Contents 1. Introduction and background ............................................................................................................... 2 2. Global methods ..................................................................................................................................... 8 3. Impacts of climate change .................................................................................................................... 9 4. Investment and financial flows ............................................................................................................. 9 5. Conclusions ......................................................................................................................................... 12 6. References .......................................................................................................................................... 13 1 1. Introduction and background Namibia is one of the 19 pilot countries around the world participating in the United Nations Development Programme Environment & Energy Group (UNDPEEG) project aimed at strengthening the country’s capacity in the United Nations Framework Convention for Climate Change (UNFCCC) process and undertaking I & FF assessments needed to address Climate Change (CC) in key sectors such as LULUCF (UNDPCC, 2008). The I & FF assessment is aimed at providing a better understanding of the extent and amount of national efforts to undertake Climate Change (CC) while providing accurate estimates of financial allocations and funds needed to implement adaptation measures. There’s a distinction made between adaptation measures, one is autonomous and policy driven adaptation. Adaptation is different from mitigation as it provides local benefits which are realised on a short term (Zeidler, 2008). Autonomous adaptation is natural by private individual whereas policy driven adaptation results from policy decision (Zeidler, 2008). Analysing adaptation costs is needed to devise short and long-term financing approaches (Zeidler, 2008). It is the first time that Investment and Financial Flows (I& FF) are being undertaken for Climate Change Adaptation (CCA) in Namibia (Zeidler, 2008). The Land Use Land Use Change and Forestry (LULUCF) sector includes six land use categories according to the Convention; Forestland, Cropland, Grassland, Wetlands, Settlements and Other land. In the Namibian context it is decided that it is important to focus CC and CCA in all the above mentioned land use categories considering land use change and convention of one land use to another. The LULUCF sector includes production systems which in Namibia’s context is; Agriculture (crops and livestock), Forestry, Fisheries (inland), Tourism, Wildlife and underlying Ecosystem Services (ES) (Zeilder, 2008). Since the United Nations Convention on Environment and Development (UNCED) in 1992 Namibia has focused on its physical and social context to develop policies and strategies that embraces CCA methods (Malumo, 2008). The country’s climate is predicted to become hotter and drier in the future with variability in rainfall. Most of the land that is being cultivated is not sufficient to support the people who depend on it and a reduction in rainfall could make these areas unproductive for agricultural purposes. The agriculture sector is critical to the subsistence of the majority of the country’s society. It is characterised by a dual sector with differences in access to credit, markets and inputs that brings about socio-economic vulnerabilities to rural communities (DRFN and CSAG, 2008). This sector is dominated by livestock farming with small patches of crop farming (Ashipala, 2009). Farming is the main source of income in rural areas, 48% of the population in these areas depend on farming (DRFN and CSAG, 2008). The 2 sector depends more on natural resources hence this makes it vulnerable to CC (Malumo, 2008) as natural resources are the most affected. Agriculture is the main land use in the country with approximately 64 million hectares (ha) or 78% of the total land area used for farming purposes with 70% of the population practising subsistence farming (Brown, 2009). The agriculture sector provides employment to 27% of the total population and 58% of workforce in rural areas (Brown, 2009). Rainfall scarcity and unpredictability in the country is a significant constraint to the agriculture output throughout the country. The loss of agricultural productivity by CC could have severe economic impacts on farmers and the country’s economy at large (Brown, 2009). Poor communities are amongst the most vulnerable to the negative effects of CC due to limited financial, skills and technology and their dependence on climate sensitive primary sectors (Brown, 2009). It is these people that will bear the costs of CC most directly because they rely