Stochastic Optimization: An Application to Sub-Arctic Dairy Farming
The paper demonstrates how a deterministic farm linear programming (LP) model can be made stochastic and simulated using Solver and Simetar© in Excel©. The demonstration is conducted with an LP-model for a dairy farm for a sub arctic region of Norway. The income risks arising from variation in milk...
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ftdatacite:10.22004/ag.econ.24253 2023-05-15T14:54:07+02:00 Stochastic Optimization: An Application to Sub-Arctic Dairy Farming Asheim, Leif Jarle Richardson, James W. Schumann, Keith D. Feldman, Paul A. Asheim, Leif Jarle Richardson, James W. Schumann, Keith D. Feldman, Paul A. 2005 https://dx.doi.org/10.22004/ag.econ.24253 https://ageconsearch.umn.edu/record/24253 en eng Unknown Livestock Production/Industries dairy production Northern Norway stochastic optimization stochastic simulation yield risks article-journal Text ScholarlyArticle 2005 ftdatacite https://doi.org/10.22004/ag.econ.24253 2021-11-05T12:55:41Z The paper demonstrates how a deterministic farm linear programming (LP) model can be made stochastic and simulated using Solver and Simetar© in Excel©. The demonstration is conducted with an LP-model for a dairy farm for a sub arctic region of Norway. The income risks arising from variation in milk and crop yields due to winter damage in leys and pastures have been quantified for farms demonstrating low, medium and high forage yield risk. The estimated distribution of farm profit will be skewed to the left, indicating a downside risk. In the presence of risks, farmers maximize income by producing the milk quota with using surplus forage for meat production. The analysis demonstrated here may assist farmers and farm managers in improving sensitivity analysis for risky variables in farm LP models. Text Arctic Northern Norway DataCite Metadata Store (German National Library of Science and Technology) Arctic Norway |
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collection |
DataCite Metadata Store (German National Library of Science and Technology) |
op_collection_id |
ftdatacite |
language |
English |
topic |
Livestock Production/Industries dairy production Northern Norway stochastic optimization stochastic simulation yield risks |
spellingShingle |
Livestock Production/Industries dairy production Northern Norway stochastic optimization stochastic simulation yield risks Asheim, Leif Jarle Richardson, James W. Schumann, Keith D. Feldman, Paul A. Asheim, Leif Jarle Richardson, James W. Schumann, Keith D. Feldman, Paul A. Stochastic Optimization: An Application to Sub-Arctic Dairy Farming |
topic_facet |
Livestock Production/Industries dairy production Northern Norway stochastic optimization stochastic simulation yield risks |
description |
The paper demonstrates how a deterministic farm linear programming (LP) model can be made stochastic and simulated using Solver and Simetar© in Excel©. The demonstration is conducted with an LP-model for a dairy farm for a sub arctic region of Norway. The income risks arising from variation in milk and crop yields due to winter damage in leys and pastures have been quantified for farms demonstrating low, medium and high forage yield risk. The estimated distribution of farm profit will be skewed to the left, indicating a downside risk. In the presence of risks, farmers maximize income by producing the milk quota with using surplus forage for meat production. The analysis demonstrated here may assist farmers and farm managers in improving sensitivity analysis for risky variables in farm LP models. |
format |
Text |
author |
Asheim, Leif Jarle Richardson, James W. Schumann, Keith D. Feldman, Paul A. Asheim, Leif Jarle Richardson, James W. Schumann, Keith D. Feldman, Paul A. |
author_facet |
Asheim, Leif Jarle Richardson, James W. Schumann, Keith D. Feldman, Paul A. Asheim, Leif Jarle Richardson, James W. Schumann, Keith D. Feldman, Paul A. |
author_sort |
Asheim, Leif Jarle |
title |
Stochastic Optimization: An Application to Sub-Arctic Dairy Farming |
title_short |
Stochastic Optimization: An Application to Sub-Arctic Dairy Farming |
title_full |
Stochastic Optimization: An Application to Sub-Arctic Dairy Farming |
title_fullStr |
Stochastic Optimization: An Application to Sub-Arctic Dairy Farming |
title_full_unstemmed |
Stochastic Optimization: An Application to Sub-Arctic Dairy Farming |
title_sort |
stochastic optimization: an application to sub-arctic dairy farming |
publisher |
Unknown |
publishDate |
2005 |
url |
https://dx.doi.org/10.22004/ag.econ.24253 https://ageconsearch.umn.edu/record/24253 |
geographic |
Arctic Norway |
geographic_facet |
Arctic Norway |
genre |
Arctic Northern Norway |
genre_facet |
Arctic Northern Norway |
op_doi |
https://doi.org/10.22004/ag.econ.24253 |
_version_ |
1766325803046404096 |