A decision support tool for optimizing integration of specialty crop enterprises in grain production systems. Lori Hoagland
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A decision support tool for optimizing integration of specialty crop enterprises in grain production systems. Lori Hoagland

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Presentation from the WCCA 2011 conference in Brisbane, Australia.

Presentation from the WCCA 2011 conference in Brisbane, Australia.

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A decision support tool for optimizing integration of specialty crop enterprises in grain production systems. Lori Hoagland A decision support tool for optimizing integration of specialty crop enterprises in grain production systems. Lori Hoagland Presentation Transcript

  • FOR OPTIMIZINGINTEGRATION OFSPECIALTY CROPENTERPRISES IN GRAINPRODUCTION SYSTEMS Lori Hoagland Assistant Professor Specialty Crop Production Systems Department of Horticulture & Landscape Architecture Purdue University, USA
  • Agriculture in the Midwestern U.S. Early farms were small and highly diverse 1950’s – mechanization, inexpensive agrochemical inputs & crop subsidies Today – 85% of cropland planted to corn and soybeans
  • Specialization vs. diversification Specialization - greater productivity & market efficiency - maintaining profitability becoming more difficult - negative environmental and social consequences Crop diversification - benefits: more balanced nutrient and pestmanagement cycles; greater farm income; reduced incomevariability and risk - large-scale shifts out of corn-soybeans unlikely - integrating specialty crops as supplementary
  • Specialty crop opportunities in theMW Demand for local specialty crop production is growing rapidly Revitalize rural communities - Create jobs - Improve farm income Distribution of farmers markets in 2010 Promote sound nutrition & health Contribute to environmental sustainability
  • Integrating specialty cropenterprises Specialty crop production requires more intensive management and greater planning Adoption requires evidence of perceived benefit to the current system Computer based land-use models
  • Objectives of this study Determine feasibility of integrating various supplemental specialty crop enterprises Identify supplemental crop alternatives that: - have agronomic and market feasibility - contribute to the sustainability of the operation - fit in during times of low labor requirements - not require additional specialized machinery or knowledge by the producer Develop a decision support tool to help growers make decision regarding optimal acreage allocation
  • Methodology Develop a base model of a typical corn- soybean operation in eastern Nebraska to identify periods for integration - Average farm size, equipment compliment anddebt - Climatic conditions influencing time availablefor field tasks - Labor availability of one full-time farm operator
  • Corn-soybean base model 90 80 70Labor (Hours/Week) 60 50 40 30 20 10 0 1 6 11 16 21 26 31 36 41 46 51 Weeks Field Tasks Off Tasks Field Time Available Off Time Available
  • Viable enterprise alternatives1) Residue grazing by livestock 2) Winter Wheat/ Fall Cabbage4) Agroforestry 3) Spring Cabbage/ Fall Sunflower
  • Enterprise budgets & LP model Detailed enterprise budgets for each alternative - activities and labor requirements - costs, returns, subsidy payments, etc. Dynamic linear programming model - land (256 ha) and machinery held constant - labor: one full-time operator - available capital unlimited - 3.75 ha windbreak system held constant - market constraints on woody floral crops
  • Results  Subsidies and labor constraints keep majority of land in grain crops Net return Without WithSystem Land allocation (ha) subsidies subsidiesCorn-soybeans alone CS - 256 ($4,765.44) $21,480.96Grazing considered CS - 256 ($925.44) $25,320.96Winter wheat/fall cabbageconsidered CS - 247.90; WW/FC - 8.10 $34,502.72 $60,754.79Spring cabbage/sunflower considered CS - 254.54; SC/S - 1.46 $3,489.66 $29,686.05Windbreaks and woody floralsconsidered CS - 254.96; WB - 3.75;with market constraints SC - 0.10 ; GW - 0.13; BR - 0.02 $4,174.37 $30,011.95All options considered CS - 243.54; WW/FC -7.88; SC/S - 0.54 WB - 3.75; SC - 0.10; GW - 0.13; BR - 0.02 $40,637.44 $66,456.97 CS-corn-soybeans; WW/FC-winter wheat/fall cabbage; SC/S-spring cabbage-sunflower; WB-windbreak; Woody florals: SC-scarlet curls; GW-goal willow; BR-bailey redtwig dogwood
  • Sensitivity analyses  Additional market opportunities and labor Net return Without WithSystem Land allocation (ha) subsidies subsidiesCorn-soybeans alone CS – 256 ($4,765.44) $21,480.96 CS – 243.54; WW/FC – 7.88; SC/S – 0.54;All options considered WB – 3.75; SC – 0.10; GW – 0.13; BR – 0.02 $40,637.44 $66,456.97All options considered CS – 243.54; WW/FC – 7.88; SC/S – 0.54;with additional market opportunities WB – 3.75; SC – 0.29 $49,152.07 $74,971.60All options consideredwith market constraints and an CS – 243.54; WW/FC – 7.88; SC/S – 0.54;additional full-time skilled operator WB – 3.75; SC – 0.10; GW – 0.13; BR – 0.02 $40,637.44 $66,456.97All options consideredwith market constraints and part-time CS – 233.23; WW/FC – 8.32; SC/S – 10.2;seasonal labor WB – 3.75; SC – 0.10; GW – 0.13; BR – 0.02 $86,758.25 $111,443.93 CS-corn-soybeans; WW/FC-winter wheat/fall cabbage; SC/S-spring cabbage-sunflower; WB- windbreak; Woody florals: SC-scarlet curls; GW-goal willow; BR-bailey redtwig dogwood
  • Summary and considerations  Diversification with supplemental specialty crop enterprises - is feasible and profitable - challenges: greater planning, lack of infrastructure, farm policy  Computer based land-use modelsDecorative woody florals can help growers evaluate alternatives and optimize acreage allocation
  • Acknowledgements Graduate committee at the University of Nebraska-Lincoln - Dr. Laurie Hodges, Associate Professor, Horticulture - Dr. James Brandle, Professor, Agroforestry - Dr. Glenn Helmers, Professor Emeritus, Agricultural Economics - Dr. Charles Francis, Professor, Agronomy Funding: - University of Nebraska-Lincoln and Purdue University Agriculture Research Programs
  • Questions?