A Dynamic Optimal Crop Rotation Model in Acreage Response

This paper presents a dynamic crop rotation model that shows how crop yield and price volatility could impact crop mix and acreage response under crop rotation considerations. Specifically, a discrete Markov decision model is utilized to optimize producers’ crop rotation decision within a finite horizon. By maximizing net present value of expected current and future profits, a modified Bellman equation helps develop optimum planting decisions. This model is capable of simulating crop rotations with different lengths and structures. Specifically, the corn-soybeans rotations were simulated using the crop rotation model.


Issue Date:
May 04 2011
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/103949
Total Pages:
30
Series Statement:
Faculty Series
11-02




 Record created 2017-04-01, last modified 2017-08-26

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