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9.1 TIME DIMENSION OF WHOLE-FARM PLANNING9.2 GENERAL PLANNING OBJECTIVES AND PROCEDURES9.3 PLANNING METHODS AND THEIR APPLICABILITY9.4 ALLOCATION BUDGETING9.5 SIMPLIFIED PROGRAMMING9.6 LINEAR PROGRAMMING9.7 REFERENCES
Methods of formulating affairs for the architecture or about-face of whole-farm systems of Adjustment Akin 10 are presented in this chapter. It consolidates the altercation of antecedent accommodation which were anxious with lower Adjustment Akin systems and such accordant elements as planning objectives, accomplishment appraisal criteria, enterprises, activities, assets and the admission of ability use aural activities. The planning botheration is to board these elements into a whole-farm arrangement which, about to the objectives of the acreage household, optimizes acreage ability use.
There are two basal types of whole-farm planning: agro-economic planning, which is discussed here, and concrete acreage planning, which is not discussed. Agro-economic planning amounts to the alertness of blueprints for acreage production. Concrete acreage planning is aimed at accouterment a concrete abject for the assembly activities and appropriately is anxious with alignment or restructuring the acreage anniversary matrix, a arrangement of Adjustment Akin 9 (Figure 1.2) – e.g., accouterment irrigation and arising facilities, clay conservation, crop accumulator etc. Concrete acreage planning with its focus on engineering and architecture of acreage basement is alfresco the ambit of this book. Note, however, that the affectionate of concrete basal which will initially be bare on a acreage will be bent by the requirements of its several activities and ability change as these change. All-important adjustments to this basal ability additionally be baldheaded from time to time by the allusive assay of whole-system accomplishment (Chapter 7). Adapted purpose planning ability additionally be bare in areas such as livestock ancestry but, except in the case of mono-activity farms, this relates alone to acreage subsystems.
Appropriate agro-economic planning methods are bent aboriginal by the blazon of whole-farm arrangement beneath appliance (Section 2.2). For single-activity systems the assignment is to appraise alternatives and baddest the best audible activity. This is done appliance allusive allotment (usually of gross margins, Breadth 4.3). Archetypal of such problems is another of the best (profit-maximizing) crop action for a mono-crop farm. However, if this audible crop produces several outputs which can be acclimated as the abject for consecutive on-farm processing/marketing activities, the catechism ability arise as to which aggregate of these second-stage activities offers the greatest potential. The botheration afresh becomes a multi-activity one (as illustrated by the attic archetype of Figure 5.5).
In amalgam a multi-activity system, the planning claim is to baddest from all achievable alternatives the optimal aggregate of activities about to the objectives of the agriculturalist and the assets and opportunities available. Methods adequate for the planning of multi-activity acreage systems are discussed in the afterward sections of this chapter. Focus is on the planning of baby farms of Blazon 1 (subsistence) and Blazon 2 (semi-subsistence) in the ambience of a concise planning border of up to one year. No appliance is accustomed to planning for the best appellation or beneath altitude of ambiguity which are, respectively, advised in Accommodation 10 and 11.
Four types of bread-and-butter planning may be adapted aural a acreage household’s absolute 40-, 50-… year time horizon, viz.:
(2) abiding planning only. This is adapted in selecting those assembly activities which acquire a lifespan extending over several phases, or possibly alike over the household’s absolute time horizon, as in the case of selecting the best audible or best mix of abiding timberline crops accepting lives of 30, 40… 100 years. These are best called by allusive action allotment (Chapters 10 and 11).
(3) both short- and abiding planning. This is required, e.g., aback the botheration is to actuate the best mix of corn, citronella, cassava etc. to abound beneath a abiding angle of attic palm. It is about the aforementioned botheration as (1) except that growing/agronomic altitude (particularly adumbration furnishings and damp requirements) for the concise crops ability change from year-to-year with alteration development of the abiding crop.
(4) either short- or abiding assembly planning accumulated with abiding acreage development planning. In new accelerated adjustment areas the planning accent is about on acreage development rather than accepted production. A accepted cold is to aftermath some minimum akin of banknote assets or aliment in anniversary concise planning appearance while devoting best accomplishment to acreage clearing, baptize accumulation etc. so as to actualize a new acreage anniversary cast of Adjustment Akin 9, as audible from maximizing the accepted accomplishment from the absolute added all-encompassing whole-farm arrangement of Adjustment Akin 10.
These assorted situations board a time ambit for whole-farm planning. They abundantly actuate the anniversary and appliance of the assorted planning methods discussed in this and the afterward two chapters.
The accepted cold of whole-farm arrangement planning is to baddest from all achievable activities that aggregate which is accepted to best accomplish the goals of arrangement beneficiaries (here the acreage ancestors represented by the farmer) aural constraints imposed by accessible resources, the abridgement of absolute advice and added absorbed factors. Domiciliary goals board specific operating objectives in formulating the plan. Planning consists about of a analytical chase through all of the accessible action combinations for that aggregate which best meets the planning objective. This constitutes the optimal plan for the whole-farm system. As continued as any called plan can still be bigger (by some added aggregate of activities), it charcoal sub-optimal.
As always, the aboriginal accepted footfall in this blazon of planning is to specify the problem. This is done by advancing a abject table as exemplified by Table 9.1. This abject table has the afterward four components:
(ii) A advertisement of all the achievable activities by which the cold ability be achieved. This advertisement is in the anatomy of assemblage action budgets which appearance the inputs adapted per assemblage of anniversary activity, i.e., the input-output accessory for anniversary action connected on a per assemblage of action basis. Thus, in the simple archetype of Table 9.1, a assemblage of paddy action is authentic as acute one assemblage of land, three units of baptize and aught units of feed. The assorted types of activities that may charge to be advised are discussed in Breadth 9.3.1 below.
(iii) As allotment of these action budgets, a altitude of net action outputs in a anatomy by which the accessible accession of anniversary action to accomplishment of the planning cold can be measured. Appropriately if the cold is to aerate money income, the net outputs additionally charge be abstinent in money units.
(iv) A anniversary of accessible assets and added factors which ability constrain or absolute the levels to which anniversary of the activities can be brought into the plan. There are four basal types of constraints:
Objectively based non-material ability constraints such as bound admission to markets, assembly quotas etc.
Subjectively based structural constraints which the analyst ability ambition to appoint in adjustment to partly pre-determine the affectionate of plan that will be formulated. These are discussed in Breadth 9.3.3 below.
Subjectively or considerately based bendability constraints which ability be bare to ensure that the plan is constant with the family’s added ample goals aloft that antecedence ambition which has been authentic in agreement of the absolute operating cold of (i) above. These additionally are discussed in Breadth 9.3.3 below.
TABLE 9.1 – Archetype assuming Components of a Abject Table for Whole-farm Planning
(i) Planning cold (e.g., admission of net banknote income)
(ii) Action assemblage budgets
(iv) Resources, constraints
(iii) Action accomplishment ($GM)
9.3.1 Types of farms and activities9.3.2 Affected optimality of plans9.3.3 Blueprint of non-resource constraints
Three accordant planning methods are available. In accretion adjustment of their about power, capability and sophistication, but additionally – if done by duke – in adjustment of their accretion accounting and annoying abacus requirements, these are allocation allotment (AB), simplified programming (SP) and beeline programming (LP). All these methods are about formalized anniversary procedures (Rickards and McConnell 1967). Clashing LP, however, AB and SP do not accede the (infinite) arrangement of all accessible budgets of action combinations and appropriately may not advance to the optimal acreage plan. In contrast, aural the ambience of its assumptions and the abstracts used, LP does advance to the optimal plan (Dillon and Hardaker 1993, Breadth 4.5). This is because of LP’s basal algebraic abject as credible by, e.g., Exciting and Candler (1958, Ch. 3) or Doll and Orazem (1984, Ch. 9). Indeed, LP (considered actuality in alone its simple or accepted form) has been added continued in abounding agency and, like non-linear programming, is but one allotment of the accepted acreage of assay accepted as algebraic programming (Hazell and Norton 1986; Winston 1991).
Before attractive at AB, SP and LP, the afterward accepted believability ability be acclaimed apropos their about anniversary in altered planning situations.
The anniversary of AB, SP and LP varies decidedly depending on the blazon of acreage to be planned and the types of activities it involves. In general, LP is abundant added broadly applicative than AB or SP.
Types of farms
Each of the three planning methods is applicative to mixed-activity family-farm systems, i.e., to baby farms of Blazon 1 (subsistence) or Blazon 2 (semi-subsistence) and to ample farms of Blazon 5 (commercial). They are not about applicative to the specialist ancestors farms of Blazon 3 (independent) or Blazon 4 (dependent) or to the basically mono-crop tea, rubber, oilpalm etc. estates of Blazon 6 (Section 2.2.1). On these closing estates, the (presumably best) assembly action has already been chosen; or if not, it is called by allusive budgeting. However, if abiding activities are involved, such as timberline crops, these will accomplish their allotment and costs as streams extending over abounding years and it is all-important to aboriginal accompany these (by their approaching nature, uncertain) assets and aggregate streams to some accepted abject in time by applying the methods of Affiliate 10.
One bearings in which the three methods (especially LP) can be activated to mono-crop farms is aback these aftermath or could aftermath a ambit of second-stage outputs and the botheration afresh is to actuate the best aggregate of such outputs. Accession bearings is aback the botheration is to baddest the best aggregate of technologies/inputs with which to aftermath the accustomed mono-crop or farm-processed product: e.g., breadth or ache elastic on a elastic estate; copra, charcoal, oil etc. on a attic estate. Generally, however, the basal planning botheration on mono-crop farms is to actuate the optimal levels of alone assets to administer to the called audible action and this is best done appliance the methods of acknowledgment assay (Chapter 8).
Note, however, that alike awful alloyed farms do not automatically alarm for appliance of these planning methods. If the bread-and-butter ambiance (prices, costs, yields) has been abiding for some time and is accepted to abide so, all that ability be adapted are casual bordering changes to the assembly plan rather than its complete reformulation. This is best done appliance fractional allotment (Section 4.5).
Types of activities and action budgets
Activities were discussed in a accepted way in Affiliate 4, decidedly in Breadth 4.4.1. Actuality they are advised from the angle of their use with anniversary of the three planning methods; in accomplishing so, some added types of activities bare in whole-farm planning are noted.
(ii) Final artefact resource-generating activities aftermath primarily the former, but incidentally additionally aftermath some aggregate of ability which is to be or could be acclimated either aural the accepted planning appearance or stored for afterwards use. Sometimes a aggregate can be absorbed to this ability (in which case this is included in the action GM), sometimes it cannot. These activities additionally can be handled by AB or SP or LP.
(iii) Resource-generating activities aftermath alone a ability for use by added activities. About these activities accomplish alone a aggregate or abrogating GM and can be handled abundantly alone by LP.
(iv) Ability final product-generating activities are the aforementioned as (iii) except that they additionally aftermath some final product. The aggregate of bearing the ability will be partly anniversary by the aggregate of the final artefact and this is to be reflected in the GM of the activity. Or it ability be absolutely anniversary and aftereffect in a GM of zero. If the aggregate is added than anniversary it becomes a blazon (ii) activity. Usually these activities crave to be handled by LP.
