AN ANALYSIS OF THE YIELD-PRICE RISK ASSOCIATED WITH SPECIALTY CROPS

Specialty crops have been cited as means to diversify crop portfolios on the prairies. Lentils, a specialty crop, have high variability in yields and prices but are relatively uncorrelated with the yields and prices of other traditional Saskatchewan crops. In addition, yields and prices of lentils may be negatively correlated. These attributes have important but offsetting effects in crop portfolio selection. The objective of this article is to assess the relative profitability and riskiness of wheat and lentil rotations for a representative Saskatchewan farm and to select appropriate farmers who should consider production of lentils. The cumulative density function of net returns are simulated for both rotations assuming stochastic prices and yields. Stochastic dominance with respect to a function is used to identify the corresponding appropriate profile of agricultural producers for each crop rotation. The results indicate that lentils should be considered by a number of, but not all, Saskatchewan farmers.Crop Production/Industries, Risk and Uncertainty,

ESTIMATION OF SOIL EROSION TIME PATHS: THE VALUE OF SOIL MOISTURE AND TOPSOIL DEPTH INFORMATION

Rates of soil erosion in the dryland cropping region of Saskatchewan are investigated under alternative cropping strategies. Chemical fallow is examined as an alternative to tillage fallow for moisture and soil conservation. Conclusions include: (a) flexible cropping increases net discounted returns and substantially reduced soil erosion compared to the predominant crop rotation; (b) chemical fallow is a viable alternative to tillage fallow but only when topsoil already has been eroded substantially; and (c) an increase in the discount rate is soil conserving, since it causes producers to plant more often rather than fallow.Land Economics/Use,

ESTIMATION OF SOIL EROSION TIME PATHS: THE VALUE OF SOIL MOISTURE AND TOPSOIL DEPTH INFORMATION

Rates of soil erosion in the dryland cropping region of Saskatchewan are investigated under alternative cropping strategies. Chemical fallow is examined as an alternative to tillage fallow for moisture and soil conservation. Conclusions include: (a) flexible cropping increases net discounted returns and substantially reduced soil erosion compared to the predominant crop rotation; (b) chemical fallow is a viable alternative to tillage fallow but only when topsoil already has been eroded substantially; and (c) an increase in the discount rate is soil conserving, since it causes producers to plant more often rather than fallow

AN ANALYSIS OF THE YIELD-PRICE RISK ASSOCIATED WITH SPECIALTY CROPS

Specialty crops have been cited as means to diversify crop portfolios on the prairies. Lentils, a specialty crop, have high variability in yields and prices but are relatively uncorrelated with the yields and prices of other traditional Saskatchewan crops. In addition, yields and prices of lentils may be negatively correlated. These attributes have important but offsetting effects in crop portfolio selection. The objective of this article is to assess the relative profitability and riskiness of wheat and lentil rotations for a representative Saskatchewan farm and to select appropriate farmers who should consider production of lentils. The cumulative density function of net returns are simulated for both rotations assuming stochastic prices and yields. Stochastic dominance with respect to a function is used to identify the corresponding appropriate profile of agricultural producers for each crop rotation. The results indicate that lentils should be considered by a number of, but not all, Saskatchewan farmers