Output supply and input demand upland crops of system equations model derived from profit function framework

Pibul Jieamanugulgit . Policy and Agricultural Development Plan Div.

Output supply and input demand upland crops of system equations model derived from profit function framework

1989

Pibul Jieamanugulgit (Office of Agricultural Economics, Bangkok (Thailand). Policy and Agricultural Development Plan Div.)

Analysis for output supply and input demand for upland crops of system equations model derived from profit function framework. It is against this basis that the analysis is made on the data for field crops planted in the agro-economic zone 5 which includes Nakorn Ratchasima and Chaiyaphum of the Northeast Major crops widely planted within the zone are feed corn, cassava, and kenaf. The input items are listed chemical fertilizers, labor and farm machinery. The findings of the modelling effort unveil the statistical significance of the model at 95 per cent confidence level. It also implies that the producers behavioural pattern for production of the upland crops in the agro-economic zone 5 is consistent with the underlying assumptions for the model in identifying and deciding on particular crops under the limited availability of the farm inputs. The analytical results also pinpoint the influence upon the output supply and the input demand of the commodity prices and the input prices as well. It is also found that the producers have shown a tendency to prefer acreage expansion to otherwise. The structural analysis for the farm production strongly indicates the nature of competition between cassava and kenaf. On the utilization of farm inputs, owing to the commonly limited farm capital the investment in the chemical fertilizers competes with the capital investment in farm tractor competing with each other although the cassava production shows food fertilizer response whereas the use of tractor for tillage raises the corn yield. So, the study results feed back to policy makers of certain farm policy implications as elaborately hereinafter in the paper

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