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Flashcards in Crop Production Economics Deck (10):
1

Manage Risk

Crop Selection

  • crop selection for individual fields on a farm determines overall crop mix for a farm
  • obj is to spread risk across crops to a level that is acceptable to the producer
    • crop rotation an important factor in reducing risk

2

Manage Risk

Hybrid Selection

  • many crops perform best under a set of conditions (soil, pest history, weather, level of management
  • each variety has optimum planting date
    • planting earlier / later adds risk
    • Harvest date changes with planting date, more risk

3

Manage Risk

Crop Rotation

 

  • spreads risk over more than one crop and year
    • can improve yields often by reducing pest levels

4

Manage Risk

Pest and Nutrient Management

  • alters risk by removing or reducing yield and crop losses due to
    • pest infestations
    • poor fertility

5

Record Keeping

Manage Risk

  • allows anticipation of factors that lead to yield losses
  • and improves timing of cost-effective management inputs,
  • both of which reduce risk

6

Marketing

Manage Risk

  • marketing is critical for obtaining best prices while reducing risk
  • does not change production risk

7

Commodity crops

  • food, feed and fiber crops on large acreages
    • rice, corn, soybeans, grain, wheat, potatoes, cotton

8

Specialty Crops

  • fruits, vegetables, tree nuts, dried fruits, nursery crops

 

  • horticulture - intensively cultivated, used by people
    • food / medicine, aesthetics 

9

Basis

  • difference between current local cash price of crop and a price at a future date
    • if basis is low or negative
      • local demand for crop is low
    • if basis is high, 
      • local demand high
  • one way to estimate a cash price for a given month is to add long term average basis for that month to the future price for that month

10

Transgenic crops and marketing

  • assure consumer that food / feed made from transgenic crops is safe
  • safe
  • quality
  • pricing