The purpose of this study is to analyze how the orchard scale improvement project affects the profits of apple farmers. For this purpose, the variable profit function of Apple was estimated using seemingly unrelated regression analysis. For the analys...
The purpose of this study is to analyze how the orchard scale improvement project affects the profits of apple farmers. For this purpose, the variable profit function of Apple was estimated using seemingly unrelated regression analysis. For the analysis, raw data from the Rural Development Administration's Agricultural Income Survey from 2015 to 2021 were used.
Of the 1,009 apple farms, 95 farms participated in the orchard scale improvement project and 914 farms did not participate. The results show that the profits of farms participating in the project were found to be higher than those of non-participating farms, and as the cultivation area increased, profits tended to increase and then decrease. The results also indicated that below a certain size (19,462㎡), the profits from project participation appear to be lower. The results of this study can provide useful information to the establishment of government policies and apple farmers who want to participate in the orchard scale improvement project.