Economic Viability of Organic Fertilization in Forage Oats (Avena sativa L.) in the Mexicali Valley

Abstract

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Objective: To economically evaluate the use of chemical, organic and organic-mineral fertilizers in of forage oat production in the Mexicali Valley; and to determine the profitability of each fertilization type.

Design/methodology/approach: Three treatments were established, one chemically fertilized (T1), one with organic fertilization (T2), and one with organic-mineral fertilization (T3) with two replications under a completely randomized design. Cash flow, financial costs and economic costs were calculated.

Results: Fertilization costs accounted for between 37% and 52% of the cost structure. Treatments T2 and T3 did not cover production costs. Only treatment T1 treatment demonstrated the ability to cover both production and financial costs. None of the treatments covered economic costs.

Limitations on study/implications: It is suggested to replicate the economic viability analyses in consecutive productive cycles, as other studies have shown positive impacts on soil fertility.

Findings/conclusions: The organic and organic-mineral fertilization systems (T2 and T3) were not profitable in the short term. The chemical fertilization system (T1) demonstrated the ability to cover, in addition to production costs, the depreciation costs of fixed assets. However, none of the treatments showed the ability to compensate the risk of investing in the activity.