ISHS Acta Horticulturae 203: IX Symposium on Horticultural Economics, XXII IHC
AN ECONOMIC STUDY OF POTATO FARM DIVERSIFICATION INTO FRUIT CROPS |
| Authors: | M.E. Warner, G.B. White |
| Abstract:
Multiperiod linear programming was used to analyze the economic feasibility of diversification into peaches and table grapes on Long Island (NY) potato farms. Over a 15 year time horizon, net returns were maximized subject to constraints on capital, labor, marketing channels, minimum family consumption requirements, and pesticide and nitrate impacts on groundwater quality. Results showed that diversification into peaches and table grapes would be possible using the resources of a typical 60.7 ha potato farm and would result in increased net returns. Despite high investment costs for fruit, debt retirement and cash flow did not seriously constrain the model. Availability of hired labor and retail marketing channels were the key constraints limiting fruit acreage. Fruit and cauliflower production permitted farmers to rotate potatoes without loss of farm income. The resulting decrease in loading rates for pesticides and nitrates suggests that crop diversification and rotation may reduce groundwater contamination on Long Island. | |
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