Integrated Assessment Modelling of Complexity in the New Zealand Farming Industry

As New Zealand farming industry pursues more productivity this has implication for environment and makes land use and agricultural policy decision processes more complex for which integrated assessment modeling (IAM) can support. The purpose of this review paper is to propose means through which IAM can be improved specifically to minimize uncertainties and increase relevance, reliability, and utility of outputs of different models. Literature suggests that the general motivation for land use change is that farmers do consider the environment, but need to maintain profitability. There are handful decision support tools for land use and land policy decisions but one common feature of most of the models is that each seems suitable for only a part of the complexity. An appropriate framework for linking different models in an integrated assessment is still needed. As integrated assessment often goes beyond an individual researcher‘s role, research institutions need to align their research portfolio across the dimensions of the complexity by creating an appropriate mechanism to integrate individual research into integrated assessments while individual researchers need to present modelling results in a compatible format for integration into another model‘s application.integrated assessment, modeling, complexity, farming industry, New Zealand, Agribusiness, Land Economics/Use,

Mentorship Alliance between South African Farmers: Implication for Sustainable Agriculture Sector Reform

South Africa's agricultural sector is characterized by a skewed participation of the population. There are vastly white commercial farmers and black subsistence farmers. This is attributed to the past government's intervention in the economy, which lead to exclusion of and discrimination against the blacks regarding access to land. The new government is committed to redressing this imbalance through agricultural reform and development strategies namely land, agrarian, trade and market reforms. One of the government's primary policy thrusts is to provide access to agricultural land for people not adequately represented in the agricultural sector. However, the government lacks sufficient resources to provide land and support services to the farmers been settled. This study is motivated by the insights to explore the complementarities of white established commercial farmers on one hand and the black newly emerging farmers' characteristics and the need for a framework within which the stakeholders can contribute to the success of the reforms. The study contributes to the discussion regarding mentorship between these farm types, by addressing an identified knowledge gap with respect to the objective, implementation and reward for mentorship. Mentorship alliance that can transform the South Africa's agricultural sector into a more efficient and competitive sector and enhance the success of South African economic reforms, is conceptualized. The mentorship is expected to be loosely structured, without the complicated legal and contractual processes involved in corporate business alliances. However, it is hoped that the alliance would be a precursor for highly committed joint ventures in the industry.E6, O1, Q15, P0, L12, Agricultural and Food Policy, Farm Management,

Risk - An Opportunity or Threat for Entrepreneurial Farmers in the Global Food Market?

uncertainty, farm management, opportunities, threats, Agribusiness, Q12,

Agricultural land tax and farm-level land-use changes and output supply response

Purpose – The purpose of this paper is to contribute to land redistribution policy which is presently not only one of the most defining political and development issues, but also perhaps the most difficult in South Africa. Design/methodology/approach – The paper develops a programming model for farm-level land-use changes and output supply response to estimate the effects of agricultural land tax in South Africa. The modeling approach is based on baseline statistics from a descriptive analysis. Findings – The results indicate that changes in land use and output supply response are marginal. The highest effects are observed on irrigated areas of sunflower seed (0.23 percent) and wheat (0.17 percent). This results to declines in supply of 0.07 percent for sunflower seeds; 0.06 percent for wheat; 0.04 percent for soya beans; 0.03 percent for each of white maize and sorghum; and 0.02 percent for yellow maize production. Therefore, levying a land tax may discourage investment on irrigation facilities and consequently irrigated farming. Originality/value – The programming modeling approach captures the significant differences in the farm characteristics and the overarching profit-maximizing behaviour of farmers, which an econometric approach may not easily captureAgriculture, Government policy, Land, Modelling, South Africa, Taxation

Integrated Assessment Modelling of Complexity in the New Zealand Farming Industry

As New Zealand farming industry pursues more productivity this has implication for environment and makes land use and agricultural policy decision processes more complex for which integrated assessment modeling (IAM) can support. The purpose of this review paper is to propose means through which IAM can be improved specifically to minimize uncertainties and increase relevance, reliability, and utility of outputs of different models. Literature suggests that the general motivation for land use change is that farmers do consider the environment, but need to maintain profitability. There are handful decision support tools for land use and land policy decisions but one common feature of most of the models is that each seems suitable for only a part of the complexity. An appropriate framework for linking different models in an integrated assessment is still needed. As integrated assessment often goes beyond an individual researcher‘s role, research institutions need to align their research portfolio across the dimensions of the complexity by creating an appropriate mechanism to integrate individual research into integrated assessments while individual researchers need to present modelling results in a compatible format for integration into another model‘s application

