Economic outcomes from adopting cereal-legume intercropping practices in Sweden

Abstract

CONTEXT

The need for sustainable and resilient farming practices is clearly communicated by the scholars and the European Union policy strategies. The low interest in adopting the practice due to the uncertainties and the variability in the economic outcomes across various intercropping types calls for research attention. In this respect, research is needed to identifying specific intercropping practices that lead to improved farm-level economic outcomes and resilience.

OBJECTIVES

This study investigates consequences of intercropping adoption on the farm economic outcomes, in the context of achieving economic resilience. Specific objectives are to assess the effect of i) adopting intercropping on the economic outcomes; ii) production adjustments on the economic resilience of the intercropping practices, both in comparison to conventional mono-cropped agriculture.

METHODS

The analysis is conducted by using a stochastic partial budgeting model. We use Swedish agriculture as an empirical basis for our study and model two baseline cereal monocropping scenarios and two corresponding alternative (strip and mixed) cereal-legume intercropping scenarios. This is to examine net changes and risk characteristics resulting from the adaptation from monocropping to intercropping production practices. Estimates of net changes and the respective risk characteristics are integrated in an economic resilience assessment for the intercropping practices.

RESULTS

Results reveal that the net economic benefit change from adopting differs across the intercropping alternatives. Prices of the monocropped and the intercropped products of both intercropping alternatives and the use of N fertilizer for the strip intercropping alternative are the most influential factors in determining the adaptability capacity.

CONTRIBUTION

This study provides a novel approach that contributes to the literature via quantifying economic resilience capacities of hypothetical technology adoption. The paper presents unique results on the economic resilience of adopting cereal-legume intercropping practices in a Nordic context, giving agriculture in Nordic regions shares common challenges such as short growing season and cold temperature. The results offer valuable insights for extension services in guiding farmers to choose appropriate intercropping practices based on the production possibilities and market needs. Policy implications targeting the adoption of cereal-legume intercropping adoption are discussed.