Mathematical modeling on crop pricing based on market price and demand

In this present work, a mathematical model framework is developed to determine crop valuation based on the assumption that the crop’s major drivers are at the consumer’s end. Due to urban preferences and population increase, the important determinants are agricultural production costs, crop productivity, service costs, and market value of crop goods. The framework is built on a set of interconnected differential equations. Farmers should expect their crops to be valued based on end-user pay-off, giving them appropriate negotiating leverage to boost their agricultural revenues. It is planned to offer farmers with crop valuations prior to planting, allowing them to select the most lucrative crop. It also gives farmers more negotiating power and supports the development of food processing businesses so that they may reach customers via the most efficient ways. This aids farmers in producing more successful crops.