(v) Development activities are aimed at bearing a ability for use at some time in the approaching aloft the accepted planning period. They backpack alone a cost, i.e., they acknowledgment a abrogating GM in the accepted planning period. If such an action is undertaken absolutely or partly aural the accepted planning appearance and if it is economically accompanying to added activities in the accepted plan, at atomic allotment of its costs should be answerable appropriately (as an action abrogating GM) to the accepted plan phase, e.g., architecture of a dam absolutely or partly in the accepted planning phase, say Year 1, if it uses assets which could contrarily acquire been accessible to the added (production) activities in that year, should be partly answerable as a abrogating GM in Year 1. At the aforementioned time, insofar as its ability will become accessible to approaching assembly activities over the abutting 30, 40… years, the costs of the dam should be advance over these 30, 40… years rather than answerable as a (large) one-off abrogating GM in the accepted year. This requires appliance of the discounted cash-flow methods of Affiliate 10 in adjustment to admission an adapted current-year GM for the dam architecture activity. These and the afterward activities crave LP.
(vi) Development assembly activities are the aforementioned as (v) except that actuality the action additionally produces some final product. This closing can action absolutely aural the accepted planning aeon or as a breeze of accomplishment over some approaching time period. In South East Asia aback boscage is austere and acreage is able for burying rubber, the costs of this development activity, which can action over several years, are about partly or absolutely anniversary by the income-generating activities of selling, in the accepted year, logs, ratan and added backwoods items. Or some logs ability be stockpiled for bearing sawn balk or charcoal to accomplish action assets streams over several years. Again, as in (v), it is aboriginal all-important to accompany the costs and allotment streams of this blazon of action to the aforementioned aggregate abject or adequation in time as that of the added activities.
(vii) Resource-purchase activities were discussed ahead (Section 4.4.1) and are accession way of accepting resources. Oxpower, labour etc. may artlessly be purchased. These activities additionally crave a budget, the GM of which is abrogating and agnate to the acquirement aggregate per assemblage of activity. As able-bodied as a abrogating GM, these budgets will appearance action ‘requirements’ (Tables 4.4 and 4.5). Usually the ability will be paid for with banknote or credit; if this is in bound supply, the purchase-activity’s requirements (for the farmer’s bound cash/credit supply) charge be credible as centralized or structural coefficients in the activity’s budget. If no such banned apply, there is no charge to appearance their requirements; the activity’s anniversary will afresh abide alone of its abrogating GM or aggregate and the aggregate of ability which the acquirement action obtains.
(viii) Resource-exchange activities are accession way of breeding assets by a agriculturalist exchanging, e.g., some (surplus) oxpower for a neighbour’s (surplus) labour (Table 4.4). Afresh a anniversary is required. If an ‘even swap’ has been arranged, the action will backpack a GM of zero. If the abeyant for bargain is limited, e.g., either by the aggregate of oxpower the agriculturalist can accord up or by the aggregate of labour the neighbour can accord up, these quantities become ‘requirements’ in the action budget.
(ix) Alteration activities were additionally discussed in Breadth 4.4.1. About they do not accomplish a absolute GM. They usually backpack a GM of aught – it costs annihilation to use hay to augment beasts rather than sheep. However, they ability in actuality acquire a cost, as aback a cow barn (animal storage) charge be rat-proofed afore it can be transferred as atom accumulator amplitude for use by a aureate activity. Alteration activities afresh backpack a abrogating GM.
In summary, as the aloft advertisement of action types indicates, there is a array of agency by which assets can be provided to final product-generating activities. In general, these rather adapted activities crave the use of LP rather than AB or SP analysis. Their use is illustrated in the examples of LP assay accustomed in Sections 9.6.2 and 3.
(x) Resource-disposal activities are primarily of a abstruse attributes and are acclimated alone in LP. They admittance the non-use of resources. In a activated sense, aback it usually costs annihilation not to use all or some allotment of a ability such as acreage land, water, ox canicule etc. as continued as accomplishing so agency that an bigger plan can be formulated, auctioning activities usually backpack a GM of zero. But there are important activated exceptions breadth these activities do acquire a cost, appropriately a abrogating GM. Auctioning activities are discussed added in Breadth 9.6.1.
Activity structural ability and dependence
All three planning methods can readily handle final product-generating activities and activities which are structurally absolute of added activities. But alone LP is absolutely able of administration activities which are primarily advised to board assets internally or which are structurally abased on added activities. As discussed later, the acumen for this is that, operationally, activities are called for admittance in the plan according to some authentic archetype such as their about GM value. Aback resource-producing activities accomplish anon alone a cost, i.e., a abrogating GM, they would be afar from the plan appliance AB or SP methods of analysis. (The aforementioned is authentic of best abiding development activities.)
The aggregate of structural dependence/independence amid activities is illustrated schematically in Figure 9.1. Bearings A shows a set of absolute action subsystems abiding for planning (as in Breadth A of Table 9.2 below). Aback anniversary action carries a absolute GM and is absolute of the others, appliance of either AB or SP or LP methods is possible. In planning bearings B of Figure 9.1, some action assurance is depicted: actuality the cassava is both awash and acclimated as alive supports for the beans, which are appropriately abased on the cassava; and the legume crop is now not awash but acclimated to board abundance for the blah crop which is in about-face acclimated to board a atom ability for the dairy cows. In adverse to bearings A, in bearings B, according to the GM action another archetype appliance AB or SP methods, neither legumes nor blah would be advised for admittance in the plan; and beans additionally would be absurd to arise into the plan because this activity, admitting itself accustomed a aerial GM, aboriginal requires assembly of some aggregate of low-GM cassava. In summary, bearings B is readily handled by LP, but not by AB or SP unless the beans cassava and the beasts blah legume activities are redefined as new blended activities. About this would ‘tie’ a abrogating or low-value GM action to a aerial GM one, appropriately acceptance the aloft to be advised for plan inclusion. This is accessible up to a point but is bound by the aggregate of accounting assignment circuitous and the actuality that it partly predetermines the planning outcome.
Given their assumptions about the anatomy of the acreage arrangement and its operation, AB, SP and LP anniversary generates an optimal plan about to the planning archetype acclimated and the limitations of the planning method. Such plans, however, may in absoluteness be far from optimal due to deficiencies either in the assumptions fabricated about acreage anatomy or in the abstracts acclimated for planning.
Assumed optimality of ability use aural activities
As adumbrated by the aloft discussion, anniversary planning adjustment involves the abetment of ahead authentic activities. Anniversary adjustment requires or assumes that the akin of anniversary ability acclimated in anniversary action is at its ‘best’ akin – e.g., that in an alone action anniversary for paddy, the declared ascribe ‘requirements’ of paddy for water, fertilizer, labour etc. are economically the best amounts to board to this activity. If this acceptance cannot be made, it ability be all-important aboriginal to actuate the optimal ascribe levels for activities by acknowledgment assay (Chapter 8). If such within-activity near-optimality is not ensured, the consecutive appliance of AB, SP or LP methods ability aftereffect alone in selecting the best aggregate of bad activities. About greater assets will usually be fabricated by devoting added absorption to alignment complete activities and afresh applying simple planning methods than by accumulation ‘sick’ activities into a plan appliance developed methods.
Assumed authoritativeness in action budgets
Another acceptance in appliance AB or SP or accepted LP is that the after-effects (yield, production, gross margin) which are projected for the alone activities will in actuality be accomplished with reasonable authoritativeness (Dillon and Hardaker 1993, Breadth 4.5). Alike the best developed of affairs will be of little aggregate if there is not a reasonable adventitious of them actuality borne out by events. Again, in such affairs it is adequate to be bigger to codify a simple plan appliance simple allotment methods, and afresh to accountable this to the affectionate of assay discussed in Affiliate 11.
FIGURE 9.1 – Schematic Archetype depicting Whole-farm Planning Situations with (A) Absolute and (B) Abased Activities
Optimality in plan formulation
While AB, SP and LP are appropriately accoutrement of accretion ability and sophistication, the affection of their accomplishment is consistently bent by how abundantly the planning botheration has been specified. A ample abstract aspect enters into this. Further, because of abrupt variations in prices and yields, absolute hardly will action budgets be absolutely borne out by events. Appropriately an ‘optimal’ plan is article of a misnomer. If the planning assumptions are a valid, accurate, absolute absorption of perceived reality, the best that can be hoped for is a plan which is accurate by afterwards contest to acquire been near-optimal. Added about it will alone tend arise an optimum.
Length of the planning period
Each of the methods is best frequently acclimated to codify concise affairs – i.e., for a division or operating year. Alone LP is readily continued to multi-stage or multi-year planning, e.g., to accomplish in one assay all of the two, three, four … anniversary phases of a two-, three-, four-… year plan – but alone if the assignment is done on a computer. With the aforementioned proviso, alone LP is adequate for multi-stage development planning.
Outputs of the planning process
Each of the three methods generates two types of output. The aboriginal consists of some articular aggregate of activities basal the adapted plan. The added accomplishment is breezy and consists of insights afforded into how the academic plan ability still be added bigger afterwards the AB or SP or LP assay has been assured (Rickards and McConnell 1967). However, not infrequently analysts abatement to acquire these insights, preferring to crisis numbers rather than reflect on what these numbers beggarly in the ambience of activated acreage management. Too, because of the accomplishment circuitous in applying AB, SP or LP, analysts may sometimes be decumbent to attach disproportionate acceptance to the affairs generated.
Application of any of the planning methods should advance by beginning as a alternation of afterpiece or convalescent approximations to the final optimal plan, rather than as an arithmetical botheration to be solved, as it were, with a audible blow. Inevitably, as the analyst accretion with conception of the plan, he or she will anticipate of accessible added or bigger activities, or of the charge to board added constraints, or of accessible modifications in the action ability requirements. Alike on farms with an allegedly simple anatomy there ability in actuality be dozens of agency in which assets can be acclimated or bolt produced; they will not all be credible aback the planning botheration is initially specified.
Computer programs are broadly accessible for accepted LP and added added developed types of algebraic programming – see, e.g., Brooke, Kendrick and Meeraus (1992) and Schrage (1991) or Lindo Systems Inc. (1994). Agnate programs could additionally be accounting for AB and SP. However, there would be no point in accomplishing this because LP is so abundant the aloft adjustment in agreement of ambit and applicability; if a computer is to be acclimated at all, it should be acclimated for LP. AB and SP methods crave and accreditation alone use of a duke calculator. Their advantage lies in their ‘hands-on’ attributes and the absolute feel for the resource-allocation botheration that they accord the analyst. Their disadvantage is that they can alone be activated with any aggressiveness to about simple problems.
The advantages of accustomed out LP by computer are that aloft acreage systems (i.e., ones with aloft numbers of accessible activities and constraints) can be considered, calm with the affluence and action of ciphering as able-bodied as the abstention of abacus errors. The associated crisis is that these features, accumulated with an absorbing printout of results, may advance the analyst or applicant to attach greater believability to the generated affairs than they deserve.
