Author
Listed:
- Ishag, Kheiry Hassan M.
- Rawahy, Muthir Saleh Said Al
Abstract
The agriculture investment decision affected by risk of capital and operation cost, yield and sale price of planted crops. This study examined risk of investment in green-house cucumber and tomato production and optimum mix of crop pattern at Al Batinah, Al Sharqiya Regions of Oman. The net present value with Monte Carlo simulation models are used to test risk efficiency and project viability. The result indicated that investment in two green-houses and growing one tomato crop and two cucumber crops (Tom1Cuc2) per year is more profitable and risk aversion. Stochastic Efficiency with Respect to a Function (SERF) performed and confirmed that (Tom1Cuc2) is the most risk efficient cropping system and got a positive NPV with 62% probability followed by growing tomato crop in two seasons with a positive NPV with probability of 58%. The study concluded tomato and cucumber producers are faced with different production and financial situations and their risk preferences play an important role in determining their production decisions. Risk premium analysis shows that greenhouse tomato growers need to be paid up to RO 2 847 to keep growing tomato instead of (Tom1Cuc2) cropping system. Greenhouse cucumber growers can sacrifices of RO 5 373 to justify not to switch from planting cucumber to grow (Tom1Cuc2) cropping system. Government subsidy should be given to farmers to construct new greenhouses to maximize their resource use efficiency, benefit from extended cropping season, protect their crops from adverse environmental conditions and increase food security.
Suggested Citation
Ishag, Kheiry Hassan M. & Rawahy, Muthir Saleh Said Al, 2018.
"Risk and Economic Analysis of Greenhouse Cucumber and Tomato Cropping Systems in Oman,"
Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 7(4).
Handle:
RePEc:ags:ccsesa:301845
DOI: 10.22004/ag.econ.301845
Download full text from publisher
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ccsesa:301845. See general information about how to correct material in RePEc.
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.
We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.ccsenet.org/sar .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.