Forecasting Food Crop Production: An Application to East Java
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The Center for Agricultural and Rural Development (CARD) conducts innovative public policy and economic research on agricultural, environmental, and food issues. CARD uniquely combines academic excellence with engagement and anticipatory thinking to inform and benefit society.
CARD researchers develop and apply economic theory, quantitative methods, and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers; the research community; agricultural, food, and environmental groups; individual decision-makers; and international audiences.
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Abstract
A framework for seasonal crop forecasting was developed and applied to East Java. The model includes seasonal areas and yields of rice and the major secondary crops on the basis of lagged data on rainfall, prices, crop areas, and intensification targets. Overall, rainfall, lagged crop areas, and intensification programs are observed to be strong predictors of production. The analysis also indicated that price effects were generally not statistically significant for area but were important for determining rice, corn, and soybean yields. The model performed well in out of sample projections.