Agricultural Economics
H. Fouladi; H. Amirnejad; S. Shirzadi Laskookalayeh
Abstract
IntroductionIn recent decades, the issue of climate change has become one of the global issues and has affected the agricultural sector. The continuation of agriculture regardless of the water shortage crisis has had an inappropriate effect on the sustainability and growth of this sector. On the other ...
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IntroductionIn recent decades, the issue of climate change has become one of the global issues and has affected the agricultural sector. The continuation of agriculture regardless of the water shortage crisis has had an inappropriate effect on the sustainability and growth of this sector. On the other hand, the destructive effect of excessive use of chemical fertilizers and pesticides on water, soil, health of ecosystems, humans and other living beings is undeniable. For this reason, the void of using an efficient model that can provide all economic and environmental aspects at the same time was completely felt. The aim of this study was to provide an optimal cropping pattern using the integrated method of Goal and Grey planning. For this purpose, the farmers of the agronomy sub-sector of Tajan Basin were selected as the statistical population. In this regard, time series information was collected from the aggregation of the average data of 401 settlements located in this area during the years 2017-2021 from the annual reports of experts. Materials and MethodsThe Linear Programming (LP) Model quantifies an optimal way of integrating constraints to satisfy the objective function to optimize crop production and profits for irrigation farmers. To use LP, one must convert the problem into a mathematical model. To do this, an objective such as maximizing profit or minimizing losses is required. The model must also include decision variables that affect those objectives, and constraints that limit what user can do. Therefore, the LP Model is a single-objective method. Goal Programming (GP) is an extension of LP in which targets are specified for a set of constraints. GP is used to perform three types of analysis: Determining the required resources to achieve a desired set of objectives. Determining the degree of attainment of the goals with the available resources. Providing the best satisfying solution under a varying amount of resources and priorities of the goals. Thus, the GP model is a multi-objective method. The Grey system theory is identified as an effective methodology that can be used to solve uncertain problems with partially known information. Grey modelling approach uses accident data for estimating the model parameters. The model can reflect the dynamics, balance the conflicting the multidimensional targets of cropping patterns, and promoting the sustainable use of cultivated land. For achieving different goals in unstable economic and environmental conditions, we used a Goal-Grey model that was obtained from the integration of Goal programing and Grey Programing. The Goal-Grey model, by considering the uncertainty in the data, leads to overlap between the economic and environmental goals and provides the scope of cultivation for the selected products. Results and DiscussionBy estimating the Linear Programming (LP) Model, crops like wheat and canola are removed from the cropping pattern, while the cultivation areas for barley and high-yielding long-grain rice increase by 644% and 31%, respectively. In contrast, the cultivation areas for high-quality long-grain rice and maize decrease by 89% and 10%, respectively. Implementing this model boosts the gross profit of farmers in the Tajan region by 14% solely through adjusting the crop composition, without altering the current input levels. Additionally, the findings show that applying the LP Model results in fertilizer savings of 5%, 13%, and 10% for phosphate, nitrogen, and potash, respectively. The amount of herbicide and fungicide consumption in the LP Model is exactly equal to the current model of the region. However, the implementation of this model will lead to a 5% increase in the consumption of insecticides poison. The amount of irrigation water consumption in the LP Model was calculated to be 2% less than the current model of the region. In addition, the results indicate that by estimating the Goal-Grey Model, only canola is removed from the cropping pattern. Also, in order to achieve the defined goals in this study, the cultivation area of wheat and maize should be equal to 208 and 7356 hectares respectively. However, the flexibility of input usage enables adjustments to other crop cultivation areas, facilitating high-quality long-grain rice production on 970 to 18,157 hectares. Plus, the cultivation area of long-grain rice can vary from 7654 to 9995 hectares. In this model, barley can be removed from the crop composition like the linear pattern or cultivated on a maximum of 2553 hectares. The implementation of the Goal-Grey model will lead to a maximum 2% increase in the gross profit of the farmers of Tajan region compared to the current model of this region. Also, by implementing the Goal-Grey Model, on average, phosphate, nitrogen, and potash fertilizer consumption is saved by 16, 27, and 20 percent, respectively. In addition, with the implementation of the Goal-Grey Model, the consumption of agricultural pesticides will decrease from 733 to 355 thousand liters on average. ConclusionThe LP Model is designed based on current regional conditions; however, as a single-objective model with fixed parameters, it lacks the flexibility to offer an adaptable program for farmers during drought or wet periods or when inputs are limited. Findings indicate that under current conditions, there is excessive use of chemical inputs and irrigation water. By accounting for data uncertainty, the Goal-Gray model addresses these limitations, balancing economic and environmental objectives and defining a cultivation range for selected crops. Acknowledgement We are grateful to the experts of agronomy management and plant conservation management of Mazandaran Province Agricultural Jihad Organization and Sari City Agricultural Jihad Management who cooperated in data collection. This article is taken from the preliminary results of a doctoral dissertation with material and intellectual rights related to Sari Agricultural Sciences and Natural Resources University, which is gratefully acknowledged.
