Speaker
Description
The agricultural sector has experienced significant changes over time. The current issue lies not only in enhancing its economic and productive performance but also in safeguarding the environment. Thus, the interest of this work that investigates ways to balance farmers’ profitability with environmental preservation and food supply goals. Our contribution to the academic literature is threefold. Firstly, we provide a detailed examination of three agricultural strategies — maximizing profitability, enhancing protein production, and minimizing pesticide usage — assessing their impact on farmers' income, operational expenses, and environmental sustainability. Secondly, we conduct an opportunity cost analysis using the profitability maximization scenario as a reference point, highlighting the financial trade-offs inherent in pursuing varied agricultural objectives. Thirdly, we employ an innovative methodology that considers prices as an optimization variable within activity models, offering a more comprehensive and realistic evaluation of agricultural economics. We apply data envelopment analysis to panel data from the Meuse department in France for the period 1991-2017. We show that optimal profitability is achieved by increasing farmers' income while simultaneously reducing operational costs, including pesticide use. In contrast, while the protein maximization strategy leads to an increase in pesticide costs, the pesticide minimization strategy slightly diminishes protein yield. The opportunity cost analysis emphasizes significant trade-offs: pursuing protein maximization incurs additional costs compared to the profitability-centric approach, as reflected in the balance between yield increase and cost changes. Similarly, adopting the pesticide minimization strategy amplifies the opportunity costs even more when contrasted with prioritizing profitability. Our findings suggest that achieving a balance among the three scenarios requires improved crop management and practices, with price adjustments playing a secondary role. The opportunity cost analysis emphasizes the need for a paradigm shift towards farming systems that balance economic returns, environmental stewardship, and food nutritional quality, particularly by integrating protein-rich crops into longer crop rotations. This transition is crucial for the sustainability of agriculture and the well-being of future generations, marking a significant step towards a more resilient and food-secure world.
| Keywords | Crop farms; profitability maximization; protein supply; pesticide reduction; activity analysis |
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