Agricultural Production Planning Using a Multicriteria Optimization Model

Abstract

Purpose: This study aims to plan agricultural production on a real farm in Poland using an optimization model. Design/Methodology/Approach: Factors, especially variable ones (the weather, economic conditions), make it difficult to plan production on a farm. It is not uncommon for a decision-maker to attempt at achieving several goals simultaneously. Solving such a problem is enabled by a linear-dynamic, multicriteria optimization model. In this study, the optimization criteria related to agricultural income are agricultural production, and organic matter losses in the soil. The empirical material consists of real data on a farm located in the West Pomeranian Voivodeship (Poland). Findings: The solution of a multicriteria, linear-dynamic model has indicated a production structure that ensures correct crop rotation, timely performance of agrotechnical works, and meets the conditions for receiving EU subsidies. It also allowed the highest agricultural income and the largest production under given conditions to be obtained. In contrast, a positive balance of organic matter shows that the environment is not degraded. Practical Implications: Linear-dynamic, multicriteria optimization models can be an effective tool supporting farm production planning. Originality/Value: The model applied for this paper's needs is of high application value. It can be used for crop cultivation farms or mixed production farms for determining alternative plans.