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Improvement of a bio-economic mathematical programming model in the case of on-farm source inputs and outputs

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  • Aghajanzadeh-Darzi, Parisa
  • Jayet, Pierre-Alain
  • Domingues, M.J.P

Abstract

A signicant part of crop productions is not marketed and can be totally (fodders and pastures) or partly (cereals) used on-farm. Regarding inputs, Nitrogen fertilizers are also not only provided by the market, but they are signicantly on-farm provided by livestock. When outputs and inputs are related through technical "dose-response functions, like Nitrogen (N)-yield functions, the optimal gross margin is easily com- puted at the plot level, when input and output are marketed. In this case, market prices are required. The question addressed in this article is how to assess the optimal values when one crop production (respectively one input) is entirely on-farm used (respectively on-farm produced). We propose a simple iterative computation method aiming at replacing market prices by shadow costs. We apply this method to a large set of the bio-economic agricultural supply model AROPAj, which covers a large range of agri- cultural activities over the European Union. This method allows us to keep ecient the basic linear framework of the model even when the yield functions make it non linear.

Suggested Citation

  • Aghajanzadeh-Darzi, Parisa & Jayet, Pierre-Alain & Domingues, M.J.P, 2012. "Improvement of a bio-economic mathematical programming model in the case of on-farm source inputs and outputs," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126768, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:126768
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    References listed on IDEAS

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    1. repec:eee:ecolec:v:146:y:2018:i:c:p:334-346 is not listed on IDEAS
    2. Jayet, Pierre-Alain & Petel, Elvire, 2015. "Economic valuation of the nitrogen content of urban organic residue by the agricultural sector," Ecological Economics, Elsevier, vol. 120(C), pages 272-281.

    More about this item

    Keywords

    Bio-economic farm model; Mathematical programming; On-farm source products; Shadow prices; Research Methods/ Statistical Methods; Q10; Q15; Q50; Q57;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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