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How did farmers act? Ex-post validation of linear and positive mathematical programming approaches for farm-level models implemented in an agent-based agricultural sector model

Author

Listed:
  • Mack, Gabriele
  • Ferjani, Ali
  • Möhring, Anke
  • von Ow, Albert
  • Mann, Stefan

Abstract

This study evaluates linear programming (LP) and positive mathematical programming (PMP) approaches for 3,400 farm-level models implemented in the SWISSland agent-based agricultural sector model. To overcome limitations of PMP regarding the modelling of investment decisions, we further investigated whether the forecasting performance of farm-level models could be improved by applying LP to animal production activities only, where investment in new sectors plays a major role, while applying PMP to crop production activities. The database used is the Swiss Farm Accountancy Data Network. Ex-post evaluation was performed for the period from 2005 to 2012, with the 2003-2005 three-year average as a base year. We found that PMP applied to crop production activities improves the forecasting performance of farm-level models compared to LP. Combining PMP for crop production activi-ties with LP for modelling investment decisions in new livestock sectors improves the forecasting performance compared to PMP for both crop and animal production activities, especially in the medium and long term. For short-term forecasts, PMP for all production activities and PMP combined with LP for animal production activities produce similar results.

Suggested Citation

  • Mack, Gabriele & Ferjani, Ali & Möhring, Anke & von Ow, Albert & Mann, Stefan, 2019. "How did farmers act? Ex-post validation of linear and positive mathematical programming approaches for farm-level models implemented in an agent-based agricultural sector model," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 8(1), April.
    • Handle: RePEc:ags:aieabj:302120
    DOI: 10.22004/ag.econ.302120
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    Cited by:

    1. Zantsi, Siphe & Mack, Gabriele & Möhring, Anke & Cloete, Kandas & Greyling, Jan C & Mann, Stefan, 2024. "How can South Africa’s land redistribution succeed? An agent-based modelling approach for assessing structural and economic impacts," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344233, International Association of Agricultural Economists (IAAE).
    2. Roberto Esposti, 2022. "The Coevolution of Policy Support and Farmers' Behaviour. An investigation on Italian agriculture over the 2008-2019 period," Working Papers 464, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    3. Mack, G. & Finger, R. & Ammann, J. & El Benni, N., 2023. "Modelling policies towards pesticide-free agricultural production systems," Agricultural Systems, Elsevier, vol. 207(C).
    4. Gios, Geremia & Farinelli, Stefano & Kheiraoui, Flavia & Martini, Fabrizio & Orlando, Jacopo Gabriele, 2022. "Pesticides, crop choices and changes in well-being," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.

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