Net Financial Returns Research Articles

A methodology for model-based greenhouse design: Part 5, greenhouse design optimisation for southern-Spanish and Dutch conditions

An optimisation algorithm, as an essential part of a model-based method to design greenhouses for a broad range of climatic and economic conditions, was described. This algorithm – a modified controlled random search using parallel computing – maximised the annual Net Financial Return (NFR) for a tomato grower by selecting the best alternative to fulfil eight design elements: type of greenhouse structure, material of the cover, outdoor shade screen, whitewash properties, thermal screen, heating system, cooling system and CO2 enrichment system. As an example, the algorithm was applied to two locations with different climatic and economic conditions, Almeria and The Netherlands. Due to the warm climate with high radiation levels in Almeria, a greenhouse with a relatively large specific ventilation area (20% compared to 14% for Dutch conditions), seasonal whitewash and a low-capacity direct air heater (50 W m−2 compared to 200 W m−2 for Dutch conditions) was selected. In contrast, for the relatively cold climate with low radiation levels of the Netherlands, a 100% aluminium thermal screen and no whitewash would give the best result. The design method produced realistic greenhouses and related annual NFR, indicating that the method performs well. An analysis of the close-to-best greenhouses showed that, for both locations, a structure with high light transmissivity considerably enhanced the greenhouse performance whereas an outdoor shade screen, geothermal heating and mechanical cooling would be not economical. These results demonstrate the feasibility of a model-based design approach that produces suitable greenhouse designs for given climatic and economic conditions.

Regional forest organizations and their innovation impact on forestry and regional development in central Switzerland

The capacity for innovation spurred by regional organizations (ROs) and their impact on regional economic development are explored through forest expert interviews and a survey of small-scale forest owners in the Canton of Lucerne, in central Switzerland. The results show significant differences between the economic positions of forest owners who joined ROs and those who did not. Among RO members, the proportion of certified forests is higher, and in net financial return from their forest holdings and marketing effectiveness, they are significantly better off after only a short period of time compared with RO nonmembers. This process innovation, however, will not transform the forest sector substantially nor does it intend to do so. Its economic impact on regional development is modest at the present level of organization.

Economic appraisal of Kewach (Mucuna pruriens) based agroforestry land-use systems in mid hills of Western Himalayas

An experiment, on effect of tree-crop combinations and nitrogen levels on economic returns from Mucuna pruriens L. based Agroforestry Systems, was carried out during 2004-2005 and 2005-2006 in experimental farm of Department of Silviculture and Agroforestry, Dr. Y. S. Parmar University of Horticulture and Forestry, Nauni, Solan, Himachal Pradesh. M. pruriens was grown in association with Prunus persica (Peach), Grewia optiva, Morus alba and Setaria sphacelata. Three nitrogen doses applied to M. pruriens were 40, 80 and 120 kg/ha. The net returns were calculated on financial (farmer’s land) and economic (rented land) basis. Mucuna seeds accrued maximum net financial returns of Rs. 20436/ha and 20286/ha, grown in association with Grewia and Setaria and Peach and Setaria, respectively. Application of nitrogen level from 40, 80 to 120 kg per hectare increased the yield of seed and hence the net returns giving maximum at 120 kg N/ha. Peach and setaria under Peach + Setaria + M. pruriens system gave maximum net returns to the tune of Rs. 38328/ha, followed by Peach, Morus and Setaria (Peach + Morus + Setaria + M. pruriens) giving Rs. 37052/ha. Total net financial returns from all components were maximum (Rs. 58614/ha) from Peach + Setaria + M. pruriens followed by Peach + Morus + Setaria + M. pruriens amounting to Rs. 56889/ha. Sole crop accrued minimum net returns (Rs. 20286/ha). The benefit cost ratio (B:C ratio) was maximum (2.41) for Peach + Setaria + M. pruriens, followed by Morus + Setaria + M. pruriens, whereas, sole crop of Mucuna gave minimum B:C ratio of 1.77. Thus, the net returns from Agroforestry Systems were higher as compared to sole crop. The nitrogen application increased the yield and hence net returns from intercrop also had similar effect. Thus, fruit based systems gave higher returns per rupee investment as compared to fodder based systems on farmer’s own land as well as if the entrepreneur is practicing these systems on rented land.