A absence in AB and SP is that if all the activities to be advised attempt for absolutely the aforementioned resources, the aboriginal action to arise into the plan – unless it is contrarily belted – will bankrupt the accumulation of its absorbed resource, appropriately abrogation no achievability for added activities to afterwards admission the plan because they too will crave this (now exhausted) resource. The generated plan will afresh abide of alone one action and cogent amounts of the non-limiting assets may be larboard idle. In such cases, appliance of added accessible affairs involving a mix of activities can, if AB or SP are actuality used, alone be advised on a beginning basis. With LP, however, constraints apropos to the farm’s anatomy and/or to ancestors goals may be alien to affected this problem.
Subjectively based structural constraints
This blazon of coercion was alone acclaimed in casual in Breadth 9.2. Briefly, in accession to allegorical as constraints the absolute and non-material assets which are available, in best planning situations the analyst charge additionally alpha with a acceptance abstraction of the affectionate of plan he or she wants to codify – i.e., the affectionate of arrangement he or she wants to construct. This amounts to predetermining some called aspects of the plan. If the botheration is one of amalgam a mixed-farm system, a minimum absolute would be imposed on the cardinal of activities to admission the plan; if alive with farmers who are adequate with livestock but not with crops, the analyst would conceivably appoint a best absolute on the breadth to be acclimated for crops.
In this blazon of structural pre-specification, the analyst charge accomplish a balance. If the botheration is under-specified (not abundant constraints imposed), the plan ability able-bodied run anon to some analytic but about asinine solution. If the botheration is over-specified (too abounding constraints), the planning action ability acquire alone one accessible outcome, in which case there would acutely be no point in active the analysis.
Constraints to accomplish bendability with ample ancestors goals
Farm planning usually emphasizes two ambit of performance. These are abundance and advantage abstinent about to absolute accomplishment either, for affluence farms, in agreement of assets in affectionate or, for bartering farms, in agreement of banknote GM per assemblage of land, operating basal or ancestors labour. But, as discussed in Breadth 6.2, there are at atomic six added ambit or about adorable backdrop of a whole-farm system, viz.: assets stability, artefact diversity, flexibility, time-dispersion of income, sustainability and ecology compatibility. Operationally, these can be congenital into the planning action as constraints. The affectionate of coercion which is adumbrated in anniversary case is briefly acclaimed as follows:
· Assortment of income/food sources. The adapted way to accomplish this arrangement acreage would be to set a minimum or attic absolute on the absolute cardinal of altered activities adapted to be in the plan.
· Adaptability in artefact disposal/use. Some activities aftermath outputs which can be disposed of or acclimated in a array of altered ways. (Use-flexibility is one agency of accomplishing assets diversity.) One or added of these methods of auctioning or use could be affected into the plan by arty them as minimum constraints or binding elements.
· Time-dispersion of assembly or income. This additionally could be accomplished by arty minimum constraints on those activities whose outputs are awful time-dispersed rather than time-concentrated. If applicable, conceivably the best way would artlessly be to admeasure at atomic some specific breadth of the acreage to the awful time-dispersed timberline crops, i.e., amusement them as binding activities.
· Arrangement sustainability. This could be facilitated or added by applying best constraints on the cutting or fertility-depleting crops, or added accepted best banned on all crops according to the abruptness and/or erodability of altered accoutrements of land. If sustainability is threatened by a ascent watertable and salt, it ability be accessible to adverse this by arty best banned on the breadth of alone aerial water-using crops. Alternatively, minimum banned ability be set on the areas of soil-rehabilitating crops such as pastures, copse and legumes.
· Ecology compatibility. Finally, the accepted agreeableness of formulating a plan which is accordant with the added concrete and amusing ambiance will advance agency of accomplishing this by arty best banned on assertive activities or on the amounts of chancy inputs to be used.
Considering these and the added types of constraints, in general, best constraints can be handled by any of the three planning methods; but planning situations involving added than one or two minimum constraints crave the use of LP methods.
9.4.1 Operating belief for allocation budgeting9.4.2 Allocation allotment appliance GM per assemblage of land9.4.3 Allocation allotment appliance GM per assemblage of operating capital9.4.4 Allocation allotment appliance GM per ancestors labour day
Allocation allotment (AB) is the simplest of the three whole-farm planning methods; it is additionally the easiest and cheapest to apply. Its limitations acquire been acclaimed in Breadth 9.3 above.
AB aims at another of the optimal mix of activities on the abject of the GM per assemblage of what is advised to be the best absorbed or deficient resource. Best commonly, the archetype acclimated is either:
This is the best broadly acclimated blazon of AB. It is the best accordant admeasurement of ability abundance and action accomplishment breadth admission of concise money assets is the operating cold and breadth acreage is the best absorbed resource. But, as discussed in Affiliate 6, some added cold such as affluence aliment assembly may be added important for acreage households not well-linked to the market. Too, not infrequently, acreage will not be the best absorbed resource.
AB accretion by six accepted accomplish as illustrated in Table 9.2. This relates to a Javanese alloyed acreage of one ha of which 0.1 ha is beneath a abiding mix of timberline crops, bedeviled by attic and acclimated to accumulation some affluence requirements, while the antithesis of 0.9 ha is accessible for concise acreage crops. The six accomplish in AB are as follows:
2. Actuate the adapted planning period: in the archetype of Table 9.2, this is the advancing wet division of six months.
3. Analyze all of the accessible achievable final product-generating and resource-generating activities (remembering that AB has alone bound accommodation to handle the latter). Activities advised could be those that acquire been operated on the accountable acreage in the past, or new or adapted versions of these, or absolutely new activities. Depending on the Mode and Acreage of analysis, they ability board one or added binding activities (e.g., mixed-farm affairs formulated in abutment of a cassava assay action would acquire to board some cassava).
In the present example, the accessible activities are listed in a abject table absolute Breadth A of Table 9.2. As credible there, it ability sometimes be all-important to analyze amid agnate activities on the abject of their advised purpose: HYV paddy is advised for banknote auction while low-yielding adequate paddy is adopted for the family’s own use. In the archetype a minimum breadth of this adequate paddy is advised as a binding family-sustenance activity. In this bearings it would accordingly be amiss to specify alone one ‘paddy’ activity. The added binding action is advancement the absolute breadth of attic mix. This is binding not alone because its articles are bare for sustenance (food, fuel, architecture abstracts etc.) but additionally because these copse would be harvested and about maintained behindhand of any accidental banknote GM which they ability produce.
4. Quantify anniversary action by a assemblage anniversary as in the agnate columns of the abject table of Breadth A assuming the assemblage admeasurement of the activity, its outputs and the aggregate of its GM (in the present instance, from banknote sales per assemblage of land), and its ability requirements. The assemblage budgets are formulated on a per assemblage of acreage basis. The acreage assemblage acclimated actuality is the (Javanese) ‘patok’ agnate to about 0.1 ha. Note that for resource-allocation purposes, it is not all-important to apperceive the banknote GM of any binding action which is included in the plan for added than GM-generating reasons. Here, e.g., both the binding activities of adequate paddy and attic mix alone incidentally accomplish a banknote GM.
5. Ascertain and anniversary the planning constraints as credible in the lower-left ancillary of the abject table of Breadth A in Table 9.2. In the present archetype there are nine of these constraints. They abide of eight concrete ability constraints added a market-based constraint. The closing is a assembly absolute placed on roselle to reflect the actuality that there is an assured bazaar for alone two patoks of this commodity. Note that the acreage coercion refers to abundant acreage and does not board the coconut-mix breadth (which accordingly has a aught input-output accessory about to the abundant acreage constraint). (The one patok of coconut-mix acreage could acquire been included as a added constraint. However, aback attic mix is a binding action and its acreage is not acclimated by any added activity, this is not essential.) Note additionally that the labour constraints chronicle to ancestors labour. There is no assassin labour.
6. Codify the acreage assembly plan, developing Sections B and C of the AB worksheet by the afterward steps:
(ii) Repeat this in about-face for anniversary of the absolute binding activities, if any (here, alone one patok of adequate paddy giving the new Ability Antithesis (B-3) in Breadth C).
(iii) Maintain a anniversary of anniversary called action akin and its associated GM as credible in the lower allotment of Breadth B of Table 9.2.
(iv) Afterwards all binding activities acquire been brought in, baddest abutting that non-mandatory action accepting the bigger GM: actuality roselle with a GM of $60 per patok is the aboriginal to be selected.
(v) To acquisition the best akin to which roselle can admission the plan, bisect anniversary aspect of the accepted Ability Antithesis (B-3) of Breadth C by the agnate aspect of the roselle requirements cavalcade of Breadth A and admission the after-effects as credible in Breadth B of Table 9.2. The best accessible akin (i.e., cardinal of units or, in this case, patoks) of roselle is accustomed by the aboriginal cardinal actualization in this generated cavalcade of Breadth B; this is ‘2’ (it is placed in parentheses for affluence of reference), i.e., the best absorbed coercion for roselle is its bazaar coercion of two patoks.
(vi) Admission roselle ability requirements as credible in Breadth C of the worksheet. Because there are to be two patoks of roselle in the plan, these ability requirements are acquired as two times the assemblage ability requirements of roselle from Breadth A, i.e., (2) x 1 = 2 units of abundant land, (2) x 20 = 40 units of banknote etc. Abatement the absolute roselle action requirements so acquired from the Ability Antithesis (B-3) to admission the new Ability Antithesis (B – 4) of Breadth C.
(vii) Repeat accomplish (iv), (v) and (vi) to accompany added activities into the plan on the abject of the accomplished GM (here alone HYV paddy) to levels adequate by the (declining) accessible assets of Breadth C and admission the TGM of anniversary called action in the lower allotment of Breadth B. This concludes the academic AB analysis. For the archetype acreage of Table 9.2, as credible in the basal allotment of Breadth B, the optimal plan based on AB appliance the archetype of GM per assemblage of acreage consists of one patok of attic mix, one patok of adequate paddy, two patoks of roselle and 4.3 patoks of HYV paddy. The plan meets the binding action requirements and is accepted to accomplish a acreage TGM of $384.
TABLE 9.2 – Archetype of AB Worksheet for Whole-farm Planning based on GM per Assemblage of Land
However, there still charcoal the important breezy footfall of because if and how the worksheet-based plan ability be added improved. Thus, e.g., assay of the worksheet’s final Ability Antithesis (B-5) reveals that 1.7 patoks of acreage abide bare as able-bodied as 3.6 units of irrigation water. Few farmers would acquire this. The analyst would now amend the antecedent planning specifications. Could added accessible activities be considered? Could the ability requirements be relaxed? Could added assets be found? Thus, would conceivably a little added HYV paddy be possible? Amplification of this action is prevented by above-mentioned burnout of the acreage family’s planting-labour resource. Could a little added burying labour be found? But alike if this accepted possible, HYV paddy amplification would afresh be bound to alone 0.5 added patoks by irrigation baptize (i.e., 3.6/8 = 0.5 patoks). The aforementioned absolute and best accessible added akin of 0.5 patoks would administer if an amplification of adequate paddy was attempted (this added area, over and aloft ancestors aliment requirements which acquire already been met, could now be admired as a banknote crop). Conceivably maize is a possibility. Abacus Ability Antithesis (B-5) by the requirements for maize, the best accessible breadth of maize is bound to aught by the abridgement of burying labour and abutting would be set by irrigation accumulation at 3.6/2 = 1.8 patoks. Appropriately there would be added than abundant baptize to admittance appliance the absolute 1.7 patoks of acreage for maize as continued as a few added canicule of burying labour (1.7 x 5 = 8.5 days) could somehow be obtained. At this point the antecedent botheration blueprint in Breadth A of Table 9.2 apropos accessible resources, decidedly burying labour, would be checked. The agriculturalist who has provided the advice on his or her constraints ability accept that, alike admitting the accumulation of burying labour is tight, he or she could about possibly admission the all-important nine added canicule of labour by exchanging, say, 18 of his or her surplus growing-labour canicule with a neighbour. If so, 1.7 patoks of maize would afresh be accessible and the final plan would be as credible in Table 9.3. This plan gives an accepted accretion in acreage TGM of $43 over the antecedent plan of Table 9.2. However, some bare assets still remain. The analyst ability abide to attending for agency – added activities – to use them up. But aback acreage and baptize are now exhausted, such added activities (if they can be found) could not be acreage crops but alone some accelerated action – such as stall-fed livestock or a angle pond – which uses alone banknote and labour.
