Abstract
This study derives the optimal subsidy rate on the installation expenses of smart greenhouse farming system (SGFS) to maximize farm income. To derive the optimal support rate, this study determines the adoption rates of SGFS by the rate of subsidy using TOA-MD model, and estimated the price flexibility of tomato using inverse demand function. The adoption rate of SGFS by tomato farms at the current price level increases rapidly with 50% to 100% subsidy rates. The estimated the price flexibility coefficient of tomato is -5.12 which implies that 1% increase in tomato production induces 5.12% decrease in the price. Using the determined SGFS adoption rates and the estimated price flexibility of tomato, this study finds that the changes in farm income by adopting SGFS gradually increase from 35,210,000 KRW/ha without subsidy to 38,420,000 KRW/ha with the 55% subsidy rate, then the farm income changes rapidly decrease and turn to negative at the 73% subsidy rate. Hence, we can conclude that the optimal support rate on the SGFS installation costs is 55% to maximize farm income.
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Claims 6
Claim · model-written summary
Smart greenhouse adoption by tomato farms increases rapidly at subsidy rates of 50% to 100%.
- Taxon
- tomato
Solanum lycopersicume0 - Outcome
- adoption rate of SGFSe0
- Direction
- increases rapidlye0
- Value
- 50% to 100%e0
- Qualifier
- at the current price levele0
Organisms pictured · Representative pictures of the matched species, not figures from the paper.
Verbatim
e0“The adoption rate of SGFS by tomato farms at the current price level increases rapidly with 50% to 100% subsidy rates.”
Claim · model-written summary
The estimated tomato price flexibility coefficient is -5.12.
- Taxon
- tomatoSolanum lycopersicume0
- Outcome
- price flexibility coefficiente0
- Value
- -5.12e0
Organisms pictured · Representative pictures of the matched species, not figures from the paper.
Verbatim
e0“The estimated the price flexibility coefficient of tomato is -5.12”
Claim · model-written summary
A 1% increase in tomato production implies a 5.12% price decrease.
- Taxon
- tomatoSolanum lycopersicume0
- Outcome
- pricee0
- Direction
- decreasee0
- Value
- 5.12%e0
- Qualifier
- 1% increase in tomato productione0
Organisms pictured · Representative pictures of the matched species, not figures from the paper.
Verbatim
e0“1% increase in tomato production induces 5.12% decrease in the price”
Claim · model-written summary
Modeled income change increases to 38,420,000 KRW/ha at a 55% subsidy from 35,210,000 KRW/ha without subsidy.
- Taxon
- tomatoSolanum lycopersicume1
- Outcome
- changes in farm incomee0
- Direction
- increasee0
- Value
- 38,420,000 KRW/hae0
- Qualifier
- 35,210,000 KRW/hae0
- Comparator
- without subsidye0
Organisms pictured · Representative pictures of the matched species, not figures from the paper.
Verbatim
e0“the changes in farm income by adopting SGFS gradually increase from 35,210,000 KRW/ha without subsidy to 38,420,000 KRW/ha with the 55% subsidy rate”
e1“tomato farms”
Claim · model-written summary
Modeled income change becomes negative at a 73% subsidy.
- Taxon
- tomatoSolanum lycopersicume1
- Outcome
- farm incomee0
- Direction
- decreasee0
- Value
- 73% subsidy ratee0
Organisms pictured · Representative pictures of the matched species, not figures from the paper.
Verbatim
e0“the farm income changes rapidly decrease and turn to negative at the 73% subsidy rate”
e1“tomato farms”
Claim · model-written summary
The authors conclude that a 55% subsidy maximizes tomato farm income.
- Taxon
- tomatoSolanum lycopersicume1
- Outcome
- optimal support rate on the SGFS installation costse0
- Value
- 55%e0
Organisms pictured · Representative pictures of the matched species, not figures from the paper.
Verbatim
e0“the optimal support rate on the SGFS installation costs is 55% to maximize farm income”
e1“tomato farms”