Title

The economic value of a new technology in growing potatoes: the hilling method

Document Type

Article

Publication Date

Winter 2013

Abstract

Combining finance knowledge, agricultural and farm machinery, this study analyzes the economic value of a new technology of growing potatoes-the hilling method compared to the traditional method without hilling. The authors find that this environmentally friendly technology has a large economic value measured in billions of Chinese yuans (CNY) for Shanxi Province in China. Our analysis also allows us to identify the breakeven price of around CNY 79,000 which is considerably higher than the current price. Therefore, the substantial potential profit margin is sustainable and creates a strong incentive for the technology's developers and business owners. The analysis in this study helps in determine the long-term economic value of the hilling method of potato farming. It also provides key information for policy makers as well as serves as a framework for valuating farming technology in general.

Publisher's Statement

© 2013 International Academy of Business and Public Administration Disciplines. Publisher's version of record can be accessed here.

Publication Title

International Journal of Business and Economics Perspectives