a decision support tool for optimizing integration of specialty crop enterprises in grain production...
DESCRIPTION
Presentation from the WCCA 2011 conference in Brisbane, Australia.TRANSCRIPT
A DECISION SUPPORT TOOL FOR OPTIMIZING INTEGRATION OF SPECIALTY CROP ENTERPRISES IN GRAIN PRODUCTION SYSTEMS
Lori HoaglandAssistant ProfessorSpecialty Crop Production SystemsDepartment of Horticulture & Landscape ArchitecturePurdue University, USA
Agriculture in the Midwestern U.S.
Early farms were small and highly diverse
1950’s – mechanization, inexpensive agrochemical inputs & crop subsidies
Today – 85% of cropland planted to corn and soybeans
Specialization vs. diversification
Specialization - greater productivity & market efficiency
- maintaining profitability becoming more difficult
- negative environmental and social consequences
Crop diversification - benefits: more balanced nutrient and pest management
cycles; greater farm income; reduced income variability
and risk
- large-scale shifts out of corn-soybeans unlikely
- integrating specialty crops as supplementary enterprises
Specialty crop opportunities in the MW
Demand for local specialty crop production is growing rapidly
Revitalize rural communities
- Create jobs
- Improve farm
income
Promote sound nutrition & health Contribute to environmental sustainability
Distribution of farmers markets in 2010
Integrating specialty crop enterprises
Specialty crop production requires more intensive management and greater planning
Adoption requires evidence of perceived benefit to the current system
Computer based land-use models
Objectives of this study
Determine feasibility of integrating various supplemental specialty crop enterprises
Identify supplemental crop alternatives that: - have agronomic and market feasibility
- contribute to the sustainability of the operation
- fit in during times of low labor requirements
- not require additional specialized machinery or
knowledge by the producer
Develop a decision support tool to help growers make decision regarding optimal acreage allocation
Methodology
Develop a base model of a typical corn-soybean operation in eastern Nebraska to identify periods for integration
- Average farm size, equipment compliment and debt
- Climatic conditions influencing time available for field tasks
- Labor availability of one full-time farm operator
- Activities associated with corn-soybean production
Corn-soybean base model
0
10
20
30
40
50
60
70
80
90
1 6 11 16 21 26 31 36 41 46 51
Weeks
Lab
or
(Ho
urs
/Week)
Field Tasks Off Tasks Field Time Available Off Time Available
Viable enterprise alternatives
1) Residue grazing by livestock 2) Winter Wheat/Fall Cabbage
3) Spring Cabbage/ Fall Sunflower
4) Agroforestry
Enterprise budgets & LP model Detailed enterprise budgets for each
alternative - activities and labor requirements
- costs, returns, subsidy payments, etc.
Dynamic linear programming model - land (256 ha) and machinery held constant
- labor: one full-time operator
- available capital unlimited
- 3.75 ha windbreak system held constant
- market constraints on woody floral crops
Results
Net return
System Land allocation (ha) Without subsidies
With subsidies
Corn-soybeans alone CS - 256 ($4,765.44) $21,480.96 Grazing considered CS - 256 ($925.44) $25,320.96 Winter wheat/fall cabbage considered CS - 247.90; WW/FC - 8.10 $34,502.72 $60,754.79 Spring cabbage/sunflower considered CS - 254.54; SC/S - 1.46 $3,489.66 $29,686.05 Windbreaks and woody florals considered with market constraints
CS - 254.96; WB - 3.75; SC - 0.10 ; GW - 0.13; BR - 0.02 $4,174.37 $30,011.95
All options considered CS - 243.54; WW/FC -7.88; SC/S - 0.54 WB - 3.75; SC - 0.10; GW - 0.13; BR - 0.02 $40,637.44 $66,456.97
CS-corn-soybeans; WW/FC-winter wheat/fall cabbage; SC/S-spring cabbage-sunflower; WB-windbreak; Woody florals: SC-scarlet curls; GW-goal willow; BR-bailey redtwig dogwood
Subsidies and labor constraints keep majority of land in grain crops
Sensitivity analyses
Net return
System Land allocation (ha) Without subsidies
With subsidies
Corn-soybeans alone CS – 256 ($4,765.44) $21,480.96
All options considered CS – 243.54; WW/FC – 7.88; SC/S – 0.54; WB – 3.75; SC – 0.10; GW – 0.13; BR – 0.02 $40,637.44 $66,456.97
All options considered with additional market opportunities
CS – 243.54; WW/FC – 7.88; SC/S – 0.54; WB – 3.75; SC – 0.29 $49,152.07 $74,971.60
All options consideredwith market constraints and an additional full-time skilled operator
CS – 243.54; WW/FC – 7.88; SC/S – 0.54; WB – 3.75; SC – 0.10; GW – 0.13; BR – 0.02 $40,637.44 $66,456.97
All options considered with market constraints and part-time seasonal labor
CS – 233.23; WW/FC – 8.32; SC/S – 10.2; WB – 3.75; SC – 0.10; GW – 0.13; BR – 0.02 $86,758.25 $111,443.93
Additional market opportunities and labor
CS-corn-soybeans; WW/FC-winter wheat/fall cabbage; SC/S-spring cabbage-sunflower; WB-windbreak; Woody florals: SC-scarlet curls; GW-goal willow; BR-bailey redtwig dogwood
Summary and considerations
Diversification with supplemental specialty crop enterprises
- is feasible and profitable
- challenges: greater planning, lack
of infrastructure, farm policy
Computer based land-use models can help growers evaluate alternatives and optimize acreage allocation
Decorative woody florals
Acknowledgements
Graduate committee at the University of Nebraska-Lincoln
- Dr. Laurie Hodges, Associate Professor, Horticulture
- Dr. James Brandle, Professor, Agroforestry
- Dr. Glenn Helmers, Professor Emeritus, Agricultural
Economics
- Dr. Charles Francis, Professor, Agronomy Funding: - University of Nebraska-Lincoln and Purdue
University
Agriculture Research Programs
Questions?