@article{Wicks:21444,
      recid = {21444},
      author = {Wicks, Santhi and Howitt, Richard E. and Klonsky, Karen},
      title = {A DYNAMIC ANALYSIS OF SUSTAINABLE FARMING SYSTEMS IN  CALIFORNIA AGRICULTURE},
      address = {2006},
      number = {379-2016-21628},
      series = {Selected Paper},
      pages = {32},
      year = {2006},
      abstract = {The economic viability of alternative and more sustainable  agriculture farming systems depend on the value of farm  profits. These values may be estimated through short or  long-run of profit maximization, but there is a difference  in these methods. In short-run profit maximization the  instantaneous marginal benefits are equated to the marginal  costs of production. Where as in the long-run maximization  of profits the capital value of soil resources are quantify  in addition to the direct revenues and costs of each system  over time. A long-run approach is fundamental to capture  the value of capital improvements in soil resources. In  this study we use short-run experimental data from SAFS's  rotations to calibrate the crop simulation model EPIC, and  obtain a time series cross-sectional data set for  developing the dynamic bioeconomic models.  With data from  EPIC we are able to expand the existing short-run analysis,  to estimate the long-run profitability and ecological  benefits of alternative sustainable farming systems in  comparison to conventional systems. Profit maximizing  farmers who may not adopt sustainable methods based on  short-run returns may well adopt them when long-run capital  values are included.  Finally, when environmental  constraints are imposed on agricultural technology, for  example to reduce non-point source pollution, results from  our bioeconomic models are expected to show that  sustainable technologies are more valuable.},
      url = {http://ageconsearch.umn.edu/record/21444},
      doi = {https://doi.org/10.22004/ag.econ.21444},
}