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Quantifying The Risk Associated With Crop Rotation Systems Of An Eastern Free State Trial

Author

Listed:
  • Botha, P.W.
  • Meiring, J.A.
  • Schalkwyk, H.D.

Abstract

The Small Grain and Grain Crops Institutes, both of the Agricultural Research Council, found that the gross margin of maize monoculture was higher than any other crop rotation system tested in a trial. In this paper the effect of different crop rotation systems on net cash flows are quantified. A whole farm simulation model that incorporates risk was used for this purpose. From a net cash flow point of view maize monoculture was found to be the riskiest. However, the choice of a crop rotation system depends on the risk preference of the decisionmaker since higher risks are also associated with higher profits.

Suggested Citation

  • Botha, P.W. & Meiring, J.A. & Schalkwyk, H.D., 1999. "Quantifying The Risk Associated With Crop Rotation Systems Of An Eastern Free State Trial," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 38(2).
    • Handle: RePEc:ags:agreko:245967
    DOI: 10.22004/ag.econ.245967
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    References listed on IDEAS

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    1. repec:ags:agsaem:288652 is not listed on IDEAS
    2. Binding, H. R. & van Schalkwyk, H. D. & van Zyl, J. & Sartorius von Bach, H. J., 1993. "Diversification As A Risk Strategy In Times Of Change: A Study In The Eastern Orange Free State," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 32(4), December.
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    Cited by:

    1. Nel, A.A. & Loubser, H.L., 2004. "The impact of crop rotation on profitability and production risk in the Eastern and North Western Free State," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(01), pages 1-11, March.

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    2. Nel, A.A. & Loubser, H.L., 2004. "The impact of crop rotation on profitability and production risk in the Eastern and North Western Free State," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(01), pages 1-11, March.

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