Complementarity of No-Take Marine Reserves and Individual Transferable Catch Quotas for Managing the Line Fishery of the Great Barrier Reef

Changes in the management of the fin fish fishery of the Great Barrier Reef motivated us to investigate the combined effects on economic returns and fish biomass of no-take areas and regulated total allowable catch allocated in the form of individual transferable quotas (such quotas apportion the total allowable catch as fishing rights and permits the buying and selling of these rights among fishers). We built a spatially explicit biological and economic model of the fishery to analyze the trade-offs between maintaining given levels of fish biomass and the net financial returns from fishing under different management regimes. Results of the scenarios we modeled suggested that a decrease in total allowable catch at high levels of harvest either increased net returns or lowered them only slightly, but increased biomass by up to 10% for a wide range of reserve sizes and an increase in the reserve area from none to 16% did not greatly change net returns at any catch level. Thus, catch shares and no-take reserves can be complementary and when these methods are used jointly they promote lower total allowable catches when harvest is relatively high and encourage larger no-take areas when they are small.

Workforce Diversity: Evidence of Positive Business Outcomes and How to Achieve them. A Review of the Literature.

The demographic diversity of local and global work forces and markers is increasing within what is still generally a context of tight labour market conditions, especially or skilled labour. This paper reviews a wide range of literature on the impact of workforce diversity on business oil/comes and how that diversity can he best managed for business success. The review considers various types of diversity, different methodological approaches from quasi-experimental to case studies, and a range of positive business outcomes including improved staff recruitment and retention; improved creativity, innovation and problem solving, improved marketing strategies and outcomes, productivity and net financial returns. Although there are some specific studies or instances that appear to prove the exception to the rule, the consensus from the body of evidence existing to date is that diverse workforces are the reality of the future and that, in general, they have the potential to result in positive/enhanced business outcomes. The exceptions are generally explained away as being due to lack of best practice implementation of diversity and equality policies, and management of diverse teams and workforces. This paper, therefore, also investigates the key workplace, management and implementation factors associated with positive versus negative outcomes. We found lack of research into the links between diversity, workplace practices and business outcomes in the New Zealand context with its large number of small businesses, a unique range of ethnic groups and its own cultural norms, signaling the potential for further research.

Effects of deficit irrigation on yield, water productivity, and economic returns of wheat

A field experiment was conducted for 3 consecutive years to study the effects of water deficit on yield, water productivity and net return of wheat. Yield attributes were affected by deficit irrigation treatments although they are not statistically different in all cases. The grain and straw yields were significantly affected by treatments. The highest grain yield was obtained with the no-deficit treatment. Differences in grain and straw yield among the partial- (single- or two-stage deficit) and no-deficit treatments are small and statistically insignificant in most cases. The highest water productivity and productivity of irrigation water were obtained in the alternate deficit treatment (T 7), where deficits were imposed at maximum tillering (jointing to shooting) and flowering to soft dough stages of growth period, followed by single irrigation at crown root initiation stage. Under both land- and water-limiting conditions, the alternate deficit strategy (T 7) showed maximum net financial return. The results will be helpful in policy planning regarding irrigation management for maximizing net financial returns from limited land and water resources.

On-farm assessment of organic matter and tillage management on vegetable yield, soil, weeds, pests, and economics in California

