Mathematical programming-based systems analysis is used to examine the consequences of alternative operation configuration for the agricultural operations within the Texas Department of Criminal Justice. Continuation versus elimination of the total operation as well as individual operating departments are considered. Methodology includes a firm systems operation model combined with capital budgeting and an integer programming based investment model. Results indicate the resources realize a positive return as a whole, but some enterprises are not using resources profitably. The integer investment model is found to be superior for investigating whether to continue multiple interrelated enterprises.

A whole-farm-level decision model is used to examine the impact of the type of decisions producers make on the value of seasonal climate forecasts. Results suggest that precipitation forecasts directed towards crop mix and applied nitrogen level decisions would have the largest economic value. Further, the results show that the economic value of climate forecasts cannot be obtained by examining only a small set of decision types. Rather, all decision types must be modelled to value seasonal precipitation forecasts correctly. This occurs because in response to seasonal climate forecasts changes in one type of decision may override the need to change other decision types. Finally, forecasts of precipitation during the crop tasselling and grain filling stages may be more valuable than precipitation forecasts for earlier crop growth periods.

The 50/92 and 0/92reduced planting alternativestives of the 1985 farm bill allow farm program participants more flexibility in making production decisions. Specifically, these provisions relax the incentive to produce inherent in earlier commodity programs that linked deficiency payments directly to harvested acreage. This study examined the value of this additional decision flexibility for crop producers in the Blacklands of Central Texas. The results suggest that the reduced planting alternatives would not be used by, and have no value for risk neutral producers, but have substantial value for risk averse producers who would reduce planted acreage in years when yield expectations are low.