Computer methods for farm development budgets

Abstract

In line with the Agricultural Economics Research Unit's continued interest in the economics of individual farm intensification, this publication sets out procedures for bringing automation to farm budgeting procedures. In recent years farm economists and extension workers have turned their attention to the usefulness of the computer in farm planning and control McArthur (1964) Stewart and Nuthall (1964) have explored the practical use of linear programming (for which a computer is essential), and the University of Canterbury Accountancy Department and the Farm Management Department at Lincoln College are now investigating the use of the computer for control budgeting by farmers. At Massey University Townsley and Schroder (1964) have published computer methods for calculating stock reconciliations. This bulletin explores a further use of the computer. It will demonstrate how the computer can be used to calculate forecast budgets for farm development. The whole purpose of the forecast budget is to predict the implications of a given development plan, and thus to explore the feasibility of such a plan for the individual farmer. Farm advisers already calculate forecast budgets of this type, but because the work is onerous and time-consuming, it is only done in special cases, over a short time horizon, with one set of data.