Economic feasibility of different cropping systems in Newfoundland and Labrador

Khan, Muhammad Musa (2023) Economic feasibility of different cropping systems in Newfoundland and Labrador. Masters thesis, Memorial University of Newfoundland.

[English] PDF - Accepted Version Available under License - The author retains copyright ownership and moral rights in this thesis. Neither the thesis nor substantial extracts from it may be printed or otherwise reproduced without the author's permission. Download (1MB)

Abstract

The economic viability of cropping systems is largely determined by the costs of production and price premiums. Therefore, economics plays a dominant role in the adoption of cropping systems. This study was conducted over a period of five years (2017-21) under boreal climatic conditions in Newfoundland and Labrador (NL). The research utilized cost of production, gross return and gross margin, crop yield, and cost-benefit ratio to investigate the economic feasibility of nine crops, including potatoes, beets, cabbage, carrots, rutabagas and turnips, blueberries, cranberries, raspberries, and strawberries. The objective of this research was to identify the most economically feasible crop among the nine studied crops. The results of the study showed that potatoes had the highest total cost of production among all crops grown in NL, followed by rutabagas, turnips, carrots, cabbage, strawberries, beets, raspberries, and cranberries. In terms of gross revenue, rutabagas and turnips had the highest average gross revenue compared to other crops. The gross revenue was highest in 2021, reflecting higher crop yields in that year, and declined gradually across the years after the initial year. The gross margins of the cropping systems showed a declining trend over time due to increasing operating costs and decreasing crop yields. However, rutabagas and turnips had the highest gross margin compared to all other crops. All crops had similar cost/benefit ratios, with cranberries having the highest cost/benefit ratio and beets having the lowest. The cost/benefit ratio showed a gradual increase across the years, except for 2019. The economic feasibility of crops evaluates whether cultivating a particular crop will result in financial profitability for farmers. Based on these findings, it can be concluded that rutabagas and turnips are economically feasible crops for producers in NL. Adopting these crops can enhance production levels and farm profitability under current economic conditions and production practices. These results provide valuable insights for farmers and policymakers in the region to make informed decisions about crop selection and management practices.

Actions (login required)

View Item