Dynamic economic modelling of crop rotation with adaptation practices
Liu, Xing; Lehtonen, Heikki; Purola, Tuomo; Pavlova, Yulia; Rötter, Reimund; Palosuo, Taru (2014)
European Association of Agricultural Economists (EAAE)
We developed a dynamic farm level economic model of crop rotations including nitrogen fertilization, fungicide treatment and liming as adaption practices. Simulations were run at different price and disease scenarios over 30 years. Farmer maximizes present discounted value of futures stream of profits by choosing optimal sequence of four different crops and two types of set aside. Results indicate that crop rotation system favors, or even requires, more crops to tackle against increasing disease pressure. Crop prices play also a key role in providing incentive for farmers to utilize adaptation management.
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