Agricultural Economics
A.H. Chizari; K. Vazirian
Abstract
Efficient Asset allocation and investment portfolio selection are among the most critical and challenging issues in investment management and a continuous concern for investors. When investors invest in the capital market, they expect their portfolio to perform well. Therefore, this study determines ...
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Efficient Asset allocation and investment portfolio selection are among the most critical and challenging issues in investment management and a continuous concern for investors. When investors invest in the capital market, they expect their portfolio to perform well. Therefore, this study determines the optimal stock portfolio of agricultural companies in the Tehran Stock Exchange (TSE). Thirty-two most important agriculture companies in the (TSE), with monthly data from 2014-2020, were selected from Iran's two most essential agriculture industries, the food and beverage industries, and the sugar industry. Two portfolios for the food and beverage industry and sugar industry goals: minimizing portfolio variance and maximizing portfolio return using the Markowitz model with two different scenarios and applying two minimum investment constraints of 1% and optimized maximum investment of 20% without considering these two constraints. The efficiency, variance, and Sharp ratios are also calculated. The results showed that both food and beverage industry portfolios and the sugar industry portfolios became more efficient when optimized to maximize portfolio returns. The result also indicates the food and beverage industry was more efficient than the portfolio of the sugar industry. In this portfolio, the amount of investment for the shares of Salmin Company was 86.7% and for Mehram Company was 13.3%.
S.M. Mojaverian; M. Taghizadeh; H. Amirnezhad
Abstract
Introduction: Eliminating the deprivation of less developed areas has always been considered as a challenge to the realization of economic and social justice in the country that was not realized due to various reasons such as geographical isolation, imposed war and insecurities, inconsistencies and limiting ...
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Introduction: Eliminating the deprivation of less developed areas has always been considered as a challenge to the realization of economic and social justice in the country that was not realized due to various reasons such as geographical isolation, imposed war and insecurities, inconsistencies and limiting factors of investment security, and credits. The budget and credit law is one of the most important strategic tools to achieve the goals of each country. Credits are the most important tools for tracking policies and priorities, programing, and modifying activities. Therefore, the proper understanding of this tool and its principled application, as well as the optimal allocation method, is very important. In general, the governments are attempting to allocate the resources optimally and reduce inequalities through optimal programing. Accreditation is regarded as a strategic tool for implementing the government's duties in the economy which can provide a competent and accountable government and promote people's participation. The previous studies indicated that traditional budget allocation patterns are not efficient and appropriate leading to inequality and widening gap between regions. Using traditional accreditation patterns led to the acceleration of inappropriate allocation of spatial areas of population, facilities, infrastructure and investment in Iran. Optimality and efficiency are considered as the most important aspects of budgeting and accreditation, which can improve the financial performance of the government, decrease inequality and increase the level of development in the regions. In this regard, the researchers always attempted to provide a scientific approach based on mathematical optimization methods for the optimal and efficient allocation of financial and credit resources.
Materials and Methods: Goal programing approach was introduced by Charnes and Cooper (7). It was one of the approaches to multi-objective decision-making problems classified as mathematical optimization approaches with multiple targets. This model presented an optimal solution for optimizing the objective function in accordance with the applied constraints based on decision-making atmosphere and developed constraints.
In this method, a certain number was determined for the goal and the related target function was categorized. Finally, the answer minimizing the total weight of each target deviation than the goal determined for the same target was searched. In order to optimize the appropriation of agricultural credits in Kerman province, a goal planning model was designed and presented for achieving the goals. In this method, for each goal, a certain number is assigned to the ideal, then the target function is formulated. Finally, a search result is obtained that the total weight of the deviation of each goal is related to the ideal determined to minimize the same goal. The most important macroeconomic, social and environmental goals including 6 indices: comparative advantage, labor productivity, water productivity, land productivity, fertilizer productivity and mechanization coefficient, respectively were considered for the model. Fuzzy AHP method was used to determine the coefficient of importance of these indices in nine northern township of this province.
Results and Discussion: The results show that to achieve the common goals of different township of the province, it is necessary to allocate more credits to all township, especially Rafsanjan, Sirjan, Shahrbabak, Bardsir and Baft. The reason for such an outcome is the existence of capacity and potential of agriculture in these township. In Kerman, considering the available capacity and potential in agriculture, it is not necessary to use more credits. Thus, allocating credits to the county of Kerman is practically equal to carrying out the project at a higher cost. Nonetheless, other township can certainly and potentially attract more funding at a lower cost. It is worthwhile to say that to achieve the overall objectives of this study, goal programing models for reallocating agricultural credits to the field has been used. In other words, due to existing and available credits, we can plan purposefully and reprogram to achieve higher levels of macro goals in agriculture in Kerman province
Conclusions: Based on the results, the credits allocated in 2014 which was made by law was not balanced. Second, considering ideals, the allocation of available credits is not optimal. Comparing the six considered ideals, all ideals, except the mechanization coefficient ideal which is higher in this situation, were lower; therefore, the present allocation of credits is not optimal. Third, the ideals could be realized if there was a convergent allocation in the agricultural credits (a convergence allocation means using more capacities and potentials in more potent Townships). In other words, the capacities and capabilities of the agricultural activities in these Townships have remained useless due to the lack of awareness and incorrect allocation of credits. Therefore, these potentials can be used with the low cost in order to reduce regional inequality, and make a convergence in the production and employment in Kerman province if a balanced budget and programs agricultural credits related can be launched.
