Acreage Response Research Articles

Decomposition analysis and acreage response of linseed in Chhattisgarh

Decomposition analysis and acreage response of linseed in Chhattisgarh

Factors Affecting Acreage Response of Pulses in the State of Rajasthan

Background: Pulses are rich in protein, fiber and vital vitamins and minerals however, since the start of the so-called “green revolution” in 1966-1967, their cultivation has experienced a notable decrease. This declining trend in the area under pulses shows that farmers have been changing their crop selections in response to changing techno-economic circumstances. Thus, there is a strong need to study acreage reactions, which will provide important insights for developing efficient policy directives for pulse development. Methods: The objective of this research is to examine the factors that impact the production of pulse crops in the state of Rajasthan. The study is totally dependent on secondary data that was obtained from state government publications for the years 2000–01 and 2019-20. In order to achieve its goals, the study uses backward an elimination regression method. Result: The findings indicate that current-year irrigation significantly improved chickpea farming, while positive effects on pigeon pea acreage were linked to current-year rainfall, lagged irrigated area and pigeon pea yield variability. However, pigeon pea acreage was negatively affected by current-year irrigation and lagged production. Additionally, positive correlations were found between the lagged price of a rival crop (Bajra), current-year rainfall and moong bean acreage response. Urd bean acreage benefited from one-year lagged rainfall, lagged area and yield of pulse crops and lagged pricing of a rival crop (linseed). Therefore, investing in research and development, promoting rainfed techniques and establishing supportive pricing systems are crucial for boosting pulse production and meeting future demand efficiently.

Supply Response Functions of Major Food Grain Crops in Rajasthan

The present study was carried out in Rajasthan state as a whole aiming to study acreage response analysis. Nerlovian acreage response function was employed in the time series data of major food grain crops from 1997-98 to 2020-21. It is concluded that acreage of wheat, paddy, bajra, and gram were mainly controlled by the gross cropped area in current year (t), while the price of last year (t-1) also appeared to be the key determination of acreage allocation analysis. In case of wheat, if the gross irrigated area is increase by one per cent then the percentage of acreage will be increased by 1.04 per cent of the area, while in paddy and bajra, farm harvest price and irrigated area were important factors and influencing acreage response, but their influence was non-significant. In case of gram, if the price is increase by one per cent then the percentage of acreage will be increased by the farmers by 1.02 per cent.

Farmers Acreage Allocation Response in districts of Chhattisgarh Plains Zone: An Acreage Response Analysis of Paddy, Wheat and Gram

The study has been undertaken with the major objective to estimate the acreage allocation decision of paddy, wheat and gram farmers in selected districts (viz., Raipur, Mahasamund, Dhamtari and Durg) of Chhattisgarh plains zone with using 20 years (2000-01 to 2019-20) of secondary data of area and yield of paddy, wheat and gram and the different variables identified viz., lagged relative prices, current season rainfall, area and yield of competing crop maize, wheat and gram. Findings of the study include that the lagged area along with the current year rainfall had significantly contributed more in increasing acreage allocation of farmers of paddy under Raipur and Dhamtari districts. The area under wheat in Dhamtari district had declined, this decline was significantly contributed by lagged relative prices, area and lagged yield under gram. While the acreage of wheat in Durg district had found increased which was contributed more by the significant move with the last year’s absolute area and yield, current season rainfall and lagged relative prices. The lagged area, lagged relative prices, lagged yield and current season rainfall had highly significantly helped to boost the gram in terms of absolute area and had maximum area in Durg compare to other selected district of Chhattisgarh plains. The lagged relative prices, area of wheat and lagged yield of wheat had significant led to decrease area under gram in Raipur as well as in Mahasamund district over the study period. Further, the estimates of short-run and long-run price elasticities with respect to acreage of paddy, wheat and gram indicated the inelastic supply of these crops. Study suggested need for education and training to the farmers in respect of new crop production technology, etc., which will help in bringing about the desired changes in the cropping pattern.

