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Breitenfurt bei Wien, Austria

Strauss F.,Institute For Nachhaltige Wirtschaftsentwicklung | Sinabell F.,Osterreichisches Institute For Wirtschaftsforschung | Kniepert M.,Institute For Nachhaltige Wirtschaftsentwicklung
Journal of the Austrian Society of Agricultural Economics | Year: 2012

The increasing volatility of prices in the last years may also be reflected in increasingly volatile agricultural incomes. The stability of farm incomes is one of the major aims of agricultural policy. We analyze potential drivers of agricultural income volatility. Based on the Economic Accounts for Agriculture (EAA) differentiated by activities we apply the analysis of variance ANOVA to investigate in which proportion the income components (i.e., output quantity developments, input and output price developments) contribute to the total variance of income. We show that the effect of output prices is predominant, but input prices may have a significant role as well for several commodities. Based on these results we outline a farm income stability system that would be consistent with the frame of international trade arrangements. Source

Feusthuber E.,Institute For Nachhaltige Wirtschaftsentwicklung | Schonhart M.,Institute For Nachhaltige Wirtschaftsentwicklung | Schmid E.,Institute For Nachhaltige Wirtschaftsentwicklung
Journal of the Austrian Society of Agricultural Economics | Year: 2013

Genetically modified (GM) crops are usually promoted to substitute conventional insecticide or herbicide use. Coexistence rules are implemented against contamination risks of organic or conventional production. In this article, the profitability of GM-maize production is analyzed using a spatially explicit, mixed-integer land use optimization model. Model results indicate a strong dependency of GM-maize profitability on coexistence regulations, prices, and yields. We assume GM crop yield gains of +9,5%. In comparison with insecticide-treated maize, GM maize becomes unprofitable in case of a 5% decline in assumed yields or commodity prices. If yields or prices decrease by 16%, gross margins of GM maize will be equal to non-treated maize. These results suggest the development of alternative pest control options. However spatial cooperatives among farmers increase profitability of GM crop adoption under strict legislation. © 2013, OGA-Osterreichische Gesellschaft fur Agrarokonomie. All rights reserved. Source

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