more on the land and its natural resources and they do not have access to capital that enables them to adapt to the effects (Brown, 2009). Rainfall scarcity does not only limit rain fed farming but it also have an effect on the surface runoff and subsurface flow leaving few areas where irrigation can be undertaken without depleting ground water reserves (Malumo, 2008). Rainfall pattern occurs seasonally with an impact on vegetation and crop growth and flooding of the rivers. During the year 2000 it is estimated that 48% of groundwater sources were used for domestic purpose, 78% for livestock, 36% for mining and 26% for irrigation uses (Malumo, 2008). According to the Namibian Agriculture Policy there is potential for expansion of irrigated agriculture through sustainable use of perennial and ephemeral river sources in the country (Malumo, 2008), with the Green Scheme Initiative to add demand on the use of perennial and ground water as water sources for irrigation purposes. Indirect effects due to the increase in the temperature such as lower humidity, increased evaporation and lower soil moisture, are likely to have an effect on water availability to farmers (Brown, 2009). The Namibian government aims at adapting to CC focusing on farming system by promoting the use of drought resistant crops while encouraging activities that do not require too much water and generating income opportunities and livelihoods (Ashipala, 2009). In order to minimise CC impacts and other related environmental changes it is important to diversify crop varieties for improved resistance and great tolerance to stress caused by drought, flooding and extreme temperatures (Lane & Javis, 2007). Changes in weather patterns increase the crop’s vulnerability to pests and diseases. Impacts of CC on crops vary depending on the region, season of planting and the crop’s temperature thresholds (Lane & Javis, 2007). 3 Cotton Cotton was identified as a crop that has potential and it is for this reason that cotton evaluation has been undertaken based on the yield, fiber, resistance to diseases and pests and adaptability to Namibia’s climatic and soil conditions (Alweendo, 2008). Cotton was introduced to Kavango region by Tongat a South African Company in 1990. At that time farmers were contracted to grow their cotton through National Development Corporation (FNDC). This stipulated that cotton farmers only sold their produce to that company (Ipinge, 2010). This meant that farmers were provided with all production materials and inputs such as seeds, fertilizers and harvesting bags (Ipinge, 2010). However the company did not provide any kind of training to the farmers by transferring knowledge and skills to ensure the continuation of cotton farming. The company abandoned the project therefore it came to a standstill (Ipinge, 2010). There has been research conducted by the Ministry of Agriculture, Water and Forestry (MAWF) to evaluate cotton potential and production since the year 1998 The objectives of the project were; To test the adaptability of several cotton varieties under Namibia’s farming conditions To determine varieties that meets the need of growers in term of yield and fiber qualities To diversify crop base using cotton as a cash crop and To recommend varieties suitable under Namibian conditions Cotton was not only introduced to diversify crop exercise but it was a strategy to enhance rural income as well as adaptive measures (Ipinge, 2010). Trials were done in Kavango, Caprivi, Oshikoto, Ohangwena, Oshana and Omusati regions of the country, (table 1) indicates cotton produced and area planted by the selected regions as from 2000-2004 (Alweendo, 2008). This resulted in the identification of some varieties from South Africa and Zimbabwe which are: Tetra, Siokra, Delta opal and C223. These have shown constant performance over the past years in terms of their yield and fiber quality, they also displayed resistant to pest and diseases (Ipinge, 2010). Table 1: indicating cotton produced and area planted by regions as from 20002004 Region No. of farmers Area (ha) planted Average (kg/ha) yield Total production (kg) 4 Kavango Oshikoto Caprivi Oshana Omusati Ohangwena Total 73 43 9 26 17 11 178 117 35 29 17 14 12 260 400 400 400 250 150 200 300 46,800 14,000 11,000 4,000 2,100 2,400 70,550 A multi-stakeholder Cotton task team was established to consolidate the gains from cotton by enhancing promotion of cotton farming in communal areas of Namibia (Ipinge, 2010). Cotton productivity was also tested in the Grootfonetin-Tsumeb-Otavi triangle, farmers engaged in this activity which produced 3-4 tons of cotton under irrigation and 400kg-1 tone under rain fed (Ipinge, 2010). Rice farming could not be sustained due to the price fluctuation therefore farmers shifted back to maize cultivation (Ipinge, 2010). About thirty cotton varieties of the American