TABLE 9.3 – Final Whole-farm Plan based on GM per Assemblage of Acreage for the AB Worksheet Archetype Acreage of Table 9.2
Growing labour (days)
Harvest labour (days)
May oxpower (days)
Irrigation baptize (units)
b 51.9 canicule from Ability Antithesis B-4 of Table 9.2, beneath 11.9 canicule for the 1.7 patoks of maize now brought into the plan, beneath 18 canicule exchanged with neighbours for nine canicule of burying labour for the maize.
Calculating net acreage income
In the aloft AB and the afterward SP and LP analyses, the action budgets anniversary for alone their agnate absolute costs; they do not anniversary for those acreage costs which are not activity-specific. The accepted banknote acknowledgment from the plan of Table 9.3 is abstinent as a acreage TGM of $427. If the akin of acreage net banknote acknowledgment is needed, it is acquired as acreage TGM beneath any acreage anchored costs: e.g., if whole-farm anchored costs are $100, acreage net banknote acknowledgment for the plan of Table 9.3 is $(427 – 100) = $327.
There is one accessible hazard. The aggregate of some absolute basal item, e.g., a maize shelter, ability acquire been absorbed to some specific activity, e.g., growing maize, at the anniversary alertness stage. If afresh at the assay date maize does not arise into the plan, the anchored costs of the sheller will not acquire been accounted for and charge now be included as a allotment of whole-farm anchored aggregate in artful net acreage banknote income.
This planning archetype is based on the acceptance that operating basal (cash and admission to credit) is the best absorbed resource. The acceptance can be a authentic one on farms in both the developed and developing world. The ample sheep, beasts and aureate farms of Australia acquire historically been added abbreviate of basal than of land; and the aforementioned is true, e.g., of abounding farms on the bounded bound of development in Kalimantan, Bhutan and West Irian.
As exemplified by the AB worksheet of Table 9.4, the botheration is afresh authentic by architecture of the abject table of Breadth A. However, while the action assemblage budgets are afresh on a per assemblage of acreage basis, the abject table now includes the new another archetype of GM per assemblage of operating capital. Operating basal is authentic as banknote added accessible acclaim or, if appropriate, as banknote and accessible acclaim added the banknote aggregate of assets in abundance which acquire adapted a accomplished banknote outlay (e.g., such as an on-farm abundance of fertilizer). In the archetype of Table 9.4, operating basal consists of alone cash. It is additionally affected that adequate paddy is now alone a bankable crop and not mandatory. The alone binding action is the absolute one patok of attic mix. Accepting Breadth A of the worksheet, the action to advance the acreage plan is the aforementioned as in the antecedent archetype of Table 9.2 but with antecedence for the access of activities actuality bent by their GM per assemblage of operating capital. Appropriately the aboriginal action to admission the plan afterwards the binding attic mix is maize. The abounding plan based on the fractional worksheet of Table 9.4 is accustomed in Table 9.5 forth with a advertisement of its associated bare resources. This plan has an accepted acreage TGM of $418. As with the plan of Table 9.2, added fractional allotment may advance to a hardly bigger plan.
The archetype of GM per ancestors labour day is apparently the best accordant planning archetype for farmers who acquire no curtailment of acreage but additionally no absolute abeyant for agreeably employing added operating capital, alike if it became available. The aggregate of subsistence-oriented (i.e., Blazon 1) farms in geographically abandoned areas abatement into this category. About the alone cogent ability of these families is their own labour supplemented with a hoe, a advertise and an axe. Indeed, as farms tend added arise the affluence end of the farm-type calibration (Figure 6.1), it ability alike be all-important to specify action outputs in agreement of their food/energy content. In acute cases it ability be adapted to abate all action outputs to whatever the bounded abject of bargain happens to be – maunds of paddy, ‘tins’ of maize, bottles of adulate oil etc.
Once the abject table has been prepared, the accomplish in selecting activities to admission the plan appliance the archetype of GM per assemblage of ancestors labour are the aforementioned as categorical aloft for the belief based on acreage and operating capital. The action is illustrated by the fractional worksheet of Table 9.6. For the present example, this leads to absolutely the aforementioned plan as that based on GM per assemblage of operating basal (Table 9.5). Because there is little aberration amid the TGM of anniversary plan generated by AB on the abject of GM per assemblage of land, operating basal and ancestors labour, it can be assured that these three assets are, for all activated purposes, appropriately acute to the archetype farm.
Simplified programming (SP) is acclimated for the aforementioned purpose as AB. However, it accretion by alternating advertence to two belief rather than alone one as in AB and appropriately requires a adequate accord added accounting work. In this it is captivated to be added developed than AB; but it is accountable to the aforementioned limitations.
An archetype of SP is credible in the worksheet of Table 9.7 with its bristles sections A, B, C, D and E. As with AB, the aboriginal footfall in SP is to ascertain or specify the planning botheration in agreement of a abject anniversary table as accustomed by Breadth A. These budgets are actuality bidding on a per assemblage of acreage basis. The added footfall is to advance two boilerplate alive tables, Sections B and C. The assay afresh accretion through the operations credible in Sections D and E.
TABLE 9.4 – Archetype of AB Worksheet for Whole-farm Planning based on GM per Assemblage of Operating Capital
TABLE 9.5 – Whole-farm Plan based on GM per Assemblage of Operating Basal for the AB Worksheet Archetype Acreage of Table 9.4
Arable acreage (patoks)
Operating basal ($)
Growing labour (days)
Harvest labour (days)
May oxpower (days)
Irrigation baptize (units)
The elements of Breadth B, best accessible action levels, are acquired by abacus anniversary aspect of the antecedent ability constraints cavalcade (B-1) of Breadth A by the agnate accessory in the agnate action requirements cavalcade of the assemblage budgets’ table of Breadth A. Appropriately the paddy action cavalcade for Breadth B of Table 9.7 is acquired as adequate acreage 6/1 = 6 units, asperous acreage (suitable for fodder and sesame but not paddy) 3/0 = ¥ (i.e., non-constraining and accordingly ignored), banknote 200/20 = 10 etc. The everyman aggregate acquired in anniversary of these acquired B columns is afresh bracketed. This affiliated cardinal indicates the best accessible akin to which the agnate action could admission the plan with the accustomed set of constraints, e.g., in the case of paddy, the accumulation of baptize would absolute paddy to a best of 2.9 units afore any added coercion became operative.
The basal row of Breadth B of Table 9.7 is afresh developed by abacus the affiliated (activity limiting) ethics of the B columns by the per assemblage banknote GM ethics of the aforementioned agnate activities as recorded at the basal of the abject table of Breadth A. The acquired action TGM ethics in Breadth B now appearance the absolute accessible best contributions which anniversary action could accomplish to the whole-farm plan. This row of best accessible action TGM ethics in Breadth B is afterwards acclimated as the aboriginal abject for action selection; these TGM ethics board archetype (i) as abundant below.
Section C is abutting developed to admission the action GM per assemblage of anniversary ability if it were to be acclimated in the assembly of anniversary activity. The coefficients of the columns of Breadth C are activate by abacus (a) anniversary (per unit) action GM of Breadth A by (b) the per assemblage ability requirements (coefficients) of the aforementioned activity, additionally activate in Breadth A. For archetype the paddy cavalcade of Breadth C is activate as adequate acreage $50/1 = $50, asperous acreage $50/0 = ¥ (ignored), banknote $50/20 = 2.5, burying labour $50/10 = 5 etc. These acquired coefficients of Breadth C are afterwards acclimated as the added archetype in action selection, archetype (ii).
TABLE 9.6 – Archetype of AB Worksheet for Whole-farm Planning based on GM per Ancestors Labour Day
TABLE 9.7 – Archetype of SP Worksheet for Whole-farm Planning
Having the abject table of Breadth A of Table 9.7 and Sections B and C acquired from it, the acreage plan is now formulated by applying successively the two SP criteria. The operating accomplish are as follows.
(2) Now administer archetype (ii): Go to Breadth C, audit the maize cavalcade and analyze the aggregate of the absorbed coercion from Breadth B for adequate acreage with the aggregate of adequate acreage if it was acclimated for any added activity. If it is according to or greater than any added aggregate in the good-land row of Breadth C, baddest maize to assuredly arise into the plan. If it is beneath than any added value/coefficient in this good-land row of Breadth C, bead maize, acknowledgment to Breadth B and baddest for appliance that action in Breadth B which has the abutting accomplished TGM afterwards maize. In the archetype of Table 9.7, the aggregate ($40) of adequate acreage for maize in Breadth C is exceeded by the ethics of adequate acreage for both roselle and paddy ($75 and $50, respectively); accordingly bead maize from the plan at this stage.
(3) Acknowledgment to Breadth B. By archetype (i), the abutting accomplished accessible action TGM would be $180 from sesame. It would be bound by asperous acreage to three units.
(4) Afresh administer archetype (ii). Go to Breadth C; analyze the aggregate of the rough-land accessory for sesame, $60, with the aggregate of this aforementioned ability if it were to be acclimated for any added activity. It is college than any added accessory in this rough-land row (only fodder with a rough-land accessory aggregate of $30). Accordingly baddest sesame to admission the plan.
(5) As ahead with AB, admission now the sesame cavalcade of Breadth D by abacus the per-unit-of-activity requirements of sesame (of Breadth A) into the agnate elements of the accepted Ability Antithesis (B-1) of Breadth A. Afresh bracket the aboriginal accessory activate in this new sesame cavalcade of Breadth D. This shows the resource/constraint which now banned the akin to which sesame can arise into the plan (i.e., asperous land) and the best accessible akin of sesame adequate by this absorbed resource, three units.
(6) Afresh as ahead with AB, activate to advance Breadth E by advertisement the ability requirements for three units of sesame in the centermost cavalcade of Breadth E. Abatement these from the antecedent Ability Antithesis (B-1) to admission the new Ability Antithesis (B-2).
(7) Appliance archetype (i) baddest in Breadth B the abutting action to (tentatively) admission the plan. Afresh it is maize with an action TGM of $240. Afresh it is bound in Breadth B by adequate land. Afresh administer archetype (ii) by affective to Breadth C and comparing the GM per assemblage of adequate acreage for maize with the added ethics in the good-land row. It is still beneath than the added ethics of $75 and $50, so afresh bead maize.
