Impact of Farmland Leasing on Farmers' Profitability and Its Components: Insights From Chinese Rice Farmers

The paper deals with the development and main determinants of the profitability of Czech dairy farms. The aim of the paper is to evaluate the differences in the dynamics of profitability for two types of milk producers - specialized dairy farms and mixed farms - within the context of the agricultural policy changes. This aim is achieved by decomposing profitability into output growth, output and input price changes, changes in decoupled subsidies, technical change, scale, mark-up, and technical efficiency change components based on input distance function estimation. Based on the panel data obtained from the FADN database in the time period 2004-2011, it was found that the change in profitability was positive in the analysed time period, and slightly higher for the specialized dairy farms than for the mixed ones. The changes in output price, mark-up component and technical change are the main determinants of the development of profitability. Agricultural policy measures had different effects on these components. The strongest correlation was between the operational subsidies and the technical change and technical efficiency change, and this correlation was negative.

An investigation of productivity, profitability, and regulation in the Chilean water industry using stochastic frontier analysis

The organic farming potential is relatively large because of the high economic benefits for farmers and it is beneficial to operate. The research carried out as an idea or information to change the paradigm of organic farmers through an approach towards research on the income aspects of organic farming by production analysis. Yayasan Bina Sarana Bakti (YBSB) is the selected organic companies in the study. The objectives of this study are (1) analyze the level of organic vegetable production optimization Yayasan Bina Sarana Bakti and the level of use of resources (2) identify changes in profit in optimal conditions Yayasan Bina Sarana Bakti (3) analyze the effect of changes in prices of production inputs and outputs to the optimal production conditions. Production optimalization analysis of organic farming in view ofincome changes is aright thing to do. Linear programming analysis was used in this research. The resultsshowed that Yayasan Bina Sarana Bakti as an agribusiness company in organic vegetable production has yet to produce optimally. Optimal conditions of the company turned out to show the change in resources optimal use of resources which have not occurred on the land surplus amounted to 10.06 percent and profits at optimal conditions which is higher than the actual which profits can be increased 57,86 percent.

An earlier paper by Diewert (J Prod Anal 43(3):367–387, 2015) provided some new decompositions of economy wide labour productivity growth and Total Factor Productivity (TFP) growth into sectoral effects. The economy wide labour productivity growth rate turned out to depend on the sectoral labour productivity growth rates, real output price changes and changes in sectoral labour input shares. A puzzle is that empirically, the real output price change effects, when aggregated across industries, did not matter much. The economy wide TFP growth decomposition into sectoral explanatory factors turned out to depend on the sectoral TFP productivity growth rates, real output and input price changes and changes in sectoral aggregate input shares. The puzzle with this decomposition is that empirically all of these price change effects and input share effects did not matter much when they were aggregated over sectors; only the sectoral TFP growth rates contributed significantly to overall TFP growth. The present paper explains these puzzles.

South Painan Village is a production center of humpback grouper aquaculture in Pesisir Selatan Regency, West Sumatra Province. The humpback grouper produced has entered the export market, however the high costs of humpback grouper of aquaculture, unstable output and input prices and the relatively small area of floating net cages are considered to be obstacles for humpback grouper farmers to develop their business. This condition affects the competitiveness of humpback grouper in South Painan Village. The objectives of this research are to:(1) analyze the competitive and comparative advantages of humpback grouper in South Painan Village; (2) analyze the effect of changes in output and input prices on the competitive and comparative advantage of humpback grouper in South Painan Village. The analytical method used in this research are Policy Analysis Matrix (PAM) and sensitivity analysis on PAM. The results of the PAM analysis showed that the humpback grouper farming business in South Painan Village has competitive and comparative advantages, because the PCR and DRCR values are smaller than one. The results of the sensitivity analysis showed that changes in output and input prices reduce the competitive advantage of humpback grouper, but still has competitiveness because the PCR value is smaller than one.

This study aims to determine the effect of changes in output and input prices, corn research expenditures and road infrastructure on output supply and input demand for corn in the Province of East Java and West Java. The data that are analyzed are those of structure of costs of corn farming in the Province of East Java and West Java in 1985-2009. Estimation model employed is the method of Seemingly Unrelated Regression. The results showed that the output supply of corn both in the province of East Java and West Java are elastic to its price changes, however it is inelastic to the price changes of: seed, urea, TSP and labor. Input demand of seed, urea, TSP and labor area inelastic to their price changes. Policy implications of this research is efforts to increase the supply of corn can be carried out by increasing its price, expenditures of corn research, and road infrastructure.

The Comparative and Competitive Advantages of Arabica Coffee (Coffea arabica) Commodity in Ulian Village, Kintamani Sub-District of Bangli Regency
 The study aimed to analyze the comparative and competitive advantages and the divergence of input and output of arabica coffee commodity, to find out the government protection policy against inputs and outputs; and to investigate the impact of changes in input and output prices on profits, comparative advantages, competitive advantages, divergence, and government protection against inputs and outputs. Methods of data collection was interview and observation. The respondents were 38 farmers in Ulian Village, Kintamani, Bangli and selected by random sampling. Data analysis used Policy Analysis Matrix and sensitivity analysis. The result of analysis by using Policy Analysis Matrix showed that the social profit was Rp 47.953.373 and private profit of Rp 33.202.446. The superiority of arabica coffee commodity in Ulian Village consists of comparative and competitive advantages expressed in DRC ratio of 0.23 and PCR ratio of 0.29. The divergence of input and output consists of divergence of revenue of Rp15,734,996, tradable input divergence was Rp 0, domestic factor divergence was Rp. 994,070, and divergence of net profit of Rp 14,750,927. Government protection was expressed in NPCO ratio of 0.75, EPC ratio of 0.75, PC ratio of 0.69, and SRP ratio of -0.24. These ratios indicate that arabica coffee farmers in Ulian Village, Kintamani, Bangli have no protection from the government. Changes in input and output prices during inflation were at 3.02 percent, an increase in input prices by 10 percent and a fall in the price of output by 50 percent resulted in arabica coffee commodities in Ulian Village, Kintamani, Bangli to have comparative and competitive advantages. There is no government protection on arabica coffee farmers in Ulian Village, Kintamani Sub-District of Bangli Regency when input and output prices changed.

