Evaluation of the least cost option to manage pastures in a wet winter in south-eastern Australia

Michael Young, John Young, Ross S. Kingwell and Philip E. Vercoe

AFBM Journal, 2023, vol. 20, issue 3

Abstract: Farm management occurs against a backdrop of weather-year variation. In Australian mixed enterprise farming systems, how important is it for farm optimisation models to capture this variation and the management tactics matched to that variation? This study compares two whole farm optimisation models of an Australian mixed enterprise farming system. One model represents weather-year variation and the short-term tactical management responses tailored to the unfolding weather-year conditions. The other model is a traditional deterministic steady state model that employs the key assumption that every year is an expected weather-year. Both models require the farm manager to select a profit-maximising suite of enterprises and activities relevant to either the expected weather-year or the suite of weather-years that typify weather-year variation where the farm is located. Comparison of the models’ results reveals key differences in farm strategy, farm tactics and farm profit. The model that includes tactics aligned to the weather-year variation reveals that tactical decision-making increases expected farm profit by about 18 per cent.

Keywords: Agricultural Finance; Farm Management (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/341181/files/A ... er-3-Young-et-al.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:afbmau:341181

DOI: 10.22004/ag.econ.341181

Access Statistics for this article

More articles in AFBM Journal from Australasian Farm Business Management Network Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().