IDEAS home Printed from https://ideas.repec.org/a/ags/qjiage/155553.html
   My bibliography  Save this article

Optimum replacement period for rubber plantation in Nigeria

Author

Listed:
  • Mesike, Chinye S.
  • Sagay, Godwin A.
  • Okoh, Rosemary N.

Abstract

The study aimed to derive the optimum replacement period for rubber plantation in Nigeria. The analysis was carried out with the data collected from 30 randomly selected rubber estate holders in Nigeria using the profit maximization concept. Results revealed that the optimum period to replace rubber plantation in Nigeria should be at the 35th year. However, the result of the study suggests that the actual replacement period of rubber plantation in Nigeria may vary since factors such as price changes in inputs and outputs, changes in discount rate and income tax and the management ability of the plantation owner can either shift the replacement period upward or downward. The policy conclusions follow that farmers will have to keep accurate records of the right nature for management purposes and that research on market development and price forecasting should be improved.

Suggested Citation

  • Mesike, Chinye S. & Sagay, Godwin A. & Okoh, Rosemary N., 2010. "Optimum replacement period for rubber plantation in Nigeria," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 49(3), pages 1-14.
    • Handle: RePEc:ags:qjiage:155553
    DOI: 10.22004/ag.econ.155553
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/155553/files/5_Mesike.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.155553?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Anthony H. Chisholm, 1966. "Criteria for Determining the Optimum Replacement Pattern," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 48(1), pages 107-112.
    2. R. K. Perrin, 1972. "Asset Replacement Principles," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(1), pages 60-67.
    3. J. Edwin Faris, 1961. "On Determining the Optimum Replacement Pattern: A Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 43(4_Part_I), pages 952-955.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Melton, Bryan E., 1980. "Economics Of Beef Cow Culling And Replacement Decisions Under Genetic Progress," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 5(2), pages 1-12, December.
    2. Weiland, Brandon & Sesmero, Juan Pablo & Preckel, Paul & Wetzstein, Michael E., 2017. "Can Wood Pellets Save Coal?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258250, Agricultural and Applied Economics Association.
    3. Brake, John R. & Melichar, Emanuel, 1977. "Agricultural Finance and Capital Markets," A Survey of Agricultural Economics Literature, Volume 1: Traditional Fields of Agricultural Economics 1940s to 1970s,, Agricultural and Applied Economics Association.
    4. Stutzman, Sarah & Weiland, Brandon & Preckel, Paul & Wetzstein, Michael, 2017. "Optimal replacement policies for an uncertain rejuvenated asset," International Journal of Production Economics, Elsevier, vol. 185(C), pages 21-33.
    5. Crane, Donald R. Jr. & Spreen, Thomas H., 1979. "A Conceptual Model Of The Stubble Replacement Decision For Florida Sugarcane Growers," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 277828, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Feuz, Dillion, 1991. "The Optimal Prebreeding Target Weight for Replacement Beef Heifers," WAEA/ WFEA Conference Archive (1929-1995) 321483, Western Agricultural Economics Association.
    7. Webber, C. A. & Graham, J. D. & MacGregor, R. J., 1988. "A Regional Analysis of Direct Government Assistance Programs in Canada and their Impacts on the Beef and Hogs Sectors," Working Papers 244071, Agriculture and Agri-Food Canada.
    8. Reid, Donald W. & Musser, Wesley N., 1984. "Some Theoretical and Methodological Issues in Analyzing Investment Decisions for Farmers," Regional Research Projects >1984: S-180 Annual Meeting, March 25-28, 1984, New Orleans, Louisiana 307234, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    9. Batterham, Robert L. & Fraser, K.I., 1995. "Capital Equipment Replacement Decisions," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(01), pages 1-8, April.
    10. Etherington, Dan M., 1977. "A Stochastic Model For The Optimal Replacement Of Rubber Trees," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(1), pages 1-19, April.
    11. Brake, John R. & Melichar, Emanuel, 1977. "PART VI. Agricultural Finance and Capital Markets," AAEA Monographs, Agricultural and Applied Economics Association, number 337218, january.
    12. McClelland, John W. & Wetzstein, Michael E. & Noles, Richard K., 1987. "Optimal Replacement Policies for Recyclable Assets," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 270113, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Bradford, Garnett L., 1981. "Comment: Energy Accounting: The Case Of Farm Machinery In Maryland," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(1), pages 1-3, July.
    14. Kay, Ronald D. & Rister, Edward, 1975. "The Effects of Income Tax Regulations on Farm Equipment Replacement Age and Cost," WAEA/ WFEA Conference Archive (1929-1995) 323852, Western Agricultural Economics Association.
    15. Ibendahl, Gregory & Griffin, Terry W., 2021. "Machinery Replacement Strategies," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2021.
    16. VanTassell, Larry W. & Nixon, Clair J., 1989. "A Further Look at the Effect of Federal Tax Laws on Optimal Machinery Replacement," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 21(2), pages 77-84, December.
    17. Bradford, Garnett L. & Eidman, Vernon R. & Jensen, Harald R., 1978. "A Systems Model Of The Indirect Energy Expended In Farm Machinery Production And Use," Staff Papers 13285, University of Minnesota, Department of Applied Economics.
    18. Jean-Paul Chavas & Richard M. Klemme, 1986. "Aggregate Milk Supply Response and Investment Behavior on U.S. Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 55-66.
    19. Deepa Pradhan & Tihomir Ancev & Ross Drynan & Michael Harris, 2011. "Management of Water Reservoirs (Embungs) in West Timor, Indonesia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(1), pages 339-356, January.
    20. Nelson, Kenneth E. & Purcell, Wayne D., 1973. "A Comparison Of Liveweight, Carcass And Lean Meat Criteria For The Feedlot Replacement Decision," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 5(2), pages 1-9, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:qjiage:155553. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iahubde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.