• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.1
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• pp.131-137
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• 2021

This study estimated acreage response functions for greenhouse paprika, greenhouse strawberry, open-land garlic, and open-land spinach by using Gyeongsangnamdo agricultural income data. The results show that the cultivation area for greenhouse paprika increased because the agricultural management costs decreased, and the risk of price volatility was relatively low. On the other hand, the cultivation area for greenhouse strawberries decreased due to increasing agricultural management costs and the greater risk of price volatility. In the case of open-land garlic and spinach, the cultivation area remained stagnant due to the greater risk of price volatility, despite increasing agricultural revenue. We derived several policy implications from our results. The risk of price volatility in agricultural products is greater for crops grown on land rather than crops grown in greenhouses. Therefore, the local government needs to adopt the "agricultural revenue guarantee insurance" in preference to crops grown on land rather than crops grown in greenhouses. On the other hand, in the case of greenhouse crops, agricultural management costs are very high. Thus, local government should focus on replacing old facilities and supplying smart-farm facilities that reduce agricultural management costs such as heating costs.