Institut für Agrarökonomie

Quantitative methods of farm planning and performance analysis

Module AEF-agr059
Winter Semester 2021/22
Prof. Uwe Latacz-Lohmann

1. Introduction
1.1 Objectives of module and modus operandi
1.2 Planning and decision – an overview

2. Linear Programming – Foundations and principles

2.1 Assumptions of LP and basic model structure
2.2 Solving LP problems using the Simplex Algorithm
2.3 Duality in Linear Programming

3. Linear Programming – Farm-level applications

3.1 Model formulation and interpretation of results for a case study farm
3.2 Solving linear programmes in Excel
3.3 Sensitivity and stability analysis
3.4 Linear Programming – extensions

4. Linear Programming – extensions

4.1 Parametric Linear Programming
4.2 Mixed integer programming
4.3 Multi-period (dynamic) Linear Programming
4.4 Integration risk into LP models: MOTAD and Quadratic Programming

5. Efficiency analysis – principles

5.1 Basic concepts
5.2 Motivation of empirical efficiency analyses
5.3 Alternative approaches to efficiency measurement

1
6. Efficiency analysis based on Data Envelopment Analysis (DEA)
6.1 DEA basic models: CCR and BCC models
6.2 Formulating DEA models in Excel
6.3 DEA model extensions:
- Ranking of efficient units: super efficiency
- Non-discretionary inputs and outputs
- Efficiency analysis for technologically heterogeneous
units: Metafrontier analysis
6.4 Measuring productivity change over time: Malmquist-Index

References
There is no single textbook that covers the entire contents of this module. The following
references contain parts of the topics covered. Further references will be supplied during
the course of the semester.
• Mußhoff, O. und N. Hirschauer: Modernes Agrar-Management. Vahlen, München,
2020. (Chapter 5).
• Hazell, B.R. und R.D. Norton: Mathematical Programming for Economic Analysis
in Agriculture. Macmillan, New York, 1986.
• Barnard, C.S and J.S. Nix: Farm Planning and Control (2nd Edition). Cambridge
University Press, England, 1979.
• Pannell, D.J.: Introduction to Practical Linear Programming. John Wiley & Sons,
New York, 1997.
• Brandes, W.: Wie analysiere und plane ich meinen Betrieb? Parey Verlag, 1974.
• Odening, M. und W. Bokelmann: Agrarmanagement Landwirtschaft, Gartenbau.
Ulmer, Stuttgart, 2000. (Abschnitt A, C3 und C4).
• Steinhauser, H., Langbehn, C. und U. Peters: Einführung in die landwirtschaftliche
Betriebslehre. Allgemeiner Teil. Verlag Ulmer, 5. Auflage 1992. (Kapitel 5.3).
• Coelli, T., Prasada, D.S., Rao and G. Battese (1998). An Introduction to Efficiency
and Productivity Analysis. Kluwer Academic Publishers, The Netherlands.