Optimal Crop Choice, Irrigation Allocation, and the Impact of Contract Farming
Production and Operations Management
22 February 2013
The changing climate and concerns over food security are prompting a new look at the supply chain reliability of products derived from agriculture, and the potential role of contract farming as a mechanism to address climate and price risk while contributing toward crop diversification and water use efficiency is also emerging. This study provides a simple and stylized model for farmers’ decision making process for crop planning and water management in the contract farming context. The model is used to develop insights on the interplay among crop selection and allocation, irrigation decision, and contract farming. The structural properties of these models are illustrated through an application to data from the Ganganagar district in Rajasthan, India.