Acreage Response to Price Support and Price Risk under Trade Liberalization

An unexpected surge in sugar imports in 2008 under NAFTA resulted in a large U.S. sugar price fluctuation. This study explores the acreage decision for U.S. sugar beets in an environment where both price support and trade liberalization takes place at the same time. Our empirical analysis is based on county-level data for sugar beets and three substitute crops (corn, soybean and wheat) in twelve U.S. sugar beet growing states over 1997-2018. While we find that an increase in price fluctuation overall has adverse impacts on acreage, the results indicate that farmers respond to price risk differently before and after NAFTA and to the level of price risk. This suggests a need for more precise policy instruments that better protect against unexpected income loss rather than a fixed level of support and enable producers to deal with future extreme events.

Determinants of Land use and Cropping Pattern Changes in Kerala

Land is one of the most limited natural resources and land use dynamics is a complex process The present study examined the causes of land use and cropping pattern changes in Kerala from 1985–2019. The time series data were collected from various published sources and the analysis was done at the state level. Population pressure, increase in number of factories, emigration, literacy rate, rainfall etc., were identified as the major causes of land use change in Kerala. The analysis of determinants of cropping pattern was done for paddy using the area response model and it was observed that the previous year's area under the crop, expected price of paddy, and average annual rainfall positively influenced the farmer's acreage response.

Simultaneous Analysis of Insurance Participation and Acreage Response from Subsidized Crop Insurance for Cotton

US crop insurance is subsidized to encourage producers to participate and reduce their risk exposure. However, what has been the impact of these subsidies on insurance demand and crop acres planted? Using a simultaneous system of two equations, we quantify both insurance participation and acreage response to subsidized crop insurance for cotton-producing counties across the US at the national and regional levels. We also quantify the impact of both the realized rate of return and the expected subsidy per pound, plus the combined effects of expected yield and price while accounting for the adoption of Bacillus thuringiensis (Bt) technology and other factors. Results show that both the rate of return and the expected subsidy per unit of production have a statistically significant and positive effect on the percentage of arable acres planted. Furthermore, the marginal effect of expected price on insurance participation is much more significant for low- than high-yield counties. Results indicate that not all regions respond the same to subsidized crop insurance and that subsidies should be based on dollars per expected unit of production rather than expected production to be less distorting. Overall, US cotton acreage response is estimated to be inelastic (0.58) to insurance participation.

Fixed or mixed? Farmer‐level heterogeneity in response to changes in salinity

AbstractWe study supply response to irrigation water salinity—an important and ubiquitous environmental problem facing agriculture around the world. The geographical setting is the Sacramento–San Joaquin River Delta, a main water hub in California, where salinity is a significant part of recent policy debates over water management and infrastructure. We use highly granular farm‐level panel data on Delta farming activity to estimate two sets of response parameters using (i) standard (fixed coefficients) logit model, and (ii) a mixed (random coefficient) logit model. The mixed logit results provide evidence for heterogeneity in supply response across farmers. To put these findings in a meaningful economic context, we use the results from both models to simulate estimates for aggregate acreage responses under two alternative salinity scenarios. We implement a method to simulate individual specific responses together with their confidence intervals, which provides additional insight into the composition of farmer heterogeneity. Based on these post‐regression simulation results, we find the mixed logit model predicts an elasticity of aggregate acreage for salt‐sensitive (hence higher value) crops that is an order of magnitude larger compared to that of the standard fixed coefficients logit method. This result sheds light on category of costs likely to increase in response to rising salinity in the Delta region.

Soybean production response: A study of Jambi’s acreage response under policy program

Research purpose was to analyse effect of agricultural business in soybean crop. Effect government policy program has be seen through high trend of soybean production in Jambi for three decade (1986-2018). Those policy programs include support price, also input subsidy programs. Differentiation on input acreage, yield, also output has been affected by input price like fertilizer price. Successfulness policy programs can be seen through crucial indicator among important coefficients of policy programs. In some research result, it can be found some policy implications. The first policy implication stated that price support policy is much credible also important for program improvement. Impact of this program of soybean is crucial to analyse response production. In analysing acreage response, method of measuring price expectation is used when variation of market phenomena was affected by price support. Then, results also found that if support price is low from riel price, truncation effect has no effect and price support program has low effect on acreage decisions. On other hand, if price support rate is high, truncation effect is getting higher, and it is much better impact to make acreage decisions. Price soybean elasticity was 0.091 also 0.105 for short-run acreage response and long run respectively. Moreover, it was acceptable on economic and statistical aspects.