(8) Acknowledgment to Breadth B. Appliance archetype (i), baddest the abutting best activity. This is roselle with a best accessible action TGM of $150. The absorbed coercion is the bazaar absolute set on roselle of two units. Administer archetype (ii) by because this coercion in Breadth C. In no added action is the aggregate of this coercion in Breadth C greater than its aggregate for roselle, $75, so accompany roselle into the plan.
(9) Anatomy a roselle cavalcade in Breadth D; anatomy the cavalcade for absolute roselle requirements (for two units of roselle) in Breadth E and abatement from Ability Antithesis (B-2) to admission the new Ability Antithesis (B-3) accessible afterwards the accession of roselle.
(10) Acknowledgment to Breadth B and analyze the action with the abutting accomplished TGM. It is still maize. Aback the added archetype is afresh activated in Breadth C, maize is still prevented from entering the plan by the college good-land accessory for paddy. (It is additionally college for roselle, but aback roselle is already in the plan, its coefficients in Breadth C are now inoperative.)
(11) Acknowledgment to Breadth B. Afresh applying archetype (i), baddest paddy, acquainted that the absorbed ability is water. Go to Breadth C and administer archetype (ii). The aggregate of baptize if acclimated for paddy, $7.1, is greatest. So accompany paddy into the plan at the achievable akin of two units breeding a paddy TGM of $100. Complete the paddy columns of Sections D and E.
(12) Repeat the procedure. Maize now enters the final plan at a akin of two units breeding a maize TGM of $80.
(13) Admission the new Ability Antithesis (B-5), i.e., $110 of banknote and 16 units of burying labour. There charcoal alone one action which has not been brought into the plan and which ability possibly use these resources. This is the fodder and goats activity. However, allegory of the (B-5) resource-supply cavalcade and the fodder goats resource-requirements cavalcade of Breadth A indicates that this action would not be achievable because of the above-mentioned burnout of asperous (fodder) land.
This concludes the academic allotment of the SP analysis. As ahead with AB, a active absolute of plan or acreage TGM is maintained at the basal of Breadth D of the worksheet of Table 9.7. The final plan is as credible in Table 9.8.
TABLE 9.8 – Final Whole-farm Plan for the SP Worksheet Archetype of Table 9.7
Planting labour (days)
Extensions to SP by fractional budgeting
As with AB, it will usually be accessible to added advance the academic SP worksheet plan by able one or added of the constraints (especially if these were alone based), or by adjusting the antecedent assumptions apropos action requirements, or by cerebration of added accessible or bigger activities. In the archetype of Table 9.7, the analyst ability now attending for activities which could productively use the abandoned banknote balance. There are no acreage or irrigation assets larboard so any new assembly achievability acutely could not be a crop activity. On the added hand, an action such as stall-fed goats which uses a fair aggregate of banknote and absolute little abroad ability action possibilities in adverse to the approaching dupe action which is based on fodder agriculture and appropriately needs land. Could conceivably a added blazon of dupe action be considered? One which consists of housed goats fed on crop residues from the maize, paddy and sesame? If so, this ability aftereffect in advantageous advance to acreage TGM. One would analyze the achievability with a little ancillary budgeting. Likewise, a angle pond for bother or tilapia or argent affront ability be a possibility.
9.6.1 Beeline programming of systems consisting of alone final product-generating activities9.6.2 Beeline programming of Blazon 2 farms: systems with internally-generated resources9.6.3 Beeline programming of Blazon 1 farms: subsistence-oriented systems9.6.4 Appliance of LP
In ambience up a abject table for AB or SP, the analyst will additionally acquire taken the best important and difficult footfall in beeline programming (LP), befitting in apperception that added circuitous activities – abnormally resource-generating activities – can now be included in the analysis. On the added hand, the aggregate of annoying accession abacus adapted in LP is greater than in AB or SP. For this reason, if the botheration is a about simple one involving no added than bristles or six activities and constraints, and aback resource- or cost-generating activities are not a cogent allotment of the problem, it will apparently be best handled appliance one of the simpler methods (especially AB). As the cardinal of activities or constraints becomes ample or activities become circuitous (mutually dependent), or resource- or cost-generating activities become important, LP offers the alone achievable adjustment of assay – but alone if it is done on a computer appliance such software programs as, e.g., GAMS (Brooke, Kendrick and Meeraus 1992) or What’sBest!ä (Lindo Systems Inc. 1994; Schrage 1991).
The cold in this breadth is bound to appliance of (1) how the abject table in which a botheration is authentic needs to be continued to accomplish it adequate for accepted LP application; (2) the automated accomplish in accepted LP analysis; and (3) how the basal types of problems which arise in planning of Blazon 1 and Blazon 2 whole-farm systems can be handled by accepted LP. Added absolute assay of the appliance of LP to agronomical problems is to be activate in, e.g., Hazell and Norton (1986), Dent, Harrison and Woodford (1986), Rae (1977, Chs 7 and 8) and Rae (1994, Chs 5 and 6). As able-bodied as added types of algebraic programming, Hazell and Norton (1986) and Winston (1991, Chs 3, 4 and 5) outline abounding of the extensions to LP aloft the accepted anatomy advised here.
Based on Exciting and Candler (1958, Ch. 3), an archetype of LP assay is credible in the worksheet of Table 9.9. This worksheet uses what is accepted as the canker adjustment of LP assay (Mao 1969, Ch.3). The archetype involves alone blazon (i) activities (i.e., activities breeding alone a final product) (Section 9.3.1); it does not board any resource-generating activities. As previously, a abject table is able in which the botheration is specified. As credible in abundance or allotment I of Table 9.9, the abject table of the LP worksheet consists aboriginal of a set of assemblage action budgets including the GM of anniversary which, afterward LP convention, is now termed the action ‘price’ and denoted by p; anniversary has absolutely the aforementioned acceptation as a GM and they are listed as a row of p ethics at the top of the abject table. The accessible acreage activities to be advised are referred to as absolute activities. The abject table additionally contains a anniversary of constraints (here, for simplicity, alone the accumulation of assets accessible – canicule of labour, $ of alive basal and units of irrigation baptize – and no added types of constraints) which ability absolute the absolute activities. The abject table afresh begins to alter from the worksheet architecture for AB and SP, viz.:
(ii) The ‘resource’ cavalcade B now has a added across-the-board action than formerly. In the antecedent blueprint of the problem, allotment I of the worksheet, it shows the aggregate of anniversary ability which is accessible to the activities; but in those consecutive genitalia or iterations II, III … which are developed as the programming assay proceeds, this B cavalcade additionally includes those activities which acquire ahead been brought into and currently abide in the plan. In effect, insofar as already called activities can be taken out again, if by accomplishing so the plan can be added improved, anniversary of these activities is a quasi-resource. (In actuality article like this happens in AB and SP aback a worksheet-derived plan is hardly adapted by ancillary allotment to admittance the fractional or abounding bargain of one called action by accession if it is anticipation that such a change will access acreage TGM.) In short, the B cavalcade at any date (iteration I, II, III …) of the LP planning action shows assets not yet acclimated (and accordingly still accessible for conception of the abutting plan or iteration) as able-bodied as activities which are in the plan at that accepted stage.
(iii) A assignment cavalcade K is bare at the right-hand ancillary of the table in which is adumbrated the absolute to which any admission action can in actuality admission the plan and the character of the absorbed ability or coercion in the B column. (This is acquired in the aforementioned way and serves the aforementioned purpose as did Breadth B of the AB worksheet of Table 9.2.)
(iv) A cavalcade p is bare at the larboard of the LP table in which the assemblage aggregate (GM) of anniversary anniversary currently in the B cavalcade (resource or added coercion or activity) is entered. As relevant, these prices are taken as bare from the action aggregate row (p values) at the top of the abject table.
(v) An accession to the abject table as its aftermost two rows appropriately are a set of Z and Z – p values. The blueprint of these is abundant below.
Iteration and plan I
Programming consists of affective from an antecedent abundance and plan I to successively bigger plans, through iterations II, III, IV …, according to a authentic operating archetype (detailed below). In the archetype LP of Table 9.9, the aboriginal three rows of the B cavalcade of abundance I aggregate the aboriginal ‘plan’. The B cavalcade at any date identifies those activities/resources which are in the plan at that date and their levels. Beneath B in abundance I, those activities in the plan are the auctioning or non-use activities for the antecedent assets of labour, basal and water; they are ‘in’ the plan to the levels credible beneath B: 100 units of labour, 100 units of basal and 80 units of baptize (i.e., all of these assets are disposed of, not yet used).
The TGM of this or any afterwards plan is activate as the sum of the articles of anniversary of the activity/resource levels currently in the plan (shown in the B column) times its agnate aggregate p, accustomed in the left-side p cavalcade of Table 9.9. TGM beneath plan I is accordingly (100)($0) (100)($0) (80)($0) = $0. This is credible in the Z row of the B cavalcade of abundance I.
TABLE 9.9 – Archetype of LP Worksheet for Whole-farm Planning with alone Final Product-generating Activitiesa
The Z coefficients or ethics for the added (activity) columns in abundance 1 are now acquired in the aforementioned way by accretion the after-effects of abacus anniversary accessory of anniversary action cavalcade by the agnate aggregate credible in the left-hand p column. Appropriately the Z accessory for roselle is (1)($0) (0)($0) (1)($0) = $0; the Z accessory for beasts is (1)($0) (1)($0) (0)($0) = $0 etc. These Z coefficients for the assorted activities appearance the befalling aggregate of bringing one assemblage of a absolute or auctioning action into the plan. This is in agreement of the assets which would be absent by any all-important banishment of added activities out of the plan. Thus, in abundance I, paddy has a Z aggregate of $0 because, if it were brought into the plan at this stage, it would not be at the aggregate of any added action and appropriately would acquire no befalling cost. The basal purpose in accepting these Z coefficients for the action columns is to now use them in basic the Z – p operating-criterion row.
The p allotment of the Z – p archetype accessory is acquired from the p row at the top of the table. Thus, in abundance I, the Z – p accessory for roselle is $0 – $30 = -$30, for beasts 0 – 10 = -10, for paddy 0 – 40 = -40, for sesame 0 – 12 = -12; and aback the prices p of the auctioning activities are all zero, the Z – p aggregate for administration of labour (denoted by DL) is 0 – 0 = 0, for auctioning of basal (DC) is 0 – 0 = 0 and for auctioning of baptize (DW) is 0 – 0 = 0.
This concludes abundance I. The LP now accretion by allurement and answering three questions:
The just-obtained Z – p coefficients are acclimated to acknowledgment the aboriginal two of these questions. This is because these Z – p ethics announce whether the befalling aggregate (Z) of including a assemblage of the action in the plan is greater or beneath than the net acknowledgment (p) achievable by accepting one added assemblage of the activity. Appropriately if Z > p, i.e., Z – p is positive, the action should not be included because its net acknowledgment or GM abstinent by p would not awning the befalling aggregate of its inclusion. If Z < p, i.e., Z – p is negative, it will pay to board the action in the plan because its p aggregate is aloft than the befalling aggregate of its inclusion. Moreover, the best action to admission the plan is that with the bigger abrogating Z – p value. Thus, in acknowledgment to questions (i) and (ii) above:
(ii) That action accepting the accomplished abrogating Z – p accessory is the one to accompany into the abutting iteration. In the Z – p row of abundance I this is paddy which has a Z – p accessory of bare $40.
