Diversification of crops: Assessment of managerial flexibility and economic impact on sugarcane medium-sized farms
The aim of this study is to assess the economic viability of a medium-sized sugarcane farm applying a diversification strategy, including the possibility of managerial flexibility in changing its portfolio over time. There is a theoretical gap in the economic evaluation of diversified production sys...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-11-01
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| Series: | Frontiers in Sustainable Food Systems |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fsufs.2022.987214/full |
| _version_ | 1811219521945468928 |
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| author | David Ferreira Lopes Santos Samara Marques Gomes |
| author_facet | David Ferreira Lopes Santos Samara Marques Gomes |
| author_sort | David Ferreira Lopes Santos |
| collection | DOAJ |
| description | The aim of this study is to assess the economic viability of a medium-sized sugarcane farm applying a diversification strategy, including the possibility of managerial flexibility in changing its portfolio over time. There is a theoretical gap in the economic evaluation of diversified production systems in farm space. We assessed one diversified structure for the sugarcane agricultural farm that included land areas dedicated to the rotational cultivation of soybean/corn, corn/peanut, and corn/green manure. We considered the managerial flexibility when replacing sugarcane culture. Primary and secondary data were used based on the agricultural context of São Paulo State, Brazil, where the modal profile of medium-sized producers in the region was defined with the support of technicians from the leading agricultural cooperative and sugarcane suppliers association. The results indicate that the diversification strategy for the investigated context generates: lower financial risk for the farm, higher potential return on investment, and higher economic value added. |
| first_indexed | 2024-04-12T07:26:55Z |
| format | Article |
| id | doaj.art-70a5e832881d4999930084f315801806 |
| institution | Directory Open Access Journal |
| issn | 2571-581X |
| language | English |
| last_indexed | 2024-04-12T07:26:55Z |
| publishDate | 2022-11-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Sustainable Food Systems |
| spelling | doaj.art-70a5e832881d4999930084f3158018062022-12-22T03:42:09ZengFrontiers Media S.A.Frontiers in Sustainable Food Systems2571-581X2022-11-01610.3389/fsufs.2022.987214987214Diversification of crops: Assessment of managerial flexibility and economic impact on sugarcane medium-sized farmsDavid Ferreira Lopes SantosSamara Marques GomesThe aim of this study is to assess the economic viability of a medium-sized sugarcane farm applying a diversification strategy, including the possibility of managerial flexibility in changing its portfolio over time. There is a theoretical gap in the economic evaluation of diversified production systems in farm space. We assessed one diversified structure for the sugarcane agricultural farm that included land areas dedicated to the rotational cultivation of soybean/corn, corn/peanut, and corn/green manure. We considered the managerial flexibility when replacing sugarcane culture. Primary and secondary data were used based on the agricultural context of São Paulo State, Brazil, where the modal profile of medium-sized producers in the region was defined with the support of technicians from the leading agricultural cooperative and sugarcane suppliers association. The results indicate that the diversification strategy for the investigated context generates: lower financial risk for the farm, higher potential return on investment, and higher economic value added.https://www.frontiersin.org/articles/10.3389/fsufs.2022.987214/fullagribusinessinvestment analysisportfolioReal Options Theoryrotational cultivation |
| spellingShingle | David Ferreira Lopes Santos Samara Marques Gomes Diversification of crops: Assessment of managerial flexibility and economic impact on sugarcane medium-sized farms Frontiers in Sustainable Food Systems agribusiness investment analysis portfolio Real Options Theory rotational cultivation |
| title | Diversification of crops: Assessment of managerial flexibility and economic impact on sugarcane medium-sized farms |
| title_full | Diversification of crops: Assessment of managerial flexibility and economic impact on sugarcane medium-sized farms |
| title_fullStr | Diversification of crops: Assessment of managerial flexibility and economic impact on sugarcane medium-sized farms |
| title_full_unstemmed | Diversification of crops: Assessment of managerial flexibility and economic impact on sugarcane medium-sized farms |
| title_short | Diversification of crops: Assessment of managerial flexibility and economic impact on sugarcane medium-sized farms |
| title_sort | diversification of crops assessment of managerial flexibility and economic impact on sugarcane medium sized farms |
| topic | agribusiness investment analysis portfolio Real Options Theory rotational cultivation |
| url | https://www.frontiersin.org/articles/10.3389/fsufs.2022.987214/full |
| work_keys_str_mv | AT davidferreiralopessantos diversificationofcropsassessmentofmanagerialflexibilityandeconomicimpactonsugarcanemediumsizedfarms AT samaramarquesgomes diversificationofcropsassessmentofmanagerialflexibilityandeconomicimpactonsugarcanemediumsizedfarms |