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2003 Annual Conference, October 2-3, 2003, Pretoria, South Africa >
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http://purl.umn.edu/19081
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| Title: | IMPACT OF CAPITAL ON THE GROWTH PROCESS OF A SUGARCANE FARM IN MPUMALANGA |
| Authors: | Haile, B.O.
Grove, Bennie
Oosthuizen, L.K. |
| Authors (Email): | Grove, B. (GroveB@sci.uovs.ac.za) |
| Issue Date: | 2003 |
| Series/Report no.: | 41st Annual Conference of the Agricultural Economics Association of South Africa, CSIR conference centre, Pretoria, 2 October 2003. |
| Abstract: | The research was conducted for a representative 50 ha farm in the Onderberg region in Mpumalanga province, where farmers use a combination of centre-pivot, drip, and dragline systems of different sizes to grow sugarcane. The main intention was to establish a multi-period linear programming model capable of economically evaluating a farm expansion decision making process for farmers faced with investment decisions in alternative irrigation systems, taking in to account the available initial capital of the farm. A linear programming (LP) model was used to assign a mainline for a total of twelve irrigation system combinations based on the assumption that the farmer wishes to start with a 30 ha centre-pivot investment. Generalized Algebraic Modelling System (GAMS) was used to formulate the farm growth model as mixed integer dynamic linear programming (MIDLP) for a 15 year planning horizon. Based on the results, farmers are initially forced to invest in lower cost irrigation systems when they lack capital to start a farm business due to the time value of money. They only consider lowering operating costs by investing in expensive irrigation systems when they have more own capital or borrowing capacity. |
| URI: | http://purl.umn.edu/19081 |
| Institution/Association: | Agricultural Economic Association of South Africa (AEASA)>2003 Annual Conference, October 2-3, 2003, Pretoria, South Africa |
| Total Pages: | 13 |
| Language: | English |
| Collections: | 2003 Annual Conference, October 2-3, 2003, Pretoria, South Africa
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