Abstract
Quadratic programming models are used in farm planning because risk and uncertainty are involved in the technical and economic coefficients used and the quantities and prices of resources. A special quadratic programming model (the E-V model) was used to plan a Greek farm region, the former Lake of Giannitsa. The resulting plan is preferred by farmers to those resulting from the linear and mixed-integer programming models and to the previously used plan because it includes crops expected to give the highest minimum total gross margin with the same total fixed costs. The farmers want plans that achieve not only the highest but also the most stable economic results.
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