiomatic foundation that more is preferred to less for first-degree dominance while second and third-degree stochastic dominance rests on other behavioural assumptions (Helmers et al, 2001). …”

Section: Production Riskmentioning

confidence: 99%

“…Yet another approach to risk is termed safety first where the focus is placed on minimising the probability of falling below a disaster target level (Harwood et al, 1999;Helmers et al, 2001). The benefit of this approach is that it is relatively simple, has a strong intuitive appeal and empirical support (Helmers et al, 2001).…”

Section: Production Riskmentioning

confidence: 99%

“…In propagating diversification, however, the importance of sound crop rotation systems is usually neglected. According to Helmers, Yamoah & Varvel (2001) the risk benefits of crop diversification are generally well understood, but the additional effect of rotational cropping on risk is less understood. In this regard they demonstrated that in the diversification from maize to a maize-soyabean rotation system, 71% of the reduction in risk was due to the rotational effect and 29% due to diversification.…”

Section: Introductionmentioning

confidence: 99%

“…The benefit of crop rotation in reducing production risk involves three distinct influences that were described by Helmers et al (2001). Firstly, rotations, as opposed to monoculture cropping, may result in overall higher crop yields as well as reduced production costs.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The Impact of Crop Rotation on Profitability and Production Risk in the Eastern and North Western Free State

Nel¹,

Loubser²

2004

Agrekon

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Section: Production Riskmentioning

confidence: 99%

Section: Production Riskmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Impact of Crop Rotation on Profitability and Production Risk in the Eastern and North Western Free State

Nel¹,

Loubser²

2004

Agrekon

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“…Além desse efeito de diversificação, a rotação de culturas na propriedade rural pode contribuir positivamente para a redução de risco, pela menor variabilidade da produtividade entre anos e pelo aumento na produtividade ou redução dos custos unitários de produção (Helmers et al, 2001). Contudo, em uma situação de falta de crédito, em que há necessidade de retorno mais rápido do investimento (Antle & Diagana, 2003), uma maior percepção de risco pode ser agregada ao agente econômico, o que desestimularia investimentos nessas tecnologias.…”

Section: Diversificação E Redução Do Riscounclassified

Dimensão econômica de sistemas de integração lavoura-pecuária

Júnior¹,

Alves²,

Contini³

2011

Pesq. agropec. bras.

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Resumo -Os sistemas de integração lavoura-pecuária (ILP) têm sido propostos como solução tecnológica para atender critérios de sustentabilidade, mas tal assertiva tem-se baseado principalmente em indicadores agronômicos e ambientais. Neste trabalho, explorou-se a perspectiva econômica da ILP. Os benefícios econômicos potenciais desses sistemas podem refletir-se em economia de escopo (diminuição do custo, em razão da produção de múltiplos produtos) ou nos efeitos de redução de risco pela diversificação. Além disso, eles podem envolver menor variabilidade produtiva e maior produtividade. A mensuração acurada das interações entre os componentes lavoura e animal (pastagem) é etapa-chave a ser perseguida. A tomada de decisão em prol de sistemas diversificados vis-à-vis sistemas especializados deve ser feita de acordo com os preços relativos. A ILP compete com sistemas especializados de pecuária, mas não apresenta taxas de retorno competitivas em comparação a sistemas especializados com soja. A elevada demanda por capital da ILP, particularmente para a aquisição de animais em recria para a engorda, explica as menores taxas de retorno da ILP e é vista como uma das principais restrições para a ampla adoção de sistemas mistos. O desenho de mecanismos de financiamento inovadores será essencial para promover e acelerar a adoção em larga escala da tecnologia.Termos para indexação: análise de risco, diversificação, economia de escopo, pastagem degradada, pecuária de corte, soja. Economic dimension of integrated crop-livestock systemsAbstract -Integrated crop-livestock systems (ICLS) have been proposed as a technology solution to meet sustainability criteria, but this claim has been based mainly on agronomic and environmental indicators. In the present study, the economic perspective of ICLS was explored. The potential economic benefits of these systems may be reflected in economies of scope (cost reduction associated with producing multiple outputs) or in the risk-reducing effects of diversification. Furthermore, they may involve lower yield variability and overall higher yields. The accurate measurement of interactions between crop and animal (pasture) components is a key step to be pursued. Decision making toward diversified vis-à-vis specialized agricultural systems must be made according to relative prices. ICLS out-compete specialized livestock systems but do not show competitive rates of return in comparison to specialized soybean systems. The high demand for capital in ICLS, particularly for the acquisition of growing animals for fattening, explains ICLS' lower return rates and is perceived as a major constraint on the widespread adoption of mixed systems. The design of innovative financing mechanisms will be essential to foster and speed large-scale adoption of the technology.

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Corn and soybean yields and returns are greater in rotations with wheat

et al. 2021

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Simple rotations containing only corn (Zea mays L.) and/or soybean (Glycine max L.) dominate landscapes despite agronomic, soil health, and environmental benefits associated with diversification. We hypothesize that inclusion of wheat (Triticum aestivum L.) in corn-soybean (CS) rotations increases yield and net returns and that this benefit is becoming larger over time. Yields from rotation-tillage trials located near Elora and Ridgetown, ON, Canada, respectively, were used to investigate the yield and return effects of diversifying CS rotation using wheat with/without red clover (Trifolium pratense L). At Elora, wheat inclusion increased rate of yield increase in corn and soybean over 36 yr. During the latter 16 yr, adding wheat to CS rotation increased conventional tillage (CT) 1st and 2nd-year corn yields (with red clover) by 0.43 Mg ha −1 (4.2%) and 0.98 Mg ha −1 (11.8%), respectively, no-till 1st and 2nd-year corn yields (no red clover) by 0.78 Mg ha −1 (9.9%) and 0.45 Mg ha −1 (5.3%), respectively, and 1st-year soybean yield by 0.34 Mg ha −1 (11.8%). At Elora, net returns in the 4-yr wheat-containing rotations were 10% greater compared to the CS rotation. Similar corn and soybean yield responses including wheat in 2 or 3 yr rotations also occurred at the greater-yielding Ridgetown trial, however net returns were not increased relative to the CS rotation. Inclusion of wheat in CS rotation once every 4-5 yr may provide the optimal balance between accruing higher net returns from corn and soybean while minimizing direct net revenue reductions associated with wheat.

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Separating the Impacts of Crop Diversification and Rotations on Risk

Cited by 52 publications

References 11 publications

The Impact of Crop Rotation on Profitability and Production Risk in the Eastern and North Western Free State

The Impact of Crop Rotation on Profitability and Production Risk in the Eastern and North Western Free State

Dimensão econômica de sistemas de integração lavoura-pecuária

Corn and soybean yields and returns are greater in rotations with wheat

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