Income Optimization of Energy Crops in Greece under Different CAP Scenarios

Abstract

Abstract The present paper employs linear programming for the optimization of agricultural income generated by energy crops for the prefecture of Evros. To be more specific, we optimize agricultural income from soybean, the sunflower (proxy for energy crop), corn under different scenarios having as restrictions the value of the subsidies as a proxy for EU policy the value of inputs (costs of capital and labour) and under the irrigation conditions. Three different scenarios will be taken into consideration regarding the implementation of Common Agricultural Policy. The results of different scenarios under which the Common agricultural policy is implemented will provide us with an insight on the identification of energy crops for which the agricultural income is a potential significant motive to the farmers for their adoption related not only to other energy crops but also conventional crops. According to our findings higher income is acquired by the cultivation of the sun flower compared to that of rapeseed in non-irrigated areas while in irrigated areas highest income comes from the crop of corn compared to the crop of sunflower and rapeseed. The practical value of the present work stands on the formation of a structure of different energy crops that secure income maximization, while if we take into consideration crops with limited needs in non- cultivated areas with less fertile soils might also contribute to the formation of rural development