Linear Programming in the economic estimate of livestock-crop integration: application to a Brazilian dairy farm

Abstract

-A linear programming mathematical model was applied to a representative dairy farm located in Brazil. The results showed that optimization models are relevant tools to assist in the planning and management of agricultural production, as well as to assist in estimating potential gains from the use of integrated systems. Diversification was a necessary condition for economic viability. A total cost reduction potential of about 30% was revealed when a scenario of lower levels of diversification was contrasted to one of higher levels. Technical complementarities proved to be important sources of economies. The possibility of reusing nitrogen, phosphorus, and potassium present in animal waste could be increased to 167%, while water reuse could be increased up to 150%. In addition to economic gains, integrated systems bring benefits to the environment, especially with reference to the reuse of resources. The cost dilution of fixed production factors can help economies of scope to be achieved. However, this does not seem to have been the main source of these benefits. Still, the percentage of land use could increase up to 30.7% when the lowest and the highest diversification scenarios were compared. The labor coefficient could have a 4.3 percent increase. Diversification also leads to drastic transaction cost reductions.

Agricultural Productivity and Forest Conservation: Evidence from the Brazilian Amazon

“…Capital rental cost are given by the interest rate r. We assume that farmers utilize their already acquired land L themselves by default because (a) land can be assumed to be a short-term fixed input factor in agricultural production (Gameiro et al 2016) and (b) land rental markets in Brazil are underdeveloped (Assunc¸ão and Chiavari 2014). For this reason farmers do not optimize regarding how much of their already-owned land to utilize and do not take the opportunity cost into account.…”

Farm-Boarding School Management: Linear Programming Contributions in the Search of Self-Sufficiency and Optimization

“…The intention was to evaluate corn silage productivity only. An integrated livestock-crop system is being implanted, with expectations of increased productivity and system optimization, as shown by several researchers (Gameiro et al, 2016;Peyraud et al, 2014;Bell et al, 2014). Lactating cows are the greatest consumers of this food, and in Scenario 2C they would be raised in an irrigated pasture system and thus get less supplementation, with part of the silage directed to beef cattle.…”

“…In addition, it is emphasized that by reducing the number of dairy cows, there is also a reduction in the number of hours spent milking these animals, so these extra hours can be devoted to pasture management. For Gameiro et al (2016), De Wit et al (1980), Azevedo Filho and Neves (1982, the results obtained by applying the model indicated a creation strategy that should be adopted to optimize results. Like that of Tanure et al (2013), the model used pasture as the main source of food, and could portray the complex relationships of the system.…”

“…This change brought the scenario and practice outcomes close together. The adopted logic is not usually reported in literature, as working with formulas from nutritional requirement tables, as is the case of Gameiro et al (2016) and Oliveira et al (2010), is the rule.…”

“…It is necessary to identify values related to a production unit rather than the activity as a whole, which presents comprehension difficulties, demanding staff training efforts. Still referring to animal production, herd dynamics was designed in a similar way to that described by Gameiro et al (2016) and Barros (2012), taking age into account, differing from Parsons et al (2012), who also considered a stable herd but attributed animal category according to weight.…”