Economic Analysis of Beneficial Management Practices in Corn and Soybean Production under Different Climate Change Scenarios in Quebec and Ontario

In Canada, the Agricultural Greenhouse Gases Program (AGGP) project is driving the promotion of responsible agricultural practices. This encompasses support for the advancement of technologies in irrigation, drainage, and water table management, along with the promotion of beneficial (or best) management practices (BMPs) that enhance water efficiency. These initiatives not only ensure sustainable agricultural production but also protect the interests of Canadian producers in terms of profitability, especially in the context of climate change. Generally, farmers are more likely to adopt innovative practices that leads to an increase in their profits, relative to the pre-investment situation. Under different climate change scenarios, this thesis conducted an economic analysis to explore the economic attractiveness of the BMPs and potentially influence their adoption on the farm-level. Using the Decision Support System for Agrotechnology Transfer (DSSAT) model and financial indicators such as Net Present Value (NPV), Benefit-Cost Ratio (BCR), and Internal Rate of Return (IRR), the financial performance of the BMP technology in comparison to the base technology was assessed. The research examined different climate scenarios, past and future, and conducted sensitivity analyses related to variation in crop prices and discount rates. At St. Emmanuel research site, the BMP technology outperformed the base technology in both past and future climate scenarios. Positive NPV, BCR values greater than one, and higher IRR for the BMP technology demonstrated its economic attractiveness. Similar findings were observed at Harrow research site, with the BMP technology consistently surpassing the base technology in terms of NPV, BCR, and IRR values. The results of the study at both research sites revealed that the selected BMP technology stands out as the preferable choice when contrasted with the conventional base technology under climate change. This suggests that producers might be inclined to consider the adoption of BMP. Nevertheless, the degree of their interest could vary since the economic attractiveness of these options is highly sensitive to changes in specific factors, owing to the uncertainties linked to both economic and non-economic factors.

Name thesis:degree_name

Master of Science (M.Sc.)

Level thesis:degree_level

Masters

Discipline thesis:degree_discipline

Agricultural Economics

Grantor

University of Saskatchewan

Year dc:date.issued

2023

Author dc:creator

• Mohammed, Latif

Advisors dc:contributor.advisor

• Liebenehm, Sabine
• Kulshreshtha, Suren

Committee members dc:contributor.committeemember

• Roy, Robert
• Hesseln, Hayley
• Bruneau, Joel
• Slade , Peter

• Climate change
• Beneficial management practices
• DSSAT
• Financial analysis

Language dc:language.iso

en

Handle dc:identifier.uri

https://hdl.handle.net/10388/15362

OAI identifier oai:identifier

oai:harvest.usask.ca:10388/15362