IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v35y2006i3p245-256.html
   My bibliography  Save this article

The importance of seasonal variability and tactical responses to risk on estimating the economic benefits of integrated weed management

Author

Listed:
  • Randall Jones
  • Oscar Cacho
  • Jack Sinden

Abstract

Seasonal variability is an important source of risk faced by farmers and, regardless of an individual's attitude to risk, there are options to tactically adjust production strategies as the outcomes of risk become known. The objective of this article is to measure the economic benefits of alternative approaches to managing weeds, one of the most serious production problems in Australian cropping systems. A bioeconomic model that combines weed biology, crop growth and economics is developed to value the effects of seasonal variability and the role of tactical responses and sequential decision making in determining an optimal integrated weed management strategy. This shows that there are substantial differences in the measured long‐term benefits from deterministic and stochastic simulations. It is concluded that, for research evaluation of technologies that involve complex biological and dynamic systems, ignoring the impacts of seasonal variability, responses to risk and sequential decision making can lead to an incorrect estimate of the economic benefits of a technology. In this case study of optimal weed management strategies in Australia, the size of the error is high.

Suggested Citation

  • Randall Jones & Oscar Cacho & Jack Sinden, 2006. "The importance of seasonal variability and tactical responses to risk on estimating the economic benefits of integrated weed management," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 245-256, November.
    • Handle: RePEc:bla:agecon:v:35:y:2006:i:3:p:245-256
    DOI: 10.1111/j.1574-0862.2006.00159.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1574-0862.2006.00159.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1574-0862.2006.00159.x?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. Pardey, Philip G. & Roseboom, Johannes & Anderson, Jock R., 1991. "Agricultural Research Policy: International Quantitative Perspectives," ISNAR Archive 310674, CGIAR > International Food Policy Research Institute (IFPRI).
    2. Anderson, Jock R. & Dillon, John L. & Hardaker, Brian, 1977. "Agricultural Decision Analysis," Monographs: Applied Economics, AgEcon Search, number 288652, November.
    3. Hardaker, J. Brian, 2000. "Some Issues in Dealing with Risk in Agriculture," Working Papers 12912, University of New England, School of Economics.
    4. Carlson, Gerald A., 1984. "Risk Reducing Inputs Related to Agricultural Pests," Regional Research Projects >1984: S-180 Annual Meeting, March 25-28, 1984, New Orleans, Louisiana 307236, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tessema, Yohannis & Asafu-Adjaye, John & Rodriguez, Daniel & Mallawaarachchi, Thilak & Shiferaw, Bekele, 2015. "A bio-economic analysis of the benefits of conservation agriculture: The case of smallholder farmers in Adami Tulu district, Ethiopia," Ecological Economics, Elsevier, vol. 120(C), pages 164-174.
    2. Beltran, Jesusa C. & Pannell, David J. & Doole, Graeme J., 2011. "Economic impacts of high labour cost and herbicide resistance for the management of annual barnyardgrass (Echinochloa crus-galli) in rice production in the Philippines," Working Papers 108770, University of Western Australia, School of Agricultural and Resource Economics.
    3. Crean, Jason & Parton, Kevin & Mullen, John & Hayman, Peter, 2015. "Valuing seasonal climate forecasts in a state-contingent manner," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(1), January.
    4. Zull, Andrew F. & Cacho, Oscar J. & Lawes, Roger A., 2009. "Optimising woody-weed control," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47620, Australian Agricultural and Resource Economics Society.
    5. Jacobs, A. & Kingwell, R., 2016. "The Harrington Seed Destructor: Its role and value in farming systems facing the challenge of herbicide-resistant weeds," Agricultural Systems, Elsevier, vol. 142(C), pages 33-40.
    6. Young, Michael & Young, John & Kingwell, Ross S. & Vercoe, Philip E., 2023. "Evaluation of the least cost option to manage pastures in a wet winter in south-eastern Australia," AFBM Journal, Australasian Farm Business Management Network, vol. 20(3), August.
    7. Sneessens, Inès & Sauvée, Loïc & Randrianasolo-Rakotobe, Hanitra & Ingrand, Stéphane, 2019. "A framework to assess the economic vulnerability of farming systems: Application to mixed crop-livestock systems," Agricultural Systems, Elsevier, vol. 176(C).
    8. David Boussios & Paul V. Preckel & Yigezu A. Yigezu & Prakash N. Dixit & Samia Akroush & Hatem Cheikh M'hamed & Mohamed Annabi & Aden Aw‐Hassan & Yahya Shakatreh & Omar Abdel Hadi & Ayed Al‐Abdallat &, 2019. "Modeling producer responses with dynamic programming: a case for adaptive crop management," Agricultural Economics, International Association of Agricultural Economists, vol. 50(1), pages 101-111, January.

