| Full text | |
| Author(s): |
Santos, David Ferreira Lopes
;
Gomes, Samara Marques
Total Authors: 2
|
| Document type: | Journal article |
| Source: | FRONTIERS IN SUSTAINABLE FOOD SYSTEMS; v. 6, p. 13-pg., 2022-11-21. |
| Abstract | |
The aim of this study is to assess the economic viability of a medium-sized sugarcane farm applying a diversification strategy, including the possibility of managerial flexibility in changing its portfolio over time. There is a theoretical gap in the economic evaluation of diversified production systems in farm space. We assessed one diversified structure for the sugarcane agricultural farm that included land areas dedicated to the rotational cultivation of soybean/corn, corn/peanut, and corn/green manure. We considered the managerial flexibility when replacing sugarcane culture. Primary and secondary data were used based on the agricultural context of Sao Paulo State, Brazil, where the modal profile of medium-sized producers in the region was defined with the support of technicians from the leading agricultural cooperative and sugarcane suppliers association. The results indicate that the diversification strategy for the investigated context generates: lower financial risk for the farm, higher potential return on investment, and higher economic value added. (AU) | |
| FAPESP's process: | 18/12175-3 - Agricultural investments analysis in farms: use of real options in the sugarcane crop |
| Grantee: | Samara Marques Gomes |
| Support Opportunities: | Scholarships in Brazil - Scientific Initiation |