Make fallow great again : a study of the substitution between wheat production and fallow and temporary grassland
Biofuels are versatile and have a big field of use. However, biofuels produced from starch crops like cereals have been claimed to threaten food security and cause higher CO2 emissions due to other cereal producer’s expansion of their enterprises. This study aims to research the economic conditions...
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| Formato: | H2 |
| Lenguaje: | Inglés sueco |
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SLU/Dept. of Economics
2017
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| Sumario: | Biofuels are versatile and have a big field of use. However, biofuels produced from starch crops like cereals have been claimed to threaten food security and cause higher CO2 emissions due to other cereal producer’s expansion of their enterprises. This study aims to research the economic conditions on which it is possible to produce wheat on fallow or temporary grasslands. By using this land, agricultural markets are not threatened by any food deficits and there will be no cause for additional production. Data over yield and land allocation to crops in Skåne, Sweden and the output price of crops is used to research this with a two-step model. First a Rotterdam model approach is used to capture how prices affect the land allocation to crops. Estimates for this are then used in an aggregated revenue function with temporary grasslands and fallow land as fixed factors. Out of this some simulations were made by shifting the price of wheat and changing the amount of available agricultural land by decreasing the fixed factors. The simulations made, generated an increase in the land allocation to wheat by 6.2% on the condition that the unit returns from wheat increased by 20%. In short terms it can be said that there are possibilities of producing cereals on temporary grasslands. Changing of policies to benefit biofuel production could make biofuels more available and increase the farm income. |
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