Agricultural land tax and farm-level resource use and output supply response

This study develops and uses a programming model for farm-level resource use and output supply response to estimate the effects of agricultural land tax in South Africa: A case study of Free State, a region of extremely large commercial farms that gained their size and economic heft during the apartheid years of aggressive subsidies, favorable tax treatment, lucrative state grants and gifts, and all manner of financial assistance. The results indicate that changes in land use and output supply are marginal. The highest effects are observed on irrigated farming. Relevant policy responses raised by the findings are discussed

Resilience, Risk and Entrepreneurship

Farmers worldwide face an increasingly turbulent environment. Successful farmers are those that adapt to shifts in the environment to capture the opportunities from such disturbance and outperform those who do not adapt. Such farmers, the literature would suggest, are entrepreneurs, catalysts for change with a risk-taking propensity. The paper presents analysis of farmers grouped with respect to their attitude to risk. It identifies that those farmers that are risk seekers would be more accurately described as gamblers based on their performance over six years of volatility. The most successful group of farmers were risk neutral, had a strong business focus and skills, managing quite high levels of debt to good effect. They had a positive attitude to change and an ability to successfully adapt to changing conditions so best fit the broader definition of entrepreneur. The risk averse group carried less debt and also outperformed the risk seeking group with strong cash results and retained earnings. Farmers cannot be assumed to be successful catalysts for change just from their attitude to risk and a belief in their ability to manage risk; instead they are those whose results prove that they are successfully taking risks, have strong business skills and run efficient farm businesses

Mentorship Alliance between South African Farmers: Implication for Sustainable Agriculture Sector Reform

South Africa's agricultural sector is characterized by a skewed participation of the population. There are vastly white commercial farmers and black subsistence farmers. This is attributed to the past government's intervention in the economy, which lead to exclusion of and discrimination against the blacks regarding access to land. The new government is committed to redressing this imbalance through agricultural reform and development strategies namely land, agrarian, trade and market reforms. One of the government's primary policy thrusts is to provide access to agricultural land for people not adequately represented in the agricultural sector. However, the government lacks sufficient resources to provide land and support services to the farmers been settled. This study is motivated by the insights to explore the complementarities of white established commercial farmers on one hand and the black newly emerging farmers' characteristics and the need for a framework within which the stakeholders can contribute to the success of the reforms. The study contributes to the discussion regarding mentorship between these farm types, by addressing an identified knowledge gap with respect to the objective, implementation and reward for mentorship. Mentorship alliance that can transform the South Africa's agricultural sector into a more efficient and competitive sector and enhance the success of South African economic reforms, is conceptualized. The mentorship is expected to be loosely structured, without the complicated legal and contractual processes involved in corporate business alliances. However, it is hoped that the alliance would be a precursor for highly committed joint ventures in the industry

Improving water quality in Waikato-Waipa Catchment: Options for dry

Sheep and beef farming industry is probably more challenging than any other industries in New Zealand. Farm costs are rising without corresponding price increases for wool and meat. On top of that is the reality that restoring and maintaining water quality has gone beyond expectations on any one industry alone. As part of a project to study the costs of meeting water quality in Waikato region, sheep and beef, including dairy support farms were surveyed to identify 5 ‘typical’ case study farms/systems in terms of main enterprises and other factors that characterise the farms. The farms were then modelled with different but relevant nutrient loss mitigation practices based on the farms’ main enterprises and characteristics. FARMAX® model was applied to investigate biological feasibility and financial implications of the mitigation practices and then OVERSEER® model was applied to estimate the nutrient budgets associated with the mitigation practices. The results show some trade-off, but also, that mitigating nutrient loss is possible even with increased financial net benefits in some cases. However, the socio-economic, cultural and demographic factors that could impact on farmers' decision were not captured with the data used and so those factors have not been considered

Economics of supply reliability of irrigation water

In this study, we have assessed the economic impact of potential increase in supply reliability of irrigation water in the Hinds Plains Area in the Ashburton district. The Hinds catchment has a number of irrigation schemes namely, Rangitata Diversion Race (provides water for Mayfield Hinds and Valetta Schemes), Barrhill Chertsey, Eiffelton and Lynford Schemes. All these schemes have varying supply reliability which ranges from 40% to 80% approximately. First, we estimated the relationship between water availability and pasture growth using experimental data. We then employed this relationship to estimate the potential incremental pasture growth with assumed increased supply reliability (95%) at farm level. We estimated the farm level benefit of increased pasture production in terms of saved costs in supplementary feed. These farm level estimates were used to assess the catchment level farm income gain. The catchment level income gain was then employed to assess the regional level economic gain (GDP and employment) by the socio-accounting matrix input-output model (SAMI-O) simulation. Income gain at catchment level is estimated to vary from $16 to$17million. This implies an additional gain in regional level income (GDP) of $85 to$91million and additional employment of 137 FTE to 207 FTE. The study indicates the importance of an increase in irrigation efficiency at farm level for the local and regional economy and also discusses the potential environmental impacts of increase irrigation efficiency at catchment level