Unit 1.4. Family farm model – step 4

You modelled the problem below in step 3 (or you can download it here  modelEco_familyFarm_3.zip) :

« 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.

1.   ACTIVITIES 2.   Wheat 3.   Rice 4.   Sugar cane 5.   Livestock
6.   YIELD
(Tons/ha or
Rupees/ha for livestock)		 7.    9 8.    6 9.    18 10.  17000
11.                  COSTS (Rupees/ha) 12.  3120 13.  5480 14.  11360 15.  5000
16.                  PRICE(Rupees/ton) 17.  990 18.  3276 19.  1686 20.  1

For livestock, the value shown in the yield line 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
Water (m3/ha) 740 3000 2200 1100
Land (ha) 1 1 1 1

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

The State reinforces the law concerning water consumption and imposes a 7000 m3  limit per farm. It is possible to buy irrigation water at 2 rupees per m3 . »

 

The farmer’s lack of money (available cashflow constraint) must be taken into account, so that total crop costs must not exceed 20 000 rupees. Modify the model and answer the questions.
If you need help and/or to make sure you use the same name for the data :