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Comparison of Conventional and IPM Cropping Systems: A Risk Efficiency Analysis

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  • Lavik, Ming Su
  • Lien, Gudbrand
  • Korsaeth, Audun
  • Hardaker, J. Brian

Abstract

To support decision-makers considering adopting integrated pest management (IPM) cropping in Norway, we used stochastic efficiency analysis to compare the risk efficiency of IPM cropping and conventional cropping, using data from a long-term field experiment in southeastern Norway, along with data on recent prices, costs, and subsidies. Initial results were not definitive, so we applied stochastic efficiency with respect to a function, limiting the assumed risk aversion of farmers to a plausible range. We found that, for farmers who are risk-indifferent to moderately (hardly) risk averse, the conventional system was, compared to IPM, less (equally) preferred.

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  • Lavik, Ming Su & Lien, Gudbrand & Korsaeth, Audun & Hardaker, J. Brian, 2020. "Comparison of Conventional and IPM Cropping Systems: A Risk Efficiency Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 52(3), pages 385-397, August.
    • Handle: RePEc:cup:jagaec:v:52:y:2020:i:3:p:385-397_4
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    Cited by:

    1. Hanna Górska-Warsewicz & Sylwia Żakowska-Biemans & Dagmara Stangierska & Monika Świątkowska & Agnieszka Bobola & Julita Szlachciuk & Maksymilian Czeczotko & Karol Krajewski & Ewa Świstak, 2021. "Factors Limiting the Development of the Organic Food Sector—Perspective of Processors, Distributors, and Retailers," Agriculture, MDPI, vol. 11(9), pages 1-22, September.
    2. Angelos Liontakis & Alexandra Sintori & Irene Tzouramani, 2021. "The Role of the Start-Up Aid for Young Farmers in the Adoption of Innovative Agricultural Activities: The Case of Aloe Vera," Agriculture, MDPI, vol. 11(4), pages 1-24, April.

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