A preliminary case study of a leased research-demonstration farm using linear programming

This research study focused on using linear programming to do a baseline income optimization study of a diversified operating farm leased by The University of Tennessee Tobacco Experiment Station in Greeneville, Tennessee. The more precise management of land resources over and above what is typical of most farm operations in East Tennessee was the primary objective. A more specific division of the original crop fields and pastures was deemed necessary to improve upon management precision of land resources. Therefore, the original crop fields and pastures were further divided into smaller management blocks and referred to as "farming units."

The farm's 109.10 cropable acreage was divided into 31 farming units for this study based on variabilities in soil types and slopes. The actual acreage in each farming unit was then measured using topographic maps of the farm. The soil types predominately covering each farming unit were determined through soil sampling and the use of soil maps. The production capacities of each soil type were used to calculate the yields of each crop option for all 31 farming units. Once the yields were established, they were used in the linear programming model to assist in the determination of the optimal enterprise mixes that would maximize gross margins. The analysis focused on the use of the farm's land resources under both full- and part-time labor situations.

The model was used to determine optimal alternative crop and/or livestock enterprise systems that returned the highest gross margins for differing scenarios on both a full- and part-time basis. This was completed to establish a baseline scenario of enterprise systems that best suited the given land as well as generated the greatest net returns as measured by gross margins for the research farm. Of the 14 scenarios, the full-time free model scenario generated the greatest returns with an objective value of $227,570.76, and included okra, PYO strawberries, no-till corn, and broiler production. All 109.10 acres of available cropland were utilized. The free model of the part-time scenarios also employed all available cropland, but selected conventional-till com, okra, PYO strawberries, no-till com, and broiler production in the solution. This model had an objective value of $109,702.69 and yielded the highest net returns of the part-time scenarios. The results of each scenario considered by the model served as guides in determining the optimal mix of enterprises that not only best suited the limited land resources but also returned the highest gross margins for the research farm.