Public policy on agricultural projects assessing the impact: a Hass avocado crop system dynamics applied valuation

Abstract

Colombia has positioned itself as a significant actor in Hass avocado production, capitalizing on the rising global demand and its suitable climate for the crop. These conditions have led to considerable investments from farmers. In this business environment, this research presents a systematic simulation and methodological approach for the evaluation of crops focusing on the Hass avocado and its extension to small-scale producers in Colombia. The initial phase involved a comprehensive analysis of key variables in the Hass avocado production chain, assessing productivity and viability. Subsequently, a dynamic model was developed to explore four scenarios spanning 13 years. The first scenario evaluated the production chain’s current behavior, while the second scrutinized the impact of credit accessibility. The third scenario analyzed the associativity among producers’ effects, and the fourth assessed the impact of government support. The results underscore that the implementation of each strategy improves the economic returns. Integrating all three strategies is the most effective method. These scenarios serve as proactive tools for investors, equipping them valuable insights and enabling informed decisions. Moreover, the study advocates for the promotion of rural economic development through strategic agricultural interventions.