Review of whole-farm economic modelling for irrigation farming

Abstract

The main objective of this paper is to review the progress that has been made in South Africa with respect to whole-farm economic modelling over the past 2 decades. Farming systems are complex and careful consideration to the stochastic dynamic nature of irrigation farming processes and their linkages with the larger water system is necessary when conduct ing whole-farm modelling. Both simulation and optimisation approaches to whole-farm modelling have been developed. Simulation is able to realistically model key performance indicators for decision-making while taking cognisance of the stochastic dynamic nature of irrigation agriculture. Normally only a few predefined scenarios are considered and these do not include decisions regarding allocation of water between competing farm uses of water. Optimisation models take the opportunity cost of water into account while optimising water use between multiple crops.

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