Doctoral Degrees (Agricultural Economics)

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Browsing Doctoral Degrees (Agricultural Economics) by browse.metadata.advisor "Kleynhans, T. E."

Now showing 1 - 4 of 4
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    Farm modelling for interactive multidisciplinary planning of small grain production systems in South Africa
    (Stellenbosch : University of Stellenbosch, 2010-12) Hoffmann, Willem Hendrik; Kleynhans, T. E.; University of Stellenbosch. Faculty of Agrisciences. Dept. of Agricultural Economics.
    ENGLISH ABSTRACT: A complex and volatile decision-making environment and constant pressure on product prices, due to the cost-price squeeze, complicates decision-making for grain farmers in the Western Cape. Furthermore, available alternative crops and cultivation practices are limited due to local soil and climatic conditions. The farm system itself is complex due to the interdependence of a variety of factors and the synergy resulting from specific sequences of cash and pasture crops. The aim of this research project was to establish a method that would contribute to identifying strategies to advance the profitability of grain production. Research in the grain industry is traditionally specialised within specific fields, such as, agronomy, soil science, entomology, agricultural economics, etc., causing a fragmentation of knowledge. To ensure that the systems nature of a complex farm is accommodated, various related research domains should be acknowledged and incorporated. The use of expert group discussions, as a research method, is suitable, firstly, for gathering information in a meaningful manner and, secondly, to stimulate individual creativity by presenting alternative perspectives provided by various participating experts. In support of expert group discussions, simulation models in the form of multi-period whole-farm models were developed. This type of modelling supports the accurate financial simulation of farms, while the user friendliness and adaptability thereof can accurately accommodate typical farm interrelationships, and quickly measure the financial impact of suggested changes to parameters. Suggestions made by experts during the group discussions can thus be quickly introduced into the model. The financial implications are instantly available to prevent further exploration of non-viable plans and to fine-tune the viable plans. Participants in the group discussions represent fields of expertise such as agronomy, soil science, entomology, plant pathology, the agricultural chemical industry, agricultural mechanisation. Also represented are professionals such as extension officers from local agribusinesses, local producers and agricultural economists. The dynamics of the group discussions are supported by each participant’s specific strengths and perspectives. For each relatively homogeneous production area of the Western Cape, a typical farm budget model was developed, which served as the basis for the group discussions. The budget models measure profitability in terms of the IRR (internal rate of return on capital investment) and affordability in terms of expected cash flow. For the Swartland, the homogeneous areas identified were Koeberg/Wellington, the Middle Swartland and the Rooi Karoo, and for the Southern Cape, the homogenous areas identified were, the Goue Rûens, Middle Rûens and Heidelberg Vlakte. A model of a typical farm in the Wesselsbron area was developed for comparison with the Western Cape farms. For each area the expected impact of climate change, fluctuating product and input prices, and the possible impact of partial conversion to bio-fuel production were evaluated in terms of expected impact on profitability. Various area-specific strategies were identified that could enhance the profitability of grain production: most of the strategies focused on optimising machinery usage and expanding or intensifying the livestock enterprise. The repeated successful use of the model in support of the expert groups in all the chosen study areas illustrates the value thereof for identifying and evaluating plans to increase the profitability of small grain production.
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    Multi-criteria decision-making for water resource management in the Berg Water management area
    (Stellenbosch : University of Stellenbosch, 2006-12) De Lange, Willem J.; Kleynhans, T. E.; University of Stellenbosch. Faculty of Agrisciences. Dept. of Agricultural Economics.
