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FOR OPTIMIZINGINTEGRATION OFSPECIALTY CROPENTERPRISES IN GRAINPRODUCTION SYSTEMS           Lori Hoagland           Assista...
Agriculture in the Midwestern    U.S.   Early farms were small    and highly diverse   1950’s – mechanization,    inexpe...
Specialization vs. diversification   Specialization    - greater productivity & market efficiency    - maintaining profit...
Specialty crop opportunities in theMW   Demand for local specialty crop production is    growing rapidly   Revitalize ru...
Integrating specialty cropenterprises   Specialty crop production requires more    intensive management and greater plann...
Objectives of this study   Determine feasibility of integrating various    supplemental specialty crop enterprises   Ide...
Methodology   Develop a base model of a typical corn-    soybean operation in eastern Nebraska to    identify periods for...
Corn-soybean base model                     90                     80                     70Labor (Hours/Week)            ...
Viable enterprise alternatives1) Residue grazing by livestock   2) Winter Wheat/                                  Fall Cab...
Enterprise budgets & LP model   Detailed enterprise budgets for each alternative      - activities and labor requirements...
Results      Subsidies and labor constraints keep majority of land in grain       crops                                  ...
Sensitivity analyses        Additional market opportunities and labor                                                    ...
Summary and considerations                              Diversification with supplemental                               s...
Acknowledgements   Graduate committee at the University of    Nebraska-Lincoln     - Dr. Laurie Hodges, Associate Profess...
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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.

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

  1. 1. FOR OPTIMIZINGINTEGRATION OFSPECIALTY CROPENTERPRISES IN GRAINPRODUCTION SYSTEMS Lori Hoagland Assistant Professor Specialty Crop Production Systems Department of Horticulture & Landscape Architecture Purdue University, USA
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. Viable enterprise alternatives1) Residue grazing by livestock 2) Winter Wheat/ Fall Cabbage4) Agroforestry 3) Spring Cabbage/ Fall Sunflower
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. Questions?

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