ABSTRACT

This chapter discusses the response of farmers in underdeveloped countries to changes in economic variables. The extent of the response in various countries and for different crops has not only analytical significance. The chapter reviews some of the empirical work related to supply functions for tree crops. It outlines a few general models which can be applied to perennials, and the third section briefly reviews applications of some of those models to cocoa and coffee. The supply functions for cocoa, rubber, and lemons have received more attention during the last two decades than have other tree crops. The chapter is concerned with the models developed for cocoa, rubber, lemons, and coffee. There are two main points of interest in the development of a supply model for tree crops. First, one is concerned with the forces that motivate the farmer to plant; and the second area of interest is the relationship between acres planted and output harvested.