    ENGLISH ABSTRACT: The concept of social welfare maximisation directs strategic decision-making within a milieu of integrated planning problems. This study applies the aforementioned statement to decision-making regarding the long-term allocation of bulk-water resources in the Berg Water Management Area of South Africa. Public goods, such as bulk water supply infrastructure, is vulnerable to failures in market and government allocation strategies because both fields are subjected to unaccounted costs and benefits. This implies a measurement problem for the quantification of the total cost/benefit of management options and result in decision-making with incomplete information. Legitimate decision-making depends on reliable and accurate information, and the measurement problem, therefore, poses an obstacle to better social welfare maximisation. A need has been identified to broaden the decision-making context in the Berg Water Management Area to promote the accommodation of unaccounted for costs and benefits in water resource allocation decision-making. This study engaged this need by expanding the temporal and spatial dimensions of the decision-making context. Accordingly, improved indecision-making information and decision-support processes is needed. Spatial expansions manifested in physical expansions of the decision-making boundaries that led to expansions in representation in the decision-making process. Temporal expansions manifested in the consideration of different sequences of bulk supply schemes over time instead of a selection of schemes at the same time. The study incorporated components of economic valuation theory, multi-criteria decision analysis, a public survey and a modified Delphi expert panel technique to account for the increased decisionmaking information load. The approach was applied in the Western Cape province of South Africa and specifically focused on a choice problem regarding different long-term bulk-water resource management options for the area. Two surveys were completed to accommodate these expansions. The first focused on public preference in water allocation management and the second survey utilized a modified Delphi technique. Questions regarding the extend of public participation in long-term water resource allocation decision-making came to the fore and the applicability of economic theory to accommodate public preference as a regulatory instrument, was questioned. A willingness to pay for “greener” water was observed and may be used to motivate a paradigm shift from management’s perspective to consider, without fear of harming their own political position, “greener” water supply options more seriously even if these options imply higher direct costs.
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    A reinterpretation of the value attributes of agricultural land for the valuation of farms bought for lifestyle purposes
    (Stellenbosch : University of Stellenbosch, 2009-03) Reed, Lily Lozelle; Kleynhans, T. E.; University of Stellenbosch. Faculty of Agrisciences. Dept. of Agricultural Economics.
    Traditionally, agricultural land was regarded mainly as a production factor. Accordingly, in their application of the market sales comparison approach to agricultural land, valuers relied on a set of attributes related to agricultural production as the primary determinants of an agricultural property’s highest and best use (HBU) and market value. These characteristics were measurable and related to the property’s income-generating capacity. The emergence of a multi-functional rural land market with alternative uses of agricultural land, such as for lifestyle purposes, has transformed this concept. Lifestyle inspired buyers often focus on a wider range of attributes not necessarily related to income, but associated more with satisfaction derived from the property. This creates a measurement problem for agricultural land valuers, as the characteristics valued by lifestyle buyers are more intangible and subjective, which leave valuers without a base from which to value such properties. The presence of lifestyle inspired buyers makes agricultural land valuations more demanding as it implies different interpretations of the same farm and complicates the choice of a single HBU. The continued use of familiar conventional farming attributes by valuers when valuing farms where lifestyle motivations are present, and the omission of less measurable characteristics, implies that the market sales comparison method cannot be executed accurately. The objectives of the study were twofold: to reveal the dominance of value attributes applicable to farming as HBU when valuing farms bought primarily for lifestyle purposes and to identify the characteristics of land important to lifestyle inspired farm buyers.
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    Strategic planning of agricultural land information systems in South Africa
    (Stellenbosch : Stellenbosch University, 2008-12) Makhwaje, Ernest N.; Kleynhans, T. E.; Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics.
    The planning processes involved in the design and development of strategic land information systems in a semantic context require a logical approach. An array of efficacy problems associated with the relevance of the information required and the data to be provided must be dealt with in terms of this logical approach so that wise decisions can be made about future land resource use options. This study applies the aforementioned statement to strategic decision-making regarding information management in the provision of accurate and relevant information about the characteristics of the land resource for use by both the public and private sectors in South Africa. With ever evolving human needs that increase pressure on the limited land resource, the need for accurate and relevant information for strategic purposes is increasing. However, even at the present time, land information systems design and development is characterised by a technical design orientation and a narrow cost-efficiency focus, with a lack of strategic envisioning. Strategic decisions require effective choices regarding what data should be collected and how this should be stored and processed to support landresource- use decisions in the future. Information systems can, however, not cater for too many variables due to cost implications. Hence, strategic choices in generating only the required information and data for storage and processing become necessary.