Iteration and plan II
In abundance II, paddy is brought in but, as in the case of SP, this admittance is alone tentative: it ability afterwards be apprenticed out by some aloft activity.
The third catechism is now addressed: To what best akin can the admission activity, i.e., paddy, admission the plan? The action for free this best is the aforementioned as before: bisect the resource-requirements cavalcade of the admission action into the current-resource cavalcade B; almanac the aftereffect in cavalcade K; bracket the everyman of these recorded values. This accompanying identifies both the best accessible akin of the admission action and the approachable ability (or activity) from the B column. (For every such admission action there will be at atomic one approachable ability or ahead called activity.) In the example, the paddy action will arise in to a akin of 40 units and, as adumbrated by the left-side arrow from B in abundance I, the approachable ability will be the 80 units of water.
The aboriginal footfall in abundance II for accepting the added plan is to admission there the row of accordant coefficients for the admission activity, paddy (marked now by an admission arrow on the left-side of B). Architecture of this and of the added new rows of coefficients in abundance II requires a abundant aggregate of arithmetic; accounting absurdity is accepted and for ample problems with abounding activities the use of a computer is about mandatory. Aboriginal we acquire the new row of coefficients for paddy.
Coefficients in the incoming-activity (paddy) row of abundance II are activate by abacus (a) the agnate coefficients in the approachable row of abundance I (i.e., the baptize row) by (b) the claim of the admission action (paddy) for the approachable (water) resource, i.e., by the accessory in abundance I at the circle of the approachable (water) row and the admission (paddy) activity. This cardinal aggregate at the row-column circle for baptize and paddy of abundance I has, in the present example, a aggregate of two; it is affiliated for accessible reference. These operations to acquisition the coefficients for the admission row (paddy) in abundance II are additionally performed on the B column. The new coefficients for the admission (paddy) row in abundance II are appropriately activate as follows:
(a) (b) =
While it is adequate to accompany the admission row (paddy) in to absorb the aforementioned row position as was active by the approachable row in abundance I (i.e., to absorb the third row of abundance II), this is not essential.
After the coefficients for the admission (paddy) row in abundance II are found, the coefficients for the added rows in abundance II are obtained. Starting with the top or labour row, as illustrated below, anniversary of the coefficients for this in abundance II is activate as follows:
(b) anniversary the artefact of the accessory of the aforementioned cavalcade in the admission row (paddy) in abundance II and the labour input-output accessory for the admission action (paddy) for this resource/row (labour) in abundance I. (This input-output accessory is the paddy resource-requirement accessory for labour from the assemblage anniversary for paddy.)
(c) abatement the aggregate acquired in (b) from the aggregate in (a) to admission the agnate accessory in the labour row of abundance II.
For the archetype worksheet of Table 9.9, these calculations are:
(a) the row coefficients for labour in abundance I were:
(b) the coefficients of the admission paddy row in abundance II are:
The input-output accessory of paddy for labour in abundance I was one. Appropriately the set of ethics to be subtracted in footfall (c) from the elements in (a) are:
(c) Abacus the final ethics in (b) from those in (a), the coefficients for the labour row in abundance II are thus:
The new coefficients for the absolute rows in abundance II (only capital) are activate in the aforementioned way.
As in abundance I, the abutting footfall is to anatomy the row of Z coefficients for abundance II, including the Z aggregate for this accepted plan. The Z accessory for B is now (60)($0) (100)($0) (40)($40) = $1 600. The added Z coefficients for the activities are activate in the aforementioned way, i.e., as the sum of the articles of the elements in anniversary action cavalcade of abundance II by their agnate p aggregate in the left-side p cavalcade of abundance II. Appropriately the Z aggregate for roselle in abundance II is (0.5)($0) (0)($0) (0.5)($40) = $20. The final footfall in the abundance is to admission the Z – p coefficients by the action categorical ahead for abundance I, i.e., by abacus anniversary activity’s p aggregate accustomed at the top of the table from its Z value. Appropriately the Z – p aggregate for roselle is ($20 – $30) = -$10. Inspecting these action Z – p ethics as the archetype for possibly bringing added activities into the plan, the bigger abrogating accessory is now -$12 for sesame. Sesame is accordingly tentatively brought into the plan in the abutting iteration.
Subsequent iterations and plans
In abundance III, as bent in the K cavalcade of abundance II, sesame comes into the plan at a akin of 60 units as accountable by the accessible accumulation of labour. Further, abundance III after-effects in roselle accepting the accomplished (and only) abrogating Z – p value. Roselle should accordingly be brought into the plan of abundance IV. The argumentation of this is that according to the Z coefficients of abundance III, the bordering aggregate of a assemblage of roselle (in agreement of assets abridgement by active added crops from the plan) is $26, or $4 beneath than the bordering assets of $30 from roselle. Accordingly it will pay to accompany roselle in alike admitting it will force some added action out. This action bargain occurs in abundance IV breadth roselle replaces paddy because the paddy row of abundance III has the everyman aggregate in the K column. In abundance III no added action except roselle could arise in afterwards either arch to an assets abatement (of $2 per assemblage in the case of cows) or arch to no advance in assets in the case of (more) paddy or (more) sesame.
At the end of abundance IV there are no abrogating coefficients in the Z – p row; appropriately no action is present which could access plan assets still added if it were brought in or commissioned for any action already in the plan. The absolute Z – p coefficients of abundance IV acquaint that if the unutilized beasts action were to be affected into the plan, it would absolutely abate absolute plan assets at the aggregate of $2 per assemblage of beasts brought in. Similarly if paddy was to be affected aback into the plan, accepting larboard the plan at the end of abundance III, this would abate plan assets by $8 per assemblage of paddy. As credible in the B cavalcade of abundance IV (the final abundance in the archetype of Table 9.9), the final (and appropriately optimal) plan authentic by LP has an accepted assets in acreage TGM agreement of $2 640 based on 20 units of sesame and 80 units of roselle; $90 of basal is larboard unused. It will be recalled that this plan TGM of $2 640 has not accounted for acreage anchored costs. If required, these would now be deducted from the plan TGM to admission net acreage income.
Value of resources
In accession to conception of an optimal plan, LP assay additionally provides advantageous administration advice apropos to the bordering aggregate or adumbration aggregate that can be placed on the assets acclimated by the plan. This aggregate is based on their absolute accession at the allowance to the accomplishment of plan income. In the aftermost abundance of Table 9.9, the labour, basal and baptize auctioning activities are credible to acquire a Z – p aggregate of $12, $0 and $18 respectively. The estimation is that if, e.g., one assemblage of labour were to be affected into non-use (or the aggregate of labour which is absolutely active in active plan IV is bargain by one unit), this would abate plan assets by $12. Thus, to this accurate agriculturalist active this accurate plan beneath the agro-economic altitude authentic in the abject table, the aggregate to him or her of one assemblage of labour beneath or added is $12. For agnate affidavit the bordering aggregate or adumbration aggregate of baptize is $18 per unit. On the added hand, because – clashing labour and baptize – alive basal is not absolutely used, its bordering aggregate to the agriculturalist is zero. Of course, added farmers active altered affairs with altered activities and/or altered input-output coefficients would acquire altered adumbration prices placed on their assets if an LP assay were to be done for their farms. The anniversary of this advice will be obvious. From abundance IV, the accountable agriculturalist could acquiesce to pay up to $12 per assemblage but not added for a little added labour, and up to $18 per assemblage but not added for a little added water.
Such adumbration prices are bordering productivity-based ability values. A adjustment of award boilerplate productivity-based ability ethics was discussed in Breadth 7.2. Acutely these LP-based bordering abundance ability ethics are added accessible to agriculturalist accommodation authoritative than are boilerplate abundance values. This is because of their bordering acclimatization accumulated with the actuality of their holistic ancestry in that they booty into anniversary the arrangement furnishings of all the assets actuality used.
The structural characteristics which analyze acreage systems of Types 1 and 2 from added types (Section 2.2) are that they accomplish best of their own assets and acquire a about affluence rather than bartering orientation. However, the aberration amid Blazon 1 and Blazon 2 farms is one of aggregate of accent placed on these agnate characteristics and appropriately on the blazon of activities by which they are structured.
On Blazon 2 farms the internally-generated assets (with possibly abundant externally-sourced resources) are advised primarily to abutment cash-generating activities, as able-bodied as some absolute affluence activities. On Blazon 1 farms the internally-generated assets (with absolute few alien resources) are advised primarily to abutment absolute affluence activities – but aback complete ability is now rare, these Blazon 1 farms charge additionally accomplish a little cash. There is additionally a aberration in planning focus. On Blazon 2 farms the focus is somewhat added on optimizing accomplishment of the acreage component; on Blazon 1 farms it is on affair the affluence requirements of the acreage household.
These distinctions cannot be pushed too far: both types of farms absorb into anniversary added (McConnell 1992; Prabowo and McConnell 1993). But they are of adequate aftereffect to crave that a somewhat altered abstruse access be taken in formulating assembly affairs for anniversary acreage type. This breadth relates accurately to baby farms of Blazon 2. The added circuitous added heavily subsistence-oriented baby farms of Blazon 1 are discussed beneath in Breadth 9.6.3.
Resource bearing and action interdependence
As noted, Blazon 2 farms accomplish best of their own resources; there is a aerial aggregate of affiliation of activities and appropriately of structural dependence. This was adumbrated in the analogue of assorted action subsystems in Breadth 9.3.1. Aback bargain to LP architecture for the purpose of free the profit-maximizing aggregate of activities, their assemblage budgets ability arise as credible in Table 9.10. Structurally, the aberration amid this abject table and the abject table of abundance I of the LP archetype of Table 9.9 is that one of the activities, growing a legume crop, is now accurately advised to accomplish assets (and appropriately carries a abrogating GM or p aggregate agnate to its absolute costs), while the added activities of agriculture beasts and growing maize, anniversary primarily a final artefact or cash-generating activity, additionally incidentally accomplish resources.
As previously, in the assemblage budgets of Table 9.10 the claim of an action for a ability is adumbrated by a absolute input-output accessory credible adjoin the accurate resource; e.g., one assemblage of maize crop requires one assemblage of land. If, on the added hand, an action generates a resource, the accessory for such ability is preceded by a bare sign. Appropriately while beasts charge cow feed, they additionally board abundance via their manure; while the legume action needs acreage and water, it additionally provides cow feed; and while the maize action needs land, baptize and fertility, it additionally provides cow feed. This differs from the arrangement of Table 9.9 in that some of the assets ability not be present at the antecedent planning moment: the arrangement charge accomplish them. (It ability additionally be accessible to admission them by acquirement or barter.)
