Finantial returns, stability and risk of cacao-plantain-timber agroforestry systems in Costa Rica
Diversification of agroecosystems has long been recognized as a sound strategy to cope with price and crop yield variability, thus increasing farm income stability and lowering financial risk. In this study, the financial returns, stability and risk of six cacao (Theobroma cacao L.) - laurel (Cordia alliodora (R&P) Oken) - plantain (Musa AAB) agroforestry systems, and the corresponding monocultures, were compared. Production and cost data were obtained from an on-going eight-year old experiment. The agroforestry systems included a traditional system and a replacement series between cacao (278, 370, 556, 741 and 833 plants ha-1) and plantain (833, 741, 556, 370 and 278 plants ha-1) with a constant laurel population (timber tree; 69 trees ha-1). An ex-post analysis was conducted using experimental and secondary data to build a simulation model over a 12 year period under different price assumptions. The probability distribution functions for the three commodity prices were modeled and simulated through time, accounting for their possible autocorrelation and non-normality. The expected net incomes from the agroforestry systems were considerably higher than from monocultures. The agroforestry systems were also less risky. Agroforestry systems with proportionally more cacao than plantain were less risky, but also less stable. The timber component (c. alliodora) was a key factor in reducing farmer's financial risks. Methodologically, the study illustrates a technique to evaluate both expected returns and the corresponding financial risks to obtain a complete, comparable profile of alternative systems. It shows the need to allow for the possibility of non-normality in the statistical distributions of the variables entering a financial risk and return analysis.
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2001
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Subjects: | THEOBROMA CACAO, CORDIA ALLIODORA, MUSA (PLATANOS), AGROFORESTERIA, MONOCULTIVO, RIESGO, ANALISIS ECONOMICO, PRECIOS, MODELOS DE SIMULACION, AMERICA CENTRAL, |
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KOHA-OAI-BVE:722502021-10-14T12:26:36ZFinantial returns, stability and risk of cacao-plantain-timber agroforestry systems in Costa Rica 109102 Ramírez, O.A. Somarriba, Eduardo 120490 88035 Ludewigs, T. 67308 Ferreira, P. 2001engDiversification of agroecosystems has long been recognized as a sound strategy to cope with price and crop yield variability, thus increasing farm income stability and lowering financial risk. In this study, the financial returns, stability and risk of six cacao (Theobroma cacao L.) - laurel (Cordia alliodora (R&P) Oken) - plantain (Musa AAB) agroforestry systems, and the corresponding monocultures, were compared. Production and cost data were obtained from an on-going eight-year old experiment. The agroforestry systems included a traditional system and a replacement series between cacao (278, 370, 556, 741 and 833 plants ha-1) and plantain (833, 741, 556, 370 and 278 plants ha-1) with a constant laurel population (timber tree; 69 trees ha-1). An ex-post analysis was conducted using experimental and secondary data to build a simulation model over a 12 year period under different price assumptions. The probability distribution functions for the three commodity prices were modeled and simulated through time, accounting for their possible autocorrelation and non-normality. The expected net incomes from the agroforestry systems were considerably higher than from monocultures. The agroforestry systems were also less risky. Agroforestry systems with proportionally more cacao than plantain were less risky, but also less stable. The timber component (c. alliodora) was a key factor in reducing farmer's financial risks. Methodologically, the study illustrates a technique to evaluate both expected returns and the corresponding financial risks to obtain a complete, comparable profile of alternative systems. It shows the need to allow for the possibility of non-normality in the statistical distributions of the variables entering a financial risk and return analysis.Diversification of agroecosystems has long been recognized as a sound strategy to cope with price and crop yield variability, thus increasing farm income stability and lowering financial risk. In this study, the financial returns, stability and risk of six cacao (Theobroma cacao L.) - laurel (Cordia alliodora (R&P) Oken) - plantain (Musa AAB) agroforestry systems, and the corresponding monocultures, were compared. Production and cost data were obtained from an on-going eight-year old experiment. The agroforestry systems included a traditional system and a replacement series between cacao (278, 370, 556, 741 and 833 plants ha-1) and plantain (833, 741, 556, 370 and 278 plants ha-1) with a constant laurel population (timber tree; 69 trees ha-1). An ex-post analysis was conducted using experimental