IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04793152.html
   My bibliography  Save this paper

On the economics of crop rotation diversification. Valuing pre crop and cropping system effects and accounting for opportunity costs

Author

Listed:
  • Alain Carpentier

    (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

  • Ibirénoyé Honoré Romaric Sodjahin

    (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

  • Rémy Ballot

    (INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Agronomie - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

Crop diversity in general, and crop rotation diversity in particular, is a key principle in the design of agro-ecological cropping systems. Since economic motives are of primary interest for farmers, assessing and analyzing the economic return of crop production diversification is essential for convincing farmers to adopt diversified cropping systems or for identifying key elements to be improved in the diversified cropping systems that are currently proposed or developed. This article presents a simple approach for assessing and analyzing the economic value of crop rotation diversification. This approach relies on basic economic calculus and on data that describe the technical performances of crop rotations with various degrees of diversity in comparable production conditions. It demonstrates that the economic value of a diversification crop can usefully be decomposed into the sum of three components: the value of the pre crop effects, the value of the cropping system effects and, finally, the opportunity value of producing the diversification crop. The last component is purely economic while the two others value the agro-ecological effects of crop rotation diversification. The approach is illustrated by means of an application considering the insertion of pea in a cereal-based rotation, a topic of special interest in the EU owing to the current EU dependence on imported protein for feed production and to the benefits brought by inserting legumes in cereal based production systems. More generally, our investigations for gathering data for applying our approach also revealed significant information lacking, especially for describing the effects of cropping system diversification on yield and chemical input use levels. Documenting these effects is crucial for assessing the economic benefits and costs of crop diversification for farmers. These observations certainly calls for agronomists to pay more attention to the economic features related to their research topics and for economists to better account for the agronomic features of the questions they address when they consider agricultural production practices.

Suggested Citation

  • Alain Carpentier & Ibirénoyé Honoré Romaric Sodjahin & Rémy Ballot, 2022. "On the economics of crop rotation diversification. Valuing pre crop and cropping system effects and accounting for opportunity costs," Post-Print hal-04793152, HAL.
    • Handle: RePEc:hal:journl:hal-04793152
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04793152v1
    as