Impacts of price, weather and policy changes on maize and rice farming in Togo

PurposeThis paper aims to investigate how climatic, market and policy factors interact to determine food production in Togo. Specifically, we estimate acreage and yield response to market prices, weather and policy changes for maize and rice.Design/methodology/approachWe use panel data estimators in a Seemingly Unrelated Regressions Equation (SURE) model with region-level data from the Food and Agriculture Organization statistics department and the National Oceanic and Atmospheric Administration (NOAA) of the US Department of commerce.FindingsWe found lower fertilizer price and higher grain price effects on maize acreage and yield. In addition, we found a positive effect of expected rice price on both its acreage and yield. As expected, rainfall during planting months has a significant impact on both maize (April) and paddy (May) acreage allocations. Similarly, total rainfall during the growing season has a positive impact on both maize and paddy yields. Moreover, recent agricultural policy initiative designed to boost domestic food production has significantly increased acreage and yield for maize, and yield for paddy, especially the strategy for agricultural growth.Research limitations/implicationsThe dataset includes region-level observations from 1991 to 2012 which limits the observation span. However, we had enough variability in key variables to determine the estimated coefficients.Practical implicationsAlthough the dataset is limited in time (1991–2012) and uses national-level output prices, this investigation reveals that cropland allocation to maize and rice is sensitive to fertilizer and grain prices, weather expectations and policy interventions. These findings provide evidence for sustainable food production and productivity enhancement in Togo.Social implicationsUnderstanding drivers of cropland allocation and cereal yield contribute to better food security and poverty reduction in developing countries, especially Togo.Originality/valuePrior to this study, little was known on the effect of price, climate and policy on cropland allocation in Togo. This investigation contributes significantly to filling this knowledge gap and provides insights for effective interventions.

An Estimation of the Acreage Response Function of Major Vegetables in Gyeongnam Province

An Estimation of the Acreage Response Function of Major Vegetables in Gyeongnam Province

Prospects of organic saffron kitchen gardens as a source of phytochemicals for boosting immunity in common households of semi-arid regions: A case study of trans-Himalayan Kashmir valley

The present study entitled “Decomposition analysis and Acreage Response of Pigeon pea in Amravati division” was undertaken to study the growth rate and instability of area, production and productivity, decomposition of output growth, acreage response and price elasticity of selected crop i.e. Pigeon pea in Amravati division and data pertained for the year 1988-89 to 2017-18 for the districts viz., Buldhana, Akola, Amravati, Yavatmal and Amravati Division as a whole. The study was based on time series secondary data on area, production, productivity, farm harvest prices, rainfall and other relevant data of selected crops were collected from the various Government publications. The study revealed that the compound growth rates for area were positive indicating increase in area of all the Pigeon pea growing districts during all three sub periods i.e. period-I and period-II, period-III and overall period in Amravati division. The instability in the area, production and productivity of pigeon pea was observed in almost all districts in the Amravati division. It may be because the crop largely depends on vagaries of nature which causes heavy losses. Percent contribution of area effect was more responsible for pigeon pea. Therefore it is necessary to increase the sustainable pigeon pea production in state and to take up productivity enhancing measures in pigeon pea crop like varietal improvement, appropriate technologies. The lagged acreage variable was found significant in all the districts of Amravati Division mostly with one percent level of significance. The current year acreage was less influenced by farm harvest prices of pigeon pea in all the districts. While, one year lagged yield had not at all showed impact to area allocation of pigeon pea. Most of the long run price elasticities were greater than short run elasticities in pigeon pea indicating that farmers were relatively market oriented in their decisions in long run than in short run.

