Unit 1.4. Family farm model – step 1

Run GAMS and model the following problem. Then answer the questions (click on “Start quiz”) :

 « A farmer owns 5 ha of land. His family can provide the equivalent of 5 people per year in terms of working time. The number of working days per year and per person is estimated at 100. This farmer can choose between 4 agricultural activities whose costs, yields and prices are shown in the table below. The currency is the rupee.

ACTIVITIES Wheat Rice Sugar cane Livestock
YIELD
(Tons/ha or
Rupees/ha for livestock)		  9 6 18 17000
COSTS(Rupees/ha) 3120 5480 11360 5000
PRICE(Rupees/ton) 990 3276 1686 1

For livestock, the value shown in the yield row directly measures the gross product per hectare. A value of 1 was therefore provided in the price line.

The table below compiles the resource needs for each activity.

ACTIVITIES Wheat Rice Sugar cane Livestock
Labour(days/year/ha) 40.5 96 282 159

The objective of the farmer is to maximize the global gross margin.»

If you need help and/or to make sure you use the same names for the data :

One you have modelled this problem, answer the questions (click on “Start Quiz”).