5. An Experimental Study on the Disposition Effect in Agriculture: The Cases of Onion and Apple Farms in Korea [PDF]

with KunA Kim, Seung-Ryong Yang, (March 2025), 52(1), 191-213, Korean Journal of Agricultural Management and Policy.

• (Abstract) It is often broadcast that farmers plow down the fields with already grown agricultural products when the market prices plummet too low. They usually criticize the government or the merchants for the substantial price drops. However, there is a chance that the large price movements may results from farmer's irrational selling behaviors, such as the disposition effect which is widely reported in the financial markets. This behavioral irrationality may generate endogenous price volatility and be a reason for the plowing-downs. This study tests if the farmers in Korea also suffer from the disposition effect using the sales experiments. The onion and apple farmers are surveyed for the study. The results show clear evidence of the disposition effect with the production cost as a reference price. In addition the probability of selling lowers with bigger losses, which implies that the disposition effect can be a reason for the plow-downs. It is also shown that products with longer storage periods exhibit a greater disposition effect, whereas greater farming experience is associated with a weaker disposition effect. These findings provide important implications for farm selling strategies.

• (Keywords) Disposition Effect, Loss Aversion, Behavioral and Experimental Economics, Farm Management, Decision-Making, Field Experiment

4.  The Effects of Agrivoltaics on the Rice Farm Incomes [PDF]

with Seung-Ryong Yang, (March 2025), 52(1), 79-105, Korean Journal of Agricultural Management and Policy.

• (Abstract) This study analyzes the economic effects of agrivoltaics which generate solar photovoltaic power on farm lands, on the rice farm incomes in South Korea. The results show that, under the base scenario, agrivoltaics practices return 2.34 to 3.19 times more income compared to non-agrivoltaics rice farms, regardless of the size of paddy land. In addition, the economy of scale exists, as the returns increases with the size of paddy lands. Additional findings confirm the economic feasibility of scenarios with various SMP (System Marginal Price) and REC (Renewable Energy Certificate) price ranges over the 20+ years of life time. If the current institutional conditions, such as REC incentives and operating periods, are improved, profitability can be further enhanced. The total additional income from all potential paddy lands amounts to 5.3 trillion won, which surpasses the loss from landscape degradation (1.1 trillion won ) as analyzed by Kim et al. (2021).

• (Keywords) Agrivoltaics, Farm Income, Renewable Energy, Land Use Policy, Regional Policy, Rural Development

3. Analysis of Food Security Using the National Food Security Index (NFSI): A Comparative Study of Cuba and Eight Latin American and the Caribbean Countries [PDF]

with Tae-Hwa Kim, (September 2024), 36(3), 201-216, The Journal of the Korean Society of International Agriculture.

• 2025 Best Paper Award, The Korean Society of International Agriculture

• (Abstract) The purpose of this study is to quantitatively analyze the food security situation in Cuba using the National Food Security Index (NFSI) and compare it with neighboring countries with geographic and environmental similarities in order to provide policy implications for strengthening food security in Cuba. According to the analysis, Cuba's food security level is in the NFSI Red Level. It is one of the lowest in the Latin American and Caribbean (LAC) region. Analysis of factors affecting food security levels showed that extreme weather events (i.e. high temperatures, heavy rainfall), political instability, and uncertainties such as the COVID-19 pandemic were the main factors threatening food security in 9 LAC countries, including Cuba. Results of this study can be used as a basis for diagnosing and strengthening the food security situation in Cuba. They will be helpful for future international cooperation and linkages between Cuba and Korea, including food aid and agricultural technology cooperation.

• (Keywords) Cuba, Food Security, National Food Security Index, International Cooperation on Food Security, Latin America and the Caribbean

2. Analyzing the Impact of Agrophotovoltaic Power Plants on the Amenity Value of Agricultural Landscape: The Case of the Republic of Korea [PDF]

with Tae-Hwa Kim, Seung-Ryong Yang, (October 2021), 13(20), 11325, Sustainability.

• (Abstract) Recently, in Korea, there have been some disturbing events forcing a trade-off between the expansion of agrophotovoltaic (APV) power plants and the agricultural policy to enhance the public benefit fuction of agricultre. Under this context, this study attempts to examine the public perception of agricultural landscape and the APV power plants and to analyze the impact of APV power plants on the amenity value of the agricultural landscape. The results of the analysis based on the choice experiment method shows that the marginal willingness-to-pay for a rural tourism accommodation with a 'agricultural landscape view' is USD 64.37 higher comapred to 'agrophotovoltaics panel view.' This implies that the value of the agricultural landscape decreases when solar panels are installed on farmland, signifying the detrimental impact of the APV power plants on the multi-functionality of agricultre. If the installation of APVs is expanded to farmlands nationwide, the amenity value of agricultural landscape is estimated to decrease by USD 1.70 billion or 55.0% of the total estimated amenity value in Korea.

• (Keywords) Trade-off, Agrophotovoltaics, Agricultural Landscape, Multi-functionality of Agriculture, Choice Experiment