Agriculture > Perennial Crop Investment Tool User Cases

Perennial Crop Investment Tool User Cases

This set of user cases is currently under development.

Case 1: Joe Ciliegia

Joe Ciliegia wants to get started in the tart cherry business, and is interested in managing his own tart cherry operation. Joe would like his new operation to be located in the Northwest tart cherry growing region of Michigan. A location in the Northwest growing region would allow Joe to maintain his current part-time job and allow Joe’s wife, Caroline, to keep her current full-time position at the local library. Joe is currently exploring three possible options for his entry into the tart cherry business, which are:

Case 2: Cereza Family

A 15 acre block of tart cherry trees owned and operated by the Cereza family is located in the Northwest growing region of Michigan. The tart cherry orchard is currently 25 years old and yields have started to decline. In addition, the family has started to notice problems with soft fruit. Complicating the decision to replant the orchard is the fact that climatic differences have been noticed by the family. For example, first bloom has moved up a week to 10 days since 1970 when they first began working with tart cherry orchards in the Northwest growing region which may be a problem if spring freeze events increase, as demonstrated by the devastating crop loss of 2002. In addition, pollination problems have increased in recent years. The Cereza family is trying to decide whether to replace the 15 acre block by investing in a new block of tart cherries or whether selling the acreage would be a better option.
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Case 3: Cerise Corporation

An existing, relatively large corporation, namely the Cerise Corporation, consisting of three managers is currently operating a tart cherry operation in the Northwest growing region of Michigan. The Cerise Corporation is considering land acquisition to expand their operation in either the Northwest growing region of Michigan, the Southwest growing region of Michigan, or the tart cherry growing region of Western New York. Advantages and disadvantages exist and must be assessed for each location. Spatial diversification could be achieved by expanding into another growing region, thereby decreasing the likelihood that a crop failure in one of their operations would occur at the same time as a crop failure in their second location. While benefits exist to locating the new orchard some distance away from the existing orchard, machinery and labor crews must also be considered. Locating the orchard a long distance away from the existing operation would force the purchase of additional equipment for the new operation, as well as the hiring of new labor crews. The Cerise Corporation is trying to decide which region would be best for land acquisition to expand their tart cherry operation.
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