Research management of water economics in agriculture - an open agenda

It is indeed a privilege and an honour to deliver the FR Tomlinson Commemorative lecture this year. Although the invitation was quite unexpected, it is of course highly appreciated. When Prof Johann Kirsten phoned me with the request, I was initially not sure what topic I should address. The topic, which I have now formulated, is one which has fascinated me and certainly kept me busy for the most part of my career. I want to share with you some thoughts and perspectives, but will steer away from a laborious review or an abstract analysis. In doing so, I trust that this is appropriate within the spirit of the occasion, which is now a well established tradition in the Agricultural Economics Association of South Africa (AEASA). Let me start with a quotation which is at the core of the theme I want to unfold in this lecture. “Our most important resource is not land, nor capital and even less the climate. Our most important resource is not the gold under the earth’s crust, or the oil that might be there. Our most important resource is our human material. We must develop our human material and make full use of it.” (Groenewald JA, 1973a)Resource /Energy Economics and Policy,

Water marketing in the Crocodile River, South Africa

Transfers of water in the Crocodile River above and below the gorge (near Nelspruit and Malelane) were studied based on a survey in the area during November 2003, followed up by telephonic interviewing during March 2004. Almost all the water trades (permanent and rentals) observed in this study were from farmers above the gorge to farmers below the gorge. In order to study whether the water market promotes efficiency the data were subjected to several statistical analyses (Principal Components, Ridge Regression, Logit). It is concluded that in the transfer of water some attributes in the purchasing area such as lower production risk (sugar cane) and lower financial risk and better cash flow (bananas and sugar cane) were more important than the income per cubic meter of water. Water supply in this area is highly irregular while farmers were found to be extremely risk averse especially as far as down-side risk is concerned. The average water price in this area in recent years (2002 to 2003) was between R2,000 and R3,000 per ha (1ha = 8,000 cubic meter). Buyers are large progressive farmers that purchase (and rent) from many sellers (or lessees). It is concluded that information (sale prices and rents) is asymmetrical. Few permanent transfers have taken place in the Crocodile River in recent years. It is concluded that there are reasons why transfers at present are not processed and role players should discuss these reasons and possible solutions before further action is taken.Resource /Energy Economics and Policy,

A Dynamic Risk Optimization Model for Evaluating Profitable and Feasible Water Management Plans

Currently the South African government is advocating the cultivation of high valued crops and more efficient use of available water resources through the adoption o f more efficient irrigation technology and irrigation scheduling. A requirement of the National Water Act (Act 36 of 1998) is the compilation of water management plans. The main objective of this paper is to develop a multiperiod mathematical risk programming model able of assisting water user associations with the compilation of water management plans that are both profitable and feasible. Special care was taken to represent canal capacities and irrigation system application rates in the model. Risk simulation procedures are used to generate an appropriately correlated inter- and intra-temporal risk matrix for the programming model. A combination of subjectively elicited distributions of crop yield and objective data on crop prices were used to characterize risk. The model was applied to a representative flood irrigation farm in the Vaalharts irrigation scheme South Africa to demonstrate the capability of the model to optimize water use over a 15 year planning horizon. Model results clearly indicated the potential of high value crops and more efficient irrigation technology to soften the impact of water shortages. Furthermore infrastructure, the financial position of the farmer and the level of risk averseness have significantly impacted on the results. Policy makers and government authorities should take cognizance of these factors when evaluating water use efficiency and water management plans of different water user associations. Improvements in the adopted modeling procedure are also made.Dynamic Linear Programming, risk, irrigation, feasibility, South Africa, Resource /Energy Economics and Policy, C6, Q15, Q12,

Alteration-weakening leading to localized deformation in a damage aureole adjacent to a dormant shear zone