Decomposition analysis and acreage response of soybean in Amravati division

The present study entitled “Decomposition analysis and Acreage Response of Soybean in Amravati Division” was undertaken to study the growth rate and instability of area, production and productivity, decomposition of output growth, acreage response and price elasticity of selected crop i.e. Soybean in Amravati division and data pertained for the year 1988-89 to 2017-18 for the districts viz., Buldhana, Akola, Amravati, Yavatmal and Amravati Division as a whole. The study was based on time series secondary data on area, production, productivity, farm harvest prices, rainfall and other relevant data of selected crops were collected from the various Government publications. The study revealed that the Compound growth rate for area and production under soybean was recorded high during period I in all the districts. During period II, the production of soybean registered mostly high growth rates in all the districts. During period III, the compound growth rate for area, production and productivity under soybean was found mostly decreased compare to period I and II of Amravati division of Maharashtra for the study period. The instability in the area, production and productivity of soybean was observed in almost all districts in the Amravati division. It may be because the crop largely depends on vagaries of nature which causes heavy losses. The Percent contribution of area effect was more responsible for soybean production in all the districts in all periods except period III. Therefore it is necessary to increase the sustainable soybean production in state and to take up productivity enhancing measures in soybean crop like varietal improvement, appropriate technologies. The lagged acreage variable was found significant in all the districts of Amravati Division mostly with one percent level of significance. The current year acreage was less influenced by farm harvest prices of soybean in all the districts. One year lagged yield had some impact to area allocation of Soybean in all the districts of Amravati division. Most of the long run price elasticities were greater than short run elasticities in soybean indicating that farmers were relatively market oriented in their decisions in long run than in short run.

Modeling Corners, Kinks, and Jumps in Crop Acreage Choices: Impacts of the EU Support to Protein Crops

Null crop acreages raise pervasive issues when modeling acreage choices with farm data. We revisit these issues and emphasize that null acreage choices arise not only due to binding non‐negativity constraints but also due to crop production fixed costs. Based on this micro‐economic background, we present a micro‐econometric multicrop model that consistently handles null acreage choices and accounts for crop production fixed costs. This multivariate endogenous regime switching model allows for specific crop acreage patterns, such as multiple kinks and jumps in crop acreage responses to economic incentives that are due to changes in produced crop sets. We illustrate the empirical tractability of our modeling framework by estimating a random parameter version of our model on a panel dataset of French farmers. The estimated model is used to simulate the impacts of area‐based subsidies on protein peas, which are implemented by the EU for reducing its dependence on imported protein crops. Our results suggest that this subsidy scheme is effective, essentially by leading farmers to incorporate or to keep protein pea in their crop mix.

Price responsiveness of supply and acreage in the EU vegetable oil markets: Policy implications

Vegetable oil market is becoming of increasing interest in the global biofuel industry. This phenomenon has also interested the European Union (EU), where the growing expansion of biofuel production is affected by political interventions promoting fuel security and environmental goals. Yet, empirical evidence on the impacts that changes in price of one commodity may have on the supply of another commodity are rather scant. We investigate these dynamics for the major sources of biodiesel in the EU and conclude on cross-commodity linkages for palm, rapeseed, soy, and sunflower oils. We also examine the acreage response of domestically produced feedstocks to changes in prices of vegetable oils. Our findings suggest strong and diversified path dependencies among vegetable oils that should be considered in planning sustainable biofuel policies. In particular, the empirical analysis reveals the great relevance of sunflower and soy oils, which show a high price responsiveness, and the high competition in end uses of domestically produced vegetable oils (i.e. rapeseed, soy, and sunflower oils), that tend to be net substitutes in supply. In terms of land use effects, we find that an increase in the price of imported palm oil results in a displacement effect in land devoted to rapeseed cultivation, whereas a surge in the price of sunflower oil decreases the use of land for rapeseed. Land use effects would be relevant in northern EU countries where the production of rapeseed is the most intense. A policy measure in the EU, incentivising the production of renewable and environmental-friendly fuel from sustainable feedstocks, would be positive for the domestic market to the extent that it stimulates the production of vegetable oils (soy and sunflower oils) with the highest direct and indirect emissions saving. However, the expansion of oil palm plantations in extra-EU producing countries and of imports to the EU would determine important impacts in terms of indirect land use change emissions and direct emissions due to increased transports.

