The economic effects of reductions in chemicals usage in the decision making of agricultural enterprises

Kis, Sándor – Takácsné György, Katalin

Keywords: farming alternatives, reduction in the use of chemicals, viability, incomes producing capability

Our present day task is the reduction of chemicals used in agricultural production thereby moderating environmental pollution. The availability of information about the consequences of reduced chemicals usage is paramount to farmers in making their decisions concerning their farming practices. In this study using numerical modelling we investigated how the incomes producing capability of an enterprise may change if the use of chemicals in plant cultivation is reduced. We have found that reduction or secession of the use of plant protecting chemicals reduces the chances of incomes production, narrows the size range that yields income and decreases the amount of potential incomes. At the same time whenever premium can be charged, it can produce incomes not dissimilar to that of conventional farming. Enterprises can make proper decisions if they have the information about the consequences of change, while at the same time, in our opinion, loss of income due to reduction in chemicals usage may be compensated by the development of an appropriate supporting system.

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