Prosperity of the agricultural sector is very crucial not only for the national economy but also for the regional development. However, this prosperity has quite often a significant environmental cost in terms of water resources overexploitation or pollution. The main purpose of this paper is to create, apply and evaluate a model that aims at the simultaneous maximization of farmer's welfare and the minimization of the consequent environmental burden.
Lexicographic goal programming technique is employed. This technique is implemented on a representative farm around Mashhad in Iran to seek for a solution – in terms of area and water allocation under different crops.
Results shows that application of a multi‐criteria analysis may lead to a win‐win situation.
A lexicographic goal programming is used to satisfy both goals of farm activity in a represented area in Iran.