and secondary data to build a simulation model over a 12 year period under different price assumptions. The probability distribution functions for the three commodity prices were modeled and simulated through time, accounting for their possible autocorrelation and non-normality. The expected net incomes from the agroforestry systems were considerably higher than from monocultures. The agroforestry systems were also less risky. Agroforestry systems with proportionally more cacao than plantain were less risky, but also less stable. The timber component (c. alliodora) was a key factor in reducing farmer's financial risks. Methodologically, the study illustrates a technique to evaluate both expected returns and the corresponding financial risks to obtain a complete, comparable profile of alternative systems. It shows the need to allow for the possibility of non-normality in the statistical distributions of the variables entering a financial risk and return analysis.THEOBROMA CACAOCORDIA ALLIODORAMUSA (PLATANOS)AGROFORESTERIAMONOCULTIVORIESGOANALISIS ECONOMICOPRECIOSMODELOS DE SIMULACIONAMERICA CENTRALAgroforestry Systems (Países Bajos) |
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THEOBROMA CACAO CORDIA ALLIODORA MUSA (PLATANOS) AGROFORESTERIA MONOCULTIVO RIESGO ANALISIS ECONOMICO PRECIOS MODELOS DE SIMULACION AMERICA CENTRAL THEOBROMA CACAO CORDIA ALLIODORA MUSA (PLATANOS) AGROFORESTERIA MONOCULTIVO RIESGO ANALISIS ECONOMICO PRECIOS MODELOS DE SIMULACION AMERICA CENTRAL |
spellingShingle |
THEOBROMA CACAO CORDIA ALLIODORA MUSA (PLATANOS) AGROFORESTERIA MONOCULTIVO RIESGO ANALISIS ECONOMICO PRECIOS MODELOS DE SIMULACION AMERICA CENTRAL THEOBROMA CACAO CORDIA ALLIODORA MUSA (PLATANOS) AGROFORESTERIA MONOCULTIVO RIESGO ANALISIS ECONOMICO PRECIOS MODELOS DE SIMULACION AMERICA CENTRAL 109102 Ramírez, O.A. Somarriba, Eduardo 120490 88035 Ludewigs, T. 67308 Ferreira, P. Finantial returns, stability and risk of cacao-plantain-timber agroforestry systems in Costa Rica |
description |
Diversification of agroecosystems has long been recognized as a sound strategy to cope with price and crop yield variability, thus increasing farm income stability and lowering financial risk. In this study, the financial returns, stability and risk of six cacao (Theobroma cacao L.) - laurel (Cordia alliodora (R&P) Oken) - plantain (Musa AAB) agroforestry systems, and the corresponding monocultures, were compared. Production and cost data were obtained from an on-going eight-year old experiment. The agroforestry systems included a traditional system and a replacement series between cacao (278, 370, 556, 741 and 833 plants ha-1) and plantain (833, 741, 556, 370 and 278 plants ha-1) with a constant laurel population (timber tree; 69 trees ha-1). An ex-post analysis was conducted using experimental and secondary data to build a simulation model over a 12 year period under different price assumptions. The probability distribution functions for the three commodity prices were modeled and simulated through time, accounting for their possible autocorrelation and non-normality. The expected net incomes from the agroforestry systems were considerably higher than from monocultures. The agroforestry systems were also less risky. Agroforestry systems with proportionally more cacao than plantain were less risky, but also less stable. The timber component (c. alliodora) was a key factor in reducing farmer's financial risks. Methodologically, the study illustrates a technique to evaluate both expected returns and the corresponding financial risks to obtain a complete, comparable profile of alternative systems. It shows the need to allow for the possibility of non-normality in the statistical distributions of the variables entering a financial risk and return analysis. |
format |
|
topic_facet |
THEOBROMA CACAO CORDIA ALLIODORA MUSA (PLATANOS) AGROFORESTERIA MONOCULTIVO RIESGO ANALISIS ECONOMICO PRECIOS MODELOS DE SIMULACION AMERICA CENTRAL |
author |
109102 Ramírez, O.A. Somarriba, Eduardo 120490 88035 Ludewigs, T. 67308 Ferreira, P. |
author_facet |
109102 Ramírez, O.A. Somarriba, Eduardo 120490 88035 Ludewigs, T. 67308 Ferreira, P. |
author_sort |
109102 Ramírez, O.A. |
title |
Finantial returns, stability and risk of cacao-plantain-timber agroforestry systems in Costa Rica |
title_short |
Finantial returns, stability and risk of cacao-plantain-timber agroforestry systems in Costa Rica |
title_full |
Finantial returns, stability and risk of cacao-plantain-timber agroforestry systems in Costa Rica |
title_fullStr |
Finantial returns, stability and risk of cacao-plantain-timber agroforestry systems in Costa Rica |
title_full_unstemmed |
Finantial returns, stability and risk of cacao-plantain-timber agroforestry systems in Costa Rica |
title_sort |
finantial returns, stability and risk of cacao-plantain-timber agroforestry systems in costa rica |
publishDate |
2001 |
work_keys_str_mv |
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_version_ |
1756057626712473601 |