5.2.6 Liquidity
Liquidity is the amount of cash available for farm production at the start of the simulation period. It is required for a variety of activities, such as covering the costs of the inputs for cropping (e.g. fertilizer, herbicides), hiring additional labor and hiring labor to clear forest. In the survey households were asked about their monetary savings and cash, however no answers were provided by the respondents. Therefore, the credit limit is used as a proxy to quantify cash constraints (see Table 5.4). According to Diagne and Zeller (2001), the credit limit is the maximum quantity of credit the household is able to borrow from formal and informal sources.
5.3 Calibration of the Model
Models simplify reality; therefore …show more content…
The simulation was done by comparing the model outputs with the agricultural system in the study area (household survey). The model results were validated in three steps. First, it was tested if the MILP gave feasible solutions. If this was not the case, then the matrices were analyzed and changes made were necessary. Second, model outcomes of the baseline scenario were compared with observed values from the …show more content…
This brings the baseline closer to the observed values, when needed. Then, observed and predicted values were compared for the following main production aspects of the farming system: (1) land-use patterns; (2) number of livestock (see table 5.11 and table 5.12).
The results of the baseline model for the Jose Ignacio Tavara community in Piura are summarized in Table 5.11 and compared with the observed values. The different shares of the crops of the total cultivated area for different crops: beans, maize and cotton are listed for the three household types in the model baseline situation, as well as the quantity of cattle, goats and sheep.
Table 5.11 Validation of the Piura Model Household Class Households reliant on Off-farm Income Agricultural livelihoods Household dedicated to Livestock Production Observed Model Observed Model Observed Model
Area Share per Crops (ha)
Cowpea (Vigna ungiculata) 23 22.3 55 54.7 17.5 17.8
Indean Bean (Lablab purpureus) 4.2 3.1 11 12.3 4.2 4.1
Pigeon Pea (Cajanus cajan) 1.5 1.5 4.4 4.4 1.9 1.9
Maize (Zea mays) 1.9 1.9 17.7 17 2.1 2.2
Cotton (Gossypium hirsutum) 0 0 15 15 0 0
Livestock (heads)
Cattle 20 20 34 25 90 90
Goats 240 240 420 420 760 760
Sheep 230 230 540 540 660
Liquidity is the amount of cash available for farm production at the start of the simulation period. It is required for a variety of activities, such as covering the costs of the inputs for cropping (e.g. fertilizer, herbicides), hiring additional labor and hiring labor to clear forest. In the survey households were asked about their monetary savings and cash, however no answers were provided by the respondents. Therefore, the credit limit is used as a proxy to quantify cash constraints (see Table 5.4). According to Diagne and Zeller (2001), the credit limit is the maximum quantity of credit the household is able to borrow from formal and informal sources.
5.3 Calibration of the Model
Models simplify reality; therefore …show more content…
The simulation was done by comparing the model outputs with the agricultural system in the study area (household survey). The model results were validated in three steps. First, it was tested if the MILP gave feasible solutions. If this was not the case, then the matrices were analyzed and changes made were necessary. Second, model outcomes of the baseline scenario were compared with observed values from the …show more content…
This brings the baseline closer to the observed values, when needed. Then, observed and predicted values were compared for the following main production aspects of the farming system: (1) land-use patterns; (2) number of livestock (see table 5.11 and table 5.12).
The results of the baseline model for the Jose Ignacio Tavara community in Piura are summarized in Table 5.11 and compared with the observed values. The different shares of the crops of the total cultivated area for different crops: beans, maize and cotton are listed for the three household types in the model baseline situation, as well as the quantity of cattle, goats and sheep.
Table 5.11 Validation of the Piura Model Household Class Households reliant on Off-farm Income Agricultural livelihoods Household dedicated to Livestock Production Observed Model Observed Model Observed Model
Area Share per Crops (ha)
Cowpea (Vigna ungiculata) 23 22.3 55 54.7 17.5 17.8
Indean Bean (Lablab purpureus) 4.2 3.1 11 12.3 4.2 4.1
Pigeon Pea (Cajanus cajan) 1.5 1.5 4.4 4.4 1.9 1.9
Maize (Zea mays) 1.9 1.9 17.7 17 2.1 2.2
Cotton (Gossypium hirsutum) 0 0 15 15 0 0
Livestock (heads)
Cattle 20 20 34 25 90 90
Goats 240 240 420 420 760 760
Sheep 230 230 540 540 660