and African Upland cotton (Gossyppium hirsutum) were evaluated from 1998/9-2007/8 under the dry land with supplementary irrigation (Alweendo, 2008). Among the different varieties, five varieties showed good potential and this were: Tetra, Siokra V15, CA223, Delta pine and Delta opal, these varieties were tested for a period of ten years (Alweendo, 2008). Though the five varieties performed well but Tetra performed even better compared to all the five by producing a yield of 0.89 to 1.5 t/ha of cotton seeds under dry land conditions (Alweendo, 2008). During the year 2002/3-2003/4 cotton production yield increased both yield and hectare under cultivation with 78 farmers, 260 planted hectares, average yield 0.700 tons and a total production of 70.550 tons cotton seed (Alweendo, 2008). For the purpose of ascertaining the viability of cotton farming gross margins analysis was calculated for two regions which are Kavango and Oshikoto regions in the northeastern and central north of the country respectively (tables 2 and 3) (Alweendo, 2008). Table 2: gross margin for small holder cotton farmers in Kavango region during 2003/04 season Name farmer A B C of Area planted Yield (kg) (ha) 20 1 1 15, 000 900 700 Revenue (N$) Variable cost (N$) 46, 500 2, 790 2, 170 16, 474 348 360 Gross margin (N$) 30, 026 2, 442 1, 810 5 D E F G H 1 1 2 1 1 1, 200 1, 100 1, 500 1, 200 800 3, 720 3, 410 4, 650 3, 720 2, 480 585 675 125 460 395 3, 135 2, 735 3, 525 3, 260 2, 085 Table 3: Gross margin for small holder cotton farmers in Oshikoto region during 2003/04 Name farmer A B C D E F G H of Area planted Yield (kg) (ha) 1 1 0.6 0.5 0.5 0.8 1 1.5 1,000 800 600 500 400 600 300 1,300 Revenue (N$) Variable cost (N$) 3,100 2,480 1,860 1,550 1,240 1,860 930 4,030 385.0 385.0 325.0 192.5 225.0 470.0 225.0 725.0 Gross margin (N$) 2,715.0 2,095.0 1, 535.0 1,357.5 1,015.0 1,390.0 705.0 3,305.0 During the trial period, the production of cotton can be summed up as follows: small holder farmers produced 400-1000kg/ha, cotton trials yielded between 800-1500kg/ha under controlled environment while the commercial sector under irrigation produced between 3000-4000kg/ha (Alweendo, 2008). The increase could not be maintained due to some challenges among which included price fluctuations, cotton inputs, transport, storage, quotas, ginnery, globalization, trained personnel and marketing of the cotton seeds. During the seventh cotton growing season production increased in communal areas during 1998/99-2003/04 cultivation seasons due to adequate supply of farm inputs such as seeds, fertilizers, improved varieties and improved production practices (Alweendo, 2008). In the following years 2004/05 and 2006/07-2008/09 production of cotton declined in all commercial and communal areas as a result of (Alweendo, 2008): Low prices paid to farmers High costs of inputs (seeds and fertilizers) 6 Inadequate staffing both professional and technical level to cover targeted areas Lack of interaction with other cotton farmers Lack of information for setting indicative seed cotton prices prior to start of buying season Cotton sector development strategy aiming at basis for optimizing cotton growth sector in Namibia Labor competitive with food crops and cultural beliefs Development of new ginnery to give further incentive Private sector participation and involvement in the cotton sector development Inadequate capacity to produce and provide adequate cotton seeds to farmers Poor coordination between farmers, researchers and extension officers No proper Cotton development plan implemented during the two cropping season for the small scale farmers Slow pace of developing a suitably Researchers and development Cadres and lack of liberalization of marketing of seed cotton Cotton varieties that were adapted to dry land cultivation were identified to produce more lint though there’s a lack of farming techniques (Alweendo, 2008). Rice The Agronomy and Horticulture Subdivision conducted variety evaluation trials of the following crops among others: cotton and rice. These crops play an additional role in food security and crop diversification. Farmers become empowered by being provided with a range of crop options to adapt to CC (Brown, 2009). The rice project at Kalimbeza in the Caprivi region is a corroborative research done by the University of Namibia (Unam), Ministry of Agriculture Water and Forestry (MAWF) and Dr Morio Iijima from the University of Nagoya. This research is funded by Japanese Society for Promotion of Science (JSPS), Japan. This research is an initiative to introduce rice cultivation along the Oshanas in the northern region (University of Namibia, nd). Namibia has low rainfalls, high evapo-transpiration with low sandy soils fertility. Due to these conditions low yields of staple crops (pearl millet and maize) are experienced among rural farmers (University of