Optimality Conditions of Agricultural Production With Fixed Input Costs

Abstract

We present a computational procedure to maximize the production of a given agricultural crop with limited inputs (water-nitrogen), and where a fixed cost (or expense) of the inputs (general problem of agricultural production) is imposed. Theoretically the procedure is based on the Karush-Kuhn-Tucker optimality conditions and numerically was tested with three different scenarios defined in the literature, for the cultures: Lettuce, Oats, Onions and Melons. In each agricultural scenario considered, it was possible to verify that the procedure is a reliable alternative in making agribusiness economic decisions.