Production risks in Bulgarian peanut production
AbstractAs farmers in a transition economy search for new crop enterprises with a potential for income enhancement they are faced with increased risks in the process of resource allocation. It has been noted that biased estimation of production function estimates results from the lack of accountability of risks. Since peanut production in Bulgaria has increased at a varying rate since 1989 it is important that we examine the risks associated with input use. The data for this study were collected from farmers from 18 villages in the southern part of Bulgaria. A total of 205 farmers were surveyed for this study. Peanut yield in Bulgaria is positively related to the quantity of seed used, fungicide, manual labor, investment level and mechanized labor used. Peanut yield is negatively influenced by investment levels but positively by the increase of manual labor. The response of yield to quantity of seed used is elastic, and an addition of a kg of peanut seeds may increase yield by 32kg. However, as the quantity of seeds used per ha increases the risk is expected to increase, hence farmers may be cautious in increasing the quantity of seeds used. Investment capital, manual labor and mechanized labor are positively related to yield and there will be a reduction in yield if the optimal levels of those inputs are surpassed. Thus farmers may increase yield and production by augmenting the seeding rate, other factors remaining constant.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Greek Association of Agricultural Economists in its journal Agricultural Economics Review.
Volume (Year): 09 (2008)
Issue (Month): 1 (January)
Agricultural and Food Policy;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Salvatore Di Falco & Jean-Paul Chavas, 2006. "Crop genetic diversity, farm productivity and the management of environmental risk in rainfed agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(3), pages 289-314, September.
- G. H. Wan & J. R. Anderson, 1990. "Estimating Risk Effects In Chinese Foodgrain Production," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 85-93.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.