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ESTIMATION OF EFFECTIVE RISK REDUCION THROUGH IRRIGATION OF A PERENIAL CROP *
Author(s) -
Carruthers I. D.,
Donaldson G. F.
Publication year - 1971
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1971.tb01401.x
Subject(s) - irrigation , crop , estimation , productivity , estate , agricultural engineering , environmental science , agricultural economics , economics , mathematics , agronomy , geography , forestry , engineering , management , macroeconomics , finance , biology
This paper outlines an approach to assessing the benefits from in vestment in the irrigation of tea stands in three areas of East Pakistan. Irrigation aflects both the establishment and productive life of the growing crop, and therefore the analysis includes a discounred assessment of the replacement decision, as well as an appraisal of the change in technology. Since the biological and weather eflects that determine annual and long‐run productivity of the stand are stochastic variables, the evaluation is made using a simulation model in which these determinants are introduced as known discrete probabilities. Using this model an estimate may be made of rhe net gains to a tea estate of the risk reduction achieved by eliminating harmful crop moisture deficits.