Abstract
The paper aims to discuss the methodology used to develop loss functions for sugar-cane, with reference to the treatment of depth
and duration of inundation as the main determinants of the extent of damage. The Mfolozi floodplain in Northern KwaZulu-Natal
served as the study area. Loss functions for sugar-cane, for ex ante estimation of damage to harvests and crops, were developed
for inclusion in a flood damage simulation model (FLODSIM) developed by the Department of Agricultural Economics of the
University of the Free State in collaboration with the Water Research Commission. Depth of inundation was calculated in relation
to the height of inundated sugar-cane in order to establish the extent of damage. Duration of inundation was taken into account by
determining the maximum period of complete inundation after which the cane would be destroyed. Loss functions were determined
for calculation of damage to harvests and damage to crops respectively