English

English

Climate change and adaptation in agriculture: Evidence from US cropping patterns

Understanding how a changing climate alters regional comparative advantage is crucial for evaluating the economic impacts of climate change. I exploit temporal variation in decades-long averages of weather and estimate crop acreage elasticities with respect to climate change in the United States. I find substantial climate change adaptation through acreage adjustments in US agriculture. Climate change explains about 10–35% of the observed US corn and soybean expansion over the past 30 years, and climate-driven crop substitution has played an important role. The acreage response is heterogeneous across major and minor producing areas and across dryland and irrigated counties.

Implications of Post-Harvest Losses and Acreage Response of Selected Up-Country Vegetables from Nuwara-Eliya District in Sri Lanka on Sustained Food Security

Purpose: Up-country vegetable sector is sensitive in achieving food security as a prominent sub sector within the Sri Lankan agriculture. But a high post-harvest loss (PHLs) along traditional supply chains and competitiveness of alternative crops are a couple of great challenges on availability of these vegetables. This study estimated PHLs of carrots, cabbage and leeks along the most prominent supply chain from Nuwara-Eliya to Dambulla Dedicated Economic Center followed by an acreage response analysis which has a timely importance. Research Method: The most prominent supply chain in Nuwara-Eliya district which has track record on highest production of up-country vegetables was identified by a pilot test. Multi stage purposive sampling technique was used to track key players and data on estimated PHLs were collected through questionnaire surveys. Acreage response analysis was done by secondary data with the application of Nerlovian expectation model. Findings: Incidence of PHLs of leeks was the highest (44%) and major contributing causes were trimming of lengthier but fresh leaves while bundling followed by mechanical damages. Incidence of PHLs of cabbage was 43% and mainly it was due to trimming of outer leaves. PHLs of carrots (30%) were mainly due to rots and mechanical damages. Acreage response analysis revealed that farmers were responsive to yester year prices of vegetables and potato; an alternative crop. Unit increase of vegetable price can increase the acreage of up-country vegetable by 0.21 hectares while unit increase of potato price can reduce acreage of up-country vegetables by 0.26 hectares. Research Limitations: This study was constrained a little bit by lack of time and logistical limitations. Originality/value: Relationships established between the scale of farming operation and the PHLs was a novel finding of this study. PHLs of upcountry vegetables along their common supply chain were also quantified. Policy formulations must be mainly focused on price controlling of vegetable crops to minimize the relative fluctuations in the extents cultivated and preventing high PHLs which may seriously affect food security of the country.

Role of land quality in corn acreage response to price and policy changes: evidence from the Western Corn Belt

Land quality influences how farmers allocate croplands in response to market forces. Farmers in the Western Corn Belt (WCB) have historically utilized the highest quality lands for corn cultivation, putting lower quality lands to other uses. This paper questions whether high corn prices influenced expansion of corn cultivation on lower quality lands, and the role played by US biofuel policy in such land use change. Using three decades of data, I estimate that the proportional change in corn acreage to rising corn prices is nearly three times larger in counties with lowest land quality versus those with the highest land quality. This variable response, however, is driven by the changes in cropland use for corn cultivation after 2006, the period following the change in US biofuel policy, and punctuated by two crop price spikes. Marginal agricultural lands and other lower quality lands, such as grasslands used for range or pasture, are therefore prone to conversion into corn cropping disproportionately during high price periods. High price responsiveness of lower quality lands also suggests these lands may cycle in and out of corn cropping opportunistically. This has implications for marginal land availability for bioenergy crops, and poses environmental concerns to the extent lower quality lands are also more environmentally sensitive.

Growth and acreage response of pigeonpea in Maharashtra

Growth and acreage response of pigeonpea in Maharashtra