Optimising farm resource allocation to maximise profit using a new generation integrated whole farm planning model

Abstract

A new generation integrated whole farm planning model ("the model") is introduced. In a departure from the use of whole farm and average data for decision making, this model integrates data from multiple land management units (LMUs) within a farm business and uses optimisation to identify farm system design to maximise profit under variable production and market conditions. The user supplies pasture growth rates, minimum and maximum acceptable pasture covers for each LMU, animal performance, farm costs and market prices. Additions or constraints can be placed on individual LMUs. The optimisation routine uses this information to identify the mix of production enterprises and management regimes that maximises profit for the business. A case study is presented based on a commercial sheep and beef farm with five distinct LMUs. Comparisons are made between: treating the farm as a single LMU and as five LMUs; with current and optimal farm system. Keywords: Farm System modelling, linear programming, optimisation, land management units, investment