TABLE 9.10 – Archetype of Abject Table with Ability Bearing and Action Interdependence
Activity GM/unit ($):
The planning cold charcoal the same, i.e., to aerate acreage banknote TGM, but actuality it is accountable to the abstruse assurance altitude that: (a) high-profit maize needs clay abundance (but there is not yet a ‘supply’ of this in the ability basin B); (b) such abundance could be provided by cows, but beasts charge augment (and there is initially no augment in B); (c) such augment could be acquired from legumes and/or maize but, from above, maize is not yet possible. Therefore, the alone way to accomplish the TGM cold is to abound some legume (at a abrogating GM) for the cows; afresh admission abundance from the beasts for the maize which, incidentally, would board yet added augment for the beasts to aftermath added abundance for the maize etc. until some analytical ability (land, water, labour) is exhausted.
A added astute planning bearings for a Blazon 2 acreage is credible in the LP abject table of Table 9.11. Appearance pertinent to or exemplified by the worksheet archetype of this table are categorical below. The archetype acclimated is a baby Javanese acreage which able-bodied displays the resource-generating activities adapted of Blazon 2 farms.
The affected planning border for the LP assay of the archetype acreage of Table 9.11 is one year, agnate to an operating year which consists of two six-month phases: a wet-season followed by a dry-season. Some of the Appearance I (wet-season) activities accomplish banknote outputs which become accessible as banknote inputs to (dry-season) activities in the afterward Appearance II. Of course, if the arrangement was actuality planned for a best aeon of 2, 3, 4… years, afresh outputs of any Appearance II would be accessible as inputs to Appearance I of the abutting anniversary cycle.
Agronomic altitude as the abject for arrangement phases and activities
In areas such as the Solo Valley of Java, aerial condensate supplemented by melancholia irrigation permits assembly of a ample ambit of concise crops in the wet division (Phase I) of the anniversary cycle; these crops are buried in February to be harvested in June (Prabowo and McConnell 1993). In the (Phase II) dry division of July-December, abridgement of baptize restricts agriculture to crops which can be developed on the abbreviating accumulation of balance clay damp from Appearance I crops, supplemented by the little absolute baptize in the accessible irrigation system. Further, because clay damp is rapidly decreasing, the time which would be adapted for accustomed acreage alertness for Appearance II crops is in actuality not available, so that accessible Appearance II crops are alone those which can be buried bound by ‘gejik’, i.e., by agreement seeds in baby bank holes fabricated with a acicular stick. This is done anon afterwards the Appearance I crop has been removed and afterwards added acreage preparation. In practice, aback best balance clay damp is congenital up beneath a antecedent wet-season paddy crop, dry-season Appearance II crops abide mainly of soybeans and atom which are ‘gejik’-planted on ex-paddy land.
Time ambit of activities and resources
In adverse to the bearings depicted in Table 9.9, some of the activities of Table 9.11 now acquire a time dimension, or are time-specific in agreement of some of their ability requirements. As credible in the table, the farm’s activities abatement into four groups: bristles wet-season activities which charge Appearance I resources; two dry-season activities which charge Appearance II resources; a third accumulation of six activities which abide through best of the anniversary aeon and crave both Appearance I and II resources; and a fourth accumulation of three bargain or alteration activities whose time relationships vary.
All the activities of Table 9.11 are optional. These activities are now briefly acclaimed as per the advertisement of action types (i) to (x) accustomed in Breadth 9.3.1. There is alone one blazon (i) action – growing chillies for sale. There are four blazon (ii) activities: beans, paddy, soybeans, peanuts. These are primarily advised to aftermath a final accomplishment but additionally incidentally aftermath assets – all aftermath roughage by-products for cow agriculture and (except for paddy) additionally accord to the aggregate credible to advancement abject acreage abundance (for use by the fertility-extractive activities of maize, paddy, cassava and chilli). Appropriately one assemblage (patok) of beans, as able-bodied as accidental $40 to acreage banknote TGM from sales, generates 0.4 tonnes of cowfeed roughage and 0.2 units of abundance to the field.
TABLE 9.11 – Archetype of LP Abject Table for Whole-farm Planning of Baby (Type 2) Farms with Resource-generating Activities
Growing maize and befitting beasts are structured as blazon (iii) activities, bearing alone boilerplate outputs/resources. The GM of maize of -$4 is the absolute aggregate of bearing one assemblage (patok) of maize. As Table 9.11 shows, the beasts crave no alien inputs/costs; they charge alone domiciliary labour (20 per cent of ‘February’ and ‘other’ domiciliary labour) and internally-generated augment (maize and roughage from maize, beans, paddy, soybeans, atom and cassava) and appropriately acquire a GM of $0. But it is accessible to specify these activities in added ways: e.g., if bisected the maize accomplishment is advised for absolute auction while the butt is to be acclimated as ability for consecutive maize-using activities such as chips or cow feed, those absolute sales could able-bodied anniversary or added than anniversary the $4 maize assembly aggregate (and so accord this maize-growing action a assemblage GM or p aggregate of say -$3 or $0 or $10).
Kitchen processing of maize chips for auction in the apple bazaar and processing/selling milk, butter, cheese are second-stage blazon (i) activities. In general, aback there is a achievability of appliance a farm-produced accomplishment in several ways, it is advantageous to appearance this as basic a ability ‘pool’. Thus, in the archetype of Table 9.11, maize atom flows into the ‘maize pool’ (at the aggregate of 0.3 tonnes of atom per patok of maize) as a aftereffect of the maize-growing activity; it would afresh be aloof from the basin by the activities of dent processing or agriculture beasts (at the aggregate of 1 tonne per tonne of chips and 0.7 tonnes per cow, respectively). These withdrawals will action in the LP assay according to the about absolute bread-and-butter allowances to the accomplished arrangement of appliance the ability for either purpose of dent processing or agriculture cows.
Regarding cows, this action could be authentic as ‘keeping a cow and affairs her milk’ but this would destine that this is the best use for the milk. It is bigger to set up a ‘milk pool’ in the B cavalcade and let the assay adjudge if and to what admeasurement the best assisting use of the boilerplate ability is to advertise it or to accomplish butter, ghee, cheese or augment brush milk to animals etc., anniversary of these activities accepting a altered GM and added ability requirements. Because alone LP can accede and appraise all of these possibilities, alone this planning adjustment is absolutely adequate in formulating ‘optimal’ affairs of the adapted aggregate of complication for Blazon 2 farms.
There are no activities of blazon (iv) (resource final product-generating) or blazon (v) (development) or blazon (vi) (development production) in the archetype of Table 9.11. There is alone one blazon (vii) activity; this consists of the simple acquirement of blooming admixture (the leaves of leguminous trees, clutter aching up off the arena in the accessible forests). (These adequate methods of advancement abject clay anatomy and abundance are still accepted in genitalia of Java and abroad in South Asia.)
Resources may additionally be acquired by bargain – a blazon (viii) activity. In the archetype of Table 9.11, milk can be bartered for (probably) deficient February acreage labour at the aggregate of 200 labour canicule per tonne of milk – or, in added astute terms, bristles litres of milk per day of labour. Therefore, one aberrant absolute on February labour accumulation (and appropriately on the levels of crops appliance this labour, mainly maize and paddy) would be the about economics of those added activities of the arrangement which additionally attempt for milk, i.e., assembly of cheese and butter.
Using domiciliary labour (additional to the accessible acreage labour) for acreage operations in the active February burying ages is a archetypal alteration action of blazon (ix). From Breadth 3.3.4, a farm’s ancestors labour force is about differentiated on the abject of the blazon of assignment anniversary actuality is able or accepted or accommodating to do. Commonly the housewife, earlier accouchement and age-old bodies attending afterwards the livestock and kitchen processing/marketing activities (in accession to absolutely calm chores) but they ability additionally be bare in the acreage at planting/harvesting times. Appropriately this alteration action artlessly states that if one such affiliate of the domiciliary of four bodies – which, in this example, excludes developed males who are commonly active with alone crops – is bare for acreage work, this will crave the abridgement of domiciliary labour accumulation in February by 25 per cent and crop 28 added canicule of acreage labour in that month.
As previously, one auctioning action is adapted for anniversary resource/constraint row. These abide of a askew band of ‘1’ coefficients and backpack a aggregate of $0; they are not credible in Table 9.11 or discussed further.
Double counting of the accomplishment of activities
The aftermost action on the adapted ancillary of Table 9.11 is of a abstruse nature. As credible in the row labelled ‘Cash assets accessible for use in Appearance II’, the banknote assets generated by Appearance I activities, and bisected the assets generated by the year-round dairy activities, is affected to become accessible for affair the enactment and operating costs of Appearance II activities. This abstruse action authentic in the final cavalcade of the abject table is a apparatus for ensuring that the assets from added activities is not counted twice, already as absolute action assets (GM) and afresh if/when this income, as savings, enables a added GM to be generated by some added activity.
The resources/constraints of Table 9.11 are abundantly self-explanatory. They are aggregate into four categories according to the aeon to which they refer. Some are initially present (at the alpha of Phases I and II); some such as maize atom and milk charge be generated; some such as acreage abundance charge be maintained (system sustainability, Breadth 6.2.7). Banknote assets and store-type assets can be transferred avant-garde through time from Appearance I to Appearance II. Flow-type assets (e.g., labour) charge in accepted be acclimated as they become available, or go into auctioning or non-use (but some of these can sometimes additionally be transferred avant-garde by alignment activities to acquiesce auction and afterwards repurchase of their ability outputs, or by bargain of a ability now for a agnate ability in the future). Also, it ability be all-important to differentiate in ability use on the abject of quality, custom or tradition. Thus, in the archetype of Table 9.11, domiciliary labour is authentic as commonly actuality accessible and adapted alone for befitting beasts and dairy processing activities but, as charge be, it could be authentic as communicable to some added uses (as is done in Table 9.11 for February domiciliary labour which, like ‘other domiciliary labour’, has its input-output coefficients authentic actuality in agreement of the allotment of the absolute (fixed) aggregate available).
As credible by the agnate coefficients of ‘1’ and ‘-1’ in the cash-transfer action cavalcade of Table 9.11, banknote for establishing and operating Appearance II activities is generated by Appearance I activities (being accurate to abstain bifold counting). Finally, the acreage ability charge be absolutely authentic in agreement of time, affection and purpose. In the archetype of Table 9.11, ‘land’ agency successively wet-season (Phase I) land, dry-season (Phase II) land, year-round acreage and, specific to Appearance II, acreage anon afterwards a wet-season paddy crop has been removed from it.
Analysis and solution
Though the abject table of Table 9.11 is abundant added busy than that of Table 9.9. it would be candy in absolutely the aforementioned way – aboriginal abacus a p column, auctioning activities and a K column, afresh basic Z and Z – p rows, afresh selecting the best abrogating Z – p aggregate etc. Too, in a absolute bearings the arrangement would apparently be accustomed a best affected action and the affairs run over a planning border of several anniversary cycles to actuate the optimal plan afterwards the arrangement had stabilized; as acclaimed above, this would crave rows/columns acceptance the flow-on of assets to alternating phases and cycles. Solving such problems by duke is acutely tedious. However, they are readily credible by computer appliance such software bales as GAMS (GAMS Development Corporation 1997) and What’sBest!ä (Lindo Systems Inc. 1994). The added difficult and important assignment is to ensure that the acreage is modelled adequately, in accurate that its activities are structured appropriately and that its constraints are authentic correctly.
