Implications of Disrupting a Perennial Crop Replanting Cycle: The Brazilian Sugarcane Example

Daniel Tregeagle and David Zilberman

from ARE Update Vol. 22, No. 1, Sep/Oct, 2018

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Abstract

Brazilian sugarcane yields declined sharply in 2011, ending a decade-long expansion of the industry. In the aftermath of the 2008 financial crisis, credit-constrained farmers replanted fewer sugarcane fields, leading to an increase in the average age of canes and a decline in yield several years later. Had average age remained constant over this period, industry revenues would have been around 10% higher in 2011 and 2012. This example shows how interruptions to the regular replanting schedules of a perennial crop can have production effects years into the future.

Keywords

Perennial crops, replanting, credit access, agricultural supply

Citation

Daniel Tregeagle and David Zilberman. "Implications of Disrupting a Perennial Crop Replanting Cycle: The Brazilian Sugarcane Example." ARE Update 22(1)(2018):5-8. University of California Giannini Foundation of Agricultural Economics.
https://giannini.ucop.edu/publications/are-update/issues/2018/22/1/implications-of-disrupting-a-perennial-crop-replan/