Economic Value of Diversified Cropping Systems
Term: 4 years, beginning in 2018
Status: Completed (Performance Story)
Funding Amount: $41,364
Lead Researcher(s): Dr. Danny LeRoy (University of Lethbridge)
Funding Partners: Alberta Wheat Commission, Manitoba Pulse and Soybean Growers, Other, Quebec Grain Producers, Prairie Oat Growers Association, Western Grain Research Foundation
Project Description
Short crop rotations provide an environment conducive for an increase in plant disease, weed pressure from herbicide resistance, and insect damage (these productivity decreasing factors will be referred to as “pests” in this document). While some short rotations are currently profitable, the lack of diversification in a cropping system can be detrimental to maintaining crop yield and profitability. Factors that contribute to the profitability of cropping systems will identify why the seeded area of some crops is declining while increasing for others. The industry also requires economic information on the trade-offs between current profits of short rotation systems with a limited number of crops, that also have a high potential for reduced future productivity and higher costs from plant diseases and herbicide tolerant weeds, against diversified cropping systems that maintain productivity and profitability. Systems that lessen the likelihood of productivity and profitability decline due to increased pest levels should have higher long-term profits. This study has three objectives. First, to determine the net return and variability of net return associated with cropping systems of different rotation length, crops, and diversity. Second, determine the marginal user costs of the negative productivity factors associated with reduced diversity in cropping systems. Third, to determine the degree to which participation in business risk management (BRM) programs affects cropping system economics. The study will utilize budgeting methods and dynamic economic models to determine the long-term economic trade-offs across a range of crops and diverse cropping systems. The models will contain agronomic relationships of rotation impacts on pests over time and of pests on crop yield.