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Financial Feasibility Analysis Of Alternative Crop Rotation Systems Under Center Pivot Irrigation In The Southern Free State Area Considering Price, Production And Financial Risks

Author

Listed:
  • den Braanker, J. P. D.
  • Meiring, J. A.
  • Oosthuizen, L. K.

Abstract

Fourteen typical crop rotation systems were evaluated over a period of 10 years. The irrigation systems were used to irrigate 60 ha of sandy soils. Various degrees of double cropping were considered. A procedure was followed to generate distributions of prices for the relevant crops. The crop yield distributions were generated by the PUTU-simulation model. The annual after-tax cash flow was calculated for the different crop rotation systems for each year of the ten year period for two static pumping heights and three different equity ratios. The results indicate that all crop rotation systems are infeasible for a 30/70 equity ratio for positive pumping heights. For a 80/20 equity ratio 14 crop rotation systems are feasible.

Suggested Citation

  • den Braanker, J. P. D. & Meiring, J. A. & Oosthuizen, L. K., 1991. "Financial Feasibility Analysis Of Alternative Crop Rotation Systems Under Center Pivot Irrigation In The Southern Free State Area Considering Price, Production And Financial Risks," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 30(4), December.
    • Handle: RePEc:ags:agreko:267458
    DOI: 10.22004/ag.econ.267458
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    References listed on IDEAS

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    1. Wilson, Paul N. & Eidman, Vernon R., 1981. "The Economics of Irrigating Medium and Fine Textured Soils in Minnesota," Economic Reports 8455, University of Minnesota, Department of Applied Economics.
    2. Meiring, J. A. & Oosthuizen, L. K., 1991. "Die Beraming Van Die Geweegde Gemiddelde Koste Van Kapitaal Met Verwysing Na Besproeiingsboere In Die Vanderkloof Staatswaterskema," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 30(2), June.
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