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SUPPLY‐MAXIMISING AND VARIATION‐MINIMISING REPLACEMENT CYCLES OF PERENNIAL CROPS AND SIMILAR ASSETS: THEORY ILLUSTRATED BY COCONUT CULTIVATION
Author(s) -
Tisdell C. A.,
Silva N. T. M. H. De
Publication year - 1986
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.1477-9552.1986.tb01593.x
Subject(s) - yield (engineering) , perennial plant , production (economics) , agricultural engineering , point (geometry) , economics , sustainable yield , mathematics , agronomy , microeconomics , engineering , biology , ecology , materials science , geometry , metallurgy
The paper argues that maximum sustainable yields rather than net present values often need to be considered for policy and identifies the length of the replacement cycle required for maximum sustainable yield or supply in multi‐point or interval output time‐phased production conditions, such as apply to perennial crops and to similar productive processes. It enables point‐input point‐output models which have been well explored (for instance, for forestry) to be treated as special cases. A virtue of the analysis is its use of a simple technical relationship to determine the replacement rate of a perennial crop to maximise sustainable yield. The analysis is illustrated by an empirical example drawn for the cultivation of the Sri Lankan ‘tall’ variety of coconut.