In intensive vegetable production, low organic matter (OM) inputs and leaching of nitrate (NO3 − -N) decrease soil quality with time. Four management regimes were compared for their effects on soils and on production issues in a cooperative research project with a commercial vegetable grower in the Salinas Valley, California, USA, on an 8.3 ha field: minimum tillage with OM (+OM) inputs; minimum tillage with no OM (−OM) inputs; conventional tillage +OM inputs; and conventional tillage −OM inputs. Minimum tillage retained the same raised beds for the 2-year study (four crop cycles), and tilled to approximately 20 cm depth. Conventional tillage used many passes for surface and subsoil tillage, and disturbed the soil to approximately 50 cm depth. In +OM, compost was added two times per year, with a rye (Secale cereale) cover crop in the fall or winter, whereas −OM treatments followed the typical practice of only incorporating crop residues. Addition of cover crops and compost increased microbial biomass C (MBC) and N (MBN), reduced bulk density, and decreased the NO3 − -N pools in the 0–90 cm profile, so that leaching potential was lower compared to −OM treatments. Tillage practices had generally similar effects on soils except that surface soil moisture and NO3 − -N in the deep profile were consistently lower with minimum tillage. Minimum tillage tended to decrease lettuce (Lactuca sativa) and broccoli (Brassica oleracea) yields, but was not associated with increased pest problems. Weed density of shepherd’s purse (Capsella bursa-pastoris) and burning nettle (Urtica urens) were occasionally lower in the +OM treatments. Disease and pest severity on lettuce was slight in all treatments, but for one date, corky root disease (caused by Rhizomonas suberifaciens) was lower in the +OM treatments. The Pea Leafminer, Liriomyza huidobrensis, was unaffected by management treatments. Economic analysis of the three lettuce crops showed that net financial returns were highest with minimum tillage −OM inputs, despite lower yields. Various tradeoffs suggest that farmers should alternate between conventional and minimum tillage, with frequent additions of OM, to enhance several aspects of soil quality, and reduce disease and yield problems that can occur with continuous minimum tillage. © 2004 Elsevier B.V. All rights reserved.

Effect of ewe milk production on profitability of dryland lamb production systems

A farmlet study was carried out over 2 years to examine the role of milk production in dryland lamb production systems. Poll Dorset ewes (high milk producers) were mated with Romney rams and Romney ewes (average milk producers) were mated with Poll Dorset rams to produce lambs of a similar genotype. As well as two levels of milk production, two fecundity treatments were used and farmlets were replicated. Farmlets were 2.9 ha and stocked at a rate of 15 ewes/ha. Farmlets were managed to ensure similar pasture covers at the start of winter and at lambing. Poll Dorset ewes produced more milk and in both years their twin lambs had a small but significant advantage in lamb growth rate. This resulted in earlier drafting of lambs and the ability to obtain early season premiums. In the low fecundity farmlets, net financial returns for Romney and Poll Dorset ewes were $605/ha and $676/ha (+ 12%) in Year 1 and $709/ ha and $762/ha (+ 7%) in Year 2. For the high fecundity farmlets, financial returns for Romney and Poll Dorset ewes were $637/ha and $818/ha (+ 28%) in Year 1 and $866/ha and $921/ha (+ 6%) in Year 2. The greatest financial benefits to increased milk production were achieved in high fecundity ewes in Year 1 when feeding during lactation was less than optimal and this resulted in a significant effect on the rate at which twin lambs were drafted to achieve early season premiums. Lambs failing to reach minimum drafting weights were also penalised because of the prevailing drought conditions and low market prices for lighter lambs. Keywords: breed, dryland, ewes, farming systems, fecundity, milk production, pre-weaning growth, profitability, sheep

Pasture growth on dairy farms in the Golden Bay and West Coast of the South Island

Pasture growth was monitored on 22 farms covering Golden Bay, Nelson, Murchison and West Coast districts during 1994 to 1997. Pasture growth was measured monthly from grazed pasture using the rising plate meter (RPM) and the difference method. Pasture growth from the South Island sites were compared with growth at the WestpacTrust Agricultural Research Station (WTARS) in South Taranaki, measured by the more traditional trim method, and the difference method as used in the South Island study. The pasture growth recorded was then used by the dairy farm production model UDDER to predict the planned start of calving (PSC), stocking rate and milksolids (MS) production at maximum net financial return for seven districts. At WTARS the average pasture production recorded by the difference method was 16.3 t DM/ ha and by the trim method, 12.9 t DM/ha, the greatest difference between the two methods occurring in late spring/early summer. Pasture production on the south Island sites varied from 9.6 (Taramakau) to 16.1 (Grey Valley) t DM/ha. The major factor identified as influencing pasture growth, in an environment where rainfall for 91% of the sites exceeded 2000 mm, was number of frosts. A multiple regression combining pasture production climatic and soil nutrient variables identified number of frosts and Olsen P as the major factors influencing pasture production (R2 = 0.25). The use of the growth from seven districts by UDDER showed a marked variation in management practices and MS output. PSC varied from the first 10 days in August (Takaka, Nelson, Westport) to the last 10 days in August (Murchison). Stocking rates ranged from 2.0 cows/ha at Motueka to 3.3 cows/ha on an irrigated farm in the Nelson district. MS production/ cow differed little among districts and MS production/ha reflected stocking rate, ranging from 650 kg/ha for Motueka to 1150 kg/ha for Nelson. The main factor driving stocking rate and PSC was winter pasture production. Keywords: climate, dairy production modelling, pasture production, soil fertility

