10.5937/ratpov50-4827 = Interdependence between the harvested areas and purchase prices of soybean

Danica Bosnjak,Vesna Rodic,Emilija Nikolic-Djoric

doi:10.5937/ratpov50-4827

Abstract

One of the most difficult issues of farm management is giving the answer to the question what to produce, i.e. making a decision about the sowing structure. Economic factors and principles play an important role in farmers' decisions about what to grow and on which areas. The purchase price of each crop, including soybeans, is an important but not the only factor of competitiveness. The authors of this paper started from the assumption that the level and trend of soybean purchase prices, among others, affect producers' decision on the growing area for this crop. Therefore, in order to scientifically confirm the initial assumption, an attempt has been made to examine (using appropriate statistical methods) the effect of average soybean purchase prices on the spread of this crop in Serbia.

Highlights

Organization of agricultural production, especially crop production is always associated with uncertainty and risks
Soybean production is mainly concentrated in Vojvodina province; about 93% of the total soybean area is in this region
The influence of the annual purchase prices (x) on the harvested area of soybean (Y) in the period 1997-2011 is modelled by means of the power regression model in the following form: Based on the received power function form it could be concluded that an increase in the purchase price of 1% causes an increase in the soybean area by 0.26%

Summary

Introduction

Organization of agricultural production, especially crop production is always associated with uncertainty and risks. This uncertainty and the necessity of accepting a certain level of risk require a specific approach to farm management, i.e. decision-making (Muller & Abisija 2001, Birovljev & Tomić 2009). One of the most difficult issues of farm management is giving the answer to the question what to produce, i.e. making a decision about the sowing structure. Among other numerous economic factors, prices and their ratios are of particular importance (Birovljev 2001, Vlahović 2003, Milanović 1996, 2011, Milanović & Stevanović 2012)

Methods

Results

Conclusion