Namibia, nd). Never the less there is potential to increase food production through crop diversification and exploitation of under-utilized natural resources such as the seasonal wetlands (Oshanas) in north-central and Zambezi river plains in the Caprivi region (Fig.1) (University of 7 Namibia, nd). These plains could be utilized for rice cultivation and production (University of Namibia, nd). These areas are not being utilized for anything at the moment except for livestock grazing (University of Namibia, nd).Rice cultivation in these areas could improve communal crop production leading to increased food self-sufficiency, increased cash earning and better living standard of the rural farmers (University of Namibia, nd). This is also in line with national development programs like Vision 2030 and the agricultural policy which is aimed at diversifying crops to improve national food security (University of Namibia, nd). Rice cultivars for these areas were obtained from the University of Nagoya, Guinea and African Rice Centre which are being evaluated for their suitability to the Namibian condition. These are from Oryza sativa, Oryza glaberrima and NERICA (New Rice for Africa) species (University of Namibia, nd). They were evaluated during 2005/06 cultivation season and they showed high yield potential because they matured within 100 days (University of Namibia). http://www.uni-koeln.de/sfb389/e/e1/download/atlas_namibia/pics/physical/relsuitability-soils.jpg 2. Global methods Climate change affaects agriculture through effects on crop, soils, insects, weeds and diseases and livestock. Over the past years China especially in the Norht has eperienced warming trends. There has been a decrease in precipitation over eastern China’s farming regions except for part of the north east and middle and lower Yangtze 8 river. Irrigation has become more important with two thirds of the country’s grain, (60% of its economic crops). If climate trends continues most of China agricutlure is likely to face short growing periods and increased water deficits, requiring more irrigation. China is already approaching the maximum irrigation of farmland, potential future water shaotrages may theraten the sustainability of the coutnry’s agriculture development (water air and soil pollution, 2004). 3. Impacts of climate change An increase in temperature will be associated with an increase in the potential evaporation rate of around 5% per degree of warming. The Namibian people, economy and environment are extremely sensitive to climate change effects and, due to institutional and financial constraints, are considered highly vulnerable to these effects. Regarding the agricultural sector, periodic droughts cause considerable stock losses and reduced grain production (Jamahiriya, 2008). 4. Investment and financial flows Table 4: Appropriation Account 2004/05 (MAWF, 2005), annual report 1 april 2004 to 31 march 2005, government. Main division Percentage More than Less than difference appropriated appropriated with appropriated amount Agricultural 36,609,900.00 36,411,947.78 278,952.22 0.8 research Table 5: Development projects (MAWF, 2005). Project Adjusted appropriation 2004/2005 Budget 2004/2005 Kalimbeza Rice 1,400,000 project Expenditure 2004/2005 Expenditure with vote Expenditure 2004/2005 1,400,000 Percentage of Savings/shortfall budget spent 100 0 Pearl millet has low tolerance to the country’s recurrent drought spells but it’s the most dominant crop in the Northern part of Namibia (Awala, 2008). It is not well suited to the low rainfall conditions but it has adapted over the years although it still produces low yields (Awala, 2008). Maize and wheat is produced in few large farms in some parts of the country (Awala, 2008). Namibia is a dry country but food production can be increased through crop diversification and exploitation of under-utilized natural 9 resources (Awala, 2008). The seasonal wetlands, Oshanas and the Zambezi river flood plains in the northern communal areas can store enough amounts of water for a period of 5 months after the in flows from the neighboring countries such as Angola and Zamibia (Awala, 2008). These areas could be put to use by resource poor communal farmers. Rice cultivation in the Oshanas and the Zambezi flood plains could be an alternative to complement low yields of traditional local crops and to generate cash income for local farmers (Awala, 2008). The benefits of this type of move is to reduce poverty and improve livelihoods in rural areas especially the northern communal areas with a reduction in grain imports and increased national food security (Awala, 2008). The Oshanas are part of a large drainage system which is the Cuvelai drainage system fed by annual rainfall from the central Angola catchments (Awala, 2008). These areas cover an area of 7,000-11,550 km²; they act as reservoirs by storing