S. Shamsadini; H. Mehrabi; M. A. Yaghoobi; S. Nabieian; M. R. Pourebrahimi
Abstract
Introduction: Eliminating the deprivation of less developed areas has always been considered as a challenge to the realization of economic and social justice in the country that was not realized due to various reasons such as geographical isolation, imposed war and insecurities, inconsistencies and limiting ...
Read More
Introduction: Eliminating the deprivation of less developed areas has always been considered as a challenge to the realization of economic and social justice in the country that was not realized due to various reasons such as geographical isolation, imposed war and insecurities, inconsistencies and limiting factors of investment security, and credits. The budget and credit law is one of the most important strategic tools to achieve the goals of each country. Credits are the most important tools for tracking policies and priorities, programing, and modifying activities. Therefore, the proper understanding of this tool and its principled application, as well as the optimal allocation method, is very important. In general, the governments are attempting to allocate the resources optimally and reduce inequalities through optimal programing. Accreditation is regarded as a strategic tool for implementing the government's duties in the economy which can provide a competent and accountable government and promote people's participation. The previous studies indicated that traditional budget allocation patterns are not efficient and appropriate leading to inequality and widening gap between regions. Using traditional accreditation patterns led to the acceleration of inappropriate allocation of spatial areas of population, facilities, infrastructure and investment in Iran. Optimality and efficiency are considered as the most important aspects of budgeting and accreditation, which can improve the financial performance of the government, decrease inequality and increase the level of development in the regions. In this regard, the researchers always attempted to provide a scientific approach based on mathematical optimization methods for the optimal and efficient allocation of financial and credit resources.
Materials and Methods: Goal programing approach was introduced by Charnes and Cooper (7). It was one of the approaches to multi-objective decision-making problems classified as mathematical optimization approaches with multiple targets. This model presented an optimal solution for optimizing the objective function in accordance with the applied constraints based on decision-making atmosphere and developed constraints.
In this method, a certain number was determined for the goal and the related target function was categorized. Finally, the answer minimizing the total weight of each target deviation than the goal determined for the same target was searched. In order to optimize the appropriation of agricultural credits in Kerman province, a goal planning model was designed and presented for achieving the goals. In this method, for each goal, a certain number is assigned to the ideal, then the target function is formulated. Finally, a search result is obtained that the total weight of the deviation of each goal is related to the ideal determined to minimize the same goal. The most important macroeconomic, social and environmental goals including 6 indices: comparative advantage, labor productivity, water productivity, land productivity, fertilizer productivity and mechanization coefficient, respectively were considered for the model. Fuzzy AHP method was used to determine the coefficient of importance of these indices in nine northern township of this province.
Results and Discussion: The results show that to achieve the common goals of different township of the province, it is necessary to allocate more credits to all township, especially Rafsanjan, Sirjan, Shahrbabak, Bardsir and Baft. The reason for such an outcome is the existence of capacity and potential of agriculture in these township. In Kerman, considering the available capacity and potential in agriculture, it is not necessary to use more credits. Thus, allocating credits to the county of Kerman is practically equal to carrying out the project at a higher cost. Nonetheless, other township can certainly and potentially attract more funding at a lower cost. It is worthwhile to say that to achieve the overall objectives of this study, goal programing models for reallocating agricultural credits to the field has been used. In other words, due to existing and available credits, we can plan purposefully and reprogram to achieve higher levels of macro goals in agriculture in Kerman province
Conclusions: Based on the results, the credits allocated in 2014 which was made by law was not balanced. Second, considering ideals, the allocation of available credits is not optimal. Comparing the six considered ideals, all ideals, except the mechanization coefficient ideal which is higher in this situation, were lower; therefore, the present allocation of credits is not optimal. Third, the ideals could be realized if there was a convergent allocation in the agricultural credits (a convergence allocation means using more capacities and potentials in more potent Townships). In other words, the capacities and capabilities of the agricultural activities in these Townships have remained useless due to the lack of awareness and incorrect allocation of credits.
Therefore, these potentials can be used with the low cost in order to reduce regional inequality, and make a convergence in the production and employment in Kerman province if a balanced budget and programs agricultural credits related can be launched.