Deformation adjacent to faults and shear zones is traditionally thought to correlate with slip. Inherited structures may control damage geometry, localizing fluid flow and deformation in a damage aureole around structures, even after displacement has ceased. In this paper we document a post-shearing anastomosing foliation and fracture network that developed to one side of the Mesoarchean Marmion Shear Zone. This fracture network hosts the low-grade, disseminated Hammond Reef gold deposit. The shear zone juxtaposed a greenstone belt against tonalite gneiss and was locked by an intrusion that was emplaced during the final stages of suturing. After cessation of activity, fluids channeled along fault- and intrusion-related fractures led to the pervasive sericitization of feldspars. Foliated zones resulted from flattening in the weaker sericite-rich tonalite during progressive alteration without any change in the regional NW-SE shortening direction. The anastomosing pattern may have been inherited from an earlier ductile fabric, but sericite alteration and flattening fabrics all formed post-shearing. Thus, the apparent foliated fracture network adjacent to the Marmion Shear Zone is a second-order effect of shear-related damage, distinct in time from shear activity, adjacent to an effectively dormant shear zone. This phenomenon has implications for understanding the relative timing of fault zone activity, alteration and (in this case) gold mineralization related to long-term fault zone permeability

An institutional approach for developing South African inland freshwater fisheries for improved food security and rural livelihoods

South Africa has over 4 700 storage dams, about 700 of which are owned and controlled by Government. Public dams were primarily constructed for domestic, irrigation and industrial water supply. Over time secondary uses for recreation and tourism have been established. Many of the public dams have been stocked with indigenous and alien fish species, predominantly for recreational angling. Given widespread rural unemployment, poverty and undernourishment, the development of inland fisheries on public dams and natural water bodies has much potential for improving rural livelihoods and food security. There is also potential for inclusion of communities in other value chains linked to economic activities around public dams such as recreational fishing and tourism. The public dams and natural water bodies fall under various implicit institutional arrangements depending on primary and secondary activities on a given water body. These determine the existing formal and informal power dynamics and related decision-making arrangements and controls under current use-right practices. This paper analyses the existing property rights that determine access, co-management options and governance arrangements necessary to promote sustainable development of inland fisheries in South Africa. Attention needs to be given to the various ways of explicit definition and enforcement of property and access rights if communities are to realise the potential benefits from use of public dams for fisheries and other economic activities. Achieving this will require a developmental approach based on principles of inclusive, representative, equitable, accountable and effective governance. Leadership by the line agency – Department of Agriculture, Forestry and Fisheries – will be critical for success of such an initiative.Web of Scienc

The value of water in the South African economy: Some implications

The South African Water Research Commission (WRC) initiated a number of research projects aimed at determining the value of water in different sectors of the economy and in different parts of the country. This research is reviewed. Water values were found to differ significantly between sectors, between geographic areas and within geographic areas. As agriculture is a large consumer of water several studies along different rivers were undertaken, including studies on water quality. Average ratios indicate that agriculture is an inefficient user of water in terms of gross income generated per unit of water and also in terms of jobs created per unit of water. Irrigation farming is, however, an important employer of labour while it contributes 30% to the value of farm output. A marginal approach and water demand elasticities also indicate that non-agriculture generally places a high value on water assurance but little value on more than what it already uses. This may indicate that although water is expected to transfer out of agriculture in the longer run, in the short run agriculture may be its best use. Water efficiency could be significantly enhanced if transfers within and between river reaches are promoted, as water shadow prices differ. Inputs from the Department of Water Affairs and Forestry (DWAF) are important in water allocation due to socio-economic and environmental externalities of water allocation.Resource /Energy Economics and Policy,

Water use charging systems and available financing of irrigation development: country case studies

This is a report by ICID task force on Financing Water for Agriculture. The report includes 1/ framework papers for financial analysis and fiscal feasibility analysis, 2/ papers on country policies and strategies, and case studies with regards to water use charges, and 3/ final recommendations. (Résumé d'auteur

The effects of level of training on employee perceived empowerment, commitment and job performance

Billions of dollars are spent yearly on employee training. Yet employers often find it difficult to measure whether the training has any real effect. Due to the vast resources allocated to training, it is important to fully understand its impact. The purpose of this study was to determine the effects of level of training on employees\u27 perceived psychological empowerment, commitment, and resultant job performance within the hospitality industry. Data were collected from 158 Air Force employees working on one of two military bases in the areas of food service, lodging, recreation, fitness, linen exchange, and mortuary affairs. Specifically, this research focused on training received by Air Force service personnel. As employees attained higher levels of training, they perceived themselves as more influential and were rated by supervisors as better performers. Implications for future research are discussed