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| Authors: | C.R. García-Alonso, L.M. Pérez-Naranjo |
| Keywords: | Monte Carlo simulation, fuzzy inference, agrarian income, horticultural farms |
Abstract:
This paper describes a hybrid method to simulate the evolution of agrarian income (estimated by farm net margin) on a medium-long term basis.
The model integrates Monte-Carlo simulation (MCS) and a multi-level fuzzy inference engine.
MCS is a well-known forecasting method but ignores the existence of real dependence relationships among covariates.
When dependence relationships cannot be algebraically formulated but can be described as rules using expert knowledge, a
fuzzy inference engine can interpret them guiding the MCS model.
The financial structure of horticultural farms (agrarian year 2000, surveyed in 2003: 348 farms) in Andalusia (southern region in Spain) was used to verify the hybrid model.
Farm net margin was forecasted from 2001 to 2013 and the results were evaluated using a cross-validation procedure.
Future environmental and market impacts can also be evaluated and this makes our model an interesting proposal as a complementary tool for decision making in the context of agricultural policy.
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