Longer term financial implications of including cover crops into winter cereal-based crop rotation systems in the Middle Swartland

Date
2021-12
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH SUMMARY : The world's population is currently growing at 1.03% annually. The demand on natural resources will increase steadily, necessitating the adoption of sustainable farming techniques to maintain food security. Food security depends on sustainable farming practices. Conservation agriculture is a comprehensive approach to sustainable farming which enhances yields, increases profitability, and promotes environmental protection. Conservation agriculture is widely used in cereal production systems across the Western Cape and is based on three interconnected principles: minimum soil disturbance, sufficient soil cover and diversified crop rotation systems. Crop rotation systems are site-specific. Trial data from the Langgewens experimental farm were utilised to assess the long-term financial implications of various crop rotation systems under full conservation agriculture practices. Limited research is available on the financial implications of cover crops which may explain why producers are hesitant to alter their cash rotation crops to include cover crops in the winter grain production systems of the Swartland. The primary objectives of this research project is to evaluate the financial implications of including cover crops into the whole-farm system. The typical farm approach was utilised to integrate the interrelated synergies of the farm system. A multidisciplinary group discussion was held with industry experts from the Middle Swartland producing region. The group discussion included agronomists, economists, soil scientists and farmers. Each participant contributed to the group conversation with distinct and in-depth knowledge of their respective professions. The Middle Swartland region's typical whole-farm budgets were developed by using Microsoft Excel spreadsheet programs. The excel spreadsheets enabled the incorporation of the expertise of professionals into multi-period budgets Whole-farm budget components are interlinked and modifications in one component can affect other components of the whole-farm budget. The Internal Rate of Return (IRR) and Net Present Value (NPV) were utilised to calculate overall farm profitability for several crop rotation systems in the Middle Swartland region. For a typical farm in the Middle Swartland region, System 3, is the most promising and robust rotation system over a 20-year period. This crop-pasture rotation system had a predicted Internal Rate of Return of 7.14 percent. The speculation approach which includes cover crops being grazed by bought in sheep and where at the end of the season the sheep are sold, are projected to be more lucrative than the traditional continuous cash crop rotation. This is due to the advantages of lower input cost prices and lower mechanical investment and replacement. Cover crops input costs are lower than that compared of a cash rotation crop and does not require intensive mechanical work. Cover crops overall input costs are there for lower than compared to a cash rotation crops such as canola. The wider implementation of speculation is expected to be limited due to the availability of speculation sheep at the required scale.
AFRIKAANSE OPSOMMING : Die wêreld bevolking groei tans jaarliks teen 1.03% wat ‘n geleidelike toename in die vraag na natuurlike hulpbronne tot gevolg het. Die implimentering van volhoubare landbou tegnieke word dus genoodsaak om voedselsekerheid te waarborg, i.e. voedselsekerheid hang dus van volhoubare landbou praktyke af. Bewaringslandbou is ‘n holistiese benadering tot volhoubare boerdery wat bydra tot verbeterde oeste, verhoogde wins en dit bevorder omgewingsbewaring. Bewaringsboerdery word alom gebruik in graan produksie reg oor die Wes-Kaap. Dit word gebaseer op drie interafhanklike beginsels naamlik: minimum grondversteuring, voldoende grondbedekking en gediversifiseerde wilsselboustelsels. Wisselboustelsels is spesifiek tot en eie aan ‘n bepaalde area. Data van die eksperimentele plaas Langgewens in die Swartland, is gebruik om die langtermyn finansiële implikasies van verskillende gewasse in ‘n wisselbousisteem onder bewaringsboerdery te evalueer. Beperkte navorsing is beskikbaar oor die finansiële impak van dekgewasse. Dit verduidelik waarskynlik waarom produsente huiwerig is om aanpassings te maak aan hul wisselboustelsels, deur dekgewasse in te sluit by wintergraan produksie sisteme. Die primêre doelwitte van die studie is om die finansiële impak vir die insluiting van dekgewasse in die geheelplaas sisteem te evalueer. ‘n Tipiese plaas stelsel is gebruik om die onderling verwante komponente van die boerdery sisteem te integreer. ‘n Multi-dissiplinêre groepsbespreking is gehou met kenners in die industrie vanuit die Middel Swartland produksie area. Die groep het landboukundiges, ekonome, grondkundiges en boere ingesluit, wat elkeen spesifieke en in diepte kennis van hul onderskeie professies bygedra het. Die geheelplaas begrotings vir ‘n tipiese plaas stelsel in die Middel Swartland streek is in Microsoft Excel ontwikkel. Die sigblaaie het dit moontlik gemaak om die insette van die besprekingsgroep by die meerjarige begrotings van die geheelplaas in te sluit. Die verskillende komponente van die geheelplaas begroting is onderling gekoppel, wat beteken dat veranderinge in een komponent ‘n effek op ander komponente in die begroting sal hê. Die Interne Opbrengskoers (IOK) en die Netto Huidige Waarde (NHW) is gebruik om die winsgewendheid van die plaas vir verskeie wisselboustelsels in die MIddel Swartland area te bereken. Vir ‘n tipiese plaas stelsel in die Middel Swartland streek, is Sisteem 3, ‘n gewas-weiding rotasiestelsel, die mees belowende vir ‘n 20-jaar tydperk. Hierdie gewas-weiding rotasiestelsel het ‘n voorspelde Interne Opbrengskoers (IOK) van 7.92 persent. Met dié spekulasie metode, word die dekgewasse gebruik as voer vir skape wat ingekoop word om teen die einde van die seisoen weer verkoop te word. Die sisteem is meer winsgewend as die tradisionele wisselbou sisteem. Dit is te danke aan die voordele van die laer inset kospryse en laer meganiese investering en vervangingskoste. Dekgewasse se insetkoste is laer en benodig minder intensiewe meganiese werk Dekgewasse se insetkoste is dus laer as byvoorbeeld met die gebruik van kanola. Daar word verwag dat die verdere implimentering van spekulasie beperk sal word weens die beperkte beskikbaarheid van spekulasie skape op die vereiste skaal.
Description
Thesis (MScAgric)--Stellenbosch University, 2021.
Keywords
Winter grain -- Swartland (South Africa), Cover crops -- Economic aspects -- Swartland (South Africa), Crop rotation -- Economic aspects -- Swartland (South Africa), UCTD
Citation