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The Integrated Use Of Simulation And Stochastic Programming For Whole Farm Planning Under Risk

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  • Trebeck, David B.
  • Hardaker, J. Brian

Abstract

Methods of whole-farm planning under risk are briefly reviewed, noting especially associated operational problems. A planning problem relating to spatial diversification of beef production in the Clarence region of N.S.W. is investigated using a model comprising both simulation and linear programming components. It is concluded that such composite models are valuable for the analysis of sequential stochastic decision processes not presently amenable to solution by stochastic programming alone.

Suggested Citation

  • Trebeck, David B. & Hardaker, J. Brian, 1972. "The Integrated Use Of Simulation And Stochastic Programming For Whole Farm Planning Under Risk," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 16(2), pages 1-12, August.
    • Handle: RePEc:ags:ajaeau:22800
    DOI: 10.22004/ag.econ.22800
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    References listed on IDEAS

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    1. Allan N. Rae, 1971. "Stochastic Programming, Utility, and Sequential Decision Problems in Farm Management," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(3), pages 448-460.
    2. John L. Dillon & Alan G. Lloyd, 1962. "Inventory Analysis Of Drought Reserves For Queensland Graziers: Some Empirical Analytics," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 6(1), pages 50-67, September.
    3. Trebeck, David B., 1971. "Spatial Diversification by Beef Producers in the Clarence Region," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(03), pages 1-11, September.
    4. K. D. Cocks, 1968. "Discrete Stochastic Programming," Management Science, INFORMS, vol. 15(1), pages 72-79, September.
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    Cited by:

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    2. Malcolm, Bill, 1990. "Fifty Years of Farm Management in Australia: Survey and Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 58(01), pages 1-32, April.
    3. Patton, Dean A. & Milthorpe, P.L. & Wynne, M. & Honeysett, B.M., 2000. "Evaluation of forage shrub plantations as a drought preparedness strategy for landholders in the Central-west of NSW," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123716, Australian Agricultural and Resource Economics Society.
    4. Marshall, Graham R. & Parton, Kevin A. & Hammer, G.L., 1996. "Risk Attitude, Planting Conditions And The Value Of Seasonal Forecasts To A Dryland Wheat Grower," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(3), pages 1-23, December.
    5. Anderson, Jock R., 1972. "An Overview of Modelling in Agricultural Management," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(03), pages 1-12, September.
    6. Robert, Marion & Thomas, Alban & Sekhar, Muddu & Badiger, Shrinivas & Ruiz, Laurent & Raynal, Hélène & Bergez, Jacques-Eric, 2017. "Adaptive and dynamic decision-making processes: A conceptual model of production systems on Indian farms," Agricultural Systems, Elsevier, vol. 157(C), pages 279-291.
    7. Robert, Marion & Thomas, Alban & Bergez, Jacques Eric, 2016. "Processes of adpatation in farm decision-making models. A review," TSE Working Papers 16-731, Toulouse School of Economics (TSE).
    8. Apland, Jeffrey & Kaiser, Harry M., 1984. "Discrete Stochastic Sequential Programming: A Primer," Staff Papers 13545, University of Minnesota, Department of Applied Economics.
    9. Throsby, C.D., 1973. "New Methodologies in Agricultural Production Economics: a Review," 1973 Conference, August 19-30, 1973, São Paulo, Brazil 181385, International Association of Agricultural Economists.
    10. Ridier, Aude & Chaib, Karim & Roussy, Caroline, 2016. "A Dynamic Stochastic Programming model of crop rotation choice to test the adoption of long rotation under price and production risks," European Journal of Operational Research, Elsevier, vol. 252(1), pages 270-279.
    11. Mill, Stephen J. & Longworth, John W., 1975. "Stochastic-Computerized-Activity-Budgeting For Sheep Enterprises," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 19(2), pages 1-11, August.
    12. Nuthall, Peter L., 1980. "A Survey of Methods for Determining A Planning Horizon," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 48(01), pages 1-15, April.
    13. Behrendt, Karl & Cacho, Oscar & Scott, James M. & Jones, Randall, 2016. "Using seasonal stochastic dynamic programming to identify optimal management decisions that achieve maximum economic sustainable yields from grasslands under climate risk," Agricultural Systems, Elsevier, vol. 145(C), pages 13-23.
    14. Behrendt, Karl & Cacho, Oscar J. & Scott, James M. & Jones, Randall E., 2009. "Bioeconomic analysis of fertiliser input costs on pasture resource management under climatic uncertainty," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47628, Australian Agricultural and Resource Economics Society.
    15. Olson, Kent D. & Mikesell, Chris L., 1988. "The Range Stocking Decision And Stochastic Forage Production," Staff Papers 13502, University of Minnesota, Department of Applied Economics.

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