Production costs of Soft Wheat in Italy
This paper investigates production costs of soft wheat by applying the FACEPA cost of production model to the Italian data (RICA) for 2005-2009. Estimates are obtained by carrying out a SUR, allowing for correlated errors between the set of equations and for imposing constraints to coefficients The main aim of this study is to provide a robust analysis of the cost, per hectare and per quintal, of soft wheat in order to analytically support a negotiation bargain on the contractual price for soft wheat within the industrial bread marketing chain. Since RICA, unlike EU FADN, reports some costs related to specific production processes (i.e. related to specific farm outputs), this study reports results of an alternative estimation strategy: the GECOM is carried out by taking into account only those costs that are not ascribed for the specific farm output, but are related to the whole production process. Estimates, per hectare and per quintal, related to such input costs are combined with those costs that are directly observed by farmers, so that we obtain a “hybrid” estimation. This method is carried out in order to confirm results obtained with the “complete” estimation. Outcomes of both methods are reported for Italy and for macro-regions. Costs related to machinery and buildings upkeep represent the most important costs, although a remarkable decline is observed from 2005 onwards. Expenditure in land rent and taxes on land and buildings shows a similar trend, but with smaller values. As a whole, there was a shift expenditure patterns: in 2005-2007 fixed costs prevailed, while in 2008-2009 variable costs became predominant. Anyway, estimates reveal that there are important differences, at geographical level, in production costs.
|Date of creation:||Jun 2013|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.aieaa.org/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yves Léony & Ludo Peeters & Maurice Quinqu & Yves Surry, 1999. "The Use of Maximum Entropy to Estimate Input-Output Coefficients From Regional Farm Accounting Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 425-439.
- Nathanaël Pingault & Dominique Desbois, 2004. "Estimation des coûts de production des principaux produits agricoles à partir du RICA," Post-Print hal-01072921, HAL.
- P. Midmore, 1993. "Input-Output Forecasting Of Regional Agricultural Policy Impacts," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(2), pages 284-300.
- Bahta, Sirak Teclemariam & Berner, Anja & Offermann, Frank, 2011. "Estimation of Commodity Specific Production Costs Using German Farm Accountancy Data," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114233, European Association of Agricultural Economists.
- Mack, Gabriele & Mann, Stefan, 2008. "Defining elasticities for PMP models by estimating marginal cost functions based on FADN Data - the case of Swiss dairy production," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6694, European Association of Agricultural Economists.
- Griffiths, William E. & O'Donnell, Christopher J. & Cruz, Agustina Tan, 1999.
"Imposing Regularity Conditions On A System Of Cost And Factor Share Equations,"
12925, University of New England, School of Economics.
- Griffiths, William E. & O'Donnell, Christopher J. & Cruz, Agustina Tan, 2000. "Imposing regularity conditions on a system of cost and factor share equations," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(1), March.
- Peeters, Ludo & Surry, Yves R., 2003. "Farm Cost Allocation Based on the Maximum Entropy Methodology - The Case of Saskatchewan Crop Farms," Economic and Market Information 54461, Agriculture and Agri-Food Canada.
- repec:inr:wpaper:155486 is not listed on IDEAS
- Griffiths, W.E., 2001. "Bayesian Inference in the Seemingly Unrelated Regressions Models," Department of Economics - Working Papers Series 793, The University of Melbourne.
When requesting a correction, please mention this item's handle: RePEc:ags:aiea13:149898. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.