The impact of distance to the farm compound on the options for use of the cereal plot

Abstract

In increasingly competitive conditions, the dominant trend of enlarging the production area of farms is causing a growth in transportation costs making the profitability of cultivating distant plots questionable. The aim of this study was to provide a method to evaluate the rationality of using a plot depending on its distance, area and cultivation technology. An algorithm and a mathematical model were composed to calculate the total costs depending on the distance to the plot. The transportation costs of machines and materials, cost of organisational travel and timeliness costs are taken into account in the model to enable determination of the maximum distance or the minimum area of the plot necessary for profitable cultivation. Simulations allow us to conclude that the growth in yield and selling price of the production allow an increase in the limit value of driving costs and, thus, the profitable distance of the plot; on the other hand, it means also an increase of timeliness costs as a limitation for extending distance. Exploitation of more distant plots can be uneconomical in coming years because of increasing fuel costs.