Risk/Return Analysis of Double‐Cropping and Alternative Crop Rotations with and Without Government Programs

Abstract

If growing season length and other factors necessary for crop production are adequate, double-cropping could enhance and stabilize net farm returns. Use of double-cropping could spread fixed costs over a larger volume of output. Lower average fixed costs and revenues from the second crop could enhance net income. Double-cropping also could improve profitability and cash flow by providing an additional source of cash. The benefits of enhanced income and diversification from double-cropping could provide more stable net income in a one-year period than single-cropping. These potential advantages of doublecropping could be outweighed by disadvantages. Climatic and weather factors may result in inadequate soil moisture and limited time available for harvesting and planting. Such factors may have greater impacts on yields from double-cropping than on yields from singlecropping. Thus, average net income with double-cropping will not necessarily be greater than that of single-cropping. Even if average net income is greater with double-cropping, income variability might also be greater, because yields are more variable.