Farm-based modelling of regional structural change: A cellular automata approach

This paper presents a new type of spatial and dynamic model for analysing structural change in agriculture. The model is based on a number of individually acting farms located at different points in an agricultural region. Like a cellular automaton, the region is subdivided into a number of spatially ordered plots. The farms compete for these plots and compete on different markets. Farms are allowed to engage in different production possibilities and they can use several investment alternatives. They optimise their activities with respect to their objective function by considering their expectations, financial state and existing assets.