Browsing by Author "De Villiers, Tielman Johannes"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Longer term financial implications of including cover crops into winter cereal-based crop rotation systems in the Middle Swartland
    (Stellenbosch : Stellenbosch University, 2021-12) De Villiers, Tielman Johannes; Hoffmann, Willem H.; Strauss, Johann A.; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics.
    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.