IDEAS home Printed from https://ideas.repec.org/p/ags/aare11/101640.html
   My bibliography  Save this paper

Farm Modelling for Interactive Multidisciplinary Planning of Small Grain Production Systems in the Western Cape, South Africa

Author

Listed:
  • Hoffman, Willem
  • Kleynhans, Theo E.

Abstract

Subject matter research has made many contributions to small grain production in the Western Cape province of South Africa, but much of this focuses on single commodities and is undertaken within conventional disciplinary boundaries (e.g. soil science, genetics, economics). The result is that the solutions offered often have knock-on effects that are not properly accounted for by researchers. Expert group discussions, as a research method, are 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, multi-period wholefarm simulation 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 nonviable plans and to fine-tune the viable plans. In this study, 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 IRR (internal rate of return on capital investment) and affordability in terms of expected cash flow. The homogeneous areas identified were Koeberg/Wellington, the Middle Swartland and the Rooi Karoo, the Goue Rûens, Middle Rûens and Heidelberg Vlakte. 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.

Suggested Citation

  • Hoffman, Willem & Kleynhans, Theo E., 2011. "Farm Modelling for Interactive Multidisciplinary Planning of Small Grain Production Systems in the Western Cape, South Africa," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 101640, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare11:101640
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/101640
    Download Restriction: no

    More about this item

    Keywords

    whole-farm modelling; expert group discussions; Farm Management;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aare11:101640. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aaresea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.