By collecting more data at a higher resolution and by creating the capacity to implement detailed crop management, autonomous crop equipment has the potential to revolutionise precision agriculture (PA), but unless farmers find autonomous equipment profitable it is unlikely to be widely adopted. The objective of this study was to identify the potential economic implications of autonomous crop equipment for arable agriculture using a grain-oilseed farm in the United Kingdom as an example. The study is possible because the Hands Free Hectare (HFH) demonstration project at Harper Adams University has produced grain with autonomous equipment since 2017. That practical experience showed the technical feasibility of autonomous grain production and provides parameters for farm-level linear programming (LP) to estimate farm management opportunities when autonomous equipment is available. The study shows that arable crop production with autonomous equipment is technically and economically feasible, allowing medium size farms to approach minimum per unit production cost levels. The ability to achieve minimum production costs at relatively modest farm size means that the pressure to “get big or get out” will diminish. Costs of production that are internationally competitive will mean reduced need for government subsidies and greater independence for farmers. The ability of autonomous equipment to achieve minimum production costs even on small, irregularly shaped fields will improve environmental performance of crop agriculture by reducing pressure to remove hedges, fell infield trees and enlarge fields.
Abstract. This study addresses the problem of balancing the trade-offs between the need for animal production, profit, and the goal of achieving persistence of desirable species within grazing systems. The bioeconomic framework applied in this study takes into account the impact of climate risk and the management of pastures and grazing rules on the botanical composition of the pasture resource, a factor that impacts on livestock production and economic returns over time. The framework establishes the links between inputs, the state of the pasture resource and outputs, to identify optimal pasture development strategies. The analysis is based on the application of a dynamic pasture resource development simulation model within a seasonal stochastic dynamic programming framework. This enables the derivation of optimum decisions within complex grazing enterprises, over both short-term tactical (such as grazing rest) and long-term strategic (such as pasture renovation) time frames and under climatic uncertainty. The simulation model is parameterised using data and systems from the Cicerone Project farmlet experiment. Results indicate that the strategic decision of pasture renovation should only be considered when pastures are in a severely degraded state, whereas the tactical use of grazing rest or low stocking rates should be considered as the most profitable means of maintaining adequate proportions of desirable species within a pasture sward. The optimal stocking rates identified reflected a pattern which may best be described as a seasonal saving and consumption cycle. The optimal tactical and strategic decisions at different pasture states, based on biomass and species composition, varies both between seasons and in response to the imposed soil fertility regime. Implications of these findings at the whole-farm level are discussed in the context of the Cicerone Project farmlets.
Autonomous equipment for crop production is on the verge of technical and economic feasibility, but government regulation may slow its adoption. Key regulatory issues include requirements for on‐site human supervision, liability for autonomous machine error, and intellectual property in robotic learning. As an example of the impact of regulation on the economic benefits of autonomous crop equipment, analysis from the United Kingdom suggests that requiring 100% on‐site human supervision almost wipes out the economic benefits of autonomous crop equipment for small and medium farms and increases the economies‐of‐scale advantage of larger farms.
Abstract. Farming systems research conducted under dryland conditions is subject to the vagaries of the climate during the experimental period. Whether such an experiment experiences a representative series of climatic years must be examined in relation to the longer term climatic record. The Cicerone Project's farmlet experiment was conducted on the Northern Tablelands of New South Wales, Australia, to investigate the profitability and sustainability of three different management systems: one managed under typical, moderate-input conditions (farmlet B); a second which employed a higher level of pasture inputs and soil fertility (farmlet A); and a third which focussed on the use of moderate inputs and intensive rotational grazing (farmlet C).The climate experienced during the 6.5-year experimental period was compared with the 118-year climatic record, using a biophysical simulation model of grazed systems. The model utilised the long-term daily climate data as inputs and provided outputs that allowed comparison of parameters known to affect grazed pastures. Modelled soil-available water, the number of soil moisture stress days (SMSDs) limiting pasture growth, and growth indices over the experimental period (2000-06) were compared with data over the climatic record from 1890 to 2007. SMSDs were defined as when the modelled available soil moisture to a depth of 300 mm was <17% of water-holding capacity. In addition, minimum temperatures and, in particular, the frequency of frosts, were compared with medium-term (1981-2011) temperature records.Wavelet transforms of rainfall and modelled available soil water data were used to separate profile features of these parameters from the noise components of the data. Over the experimental period, both rainfall and available soil water were more commonly significantly below than above the 95% confidence intervals of both parameters. In addition, there was an increased frequency of severe frosting during the dry winters experienced over the 6.5-year period. These dry and cold conditions were likely to have limited the responses to the pasture and grazing management treatments imposed on the three farmlets. In particular, lower than average levels of available soil water were likely to have constrained pasture production, threatened pasture persistence, and reduced the response of the pasture to available soil nutrients and, as a consequence, livestock production and economic outcomes.Ideally, dryland field experimentation should be conducted over a representative range of climatic conditions, including soil moisture conditions both drier and wetter than average. The drier than average conditions, combined with a higher than normal frequency of severe frosts, mean that the results from the Cicerone Project's farmlet experiment need to be viewed in the context of the climate experienced over this 6.5-year period.
Pasture improvement is a well-established technology for increasing production in extensive livestock grazing industries by changing pasture composition and increasing soil fertility. The Cicerone Project farmlets located at Chiswick Research Station, near Armidale in New South Wales, are providing valuable information at a credible scale on the response to 3 different management systems varying in levels of inputs and grazing management. The purpose of this paper is to outline a methodology for assessing farmlet performance in such studies. The assessment focuses on the stochastic efficiency of the different treatments. The impact of pasture persistence, climatic risk, and stochastic commodity prices on optimal rates of farm development are explored by using preliminary data from the Cicerone farmlets to calibrate the GrassGro model. The farmlets modelled represent 2 technology packages. One is a moderate-input package and the other is a high-input package. Preliminary analysis indicates that direct comparison of the 2 farmlets may produce the wrong assessment, because 1 farmlet is operating at a suboptimal level of efficiency in a stochastic sense. This means that direct comparisons of technologies based on the field data may be biased as the technologies should be evaluated at the risk-efficient frontier. The concept of a risk efficient frontier is explained and applied to aid in identifying the trade-offs between profit and risk, and identify differences in the efficiency of the 2 farmlets.
This study analysed the dynamics of the international soybean market using econometric techniques and economic models to study the impacts of the US–China trade war. It considered the analysis of “spatial” (horizontal) price transmission during an approximately ten-year period from September 2009 to May 2019 using monthly time-series data. The research focused on the leaders in the international soybean market, namely, China, the USA, the EU, Brazil and Argentina. Several econometric techniques were employed. The stationarity of the price time series was determined using the augmented Dickey–Fuller (ADF) unit root test. Structural breaks were inferred using the ADF test with a breaks test and a Bai–Perron multiple break test. The long-term relation/cointegration amongst the series was determined using the Johansen cointegration test (1988), with the previous breaks input as dummy variables. The direction of the causality was inferred using the Granger causality test (1969). The long-term and short-term causal relations were determined using the vector autoregression model (VAR) and the vector error correction model (VECM). The results showed a highly efficient and cointegrated market. The incidents of the trade war, as represented by tariffs and subsidies, had minor effects on the market efficacy, cointegration and price transmission. The arbitrage process of the studied market managed to get around the tariffs. In other words, there was no empirical evidence to support the claim that the law of one price (LOOP) did not hold.
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