TABLE 2
Economic Parameters Faced by Managers of Vineyards GH and GL
| Vineyard GH | Vineyard GL | |||
|---|---|---|---|---|
| Vineyard Layout | ||||
| Grid dimensions (rows × columns) | I×J | 68×23=1,564 | M×N | 49×16=784 |
| Grid row (vine) spacing (feet) | 4 | 5 | ||
| Grid column spacing (feet) | 7 | 11 | ||
| Revenue Parameters | ||||
| Per-vine revenue | rs,i,j,t | Equation [1] | rs,m,n,t | Equation [1] |
| Price (dollars/ton) | pHealthy,GH | 5,058 | pHealthy,GL | 726 |
| Price penalty (percent) |  | 58 |  | 10 |
| Yield (tons/acre) | yHealthy,GH | 4.5 | yHealthy,GL | 10 |
| Yield (tons/acre/month) | yHealthy,GH | 0.375 | yHealthy,GL | 0.834 |
| Planting density (vines/acre) | dGH | 1,564 | dGL | 784 |
| Yield (tons/vine/month) | yHealthy,i,j,t | 0.0002 | yHealthy,m,n,t | 0.0011 |
| Yield reduction (percent)a | ỹs,i,j,t | Depends on s | ỹs,m,n,t | Depends on s |
| s = {Healthy} | 0 | 0 | ||
| s = { Eu, Ed} | 30 | 30 | ||
| s = { Im} | 50 | 50 | ||
| s = { Ih} | 75 | 75 | ||
| Cost Parameters | ||||
| Vine removal and replanting (dollars/vine) | cu,i,j | 14.6 | cu,m,n | 14.6 |
| Vine removal (dollars/vine) | cz,i,j | 8 | cz,m,n | 8 |
| Testing (dollars/vine) | cv,i,j | 2.6 | cv,m,n | 2.6 |
| Operating costs (dollars/vine) | ci,j | 3.6 | cm,n | 2.8 |
| Discount factor (month– 1)b | ρ | 0.9959 | ρ | 0.9959 |
Sources: Values for vineyard H’s parameters are from Cooper, Klonsky, and De Moura (2012), and values for vineyard L’s parameters are from Verdegaal, Klonsky, and De Moura (2012). Grape prices are from the California Department of Food and Agriculture (2014). Removal and replanting costs are from Klonsky and Livingston (2009).
↵a Note that managers are unable to observe yield reduction
for each grapevine; instead they observe average yield.↵b The discount factor is equivalent to an annual discount rate of 5%.
