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Risk, labour and climatic uncertainty in crop rotation optimization

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  • Dayde, Charlotte
  • Roussy, Caroline
  • Chaib, Karim
  • Ridier, Aude

Abstract

The goal of this article is to give some guidelines when modeling farmers’ rotation choices through optimization models. To improve the accuracy of such models, researchers can i) sophisticate the utility function or ii) specify the production function and the constraints of the model. Based on an interactive approach involving farmers, a preliminary discrete determinist model is built and tested under changing crops prices. Then, two discrete stochastic modeling approaches are compared; in the first one, yield risk is accounted as main source of income variability and, in the second one, risk is incorporated as a stochastic constraint of monthly inaccessible field days. Results show that risk aversion little affects rotation choice. A stochastic labour constraint accounting for field inaccessibility has considerable more impact on crops choice, especially in presence of imperfect labour market.

Suggested Citation

  • Dayde, Charlotte & Roussy, Caroline & Chaib, Karim & Ridier, Aude, 2014. "Risk, labour and climatic uncertainty in crop rotation optimization," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183036, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:183036
    DOI: 10.22004/ag.econ.183036
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    References listed on IDEAS

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    1. Kaplowitz, Michael D. & Hoehn, John P., 2001. "Do focus groups and individual interviews reveal the same information for natural resource valuation?," Ecological Economics, Elsevier, vol. 36(2), pages 237-247, February.
    2. G Lien & JB Hardaker, 2001. "Whole-farm planning under uncertainty: impacts of subsidy scheme and utility function on portfolio choice in Norwegian agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(1), pages 17-36, March.
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    Keywords

    Crop Production/Industries;

    NEP fields

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