    Download full text from publisher

    File URL: https://hal.inrae.fr/hal-04793152v1/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Abebayehu Tegene & Wallace E. Huffman & John A. Miranowski, 1988. "Dynamic Corn Supply Functions: A Model with Explicit Optimization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(1), pages 103-111.
    2. Onur Boyabatlı & Javad Nasiry & Yangfang (Helen) Zhou, 2019. "Crop Planning in Sustainable Agriculture: Dynamic Farmland Allocation in the Presence of Crop Rotation Benefits," Management Science, INFORMS, vol. 67(5), pages 2060-2076, May.
    3. Liu, Xing & Lehtonen, Heikki & Purola, Tuomo & Pavlova, Yulia & Rötter, Reimund & Palosuo, Taru, 2016. "Dynamic economic modelling of crop rotations with farm management practices under future pest pressure," Agricultural Systems, Elsevier, vol. 144(C), pages 65-76.
    4. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    5. David A. Hennessy, 2006. "On Monoculture and the Structure of Crop Rotations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 900-914.
    6. Nathan P. Hendricks & Aaron Smith & Daniel A. Sumner, 2014. "Crop Supply Dynamics and the Illusion of Partial Adjustment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(5), pages 1469-1491.
    7. Alain Carpentier & Alexandre Gohin, 2015. "On the economic theory of crop rotations: value of the crop rotation effects and implications on acreage choice modeling," Working Papers SMART 15-04, INRAE UMR SMART.
    8. Popp, Michael & Manning, Patrick & Counce, Paul & Keisling, Terry, 2005. "Rice-soybean rotations: opportunities for enhancing whole farm profits or water savings," Agricultural Systems, Elsevier, vol. 86(2), pages 223-238, November.
    9. Daniel A. Ackerberg & Kevin Caves & Garth Frazer, 2015. "Identification Properties of Recent Production Function Estimators," Econometrica, Econometric Society, vol. 83, pages 2411-2451, November.
    10. MacWilliam, S. & Wismer, M. & Kulshreshtha, S., 2014. "Life cycle and economic assessment of Western Canadian pulse systems: The inclusion of pulses in crop rotations," Agricultural Systems, Elsevier, vol. 123(C), pages 43-53.
    11. Peter F. Orazem & John A. Miranowski, 1994. "A Dynamic Model of Acreage Allocation with General and Crop-Specific Soil Capital," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(3), pages 385-395.
    12. Janssen, Sander & van Ittersum, Martin K., 2007. "Assessing farm innovations and responses to policies: A review of bio-economic farm models," Agricultural Systems, Elsevier, vol. 94(3), pages 622-636, June.
    13. Magrini, Marie-Benoit & Anton, Marc & Cholez, Célia & Corre-Hellou, Guenaelle & Duc, Gérard & Jeuffroy, Marie-Hélène & Meynard, Jean-Marc & Pelzer, Elise & Voisin, Anne-Sophie & Walrand, Stéphane, 2016. "Why are grain-legumes rarely present in cropping systems despite their environmental and nutritional benefits? Analyzing lock-in in the French agrifood system," Ecological Economics, Elsevier, vol. 126(C), pages 152-162.
    14. Michael Livingston & Michael J. Roberts & Yue Zhang, 2015. "Optimal Sequential Plantings of Corn and Soybeans Under Price Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(3), pages 855-878.
    15. Miranowski, John & Orazem, Peter, 1994. "A Dynamic Model of Acreage Allocation with General and Crop-Specific Capital," Staff General Research Papers Archive 10695, Iowa State University, Department of Economics.
    16. Talaat El-Nazer & Bruce A. McCarl, 1986. "The Choice of Crop Rotation: A Modeling Approach and Case Study," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 127-136.
    17. Penelope L. Diebel & Jeffery R. Williams & Richard V. Llewelyn, 1995. "An Economic Comparison of Conventional and Alternative Cropping Systems for a Representative Northeast Kansas Farm," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(3), pages 323-335.
    18. Rosa-Schleich, Julia & Loos, Jacqueline & Mußhoff, Oliver & Tscharntke, Teja, 2019. "Ecological-economic trade-offs of Diversified Farming Systems – A review," Ecological Economics, Elsevier, vol. 160(C), pages 251-263.
    19. Alban Thomas, 2003. "A dynamic model of on-farm integrated nitrogen management," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(4), pages 439-460, December.
    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. Ibirénoyé Romaric Sodjahin & Fabienne Femenia & Obafemi Philippe Koutchade & A. Carpentier, 2022. "On the economic value of the agronomic effects of crop diversification for farmers: estimation based on farm cost accounting data [Valeur économique des effets agronomiques de la diversification de," Working Papers hal-03639951, HAL.
    2. Carpentier, Alain & Gohin, Alexandre, 2015. "On the economic theory of crop rotations: value of the crop rotation effects and implications on acreage choice modeling," Working Papers 205299, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    3. CARPENTIER, Alain & GOHIN, Alexandre & SCKOKAI, Paolo & THOMAS, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(01), March.
    4. Femenia, F. & Carpentier, A. & Gohin, A. & Sodjadhin, R., 2018. "Using farm accountancy data to estimate crop rotation effects," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277161, International Association of Agricultural Economists.
    5. Stigler, Matthieu M., 2018. "Supply response at the field-level: disentangling area and yield effects," 2018 Annual Meeting, August 5-7, Washington, D.C. 274343, Agricultural and Applied Economics Association.
    6. Gouel, Christophe & Laborde, David, 2021. "The crucial role of domestic and international market-mediated adaptation to climate change," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    7. Deininger,Klaus W. & Ali,Daniel Ayalew & Kussul,Nataliia & Lavreniuk,Mykola & Nivievskyi,Oleg, 2020. "Using Machine Learning to Assess Yield Impacts of Crop Rotation : Combining Satellite and Statistical Data for Ukraine," Policy Research Working Paper Series 9306, The World Bank.
    8. Alain Carpentier & Elodie Letort, 2010. "Simple econometric models for short term production choices in cropping systems," Working Papers SMART 10-11, INRAE UMR SMART.
    9. Nicholas J. Pates & Nathan P. Hendricks, 2021. "Fields from Afar: Evidence of Heterogeneity in United States Corn Rotational Response from Remote Sensing Data," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1759-1782, October.
    10. Jahantab, Mahboubeh & Abbasi, Babak & Le Bodic, Pierre, 2023. "Farmland allocation in the conversion from conventional to organic farming," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1103-1119.
    11. Bareille, Francois & Letort, Elodie & Dupraz, Pierre, 2017. "How Do Farmers Manage Their Biodiversity Through Time? A Dynamic Acreage Allocation Model With Productive Feedback," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260894, European Association of Agricultural Economists.
    12. Carpentier, Alain & Letort, Elodie, 2009. "Modeling acreage decisions within the multinomial Logit framework," Working Papers 211011, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    13. Hongli Feng & Bruce A. Babcock, 2010. "Impacts of Ethanol on Planted Acreage in Market Equilibrium," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 789-802.
    14. Hyunseok Kim & GianCarlo Moschini, 2018. "The Dynamics of Supply: U.S. Corn and Soybeans in the Biofuel Era," Land Economics, University of Wisconsin Press, vol. 94(4), pages 593-613.
    15. Baker, Mindy L. & Hayes, Dermot J. & Babcock, Bruce A., 2008. "Crop-Based Biofuel Production under Acreage Constraints and Uncertainty," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6352, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Mindy L. Mallory & Dermot J. Hayes & Bruce A. Babcock, 2011. "Crop-Based Biofuel Production with Acreage Competition and Uncertainty," Land Economics, University of Wisconsin Press, vol. 87(4), pages 610-627.
    17. Sanna Lötjönen & Markku Ollikainen, 2017. "Does crop rotation with legumes provide an efficient means to reduce nutrient loads and GHG emissions?," Review of Agricultural, Food and Environmental Studies, Springer, vol. 98(4), pages 283-312, December.
    18. Bareille, Francois & Boussard, Hugues & Thenail, Claudine, 2020. "Productive ecosystem services and collective management: Lessons from a realistic landscape model," Ecological Economics, Elsevier, vol. 169(C).
    19. Francois Bareille & Matteo Zavalloni & Meri Raggi & Davide Viaggi, 2021. "Cooperative Management of Ecosystem Services: Coalition Formation, Landscape Structure and Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(2), pages 323-356, June.
    20. Gouel, Christophe & LaBorde, David, 2017. "The Crucial Role of International Trade in Adaptation to Climate Change," 2017: Globalization Adrift, December 3-5, 2017, Washington, D.C. 266841, International Agricultural Trade Research Consortium.

    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:hal:journl:hal-04793152. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.