Optimization model of agricultural production system in grain farms under risk, in Sorriso, Brazil

Brazil is among the world’s largest grain producers and exporters. Its high productivity is the result of its technology in tropical agriculture, the way Brazilian farmers apply these technologies in their farms and Brazil’s particular production conditions. The literature offers few scientific papers that describe and enhance decision support systems for agricultural planning in tropical agriculture, especially those that include two annual harvests in the same area. This paper brings important contributions to understand the double-crop production systems that make Brazil one of the world’s leading and most competitive grain-producing countries. It proposes a decision support model focused on production planning in multiproduct farms under risk conditions and applies this theoretical model of farm planning that uses operations research to understand the different productive resource allocations in farms engaged in grain production. This model was implemented in a representative farm in the Sorriso region, one of the main grain producing areas in Brazil. The efficient frontier curves calculated in the study revealed that the representative farms in this region maximized their production factors. The results showed that the production system adopted by the producers in Sorriso has achieved good financial returns with lower risks.