A simulation of contract farming using agent based modeling

Abstract

This study aims to simulate the effects of contract farming and farmer commitment to contract farming on supply chain performance by using agent based modeling as a methodology. Supply chain performance is represented by profits and service levels. The simulation results indicate that farmers should pay attention to customer requirements and plan their agricultural activities in order to fulfill these requirements. Contract farming helps farmers deal with demand and price uncertainties. We also find that farmer commitment is crucial to fulfilling contract requirements. This study contributes to this field from a conceptual as well as a practical point of view. From the conceptual point of view, our simulation results show that different levels of farmer commitment have an impact on farmer performance when implementing contract farming. From a practical point of view, the uncertainty faced by farmers and the market can be managed by implementing cultivation and harvesting scheduling, information sharing, and collective learning as ways of committing to contract farming.

Agent-Based Modeling in Agri- Industrial Complex: Justification of Reclamation Park in Southern Russia

“…Y. Handayati и др. [46] применили АО подход для моделирования за-ключения контрактов между сельхозтоваропроизводителями и снабжающими их организациями. F. Tzima, I. N. Athanasiadis и др.…”