Determination of the optimal cropping pattern and market orientation under climate uncertainty: in Arjan district in Fars Province; application of two-stage stochastic programming

Mortazavi, Abolghasem; Azhdari, Somayeh; Mousavi, Seyed Habiballah

Determination of the optimal cropping pattern and market orientation under climate uncertainty: in Arjan district in Fars Province; application of two-stage stochastic programming

Document Type : Research Paper

Authors

Abolghasem Mortazavi

Somayeh Azhdari

Seyed Habiballah Mousavi

Abstract

Considering risk in multi-stage farmer’s decision making from production to marketing process can provide a long-run framework for policy makers and researchers to manage farmer’s income, especially in developing countries. This study investigates the cropping pattern, consumption and net sale of agricultural products in Arjan district, Fars province under climate uncertainty conditions. Hence, three deterministic models for normal, drought and wet conditions and a two-stage stochastic model were used. The results showed that in short term, which proper climate information exists during the decision-making process, deterministic models provide a range of profit which changes the situation of region from net buyer to net seller one. Compared with certain models, two-stage stochastic model offers long term conditions in which the cultivation pattern not only insures regional self-consumption, but also guaranties marketable surplus.

Keywords

Optimal cropping pattern

Uncertainty

Two-stage stochastic programming model

Arjan district

Fars province