Economics of Vertical Farming: Quantitative Decision Model and a Case Study for Different Markets in the USA

There are various problems associated with our conventional practice of farming. Agriculture is responsible for mass deforestation. The world is facing a water crisis, and farming is responsible for using 80% of its freshwater. Also, the prospect of global climate change is projecting a much riskier future for practices of conventional farming. One could argue that these alarming problems might someday be treated as more imminent as the population grows, less fertile land becomes available, and the effects of global climate change become more apparent. Vertical farming solves a lot of the mentioned issues associated with traditional farming by using considerably less water, requiring less land, and not relying on the environmental conditions whatsoever. However, vertical farming is also energy and labor intensive and can be quite expensive in some cases. This study works to quantitatively model and evaluate the economic prospect of vertical farming as a business venture in a competitive marketplace under different circumstances. A generalized quantitative framework to evaluate vertical farming with respect to traditional farming is developed. Then, the developed framework is employed for a case study to evaluate the merits of vertical farming in several locations around the US by measuring the relative profit and risk. The results quantify the value proposition of the practice in various conditions and help evaluate the current and future prospect the vertical farming industry.

Determining the Impact of Hogget Breeding Performance on Profitability under a Fixed Feed Supply Scenario in New Zealand

Hoggets (ewe lambs aged 4 to 16 months) can be bred from approximately 8 months of age for potentially increased flock production and profit, however most New Zealand hoggets are not presented for breeding and their reproductive success is highly variable. Bio-economic modelling was used to analyse flock productivity and profit in four sets of scenarios for ewe flocks with varying mature ewe (FWR) and hogget (HWR) weaning rate combinations. Firstly, hogget breeding was identified to become profitable when break-even HWRs of 26% and 28% were achieved for flocks with FWRs of 135% and 150%, respectively. Secondly, relatively smaller improvements in FWR were identified to increase profit to the same level as larger improvements in HWR. Thirdly, a high performing flock with FWR and HWR both ≥ the 90th percentile currently achieved commercially, was the most profitable flock modelled. Fourthly, a FWR was identified with which a farmer not wishing to breed hoggets could have the same profit as a farmer with a flock achieving current industry average FWR and HWR. Overall, the relative profit levels achieved by the modelled flocks suggest that more farmers should consider breeding their hoggets, though improvements in FWRs should be prioritised.

Complex Dynamics in a Mixed Duopoly Game Based on Relative Profit Maximization

In this paper, the complex dynamic behavior of a mixed duopoly game model is studied. Based on the principle of relative profit maximization and bounded rational expectation, the corresponding discrete dynamic systems are constructed in the case of nonlinear cost function. In theory, the conditions for the local stability of Nash equilibrium are given. In terms of numerical experiments, bifurcation diagrams are used to depict the effects of product differences, adjustment speed, and other parameters on the stability of Nash equilibrium.

Adaptive Structuration Analysis in Innovation Communication of Indonesian National Standard in Micro, Small and Medium Enterprises

Micro, small and medium enterprises (MSMEs) as one of the business sector which give significant contribution to national GDP have an average of more than 55% in the period 2008 to 2012 (BSN 2013), in addition, the role of food-based MSMEs is very important in providing adequate food availability for the community. Standardization is one of the strategies to increase competitiveness, especially in the free trade era. Standardization activities in the industry is proven by obtaining SNI certificates (Indonesian National Standards). This study aims to understand how the characteristics and evaluation of the nature of innovation towards MSME decisions to adopt SNI certification in the food sector. This quantitative research uses explanatory type method with an explanatory nature with associative nature because it wants to explain the influence between the variables tested. The results on evaluating the nature of innovation can be seen from the relative profit, the average respondent answers strongly agree on what they think of SNI or its products labelled SNI. Then on the level of complexity, respondents consider changes in infrastructure and adjustments to product standards. On marketing factors, respondents market their products through online media is 45,9% while marketing through offline media is 54%, one of which dominates them is through exhibitions or bazaars (15,3%). The conclude that there was no significant influence between the evaluation of the nature of innovation, namely the level of relative profitability, level of complexity and the level of observability with adoption of SNI certification. The factors that influence significantly SNI certification was adaptive structuration, they are rate of socialization and testimonial approach. .

ANALISIS PENDAPATAN USAHATANI KOPI ARABIKA DI DESA COLOL KECAMATAN POCO RANAKA TIMUR KABUPATEN MANGGARAI TIMUR

ABSTRACT This research was conducted at Colol Village East Poco Ranaka Sub-District East Manggarai District on March 2019. This research aimed to know: (1) The income bigness of arabica coffee cultivation; (2) The properness of arabica coffee cultivation; (3) the management of arabica coffee cultivation. Data collection method which used in this research was survey method. The determination of research location was purposive sampling with the consideration that Colol Village as one of coffee production village. Kind of data which collected are primary and secondary data. Data were tabulated and analysis as qualitative and quantitative. Income analysis I=TR˗TC used to answer the first aim, and R/C ratio analysis used to answer the second aim. The result of research show that (1) the bigness income of arabica coffee cultivation at Colol Village East Poco Ranaka Sub-District East Manggarai District was high grouped. Total of income as big as Rp.1.503.193.326 with average of Rp.18.110.769 per respondent and average of income per Ha as big as Rp.17.493.593. (2) the bignes of relative profit of arabica coffee cultivation at Colol Village East Poco Ranaka Sub-District East Manggarai District namely 20,00. This case idicated that for every Rp.1 cost which purcased by farmer will obtain revenue as big as 20,00 as profit of arabica coffee cultivation. (3) the power of famer in arabica coffee cultivation was not proper with planing which had decided.