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Optimal replanting and cutting rule for coffee farmers in Vietnam

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  • Thang, Tran Cong
  • Burton, Michael P.
  • Brennan, Donna C.

Abstract

This paper identifies the optimal cutting and replanting rule for coffee farmers in Vietnam. Some previous studies examined the optimal price at which to cut trees for coffee farmers in Vietnam but they have not investigated the relationship between the age of tree and the cutting point. Fixed-form optimization is applied to analyze a rule that links market coffee prices and age of tree with the cutting decision.

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File URL: http://purl.umn.edu/47638
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Bibliographic Info

Paper provided by Australian Agricultural and Resource Economics Society in its series 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia with number 47638.

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Date of creation: 2009
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Handle: RePEc:ags:aare09:47638

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Related research

Keywords: Coffee in Vietnam; Fixed-form optimization; Optimal cutting and replanting; Price fluctuation; Crop replacement; Farm Management;

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  1. M. J. Paulo & A. Otten, 2007. "A Bayesian approach for exact optimal measurement and cutting times for a Eucalyptus production forest," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 61(3), pages 345-357.
  2. Margaret Insley & Kimberly Rollins, 2005. "On Solving the Multirotational Timber Harvesting Problem with Stochastic Prices: A Linear Complementarity Formulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 735-755.
  3. Victor Matheson, 2009. "Alternative methods of calculating optimal timber rotations: a critique of the Stokey/Lucas/Prescott tree-cutting problem," Applied Economics Letters, Taylor & Francis Journals, vol. 16(10), pages 1079-1081.
  4. Ghadim, Amir K. Abadi & Pannell, David J., 1999. "A conceptual framework of adoption of an agricultural innovation," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 21(2), October.
  5. Chladna, Zuzana, 2007. "Determination of optimal rotation period under stochastic wood and carbon prices," Forest Policy and Economics, Elsevier, vol. 9(8), pages 1031-1045, May.
  6. Alvarez, Luis H R & Koskela, Erkki, 2003. "On Forest Rotation under Interest Rate Variability," International Tax and Public Finance, Springer, vol. 10(4), pages 489-503, August.
  7. Abadi Ghadim, Amir K. & Pannell, David J., 1999. "A conceptual framework of adoption of an agricultural innovation," Agricultural Economics, Blackwell, vol. 21(2), pages 145-154, October.
  8. Luong, Quoc & Tauer, Loren W., 2004. "A Real Options Analysis of Coffee Planting in Vietnam," Working Papers 127152, Cornell University, Department of Applied Economics and Management.
  9. Jia, Haili, 2006. "The optimal single forest rotation under climatic fluctuation effect," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35443, Southern Agricultural Economics Association.
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