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An Economic Comparison of High Tunnel and Open-Field Strawberry Production in Southeastern Virginia and A Joint Estimation of Acreage Planted to U.S. Major Crops

This thesis covers two separate studies. The first study, chapter 2, was conducted to evaluate whether there are additional economic returns from producing strawberries in the high tunnel compared to the open-field in Southeast Virginia. We develop and compare budgets for eight strawberry cultivars grown in the two environments and sold under three marketing strategies (pre-pick wholesale, pre-pick retail, and U-pick). Almost all cultivars in the high tunnel generated negative net revenues regardless of the marketing strategy. In contrast, net revenues from open-field cultivars were always positive.

In the second study, chapter 3, we used a fractional multinomial logit model to estimate the effect of crop revenues, input costs, and fuel ethanol production on the joint acreages planted to eight U.S major crops (barley, corn, cotton, peanuts, rice, sorghum, soybeans, and wheat). We found a positive and statistically significant marginal effect of the expected peanuts' revenue on its acreage share. The expected corn revenue had a negative average marginal effect on soybean acreage share, and the effect of expected wheat revenue was positive on cotton acreage share and negative on rice acreage share. / Master of Science / This thesis covers two separate research studies. The first study, chapter 2}, was conducted to evaluate whether growing strawberries in a simple, low-cost, and passive heat structure known as a "high tunnel" would yield more profit (the difference between total revenues and total costs) compared to growing them outside in an open-field in Southeast Virginia. We estimate and compare differences between total revenues and costs for eight strawberry cultivars grown in the two environments and sold under three marketing strategies. The first two marketing strategies involve growers harvesting strawberries themselves. They can then either retail them (farm stands, farmers' markets, or in a similar setting: pre-pick retail) or sell them in bulk to be retailed by others (pre-pick wholesale). A third marketing strategy involves consumers visiting a farm and picking their own strawberries (U-pick). Almost all cultivars grown in the high tunnel structure resulted in a loss (negative difference between total revenues and costs) regardless of the marketing strategy. In contrast, cultivars produced in the open-field always generated a profit (positive total revenues and costs difference).

In the second study, chapter 3, we estimated the effect of crop revenues, input costs, and fuel ethanol production on acreages planted to eight U.S major crops (barley, corn, cotton, peanuts, rice, sorghum, soybeans, and wheat), and we considered the fact that acreages allocated to one crop affect other crops' acreages. We found that increasing the expected revenue of peanuts leads to an increase in its acreage share. Increasing the expected revenue of corn leads to a decrease in soybeans' acreage share. Finally, increasing the expected revenue of wheat leads to an increase in the cotton acreage share and a decrease in the rice acreage share.

Identiferoai:union.ndltd.org:VTETD/oai:vtechworks.lib.vt.edu:10919/110457
Date07 June 2022
CreatorsMbarushimana, Jean Claude
ContributorsAgricultural and Applied Economics, Bosch, Darrell J., Isengildina Massa, Olga, Samtani, Jayesh Bharat, Stewart, Shamar L.
PublisherVirginia Tech
Source SetsVirginia Tech Theses and Dissertation
LanguageEnglish
Detected LanguageEnglish
TypeThesis
FormatETD, application/pdf
CoverageVirginia, United States
RightsIn Copyright, http://rightsstatements.org/vocab/InC/1.0/

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