Recent Developments in Farm Planning: Investment Planning by Monte Carlo Simulation

The development of Monte Carlo programming as a farm planning method is reviewed. The possibility of applying this method and linear programming to investment planning is discussed in relation to two main types of problem. It is concluded that Monte Carlo programming is well suited to planning problems involving investment in fixed equipment and machinery partly because of the need for integer solutions and partly because of the largely exclusive nature of the investment opportunities. Neither of these points can be directed towards the investment problem in land improvement. Present Monte Carlo methods tend to be cumbersome for this type of problem though slightly adapted algorithms may prove to be of considerable value