Modeling economics of carbon sequestration in Tanzanian farm production systems Asheim, L.J., Zabron, C.N., Mwaseba, D. and EIK, L.O. SUA/Noragric/NILF Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES SYNOPSIS Production systems in Mgeta and Njombe Challenges, problems and opportunities Method Progress farm modeling (Mgeta) Further model development Parameterization Conclusion www.umb.no 2 Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Production System in Mgeta Vegetables in very steep slopes or terraces Manual field work that can`t be mechanized Two season cycles are important: Rain:Sept.-May-270days & dry:Jun.-Aug.95days Crop-livestock integrated production system Dairy goats, >1500 of Norwegian breed Pork, indigenous meat goats, and poultry www.umb.no 3 Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Production System in Njombe Manual field work – can be mechanized Only one rain season (February-May) More land with opportunities for forests Crop-livestock dominant agricultural system Dairy cows (Friesian, Ayshire, Jersey) Pork, indigenous cows, goats, and poultry www.umb.no 4 Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Challenges Climate change, increased population, intensive production systems, reduced land use, competition for water, poverty and malnutrition! Tasks: Examine economic and environmental constraints at the farm level, identify and study farm development paths www.umb.no 5 Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Problems and opportunities (Mgeta) Environmentally disastrous production system Agricultural productivity can be increased: Dairy goats and cows can milk more Improved feeding Improved veterinary services Grass and multipurpose trees (MPPT) for: Increased soil carbon sequestration Management of erosion www.umb.no 6 Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Method Linear programming (LP) model to identify activities with maximum objective function, not violate constraints, no negative activity Max Z = c’x, subject to Ax≤b, x≥0 Z = objective function, farm gross margin c’ = a vector of marginal activity gross margins x = a vector of activity levels A = a matrix of activity resource requirements b = a vector of resources e.g land, work h Built in Excel, price level 2012, assumed certainty www.umb.no NORWEGIAN UNIVERSITY OF LIFE SCIENCES Norwegian Agr. Econ. Research Instituet (NILF Sokoine University of Agriculture (SUA) Mgeta 8 www.umb.no Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Activities (Mgeta) Cropping homestead land (0.28 ha): Tomatoes, potatoes, cabbage, both seasons N-fixing: beans, green peas, both seasons Grass, MPPT, permanent Cropping distant farm land (0.34 ha): Beans and maize, both seasons Grass and MPPT, permanent (haymaking) Both areas: Fruit trees in between www.umb.no 9 Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Activities cont. Communal land: Grass and MPPT Feed purchase: Maize bran in both seasons Animals: Dairy goats, for milk sale or self-sufficiency Meat goats or pork for meat and manure Laying hens for self-sufficiency www.umb.no 10 Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Activities cont. Using mineral fertilizers and manure for crops Adding cost of land maintenance Hiring workers, dry and rain season Consuming vegetable, dry and rain season www.umb.no 11 NORWEGIAN UNIVERSITY OF LIFE SCIENCES Norwegian Agr. Econ. Research Instituet (NILF) Sokoine University of Agriculture (SUA) Terracing and land maintenance 12 www.umb.no Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Resources Categories of land according to season Allowable number of fruit trees/ha Allowable amounts of communal land feed Mineral fertilizer < purchased amounts Manure use < farm produced + purchased Intercropping: Potatoes < green peas in both seasons Maize < beans in both seasons www.umb.no 13 Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Resources Energy in feed (MJ) < produced each season Protein in feed (kg AAT) < produced each season Work < available time + hired each season Family energy need (MJ) < produced each season Protein need (kg) < produced each season Vegetable consumed < produced amounts each season www.umb.no 14 Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Further model development Options for increased soil C sequestration: Limit vegetable crops (e.g. only for family) Increase grass & MPPT (e.g. 50% of area) More purchased feed adding more manure to soils Is less feeding of crop residues efficient for C sequestration? www.umb.no 15 Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Model development: cont. Policy instruments: subsidies for feed purchase, investment support in yoghurt production payment for permanent grassland & MPPT support for purchase of mineral fertilizers www.umb.no 16 Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Model parameterization Mgeta model based on questionnaire to farmers (Cuthibert N. Zabron) Njombe questionnaire (Nina Lande) Other areas (Haydom) and techniques (CA) www.umb.no 17 Norwegian Agricultural Economics Research Institute (NILF) Sokoine University of Agriculture (SUA) NORWEGIAN UNIVERSITY OF LIFE SCIENCES Conclusion In Mgeta we basically end up with a study of economics of a changeover from vegetable crop systems to specialized dairy goat and more permant grass systems with MPPT Njombe has not come so far, but it will be dairy cows instead of goats and forest planting for C sequestration is an issue Other areas (Haydom) and techniques (CA) is not decided yet www.umb.no 18 NORWEGIAN UNIVERSITY OF LIFE SCIENCES Norwegian Agr. Econ. Research Instituet (NILF Sokoine University of Agriculture (SUA) Thanks for listening 19 www.umb.no