Implications of Disrupting a Perennial Crop Replanting Cycle: The Brazilian Sugarcane Example
Daniel Tregeagle and David Zilberman
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.
Perennial crops, replanting, credit access, agricultural supply
Daniel Tregeagle and David Zilberman. 2018. "Implications of Disrupting a Perennial Crop Replanting Cycle: The Brazilian Sugarcane Example." ARE Update 22(1): 5-8. University of California Giannini Foundation of Agricultural Economics.