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An economic analysis of potential rotation crops for Maine potato cropping systems

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Abstract

Potato cropping systems in Maine include both continuous potatoes and short-term potato rotations with small grains. Producers recognize the benefits of increased rotations, but the economics of producing a high-valued crop such as potatoes (Solanm tuberosum L.) create incentives for continuous potato production. Research at the USDA-ARS research site in Newport, ME, is evaluating the agronomic and economic impacts of five crops in two-year rotations on potato production and whole-farm profitability. The rotation crops are barley (Hordeum vulgare L.), sweet corn (Zea mays L.) green bean (Phaseolus vulgares L.), soybean (Glycine max L., Mer.), and canola (Brassica napus L.). Enterprise budgets for the five crops were developed. The budgets and historical prices and yields were used as inputs to a Monte Carlo simulation. The simulation was conducted to determine the impact of rotation crops on whole-farm profitability and income risk, as measured by income variability. The net incomes of the five rotation sequences were compared against continuous potatoes. Two rotation crops, sweet corn and green beans, resulted in an increase in net income relative to continuous potatoes. AU of the rotation crops were found to greatly reduce income risk and chance of economic losses. In the case of green beans and sweet corn, the analysis was rerun using data from the research trials on the following potato crop yields. Depending on whether the rotation effect was negative or positive, net income either fell or rose when compared to fist analysis. However, even when the rotation crop led to decreased yields in the following potato crop, income variability and likelihood of economic loss was still superior to the continuous potato rotation. These findings provide support for including rotation crops as a method to improve potato production and sustainability, increase wholefarm profitability, and reduce income risk.

Resumen

Los sistemas de cultivo de papa en Maine incluyen tanto rotaciones continuas como rotaciones de períodos cortos de papa con cultivos de grano pequeño. Los productores saben de los beneficios que aportan las rotaciones, pero desde el punto de vista económico, la producción de cultivos de alto valor tal como papa (Solanum tuberosum L.) crean mayores incentivos en la producción continua de papa. La investigación del ME en el USDA-ARS en Newport, está evaluando los impactos agronómico y económico de cinco cultivos en rotaciones de dos anos sobre la producción y las utilidades. Los cultivos de rotación son cebada (Hordeum vulgare L.), maíz dulce (Zea mays L.), frijol verde (Phaseolus vulgaris L.), soya (Glycine max L., Mer.) y canola (Brassica napus L.). Se han desarrollado presupuestos empresariales para los cinco cultivos. Los presupuestos, los precios históricos y los rendimientos han sido usados como “inputs” en un sistema de simulación llamado Monte Carlo. La simulación se realizó para determinar el impacto de los cultivos de rotación en las utilidades y el riesgo en los ingresos, medidos en función a la variabilidad de los ingresos. Los ingresos netos de las cinco secuencias de rotación se compararon con el cultivo continuo de papa. Dos cultivos de rotación el maíz y los frijoles dieron como resultado un aumento en el beneficio neto en comparación con el cultivo continuo de papa. Se encontró que todos los cultivos de rotación reducen enormemente el riesgo en el rendimiento y la posibilidad de pérdidas económicas. En el caso del frjjol el análisis fue repetido usando datos de las pruebas experimentales de rendimiento en el cultivo siguiente de papa. Dependiendo de que el efecto de rotación fuera negativo o positivo, los ingresos netos suben o bajan en comparación al primer análisis. Si embargo, aún cuando el cultivo en rotación da como resultado rendimientos más bajos en el siguiente cultivo de papa, la variación en las ganancias y probabilidades de pérdida económica fueron superiores a la rotación continua de papa. Estos hallazgos respaldan el hecho de incluir la rotación de cultivos como un método para mejorar la producción y sostenibilidad de cultivo de papa y el incremento en las utilidades de toda la finca, reduciendo así el riesgo en los ingresos.

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Abbreviations

ARS:

Agricultural Research Service

ERS:

Economic Research Service

NASS:

National Agricultural Statistical Service

NEASS:

New England Agricultural Statistical Service

NYASS:

New York State Agricultural Statistical Service

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Correspondence to J. M. Halloran.

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Mention of trade names or commercial products in this article is solely for the purpose of providing specific information and does not imply recommendation or endorsement by the U.S. Department of Agriculture.

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Halloran, J.M., Griffin, T.S. & Honeycutt, C.W. An economic analysis of potential rotation crops for Maine potato cropping systems. Am. J. Pot Res 82, 155–162 (2005). https://doi.org/10.1007/BF02853653

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  • DOI: https://doi.org/10.1007/BF02853653

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