Masters Degrees (Agricultural Economics)

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Browsing Masters Degrees (Agricultural Economics) by Author "Basson, Coenraad Hendrik"

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    A financial analysis of different livestock management approaches within different crop rotation systems in the middle Swartland
    (Stellenbosch : Stellenbosch University, 2017-03) Basson, Coenraad Hendrik; Hoffmann, Willem H.; Strauss, J. A.; Stellenbosch University. Faculty of AgriSciences. Agricultural Economics.
    ENGLISH SUMMARY : The need for sustainable agricultural production systems is emphasised by the increasing pressure on natural resources. Conservation agriculture (CA) is a holistic approach to sustainable agriculture, encompassing three basic principles: (1) minimal soil disturbance, (2) maximum or permanent levels of soil cover and (3) crop diversification through crop rotation systems. The Swartland grain production area of the Western Cape has seen an increased adoption of CA practices over the last two decades. The reasons for and extent of CA uptake amongst Swartland producers vary significantly. The Swartland has a typical Mediterranean climate with hot, dry summers and cold, wet winters. Grain production in the Swartland is predominantly based on dry-land production systems, while wheat has traditionally been produced in monoculture systems. As a result of various driving forces, the attractiveness of crop rotation as an alternative to monoculture has increased significantly since the late 1990’s. Alternative crops such as canola, lupins, and annual legume pastures have gained popularity in the area and are commonly incorporated into Swartland crop rotation systems. The addition of annual legume pastures into crop rotation systems with wheat has provided Swartland producers the opportunity to also diversify in terms of farming enterprise by adding a livestock component to their farming operation. The additional incorporation of a livestock component may provide many benefits, including increased diversification, increased financial and income stability and even increased profits. However, despite the fact that livestock fit perfectly in crop rotation systems, there is concern about the impacts of livestock on soil compaction and cover, posing various threats to the successful implementation of CA. This is mainly due to possible soil compaction caused by livestock trampling and soil cover serving as livestock feed. To achieve successful integration of a livestock component into a mixed farming system without mitigating CA outcomes, therefore, requires livestock approaches based on lower stocking rates or alternative feeding systems. This study aims to assess the financial implications of different approaches that could be followed to achieve successful crop-livestock integration. Technical data from the Langgewens experimental farm served as basis for developing the livestock approaches and strategies. To capture the interrelatedness of variables and complexity of the farming system, this study is based on a systems approach. To assess the financial performance of the different livestock management approaches on whole-farm level, a typical farm model was developed. A multi-disciplinary expert group discussion was used to obtain valuable information necessary for developing the typical farm model. The financial performance of the different strategies on whole-farm level was measured in terms of the Internal Rate of Return on Capital (IRR) and the Net Present Value (NPV). Wheat-medic crop rotation systems with additional saltbush pastures proved to be the most profitable. Of the three livestock management approaches modelled, a grazing approach is least profitable. While an intensive speculation approach is the most profitable for integrating livestock on a particular farm, treating medics as a cash crop by selling medic hay to neighbouring producers is a valuable alternative.