Comparison of Conventional and IPM Cropping Systems: A Risk Efficiency Analysis. (31st August 2020)

• Record Type: Journal Article
• Authors: Lavik, Ming Su; Lien, Gudbrand; Korsaeth, Audun; Hardaker, J. Brian
• Is Part Of: Journal of agricultural and applied economics. Volume 52:Number 3(2020)
• Page Start: 385
• Page End: 397
• Publication Date: 2020-08-31
• Subjects: Integrated pest management (IPM), -- risk aversion, -- risk efficiency analysis, -- stochastic simulation; C15, -- D22, -- Q12; Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/aae.2020.8
• Languages: English
• ISSNs: 1074-0708

Abstract

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.