Masters Degrees (Agricultural Economics)

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Browsing Masters Degrees (Agricultural Economics) by Subject "Agricultural conservation -- Swartland (South Africa)"

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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.
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    The risk profile of wheat rotation systems in the Middle Swartland under Conservation Agriculture: A SDRF and SERF approach winter cereals crop rotation risk
    (Stellenbosch : Stellenbosch University, 2022-04) Nel, David Mathys Christoffel; Hoffmann, Willem H.; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics.
    ENGLISH SUMMARY : Wheat production in South Africa is largely driven by three of the country’s nine provinces, namely the winter rainfall region of the Western Cape and the summer rainfall regions of the Free State and Northern Cape. Conservation Agriculture (CA) is a comprehensive approach to sustainable farming to ensure food security and sustainability. There are three main conservation principles which govern CA namely minimum soil disturbance, permanent coverage of the soil and crop rotation. In 1996, the agricultural sector was deregulated and the Wheat Marketing Board was abolished. As a direct consequence of the deregulation of the agricultural sector, farmers were exposed to more volatile markets. This curated a more complex production system, wherein crop rotation in production systems needed to be considered and the complexity of decision making in cereal production areas in the Western Cape increased. The Langgewens Research Farm (LRF) were established in 1996. This was a long-term crop/pasture rotation trail. The aim of the project was to achieve the following objectives in the Swarland region: increase crop yield, increase protein and oilseed production, reduce input cost, increase diversification and improve financial stability. Limited research is available on the risk profile of the different rotation systems in the Swartland. The primary objective of this study is to evaluate the risk profile of the eight rotation systems on Langgewens experimental farm in the Western Cape. The gross margin analysis of the eight rotation systems from 2002 up to and including 2020 was utilised for this purpose. The stochastic dominance with respect to a function (SDRF) and stochastic efficiency with respect to a function approach (SERF) was used to evaluate the risk profile according to a decision makers risk preference. Wheat is still the largest crop produced in the Swartland and the main aim of the Langgewens farm is to increase farmers profitability. The effect of previous year’s crop on the current year’s wheat production was also utilised on a two year basis. The SDRF results indicated that System H (McWMcsW) was the optimal rotation system for a risk neutral and a risk averse decision maker, with System E (MWMW) and System F (McWMcW) rotation following close behind. These findings were supported by the results reported using the SERF method under a negative exponential utility function as well as the stoplight determination. Hence, the McWMcsW rotation system was overall found to be the optimal rotation system, followed by the MWMW and the McWMcW system for all decision makers with an absolute risk aversion coefficient (ARAC) between 0 and 0.000781. The results from a two year cycle showed that planting wheat after medic/clover in rotation had the highest yield and greatest value per ton with the lowest total expenses. In a dry season, wheat yield (kg/mm) was the highest after canola or lupin was planted in rotation, whereas higher yields were seen after planting medic/clover in rotation during rainy seasons.