Development And Adjustment Policy For A Low Income Farm Area1

This paper attempts to develop profit-maximizing plans for a low income farm area and to indicate the magnitude of resource adjustment required to meet this optimum. A secondary objective is to evaluate the usefulness of the variable resource programming technique as a device for determining resource misallocation and as a guide to regional and national policy. The study set out to develop optimum plans for the individual farm units and for the area using the variable resource programming technique. The results of the individual farm programs indicate that considerable income development potential exists on farms through internal farm resource reorganization and development. Results of the area programs suggest a need for substantial farm unit adjustment in order to achieve efficient resource use, particularly in achieving minimum farm income needs of the future.