    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. Musser, Wesley N., 1992. "A Historical Overview of Estimation of Historical Risk Coefficients," 1992 Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk Meeting, March 22-25, 1992, Orlando, Florida 307862, Regional Research Projects > S-232: Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk.
    2. David J. Pannell, 1991. "Pests and pesticides, risk and risk aversion," Agricultural Economics, International Association of Agricultural Economists, vol. 5(4), pages 361-383, August.
    3. Berg, Ernst & Starp, Michael, 2006. "Farm Level Risk Assessment Using Downside Risk Measures," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25400, International Association of Agricultural Economists.
    4. Lien, Gudbrand, 2002. "Non-parametric estimation of decision makers' risk aversion," Agricultural Economics, Blackwell, vol. 27(1), pages 75-83, May.
    5. Loehman, Edna T. & Nelson, Carl H., 1992. "Optimal Risk Management, Risk Aversion, And Production Function Properties," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(2), pages 1-13, December.
    6. Pannell, David J., 1994. "The Value Of Information In Herbicide Decision Making For Weed Control In Australian Wheat Crops," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-16, December.
    7. Girma T. Kassie & Debrah Maleni & Simon Gwara1 & Bezabih Emana, 2013. "Efficiency of Moisture Stress Risk Coping Strategies in North Eastern Ethiopia: Application of Mean-Variance Efficiency Analysis," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(8), pages 1018-1032, August.
    8. Norton, George W. & Alwang, Jeffrey, 1997. "Policy for Plenty: Measuring the Benefits of Policy-oriented Social Science Research," Staff Papers 232552, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    9. Anderson, Jock R., 1997. "Policy and Management Work within International Agricultural Research," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(4), pages 1-19.
    10. Gomez-Limon, Jose A. & Arriaza, Manuel & Riesgo, Laura, 2003. "An MCDM analysis of agricultural risk aversion," European Journal of Operational Research, Elsevier, vol. 151(3), pages 569-585, December.
    11. Young, Douglas L., 1984. "Risk Aspects of Irrigation Decisions: Discussion," Regional Research Projects >1984: S-180 Annual Meeting, March 25-28, 1984, New Orleans, Louisiana 307238, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    12. Pannell, David J. & Malcolm, Bill & Kingwell, Ross S., 2000. "Are we risking too much? Perspectives on risk in farm modelling," Agricultural Economics, Blackwell, vol. 23(1), pages 69-78, June.
    13. Power, Brendan & Cacho, Oscar J, 2014. "Identifying risk-efficient strategies using stochastic frontier analysis and simulation: An application to irrigated cropping in Australia," Agricultural Systems, Elsevier, vol. 125(C), pages 23-32.
    14. Anderson, Jock R., 1993. "The Economics of New Technology Adaptation and Adoption," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(02-2), pages 1-9, August.
    15. Jones, Randall E. & Cacho, Oscar J., 2000. "A Dynamic Optimisation Model of Weed Control," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123685, Australian Agricultural and Resource Economics Society.
    16. Alston, Julian M. & Anderson, Jock R. & Pardey, Philip G., 1995. "Perceived Productivity, Forgone Future Farm Fruitfulness and Rural Research Resource Rationalization," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183440, International Association of Agricultural Economists.
    17. Anderson, Kim B. & Mapp, Harry P., Jr., 1996. "Risk Management Programs In Extension," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(1), pages 1-8, July.
    18. Liu, Xuanli & Miller, Gay Y. & McNamara, Paul E., 2005. "Do Antibiotics Reduce Production Risk for U.S. Pork Producers?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-11, December.
    19. Doppler, Werner & Salman, Amer Z. & Al-Karablieh, Emad K. & Wolff, Heinz-Peter, 2002. "The impact of water price strategies on the allocation of irrigation water: the case of the Jordan Valley," Agricultural Water Management, Elsevier, vol. 55(3), pages 171-182, June.
    20. Sugu M.M. Zuhair & Daniel B. Taylor & Randall A. Kramer, 1992. "Choice of utility function form: its effect on classification of risk preferences and the prediction of farmer decisions," Agricultural Economics, International Association of Agricultural Economists, vol. 6(4), pages 333-344, April.

    More about this item

    Statistics

    Access and download statistics

    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:bla:agecon:v:35:y:2006:i:3:p:245-256. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.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.