Yield (a) 2.3(ton/hactare)
Conversion (b) 2.47 (acres/hactare)
Production (c=a/b) 0.931(ton/acres)
Production cost1 (d) 228.71($/ton) Jacob (Breakeven cost)
Production cost2 (d*c) 212.97($/acre)
Grower payment per acre
Payment(USD/acre)=crop price (USD/ton)* yield (ton/acre)
The crop price is a changing variable in response to the gap between production and demand annually. Therefore payment is also changing over time, whereas production cost is constant (212.97$/acre). Net grower payment per acre
NGPP=Payment-Cost
Growers’ uptake Adopting camelina production
Camlina adoption decision is made either by innovator or imitator. Model assumes that innovator rate is time dependent decision, whereas imitator is net payment dependent decision. …show more content…
This concept can capture the purely innovative characteristics of growers who take pioneer action for the environmental care.
Innovator driven adoption= innovation_rate*potential_camelina_%_of_acres
Imitator
Imitator starts to consider adoption as long as net payment is above certain threshold. Initially the threshold is set to be 1,000 dollars per acre per year.
Also, imitation rate is affected by the population of camelina growers who already adopted camelina expansion practice as the word of mouth effect. At the same time, imitator is inversely affected by the potential camelina production acres as the less fallow lands, potential camelina lands, are left, the more competition will limit imitator adoption.
Imitation driven adoption=