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Abstract

This paper deals with crop rotation as a method to pest control and soil fertility from an economic point of view. In the past farmers created complex rotations to benefit from processes like natural pest control, recycling of organics, pollination and water retention. Cropping orders utilizing small fields to accommodate long lists of crop sequences were a major feature of agriculture. Today we are faced with large fields and monoculture. Usually, attempts to recognize economic benefits from rotation through modelling are meagre because of complexity. We address the issue of complexity as well as spatial and dynamics aspects of long run benefits by suggesting feasible types of modelling crop rotations (dynamic optimization). A newly introduced transfer matrix shall delineate impacts of crop compositions in period t to fertility of land in t+1. Categorizing different states of nature (which have to be communicated in line with farmers’ knowledge of externalities) it can be implemented into modern crop rotations.

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