water during rainy seasons and releasing it at a later stage (Awala, 2008). The Zambezi flood plains located north-east of the country and covers 11,600 km². They receive water from the Zambezi River which is a perennial river. The Oshanas have the potential to be used foe rice cultivation although they have variable soils types which could affect rice production in the near future (Awala, 2008). Some of the Oshanas have fertile and alluvial soils due to accumulated organic matters found in them (low lying area). Rice maybe cultivated in the Oshanas like but it depends on the amount of flood waters received during the rainy season (Awala, 2008). Other Oshanas have natural occurring salinity which could have an effect on rice production. These include the Oshanas extending to the Etosha salt pan (Awala, 2008). Rice is a salt sensitive crop and this affects its growth and yield. Never the less rice adaptation to saline conditions is different among genotypes (Awala, 2008). In order to achieve food self-sufficiency and food security in Namibia, farmers need protection from price fluctuations in order to achieve confidence in crop production (Namibian Agronomic board, 2004). The table below shows the production of marketed crops for 2002/2003 financial year, table.5 (Namibian Agronomic board, 2004). It indicates the type of crop and hectares planted with the amount marketed in tones and process with imports. For cotton it includes communal and commercially produced cotton in the country. Table: 5. Marketed production of other crops for the year 2002/03 financial year Crop Hectares planted (ha) Yellow maize Sunflowers 860 160 Marketed production (tones) 52 306 Price (N$/tones) Imports (tones) n/a n/a 52,024¹ 200 10 Cotton Ground nuts Lucerne Sorghum Mahangu commercial Communal 2,155² 431 265 n/a 218 n/a 1,541² 45 6,700 n/a 255 96,200³ 3,650 3,200 1,200 1,930 1,900 1,500 n/a 200 1,100 n/a The table (Table.5) below indicates the appropriation account for the year 2005/06 final year. It shows among other things the expenditure for each of the divisions (MAWF, 2006). Table.5. Appropriation account for the financial year 2005/2006 Main Division Adjusted Appropriation 2005/2006 Expenditure 2005/2006 N$ N$ Expenditure compared with Percentage vote difference with More than Less than appropriated appropriated appropriated amount N$ Agricultural 33,728,000.00 30,730,058.06 Research % 2,997,941.94 8.9 Project funds were invested as follows table.6. (Namibian agronomic board, 2007). Table.6. Funds available 2007 N$ Cotton campaign 353 639 20006 N$ 317 304 Development projects for irrigation projects (Table.7.) included pump stations, pipelines, irrigation systems, grain-storage facilities and a packhouse, below is the budget and expenditure for different projects including the Kalimebza rice project in the Caprivi. 11 Table.7. Project Budget 2004/2005 Sachona 256,000 Etunda 4,500,000 GreesnScheme 2, 000,000 Hardap main 5,000,000 water supply Orange river 1,400,000 project Kalimbeza rice 3,000,000 project Ndonga linene 5,000,000 project Total 21,156,000 Expenditure 2004/2005 256,000 4,500,00 2,000,000 5,000,000 Percentage of Saving/shortfall budget spent 100 0 100 0 100 0 100 0 1,400,000 100 0 3,000,000 100 0 5,000,000 100 0 21,156,000 100 0 5. Conclusions 12 6. References Undpcc, 2008. Retrieved from: http://www.undpcc.org/content/inv_flows-en.aspx Alweendo, TE. Nd. Evaluation of cotton yield, fibre quality and pest resisitance under dry land conditions in northern Namibia since 1997/98-2007/08. Windhoek. Awala, SK. (2008). Salinity tolerance of oryza galberrima steud, nerica and oryza sativa l: evaluation in seasonal wetlands in northern Namibia. Unpublished masters thesis, Nagoya University, Japan. Malumo, R. (2008). UnamKalimbeza rice project to feed nation. UnamForum, (2), Retrieved March 17, 2010, from: http://www.unam.na/annaul%20reportsnewsletters/forum_2nd_2008.pdf Brown, LH. (2009). The economic impact of climate change on commercial agriculture in namibia. Thesis (MSc. environmental economics) – University of York, UK. Desert research and foundation Namibia & climate systems analysis group. (2008). Climate change vulnerability and adaptation assessment Namibia: Final report March 2008. Windhoek. Lane, A. & Jarvis, A. (2007 December). Changes in climate will modify the geography of crop suitability: agricultural biodiversity can help with adaptation. SAT ejournal, 4(1). Retrieved March 22, 2010 from: http://www.icirsat.org/speadproject/sp2.pdf Namibian agronomic board. (2004). Namibia. (2006). Annual report 2005 – 2006. Windhoek: Ministry of agriculture water and forestry. Namibia. (2005). Annual report 1 April 2004 to 31 march 2005. Windhoek: Ministry of Agriculture water and forestry. Zeidler, J. (2008). Namibian national issues report on land use, land-use change and forestry (LULUCF) (Adaptation). IECN. 13