An assessment of the economics of cereal cropping on Canterbury irrigated light land farms: A dissertation submitted in partial fulfilment of the requirements for the degree of Bachelor of Agricultural Science (Honours) in the University of Canterbury

Abstract

A linear programming model was developed to represent a Canterbury irrigated light land farm investigating the opportunities of cereal cropping. The model farm was hypothetical with the aggregate implications of the Canterbury region not considered. Irrigated Spring sown cereal crops were the only cereal activities included in all optimum farm plans under the range of prices used in the analysis. The optimum area of cereal crop ranged from 20 to 35% of the farm land area. The maximum area of crop was limited by an irrigation constraint that was incorporated into the model. Malting barley remained the most profitable cereal crop under most pricing conditions used in the analysis. Only when the malting barley price was reduced to $192/tonne relative to the wheat price retained at $230/tonne did spring wheat become more profitable and substituted malting barley in the optimum farm plan. With the malting barley price ~ reduced to $165/tonne and other cereal prices reduced according relative to sheep profits retained at present high profits malting barley still remained in 20% of the farm land area optimum plan. A sheep policy of buying in 5 year breeding ewes and additional butcher hoggets over the winter period was better integrated into a cereal cropping programme than a breeding own replacement ewe policy. No account of labour or capital was incorporated in to the farm model. The analysis endeavoured to determine the profitable opportunities of cereal cropping on Canterbury irrigated light land farms. Thus consideration of labour and capital requirements would be required before recommendations were introduced into a farm programme.