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Economic Analysis of Ginseng Based Forest Farming: a Sustainable Income Diversification Opportunity for Forest Landowners

Author

Listed:
  • Prabodh Illukpitiya
  • Avis Ortiz
  • Fisseha Tegegne

Abstract

While American ginseng is a complicated opportunity for forest farmers to understand, within these production systems there are many opportunities and constraints linked to production of ginseng. There are different market demands and prices paid for the various grades of dried roots depending on the system used to cultivate the plant. This study reviewed the unique benefits of producing ginseng, opportunities for forest farmers, the potential profits, as well as financial risks. The study focused on two common ginseng production systems in the southeastern region of the U.S. The specific objective of the paper is to assess economic returns of producing ginseng under different production systems. The Monte Carlo simulation was performed to analyze the profitability and risks associated with producing ginseng and performed sensitive analysis to determine the effect of uncertainty variables such as production costs, yield, and price of product on economic feasibility.

Suggested Citation

  • Prabodh Illukpitiya & Avis Ortiz & Fisseha Tegegne, 2022. "Economic Analysis of Ginseng Based Forest Farming: a Sustainable Income Diversification Opportunity for Forest Landowners," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 11(1), pages 1-25, January.
    • Handle: RePEc:ibn:sarjnl:v:11:y:2022:i:1:p:25
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    References listed on IDEAS

    as
    1. Arnold, Uwe & Yildiz, Özgür, 2015. "Economic risk analysis of decentralized renewable energy infrastructures – A Monte Carlo Simulation approach," Renewable Energy, Elsevier, vol. 77(C), pages 227-239.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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