Abstract:

Optimal agricultural land use is vital for improved productivity, maximized profitability, and efficient utilization of resources. The study aimed to determine the optimal combination that maximizes profit from the production of food crops and trees. A multi-period profit maximization programming model was used. The study used both primary and secondary data. Primary data involved the collection of information on average crop/tree prices and production costs through the focus group discussion and key informants such as VEO and other village leaders.  Secondary data was collected from the National sample census of agriculture 2007/08, Iringa region report.  From the study findings, it can be concluded that the initial allocation done by farmers was not optimal. Moreover, the study found capital and land were binding. Therefore, the government should promote low-interest credit to farmers to enable them to increase their capital base and also rent more land to increase profit.   Keywords: Crops; Multi-period; Optimization; Profit; Trees.

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