Analyzing the value of the residue of crops grown on arable land with stochastic optimization

Zlatniczki, Ádám (2015) Analyzing the value of the residue of crops grown on arable land with stochastic optimization. AGRÁRINFORMATIKA / JOURNAL OF AGRICULTURAL INFORMATICS, 6 (2). pp. 1-11. ISSN 2061-862X

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Abstract

Determining the value of theresidues of crops grown on arable land is a non-trivial task, depending much on how itis defined. In this paper the value of residuesis considered to be the savings achieved on the total expense of artificial fertilizerdistributionby returning the residues intothe soil.A general linear programming approach is presented to obtain optimal artificial fertilizerallocation. Since the amount of artificial fertilizers requireddepends on uncertain inputs Monte Carlo simulation is appliedin conjunctionwith linear programming to solve the arising stochastic optimization problem. The input data, such as the national average yield, specific amounts of nutrients required by crops to achieve the national average yield and publicly available details of different artificial fertilizerproducts are specific to Hungary, but the mathematical model presented is general in nature.Simulations are executedfor some of the major crops, including wheat, corn, sunflower and rape. The distribution of savings achieved on returning their residues to the soil is providedat the end of the paperfor further use.

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