METHODS FOR NON-MARKET OUTPUTS‘ VALUATION OF CROP FARMING SYSTEM

Abstract

Crop production is an agricultural system that produces commodity and non-commodity outputs, the value and supply of these goods depend on production specifics. The value of commodity outputs is reflected in market prices and other economic indicators (for example, gross domestic product , gross production, etc.) Therefore, their evaluation is not difficult due to the availability of data, however the values of non-commodity outputs are not reflected in the market, so specific valuation methods are used to determine their value. In this case, choosing the right method is an important part of the research. For this reason, the aim of the work is - after analyzing the concept of the crop production system, evaluate the used methods for determining the value of the non-commercial effects of the crop production system. It was found that usually stated and revealed preferences methods are used to determine the value of non-commodity outputs of the agricultural system. However, the selection of the appropriate method is supported by clearly formulated assessment goals and expected results.