Multi-criteria evolutionary algorithm optimization in horticulture crop management

J. West

No 276940, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: Climate variability requires adaptive production systems in agriculture often resulting in significant irreversible investments. Cultivar replacement programs in horticulture orchards that substitute older varieties for more heat- and drought-resilient varieties have enterprise values that are highly sensitive to the timing of such investments. Farm-level replacement programs are subject to multiple constraints around debt serviceability, operating costs, the replacement cycle and the rate of degradation of the existing orchard. The maximization of enterprise value subject to multiple constraints can be reduced to a multi-objective optimization problem. Over long horizons this optimization process generates a very-large solution space. Using a multi-objective evolutionary algorithm we examine uncertainties around climatic effects and the timing of investments for horticultural operations and derive the optimal times to adapt using cultivar replacement techniques. We find that naive switching decisions using traditional valuation methods are found to be suboptimal and can initiate poor decisions, potentially undermining adaptation efforts. We further show that opposing economic and climatic conditions can adversely impact enterprise value based on mistiming the investment decision. Application of the GA solver is demonstrated using a vector-based GIS to a farm where individual portions of an orchard are subject to varying rates of production, degradation and age. Acknowledgement :

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-agr and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:276940

DOI: 10.22004/ag.econ.276940

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