Length : around 20 minutes
Answer the questions. Several answers possible.
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Question 1 of 6
1. Question
What is intensification in agricultural economics ?
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Intensification is an increase in all production factors other than land, per land unit. Up to a certain point intensification translates into an increase in yields (production per hectare). Beyond that point, if an excessive quantity of inputs is used, a decrease in yields is observed. The increase in yields is a consequence of intensification.
Incorrect
Intensification is an increase in all production factors other than land, per land unit. Up to a certain point intensification translates into an increase in yields (production per hectare). Beyond that point, if an excessive quantity of inputs is used, a decrease in yields is observed. The increase in yields is a consequence of intensification.
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Question 2 of 6
2. Question
The term technological progress can be used :
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The term technological progress can be used if the same quantity of outputs can be produced while reducing the quantity of inputs used or if more outputs can be produced using the same quantity of inputs. If we are dealing with technological progress, the model (like the farmers) will choose to produce using this “new technology” regardless of prices.
If it is simply a different production technology, then the choice of the model will depend on the economic context and the relation between the prices of inputs and the prices of agricultural products. If the prices of inputs are low and the prices of products high, it is preferable to opt for intensive technology, when confronted with the opposite it is preferable to opt for extensive technology. -
Question 3 of 6
3. Question
Can public policies help encourage the adoption of these technologies ?
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The answer is “yes”, public policies can help encourage the adoption of technologies. They can modify the context and therefore the choice of farmers. For example : a tax on pesticides, the price of irrigation water, agro-environmental funding, support for agricultural prices, etc…
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Question 4 of 6
4. Question
« A cereal farmer grows wheat. He can choose between three different technologies. Each technology uses a quantity of inputs and has an associated yield.
Wheat Inputs (units/ha) Yield (tons/ha) Technology 1 25 4.5 Technology 2 25 5.5 Technology 3 35 6 The land area of the farm is 50 ha. The objective of the farmer is to maximize his income.»
Without writing the model in GAMS, which technology should the farmer opt for in your opinion, when you observe the data ?
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It is always better to opt for technology 2 for it makes it possible to produce more wheat using the same quantity of inputs. Technological progress takes place when technology 1 makes way for technology 2.
Technology 3 is different, and makes it possible to obtain higher yields than technology 2 but using more inputs. The choice of the model will depend on the relation between the prices of inputs and the prices of wheat. -
Question 5 of 6
5. Question
« A cereal farmer grows wheat. He can choose between three different technologies. Each technology uses a quantity of inputs and has an associated yield.
Wheat Inputs (units/ha) Yield (tons/ha) Technology 1 25 4.5 Technology 2 25 5.5 Technology 3 35 6 The land area of the farm is 50 ha. The objective of the farmer is to maximize his income. »
We are trying to determine the technology which the farmer will choose, knowing that :
The price of inputs is 10€/unit.
The selling price of wheat is 150€/ton.What technology will be used ?
Correct
Incorrect
Technology 2 always wins over technology 1. In order to choose between tecnhology 2 and technology 3 it is necessary to calculate the yield per hectare :
For technology 2 : 5.5*150-25*10 = 575€/ha
For technology 3 : 6*150-35*10 = 550€/ha
The farmer is only constrained by a number of hectares and aims to maximize his income, he will therefore opt for the technology which has the highest yield per hectare, i.e. technology 2. -
Question 6 of 6
6. Question
« A cereal farmer grows wheat. He can choose between three different technologies. Each technology uses a quantity of inputs and has an associated yield.
Wheat Inputs (units/ha) Yield (tons/ha) Technology 1 25 4.5 Technology 2 25 5.5 Technology 3 35 6 The land area of the farm is 50 ha. The objective of the farmer is to maximize his income. »
We are trying to determine the technology which the farmer will choose, knowing that :
The price of inputs is 10€/unit.
The selling price of wheat changes from 150€/ton to 210€/ton.Does this change have an impact on the choice of the farmer ? If it does, what impact is that ?
Correct
Incorrect
Technology 2 always wins over technology 1. In order to choose between technology 2 and technology 3, it is necessary to calculate the yield per hectare :
For technology 2 : 5.5*210-25*10 = 905€/ha
For technology 3 : 6*210-35*10 = 910€/haThe farmer is only constrained by a number of hectares and aims to maximize his income, he will therefore opt for the technology which has the highest yield per hectare, i.e. technology 3.
