This model describes the production of food. Food is a controlled variable, as farmers decide what to grow and how much to grow on the basis of their perception of what they can sell. Consequently, the model uses the perceived food ratio as a state variable. If the farmers decide that too much food is being produced already, they'll produce less next year, and vice versa.
A second state variable describes the capital that is being invested in growing food. Since that capital (for example, the capital expended in buying food harvesting machines) cannot be allocated or freed instantaneously, it makes sense to maintain also that variable as a state variable.
The agricultural input is measured in dollars/year, whereas the food ratio is dimensionless.
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