FINANCIAL FEASIBILITY ANALYSIS OF ALTERNATIVE CROP ROTATION SYSTEMS UNDER CENTER PIVOT IRRIGATION IN THE SOUTHERN FREE STATE AREA CONSIDERING PRICE, PRODUCTION AND FINANCIAL RISKS

J. P. D. den Braanker, J. A. Meiring and L. K. Oosthuizen

Agrekon, 1991, vol. 30, issue 4

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.

Keywords: Crop Production/Industries; Production Economics; Risk and Uncertainty (search for similar items in EconPapers)
Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267458

DOI: 10.22004/ag.econ.267458

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