COST SAVING PRODUCTION PRACTICES FOR SMALLGRAIN PRODUCERS IN THE SOUTHERN CAPE

F. van Eeden, J. Laubscher and T.E. Kleynhans

Agrekon, 2002, vol. 41, issue 2

Abstract: This research focuses on the production practice of limited tillage, which is used to reduce input costs. The implementation of limited tillage causes mechanization changes, which in turn, results in higher fixed cost and lower variable cost. The hypothesis claimed that profit could be increased, thus motivating for the promotion of limited tillage for smallgrain production. Two farms in each of four subregions in the Southern Cape served as case studies. The conventional and limited tillage practices of each farm were analysed and evaluated by an expert group. In order to compare the profitability of the various crop rotation systems, an annuity of the total present value of the annual gross margin per hectare of each crop rotation system was calculated. The analyses showed that the crop rotation systems of the various case studies differed significantly, due to soil and climate differences between and even within the subregions. No uniform crop rotation system was found that could serve as a general recipe for the region. In spite of this, some principles could be deduced from the analyses that could be followed in order to improve the cultivation and other practices so as to increase profits. The most significant savings can be obtained with regard to cultivation and sowing density. The results show that switching to limited tillage combined with precision farming can increase profits.

Keywords: Crop Production/Industries; Farm Management; Production Economics (search for similar items in EconPapers)
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:245993

DOI: 10.22004/ag.econ.245993

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