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| Rahim, Afaf H.; van Ierland, Ekko C.; Wesseler, Justus. |
| The gum tree (Acacia senegal) in the Sahel-Sudan zone has many environmental benign functions. An important function is to control desertification. In this paper we analyze farmers' economic incentives to preserve the existing gum trees and their incentives to create new plantations using a real options approach. Results indicate that agricultural crops provide higher economic benefits as compared to gum agroforestry system. However, on the one hand, as gum arabic is produced during the dry period and land is abundant, there are low incentives for deforestation. Instead, farmers' tend to leave the land idle and let the tree growing. On the other hand, our results suggest that an increase in the prices of gum arabic of about 330 per cent is needed to induce... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Gum arabic; Deforestation; Entry and exit; Real options; Sudan; Crop Production/Industries; D4; N5; O13; Q12; Q23. |
| Ano: 2006 |
URL: http://purl.umn.edu/25720 |
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| Seyoum, Emayenesh; Chan, Chris. |
| This paper reports a use of a real-options valuation methodology to analyse wine grape farm investment under price and yield uncertainty. Revenue levels to incentivise entry and exit were calculated for three different sizes of wine grape farms in North West Victoria. The modelling identified lower exit and higher entry triggers than indicated by conventional net present value calculation. The wide gap of estimated indeterminacy in farm investment highlights the intertwined influence of numerous economic factors — cost structure, economies of scale, market volatility, transaction costs, and sunk and salvaged asset valuation. Drawing on these determinants of farm investment and disinvestment, the paper discusses the role of investment incentives in... |
| Tipo: Presentation |
Palavras-chave: Real options; Entry and exit; Wine grape; North West Victoria; Crop Production/Industries. |
| Ano: 2012 |
URL: http://purl.umn.edu/124446 |
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| Goncharova, Natalia V.; Oskam, Arie J.. |
| The entry and exit decisions, considered as investment decisions, are investigated in the paper. Taking into account the heterogeneity of entry and exit, the analysis is based on two types of entry-exit: real (related to the establishment or closing of a firm), or entry-exit in a new sector (indicating the diversification or changing specialisation). The theoretical model is based on Marshallian trigger points with Real Option trigger points as an alternative. The estimation exploited the negative binomial model to investigate the role of trigger points (thresholds) on the observed number of entry or exit firms in Dutch glasshouse horticulture over 25 years. Firms should overcome different thresholds depending on types of entry and exit. Marshallian... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Entry and exit; Trigger points; Glasshouse horticulture; Crop Production/Industries; Industrial Organization. |
| Ano: 2008 |
URL: http://purl.umn.edu/44451 |
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| Cabas, Juan H.; Leiva, Akssell J.; Weersink, Alfons. |
| This paper examines the factors influencing farmer participation in crop insurance schemes, but unlike previous studies that focus on total demand, participation is disaggregated into entrants and those exiting. Modeling entry and exit decisions separately illustrates that the effect of a given variable is often muted by aggregation. In addition, the approach in this paper distinguishes between price and yield variables rather than total returns and is consequently able to demonstrate that price variables are particularly important for farmers considering enrolling in crop insurance, while yield variables and other risk management opportunities are more important for farmers who have been in the program but are deciding to exit. The result suggests that... |
| Tipo: Journal Article |
Palavras-chave: Crop insurance; Entry and exit; Panel data; Risk and Uncertainty. |
| Ano: 2008 |
URL: http://purl.umn.edu/44741 |
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