A farm-level model to evaluate the impacts of current energy policy options

The study on which this report is based forms part of a research programme at Lincoln College aimed at understanding the likely effects of energy shortages and energy price rises on the New Zealand economy and on the farm sector in particular. Other reports emanating from this programme include AERU Research Report No. 80, "The Energy Requirement of Farming in New Zealand", and AERU Discussion Paper No. 40, "New Zealand Agriculture and Oil Price Increases". The present report details a linear programming approach to understanding the likely reaction of a mixed cropping farm in Canterbury to a reduction in fuel availability or an increase in fuel price. The reaction is measured through changes in enterprise mix under a profit maximising assumption