The possibility of resorting to seasonal hired labour here allows the farmer to hire workers in summer, and to loosen his labour constraint during that period. This allows him to cultivate intensive tomato, which is the most profitable crop. He grows 30 hectares of it, and uses up the totality of the water available. On the remaining 20 hectares he chooses to grow non-irrigated wheat. The resulting income is thus 38 800 euros. The farmer hired workers for 1800 working hours during the summer, for a total cost of 18000 euros a year, which were deducted in order to calculate his income.
In optimum conditions, cropping pattern is as follows :
| Cropping pattern | ||
| Technology | extensive | intensive |
| Wheat | 20 | |
| Maize | ||
| Tomato | 30 | |
The income is of : 38800€.
Download the solution model : labour2.gms
