Optimal Structure of Farms in a Region - A Modeling Approach

In the paper the regional, optimization model of agriculture and its use for predicting probable reactions of farmers and assessing the impact of the adaptation processes in the farming sector to agricultural policy changes and macroeconomic developments are presented. Two-phases modeling approach has been applied, with the use of linear programming, static optimization models a farm model, used to optimize the production structure of the farms typical for the region, and an agricultural sector model, used to determine the optimal farm and production structures within a region. An attempt have been made to incorporate in the model both micro and macroeconomic parameters. The result show, that different scenarios adjustments in farming sector in the region may result in varied farm structures and farms organization, as well as the level and composition of personal incomes of farmers.