2 research outputs found
Ex-ante economic and ecosystem service potential of simulated conservation practices in Ghana using a minimum data approach
Master of ScienceDepartment of Agricultural EconomicsTimothy J. DaltonGiven the changing climate paradigm, food and poverty are likely to become more severe in Africa. Farmers can adapt to climate change, especially through conservation agriculture. This study relies on a minimum data approach developed by Antle and Valvidia (2006) to estimate the spatial distribution of opportunity cost for farmers in switching to conservation practices in Wa, Ghana. It assesses the economic feasibility of several scenarios that rely on production techniques currently studied by the CRSP SANREM project. We also explore the possibility that these practices can provide income from carbon sequestration payments implemented by the Kyoto protocol’s Clean Development Mechanisms. The methodology uses data from both a recent survey and information from secondary sources to assess simulated management practices. Results indicate that all the simulated management practices would theoretically benefit farmers. In fact, adoption rates for the four scenarios range from 52% to 65%, even without any carbon payment. Adding a proportional payment to the amount of carbon sequestered with these practices does not seem enough to influence farmers switch to switch to alternative scenarios. The analysis shows that these results hold even when additional fixed costs to adopt these practices are included. This case study demonstrates the usefulness of the minimum data approach in estimating the economic potential of conservation practices in Ghana. These production techniques may represent environmentally-friendly alternatives that are more profitable for farmers than current practices. The next step in assessing implementation of such practices would require studying farmers’ willingness to adopt these production systems, given their ex-ante economic returns
Asset Bubbles, Inflation, and Agricultural Land Values
This article discusses asset bubbles,
the Kansas and Illinois land
markets, estimates land values, and
develops a land price/earnings
ratio. Current land sales data are
also examined. Finally, we examine
relationships between land values
and interest rates, inflation rates,
and cash rents. Results show that
real land values increase
substantially when inflation
increases. Recent land values are
explored for both Kansas and
Illinois with somewhat differing
results. Development of land price
bubbles could be enhanced if
inflation becomes more widespread
and land values are viewed as
having good protection from
inflation. Market fundamentals
would suggest that an increase in
land prices due to inflation occurs
because of an increase in cash
rental rates and not through a
dramatic change in the price
earnings ratio