National Academy of Agricultural Sciences (NAAS)
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PRINT ISSN : 2319-7692
Online ISSN : 2319-7706 Issues : 12 per year Publisher : Excellent Publishers Email : editorijcmas@gmail.com / submit@ijcmas.com Editor-in-chief: Dr.M.Prakash Index Copernicus ICV 2018: 95.39 NAAS RATING 2020: 5.38 |
For perennial cash crops like orange having a long production period and with revenue being realised throughout the life of the plant, the optimum replacement period is the year when the amortized present value of Accumulated Net Revenue (ANR) from the incoming plantation just exceeds the anticipated Net Revenue (NR) from the existing plantation in the year (t+1). So long as the anticipated net revenue in the year (t+1) exceeds the amortized present value of Accumulated Net Revenue in the year ‘t’, it is profitable to continue with the existing plantation assuming that the present orchard will be replaced by new plantation of same crops, not by other perennials or by competing annual crops. The anticipated net revenue in the year 46th year is equal to the net revenue in the 47th year. So, the optimum period to replace the existing orange trees is at the age of 46th year when the condition P > NRt+1 is satisfied.
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