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Crop selection under price and yield fluctuation : Analysis of agro-economic time series from South Korea

Lee, Heera; Bogner, Christina; Lee, Saem; Koellner, Thomas

Abstract:
Temporal fluctuations of crop price and yield can have a strong inuence on farmers' revenue. Under uncertainty, farmers' crop selection on { what to cultivate and how much of their land to allocate to different crops{ is of crucial importance to secure their revenue as well as related ecosystem services. Multi-crop farming can be seen as a strategy to mitigate uncertainties that farmers face. In this study, we used Singular Spectrum Analysis (SSA) to quantify the fluuctuations of crop price and yield for single and multiple crop selections in South Korea. Furthermore, risk adjusted revenue of each crop selection was analysed using the Sharpe ratio. We constructed three empirical crop portfolios containing one, three and five crops. For the single crop farming, six main crops in South Korea were analysed, and household data were used to build empirical crop portfolios. Our results showed that revenue from rice farming was the most stable, whereas it fluctuated strongly for pepper. However, growing rice provided the lowest revenue and farmers who cultivate multiple crops might as much as double their revenue compared to rice farming. Diversified crop farming can be a means of enhancing revenue. ... mehr

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Postprint §
DOI: 10.5445/IR/1000080669
Veröffentlicht am 05.03.2018
Originalveröffentlichung
DOI: 10.1016/j.agsy.2016.06.003
Scopus
Zitationen: 6
Web of Science
Zitationen: 5
Coverbild
Zugehörige Institution(en) am KIT Institut für Meteorologie und Klimaforschung - Atmosphärische Umweltforschung (IMK-IFU)
Publikationstyp Zeitschriftenaufsatz
Jahr 2016
Sprache Englisch
Identifikator ISSN: 0308-521X, 1873-2267
urn:nbn:de:swb:90-806698
KITopen-ID: 1000080669
Erschienen in Agricultural systems
Band 148
Seiten 1–11
Schlagworte Crop choice, Crop portfolio, Time series analysis, Fluctuation analysis, Singular Spectrum Analysis (SSA)
Nachgewiesen in Web of Science
Scopus
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