Profitability change in the global airline industry

The X in CPI-X regulation aims to adjust price or revenue allowances to changes in total factor productivity and input prices. If calculated correctly, both terms together correspond to the change in efficient costs which can be determined by applying a cost Malmquist index. However, regulators typically lack the required data on input quantities and prices. As an alternative, regulation authorities may apply a TOTEX Malmquist index to measure the total cost change. We study under which conditions this total cost change correctly estimates the true efficient cost change. Overall, we conclude that the TOTEX Malmquist approach can be used for CPI-X regulation. However, regulators should be aware of the limitations and make adjustments in the implementation where necessary.

Homegardens of Bukoba are a traditional multi-storey agroforestry farming system based on mixed cropping and livestock keeping. Major crops are banana (Musa spp.) grown for food and coffee (Coffea canephora var.robusta) for cash. Livestock keeping is dominated by cattle. Over the last few decades the farming system in Bukoba has been pervaded by a host of constraints ranging from biological to socio-economic. Consequently farm productivity has declined and so has the economic welfare of the people in the area. A questionnaire survey was conducted in 1991 to 72 households in Bukoba district to compare three potential farming systems: the rehabilitation of the homegardens, the cultivation of two annual crops namely maize and beans as intercrops and the continuation of the current non-rehabilitated homegardens. Results strongly support the rehabilitation of homegardens by use of cattle manure and proper crop and livestock husbandry practices. Rehabilitated homegarden has the highest net present value and is not very sensitive to changes in prices of inputs and outputs.

Under a criterion of maximum expected present value, dynamic programming is used to derive sequential decision rules that give feed rations as a function of animal weight and indicate the critical weight at which to sell a batch of animals. These rules are adaptable to short‐term random changes in prices of inputs and outputs, and typically require solution of a single equation at a given weight. A new stochastic model is introduced that encompasses both the infinite sequence and single batch models found in the literature; the infinite chain of batches is randomly terminated after each batch is marketed.

<em>Food Estate Development Program is an investment project on food cropsubsector in the form of business activities with large-scale cultivation (> 25 ha), especially rice commodities. The present study aims to analyze economic feasibility of Food Estate Development Program. The methode used to answer the research was NPV, IRR, BCR, Pay Back Period and sensitivity analysis. The results show that the NPV is positive amounted 153.761,83 billions rupiah, IRR of 63%, BCR of 1,25, Pay Back Period of 8 years and the sensitivity analysis of sensitive to changes in prices of inputs and outputs. From the above considerations investment criteria, indicates that program is economically feasible.</em>

We introduce complementary decompositions of profit change that, relying on the duality between the profit function and the directional distance function, shed light on the different sources of profit growth including measures of technical efficiency, allocative efficiency and technological change. Our decompositions extend the literature on Konüs and Bennet quantity and price indicators to profit change. The first decomposition is ‘exact’ in the sense of Diewert, by completely exhausting the sources of profit change into profit inefficiency change (including technical and allocative inefficiency change), technological change, and output and input price change. The second decomposition equates the Bennet quantity indicator to a productivity measure represented by the Luenberger indicator plus allocative inefficiency change. We deem it ‘complete’ because in contrast to the existing literature, it retains the information on allocative inefficiency change while preventing the existence of residual terms capturing price variations, whose meaningful interpretation has not been addressed until now. Our proposed solution takes advantage of the flexibility of the directional distance function when choosing a suitable directional vector. All decompositions have the same structural form and therefore their components can be compared to each other vis-à-vis, providing alternative measures of equivalent sources of profit growth.

A method for decomposing nominal value-added growth is presented, which identifies the contributions from efficiency change, growth of primary inputs, changes in output and input prices, technical progress, and returns to scale. In order to implement the decomposition, an estimate of the relevant cost-constrained value-added function for the two periods under consideration is required. This is taken to be the free disposal hull of past observations. Aggregation over sectors is also considered. The methodology is illustrated using US data for two sectors, which together constitute majority of the US business sector, over the years 1960–2014. The decompositions for each sector provide key insights into the drivers of economic growth. For the noncorporate nonfinancial sector, we find that the cost of recessions was particularly high.

Climate change in the form of higher temperatures, changes of rainfall patterns, and for some, more natural disasters will reduce the returns from current farming choices on what to produce and the production methods. Variation of climate change across regions and uncertainty about the magnitudes of change call for a diverse mix of adaptations to climate change across different regions and individual farms. This paper considers the institutional structure for effective climate change adaptation by Australian farms. It is argued that a rerun of the history of successful adaptation of farms to new technology, changes in output and input prices, natural climate variation, and other circumstances can be repeated for climate change adaptation. Individual farms can benefit from incentives and rewards to revise their decisions, which will combine with better individual outcomes. Complementary support by the government includes the provision of climate change and weather forecast information, support for research into new technology, help to evaluate the pros and cons of alternative choices, and provision of a social safety net for those unable to adapt.