Browsing by Author "Huber, Josie-Lynn J"

This study investigates the economic implications of integrating catch crops into agricultural production systems in Finnish clay soils, focusing on their impact on farmer profitability and societal welfare over a 20-year horizon. Data from Salo et al. (2023) on soil organic carbon yield increase from catch crops is used to determine how catch crops influence private profits and social welfare. Accounting for externalities, yield effects, and additional costs associated with catch crop cultivation, the study assesses the economic profitability of catch crop adoption by examining whether the additional revenue covers the costs. The research also examines the social benefits from emission and nutrient loading reductions. Utilizing simulations conducted in Mathematica and grounded in theoretical frameworks using data from literature and statistics, the study aims to identify the mechanisms influencing private profits for individual farmers and the broader implications for social welfare. Economic instruments, including subsidies and taxes, are investigated to identify optimal policies that make catch crop farming economically viable for farmers and beneficial for society. The findings suggest that both farmers and society benefit from the adoption of catch crops within a 20-year period as the benefits are greater than the costs. Based on these results, policymakers could consider implementing targeted financial incentives to promote catch crop adoption among farmers with shorter time frames. This research contributes to understanding the economic and environmental aspects of sustainable agricultural practices, offering insights for policymakers and experts seeking to enhance agricultural sustainability and welfare outcomes.