Agricultural Policy-Making for Integrated Regional Development in a Mixed Economy through a Large-Scale LP Model

Abstract

In order to find comprehensive and integrating solutions to regional development problems one must take into account technological, political, economic, social, and environmental factors, i.e., to apply the integrated regional development approach. This is of particular importance for regional agricultural systems in mixed economies (state, cooperative, and private land property) where sociopolitical factors play a considerable role. The large-scale LP model elaborated is meant for policy analysis and policy-making in such circumstances. Policy is understood in terms of the model as a set of values of resource constraints subject to short and medium term regional allocation optimization. The model determines: agricultural production specialization structure (crop and livestock), commodity and financial flows, agricultural exports and imports, etc., in given natural conditions, i.e., soil qualities, types of property, production technologies, prices, available resources (water, fertilizers, manpower, financial funds, etc.). The paper presents the purpose, structure, and formulation of the model and implementation results for an agricultural region in Poland, currently under a development program.