Optimum investments in project evaluations: when are cost-effectiveness analyses cost-effective?

This manuscript extends the classical models of the value of information to ask whether a hospital's net financial return is ever maximized by a cost-effectiveness analysis of retrospective data when watchful waiting and a full randomized clinical trial are alternative methodologies. The manuscript demonstrates that (1) some small-scale retrospective analyses may negatively affect net income and (2) under some conditions, larger-scale retrospective analyses may maximize net income. The manuscript also suggests that risk aversion increases the value of information and therefore the optimum expenditure on a project evaluation.

BIOECONOMIC WEED MANAGEMENT MODELS

Bioeconomic weed management models integrate the complex interactions of the biology of crops and weeds, efficacies and costs of chemical and mechanical weed control options, and commodity prices of crops. These models enable producers to customize weed management strategies so that weed control and crop yields are optimized while net economic returns are maximized. A prototype model, WEEDSIM, was developed (Swinton & King) for corn and soybean production. It was field-tested for two years in Minnesota. WEEDSIM's recommendations were agronomically equivalent to standard farmer practices, but they increased net financial returns and reduced chemical release to the environment. A new bioeconomic modeling “shell” has been developed (Wiles & King) to increase adaptability to new crops, weeds, control options, and production regions.

Role of computer simulation in the application of knowledge to animal industries

The net financial return of an enterprise depends on the interaction among a great many factors. Some of these factors relate to the animal, some to its diet, some to its environment, some to the prevalence of disease and some to circumstances outside the production enterprise such as the premiums paid for products of different quality, the relative price structure of feeds and products, and the availability and cost of capital, labour, breeding stock and other resources. Although there has been a great deal of research into many of these factors, the complexity of the interactions between them makes it virtually impossible for the human mind to assess accurately the consequences of alternative management strategies on either the efficiency of production or the long-term profitability of a livestock enterprise. By transforming the concepts and knowledge into mathematical equations and integrating them in computer programs using simulation modelling techniques, this vast store of information can be applied directly to improving the management of commercial animal enterprises. Models are also valuable for defining research priorities. These simulation models should, as far as possible, be based on descriptions of the mechanisms perceived to determine animal function, not on empirical relationships of correlation and association. This need for mechanistic models has major implications for the direction and nature of future research into animal function. Mechanistic models of animal performance alone are unlikely to result in the widespread application of knowledge to the animal industries. Models must be integrated with other modules that cover the major areas of an enterprise determining its profitability, as well as with programming features that make the whole Decision Support Software System easy to use and interpret by industry personnel. The animal model is likely to represent less than 20% of a commercially useful package. A major factor limiting the application of animal growth models is lack of an adequate description of the conditions within commercial enterprises. Collection of such data is difficult and frequently regarded as unattractive by scientists and funding organisations, but it is essential for effective application of existing knowledge through simulation models. Furthermore, industry must make frequent measurements of factors determining animal performance and enterprise profitability if the significance of predictions from animal models is to be evaluated fully. An example is presented illustrating how simulation models can improve the biological efficiency and profitability of a commercial animal enterprise when this information is available.

An economic model of corn combine forward speed control

An economic model of corn combining was developed and implemented as a BASIC simulation program. Sensitivity analyses indicated that the net financial returns of combine harvesting are most strongly influenced by crop yield, grain unit value, crop area, time available for harvest, harvest strategy, moisture content, yield variation, drying cost, and combine purchase price. The simulation program was used to evaluate management alternatives, such as different harvesting strategies. For example, simulation results showed a $408 per year economic advantage of constant flowrate over constant forward ground speed for the specific conditions and assumptions of the base case.