Linear Programming in Agriculture: Case Study in Region of Development South-Mountenia
Ion Raluca Andreea and
Turek Rahoveanu Adrian Additional contact information Ion Raluca Andreea: Bucharest Academy of Economic Studies, Romania
Turek Rahoveanu Adrian: Institute of Research for Agricultural Economics and Rural Development, Romania
In agriculture, the production structure of farms can be highly diversified to reduce risk and uncertainty related to unsealing the products. To determine the optimal structure of crops, different methods which take into account the income and expenditure of crops per hectare are used. As a result, the area of each crop is identified, so that, in combining them to derive maximum profit level. In this paper, linear programming method is used for optimizing profit, investigating whether, after applying the econometric model, the profit increased or not. The results show that profit rose to 143% and costs reduced to 81%.