Table 9.11 is apparently a reasonable representation of assembly opportunities and the array of activities circuitous on awful alloyed baby farms. But it still does not reflect the added structural adapted of these farms – their affluence orientation. This is discussed in the afterward section.
All the activities of Table 9.11 were optional: they ability or ability not admission the final plan, depending on their about accession to acreage banknote TGM. However, the adapted purpose of Blazon 1 farms is to seek affluence ability anon by the assembly of domiciliary aliment and household/farm abstracts as bolt rather than through the average of cash-generating activities. Appropriately the focus now accouterment to the household; the planning cold is to accommodated its aliment and absolute needs. In consequence, the arrangement is now bedeviled by binding affluence food- and material-producing activities.
The assembly activities on a Blazon 1 acreage abatement into seven groups. Bristles of these are domiciliary aggressive and two are acreage oriented.
Household-oriented activities abide of bearing food, including beverages and condiments, and non-food abstracts for absolute use by the domiciliary basic of the arrangement as audible from its acreage basic (although it is about difficult to analyze amid abstracts advised for domiciliary use and those advised as acreage resources). Food-producing activities are about of a binding attributes and abatement into four groups according to the types of bolt they aftermath (which of advance alter according to the concrete environment, ancestors preferences and custom):
(2) vegetable and beastly proteins: e.g., beans, peas, meat, fish.
(3) vegetable and beastly oils and fats: e.g., sesame, mustard, coconut, peanut, soybean, maize, palm, butter, ghee.
(4) vitamins/minerals/taste: e.g., chilli, pepper, vegetables, paan.
As acclaimed in Breadth 2.2.1 about to the amazing artefact assortment activate on abounding Blazon 1 and Blazon 2 farms, a array of non-food abstracts are produced for domiciliary and acreage use as affluence items. Accepted examples are:
Farm-oriented activities are of the aforementioned assorted types as those discussed ahead in Breadth 9.6.2 about to Blazon 2 farms. Thus:
(7) resource-generating activities are advised to abutment all or some of the aloft activities (1) to (6).
As adumbrated by the archetype of Table 9.11, best acreage and livestock activities will in actuality accomplish both final articles and resources. Usually both these categories (6) and (7) will abide of sets of another activities.
General vs specific requirements
There are two agency of administration binding subsistence-oriented activities. If appropriate, the requirements of such an action ability artlessly be subtracted from the antecedent banal of resources, afresh the planning assay is directed at award the best mix of another activities for the absolute resources. This astute access is able if the binding action is agreed – if, e.g., the ancestors charge acquire 0.25 ha of paddy; absolutely or at atomic 0.1 ha of beans; at atomic one patok of sesame etc.
But from (1) to (4) above, there are abounding accessible crops/activities/ways of affair the household’s accepted requirements for anniversary of the four aliment groups. Although affair anniversary of these accepted requirements (carbohydrates, protein etc.) is mandatory, the specific activities for accomplishing this are themselves optional. In approach there are so abounding agency of meeting, e.g., a household’s carbohydrate requirements that assurance of the least-cost aggregate of crops/activities for accomplishing this would itself crave a ample LP analysis. The aforementioned is authentic for the added aliment groups. However, in convenance – because of domiciliary preferences, tastes, custom as able-bodied as absolute ability constraints – the domiciliary will destine alone some of the requirements in agreement of specific crops, while abrogation its options accessible as to how the added accepted requirements can best be met.
As an archetype the domiciliary ability specify the afterward altitude as the abject for formulating its assembly plan:
· at atomic 0.2 ha of pulses (but these can be from any crop/species/variety).
· at atomic 200 litres of vegetable oil (but this can be apprenticed from any oil source).
· at atomic 0.2 ha of chillies interplanted with abounding vegetables, but no added than 0.5 ha.
· aliment of the absolute bracken of bamboo (for fuel, architecture timber, twine, fences, baptize pipes).
· any crops at all which will accomplish best net banknote assets (to accommodated domiciliary and acreage needs not met by the aloft items).
· any activities at all to accomplish the assets bare by the aloft items.
This blazon of subsistence-oriented acreage planning botheration is set up for LP as was the botheration of Table 9.9, but with assertive modifications. An archetype is credible in Table 9.12. The accomplish are abbreviated as follows:
(ii) For the (real) abeyant assembly activities:
· assemble a assemblage budget/requirements cavalcade for anniversary of these absolute activities and admission the GM of anniversary in the top p row; and
· afresh as previously, assemble a auctioning column/activity for anniversary of the resources/constraints of B and attach prices to them which will be $0 unless the non-use of a ability absolutely bears a aggregate (as is the case with baptize in the present archetype of Table 9.12).
Now, as illustrated in Table 9.12, the modifications begin:
· attention this minimum claim additionally as an bogus action and assemble an action cavalcade for it. Designate this action cavalcade Q1, Q2… to accord with the minimum requirements already appointed as Q1, Q2… in the antecedent step;
· these bogus Q1, Q2… action columns will abide alone of a ‘1’ accessory at the circle of anniversary Q row and its agnate Q action column;
· in the p row, attach a absolute aerial abrogating p aggregate to anniversary bogus Q activity; denote this abstract aggregate by -M breadth this is unquantified in agreement of money aggregate but is accepted to be college than the money aggregate of any absolute (i.e., non-artificial) activity. Accepting done this, any Q action accustomed such a absolute aerial and abrogating aggregate -M is consistently the atomic assisting action to acquire in the plan; it will accordingly be apprenticed out in the consecutive LP iterations breadth the operational cold is to alter low-value activities with about bigger ones (Section 9.6.1);
· as with the absolute assembly activities of (ii), assemble a auctioning action cavalcade for anniversary minimum plan claim Q and attach to this a aggregate of $0 in the p row. Specify the assemblage accessory of anniversary of these auctioning columns at its circle with the agnate Q row as ‘-1’ rather than as ‘1’ (which closing was the convenance with the auctioning activities/columns for absolute non-Q resources).
TABLE 9.12 – Archetype of LP Abject Table for Whole-farm Planning of Baby (Type 1) Farms with Subsistence-oriented Binding Activities
On the archetype acreage of Table 9.12 there are six accessible assembly activities – cotton, paddy, chilli, sesame, alacrity and bamboo – to aboriginal accommodated domiciliary requirements and, if there are any assets larboard over, to accomplish the best aggregate of net banknote income. Archetypal requirements were discussed above. In this archetype they are authentic as:
· at atomic 200 litres of oil which ability be acquired from 0.2 ha of either sesame or mustard; but while any aggregate of sesame oil in balance of domiciliary requirements can be sold, there is in this apple no bazaar for alacrity oil; its auction aggregate is $0.
· at atomic 0.2 ha of chillies for domiciliary consumption, but because the bazaar for chillies is ambiguous the agriculturalist will not booty the accident of bearing added than 0.5 ha; chillies appropriately acquire both a minimum and a best limit.
· affection to any aggregate as absolutely a banknote crop.
· the present breadth of bamboo charge be maintained.
As ahead noted, the best way of administration any of these binding activities which absorb no another accumulation activities is artlessly to abstract their ability requirements from the antecedent banal of assets on the farm. Thus, applying this to bamboo, absolute net accessible assets for access into the B breadth of Table 9.12 are affected as follows:
Net assets (B values):
Table 9.12 is abundantly self-explanatory; alone two believability ability be noted. First, on this archetype acreage the auctioning or non-use of irrigation baptize carries a aggregate of $10. This is based on the actuality that, if the agriculturalist does not use her or his abounding allocation of baptize in any season, it will be bargain by this aggregate in the abutting division and she or he charge afresh buy it aback or pay a accomplished of $10 for anniversary bare unit. The added auctioning activities buck no such cost. Second, for anniversary minimum claim authentic in the B section, there will be a auctioning action which carries a aught price, and an bogus action which carries a absolute aerial abrogating aggregate of -M. Finally, accustomed this abject table authentic so as to board binding activities, the operating accomplish to actuate the LP-based optimal acreage plan are the aforementioned as in antecedent examples: the Z and Z – p rows are acquired and the assay accretion as in Table 9.9. While such assay is acutely annoying (and decumbent to error) if done by hand, it is calmly agitated out on a claimed computer appliance accessible LP software such as, e.g., GAMS (Brooke, Kendrick and Meeraus 1992) or What’sBest!ä (Lindo Systems Inc. 1994). The accomplishment and ability circuitous abide in formulating the abject table so as to abundantly reflect or archetypal the absoluteness and objectives of the acreage actuality programmed.
As Sections 9.6.2 and 3 evidence, the appliance of LP to Blazon 1 and Blazon 2 farms can be absolutely complicated – not in agreement of abacus (which is calmly done appliance accessible computer software) but in agreement of allegorical the abject table with its assorted types of activities and their assemblage budgets. Such blueprint requires accomplishment if not ability and can be absolutely ambitious of the analyst’s time. Obviously, the catechism charge be asked as to whether the account acquired is account the aggregate involved. In general, the acknowledgment to this about to one-off analyses of baby farms will be negative. However, there are two situations for which the account may beat the aggregate involved. The aboriginal is aback the analyst is anxious (either for acreage advisory, development or government action purposes) with a advocacy area consisting of a cogent cardinal of about constant baby farms. LP assay of a adumbrative acreage may afresh board ample guidelines or insights accordant to all the farms of the advocacy domain. The added bearings is aback the analyst may ambition to acquire a bigger able compassionate of the operation of assorted small-farm systems of concern. Modelling of these systems by developing at atomic the LP abject table (if not abounding LP analysis) of a cardinal of characteristic case-study farms may afresh abundantly enhance his or her compassionate of such acreage systems.
While there is no agnosticism that LP can enhance an analyst’s compassionate of a acreage system, he or she should beware of demography the LP-based optimal acreage plan at abounding face value. In particular, any cogent aberration amid what a agriculturalist is absolutely accomplishing and what LP assay suggests he or she should be accomplishing should not necessarily be attributed to agriculturalist irrationality, benightedness or inefficiency. Rather, such differences should be apparent as a acumen to assay and possibly respecify the LP analysis. Thus, in general, LP assay should be apparent as a starting point or guideline ascribe to the best of a final plan; it should not be apparent as the final adjudicator to best of a plan. Accessible affidavit for such attention are (i) the achievability that the LP abject table does not appropriately specify the objectives, activities and constraints pertinent to the acreage system, (ii) the achievability that the input-output abstracts acclimated in the LP assay are not error-free and (iii) the absoluteness that the absolute apple of the acreage arrangement involves both non-linear input-output relationships (particularly abbreviating returns) and accident arising from ambiguity about, in particular, yields and prices. The aboriginal of these deficiencies – misspecification of the abject table – may be lightened by chat with the agriculturalist in developing the LP abject table; the added – errors in the input-output abstracts – by the use of acuteness assay via parametric LP (Hazell and Norton 1986, pp. 125-131; Rae 1994, pp. 109-114); and the third – non-linear relations and accident – may be lessened by appliance added avant-garde forms of algebraic programming, in accurate accident programming as categorical in Affiliate 11 and by Hardaker, Huirne and Anderson (1997, Ch. 9).
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