SELECTION OF AGRICULTURAL LAND FOR MULTIFUNCTIONAL AGRICULTURE - QUANTITATIVE MODEL

Nebojsa Novkovic, Sandor Somodji and Milenko Matkovic

No 57504, 113th Seminar, December 9-11, 2009, Belgrade, Serbia from European Association of Agricultural Economists

Abstract: The modern concept of rural development implies the use of agricultural resources, primarily agricultural land, for other (non-agricultural) activities besides its agricultural purpose. The integral aim of this concept of rural development is the maximization of economic results, besides the sustainable development of rural areas, environmental protection and the production of strategic (staple) agricultural products. The objective of this paper is to define the general, theoretical, quantitative model for the determination of the size and quality of agricultural land which, considering the above-mentioned demands (criteria) is optimal for the utilization in agricultural production in certain regions. The remaining agricultural land would be available for the non-agricultural purposes. The economic optimal model for the selection of agricultural land in the traditional agriculture is the model of linear programming. The criteria of the land selection for traditional agriculture are the economic effectiveness (measured by net income or by gross national product) and the economic efficiency (measured by the production economy). The maximum economic effectiveness is determined by the standard method of linear programming and the maximum economy by the method of broken linear programming. The solution of compromise can be determined by multi-criteria programming, based on the minimum differences. The limitation groups in the mentioned variations of the model are: limitations of production quotas of agricultural products, minimum quantities of staple agricultural products, limitations of processing plants in a region (minimum and maximum), limitation of crop rotation, limitations of the needs in animal husbandry for bulky forage and limitations of agricultural land according to various types of utilization. By quantitative defining of the structure and size of agricultural land for traditional agriculture, “the surplus” and structure of agricultural land available for non-agricultural purposes is automatically determined.

Keywords: Agribusiness; Land Economics/Use; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 8
Date: 2009-12
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ea113a:57504

DOI: 10.22004/ag.econ.57504

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