Farm Level Cost-benefit Analysis: The Evaluation of Economics of Conservation Agriculture in Bergville Town in Kwa-zulu Natal Province of South Africa

Abstract

Background: Practicing the unsustainable system of farming contributes in no small way to soil deterioration which in turn affects agricultural productivity. Even though one of the important requirements for embracing any agrarian practice is the financial viability of the process, it is believed that the differences in the benefits obtained from both conventional farming and conservation agriculture are not well articulated. While general inference can be made, it is also important to make a thorough evaluation of the benefits that can be derived from conservation agriculture and conventional agriculture.Methods: The study was conducted in Okhahlamba Local Municipality, which is situated in-between Lesotho, Free State Province, Alfred Duma and the Inkosi Langalibalele Local Municipality. Secondary data were retrieved from the Mahlathini Organics dataset collected from three different seasons, such as 2012/2013 to 2014/2015 and 2016/2017 seasons. The farmers under study practiced conservation agriculture (0.8ha) and conventional agriculture (0.8ha). Result: Using Gross Margin in addition to indicators like Benefit-Cost Ratio, Internal Rate of Returns and Net Present Value, this research identified that the advantages of using the conservation system of farming are enormous when matched with conventional agriculture. Consequently, this research suggests the advancement and encouragement of conservation agriculture as it provides more incentives in the long run.