ARE at AAEA: Daniel Tregeagle: The Optimal Management of Orchards
July 31, 2018
Time: 11:30 a.m. Tuesday, Aug. 7
Location: Exhibit Hall B South
Abstract
A fundamental issue in perennial crop economics is finding the optimal time to replace trees in an orchard. Orchards have two key characteristics: they consist of trees of multiple vintages, and the trees have a hump-shaped yield curve. We present the first analysis of optimal tree replacement in an orchard that has both characteristics. Our results show that cyclical production is optimal in the long-run, and that optimally managed orchards converge to the long-run cycle surprisingly quickly. Our results have implications for orchard valuation, orchard planting, and orchard conversion. We are also the first to provide comparative statistics on the long-run cycle radius.
*This is information about one of the 17 people from ARE with a presentation at the 2018 AAEA Annual Meeting Aug. 5–7 in Washington, D.C.
More News
Professor Sumner and Agriculture Leaders Meet with Gov. Brown on Trade Turmoil
New Tariffs Could Cost U.S. Nut and Fruit Industries over $3 Billion, According to Report by Professor Sumner and Ph.D. Student Researcher Hanon
Georgi Gabrielyan: Agricultural Economist at USDA Agricultural Marketing Service Dairy Division
