Ecology, Environment and Conservation Paper

OPTIMIZATION OF THE FARM PRODUCTION STRUCTURE TAKING INTO ACCOUNT WEATHER, ECONOMIC AND ENVIRONMENTAL CONDITIONS

Nosov Vladimir Vladimirovich, Kozin Mihail Nikolaevich and Gladun Tatiana Nikolaevna

Abstract

Each branch of crop and livestock production presents certain requirements to production conditions for effective development. Conversely, the presence and the combination of specific conditions create a possibility and expediency of development only for certain agricultural production. The long-felt need to improve the efficiency of farms under current conditions has determined the need for conducting this study. In this paper, optimal structures of agricultural production obtained for unfavorable, average and favorable conditions of production were determined using the method of linear programming. The analysis showed that agricultural production is able to carry out profitable production under favorable and average weather conditions. The optimal production structure, calculated for adverse environmental conditions, will minimize the amount of losses suffered by the farm. In the year with adverse weather conditions it is possible to compensate for losses from reduced grain yields by insuring them. The use of “game theory” allows us to choose the optimal structure of agricultural production in terms of maximum efficiency. The performed calculations demonstrate that in the long-term term the use of the production structure for favorable natural conditions, subject to the insurance of basic grains, will allow the farm to have an 18.3% higher profit than without insuring basic grains. In the event of adverse weather conditions that lead to a decrease in grain yields, the decline in farm profit with this variant of the production structure will be minimal. Accounting for the transformation of soil fertility allows the farm to carry out efficient production as a whole with the level of profitability of 11.0%. Thus, the performed simulation allowed determining the optimal farm production structure, taking into account the natural, economic and environmental conditions of production in terms of maximum efficiency. That should ensure farm development under all possible conditions.