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The Economic Importance Of Crop Rotation Systems: Evidence From The Literature

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  • Gebremedhin, Berhanu
  • Schwab, Gerald
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    Abstract

    Agricultural sustainability requires that the individual farm firm be competitive and profitable while simultaneously enhancing environmental quality and the natural resource base upon which the farm firm and agricultural economy depends. The reliance of conventional agriculture systems on purchased inputs external to the firm presents possible challenges to the long-term sustainability of the system. Crop rotation systems are one cropping system alternative that can reduce agriculture's dependence on external inputs through internal nutrient recycling, maintenance of the long-term productivity of the land, and breaking weed and disease cycles. Decision criteria to choose among competing crop rotation systems can include impact on soil quality and fertility, environmental quality, and farm profitability. However, most of the comparative economic analysis work reviewed for this paper considered only farm profitability as a criterion to rank alternative crop rotation systems. Most rotation research is focused around a target crop that is the foundation for the crop rotation system. When corn is the target crop, comparative profitability performance of continuous corn vs. corn grown in rotation showed that neither system is consistently more profitable than another. Corn yield in Michigan does respond favorably to crop diversity. Wheat as the target crop in rotation tends to outperform continuous wheat both in terms of profitability and income risk. Sugar beet prices hold the key in determining the profitability ranking of alternative sugar beet-based crop rotations. Potato in rotations tends to outperform continuous potato both in terms of yield and profitability. Future studies addressing the economic performance of crop rotations need to consider the environmental benefits/costs both on and off the farm site that accrue to society. Keywords: Agricultural sustainability, external inputs, soil quality and fertility, environmental quality, crop rotations, comparative economic analysis, farm profitability.

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    Bibliographic Info

    Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Staff Papers with number 11690.

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    Date of creation: 1998
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    Handle: RePEc:ags:midasp:11690

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    Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039
    Phone: (517) 355-4563
    Fax: (517) 432-1800
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    Web page: http://www.aec.msu.edu/agecon/
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    Keywords: Agricultural sustainability; external inputs; soil quality and fertility; environmental quality; crop rotations; comparative economic analysis; farm profitability.; Crop Production/Industries;

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    1. Phipps, Tim T., 1991. "Commercial Agriculture And The Environment: An Evolutionary Perspective," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 20(2), October.
    2. Johnson, Roger G. & Ali, Mir B., 1982. "Economics Of Wheat-Fallow Cropping Systems In Western North Dakota," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(01), July.
    3. Fox, Glenn & Weersink, Alfons & Sarwar, Ghulam & Duff, Scott & Deen, Bill, 1991. "Comparative Economics Of Alternative Agricultural Production Systems: A Review," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 20(1), April.
    4. Maynard, Leigh J. & Harper, Jayson K. & Hoffman, Lynn D., 1997. "Impact Of Risk Preferences On Crop Rotation Choice," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), April.
    5. Thomas W. Hertel & Kyle Stiegert & Harry Vroomen, 1996. "Nitrogen-Land Substitution in Corn Production: A Reconciliation of Aggregate and Firm-Level Evidence," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 30-40.
    6. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, Elsevier.
    7. Musser, Wesley N. & Alexander, Vickie J. & Tew, Bernard V. & Smittle, Doyle A., 1985. "A Mathematical Programming Model For Vegetable Rotations," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(01), July.
    8. Ikerd, John E., 1991. "A Decision Support System For Sustainable Farming," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 20(1), April.
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    Cited by:
    1. Jolejole, Christina B. & Swinton, Scott M. & Robertson, G. Philip & Syswerda, Sara P., 2009. "Profitability and Environmental Stewardship for Row Crop Production: Are There Trade-offs?," 2009 Conference, August 16-22, 2009, Beijing, China 50920, International Association of Agricultural Economists.
    2. Boxall, Peter C. & Weber, Marian & Perger, Orsolya & Cutlac, Marius & Samarawickrema, Antony, 2008. "Results from the Farm Behaviour Component of the Integrated Economic-Hydrologic Model for the Watershed Evaluation of Beneficial Management Practices Program," Project Report Series 116268, University of Alberta, Department of Resource Economics and Environmental Sociology.

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