| Summary: | We propose a nonlinear optimisation model which maximises profits by resource allocation on a monthly time scale, considering a monthly crop yield model. The proposed model was applied to six management scenarios (two seasonal and four monthly), nine conditions of water availability, and two situations of resource availability under Chilean conditions. These situations provided the same seasonal amount of resources, but different distributions over time. The model included improvements in water resource management such as water storage and water transactions, being the latter a monthly decision variable that can increase farmers’ profits. According to our results, monthly scenarios gave high profits, even better with appropriate resource distribution. When water costs are high, water transactions allow loss reduction of up to 50%. Regarding labour, the lack of availability is more critical than the wages.
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