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Economic case study of ABCD cane management practices in the Burdekin River Irrigation Area (BRIA) region

Poggio, M.J. and Page, J. (2010) Economic case study of ABCD cane management practices in the Burdekin River Irrigation Area (BRIA) region. Other. Department of Employment, Economic Development and Innovation, Queensland.

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Publisher URL: http://www.deedi.qld.gov.au
Organisation URL: http://www.csiro.au
Organisation URL: http://www.nrm.gov.au
Organisation URL: http://www.reefcatchments.com.au

Abstract

A case study was undertaken to determine the economic impact of a change in management class as detailed in the A, B, C and D management class framework. This document focuses on the implications of changing from D to C, C to B and B to A class management in the Burdekin River irrigation area (BRIA) and if the change is worthwhile from an economic perspective. This report provides a guide to the economic impact that may be expected when undertaking a particular change in farming practices and will ultimately lead to more informed decisions being made by key industry stakeholders. It is recognised that these management classes have certain limitations and in many cases the grouping of practices may not be reflective of the real situation.

The economic case study is based on the A, B, C and D management class framework for water quality improvement developed in 2007/2008 for the Burdekin natural resource management region. The framework for the Burdekin is currently being updated to clarify some issues and incorporate new knowledge since the earlier version of the framework. However, this updated version is not yet complete and so the Paddock to Reef project has used the most current available version of the framework for the modelling and economics. As part of the project specification, sugarcane crop production data for the BRIA was provided by the APSIM model. The information obtained from the APSIM crop modelling programme included sugarcane yields and legume grain yield (legume grain yield only applies to A class management practice).

Because of the complexity involved in the economic calculations, a combination of the FEAT, PiRisk and a custom made spreadsheet was used for the economic analysis. Figures calculated in the FEAT program were transferred to the custom made spreadsheet to develop a discounted cash flow analysis. The marginal cash flow differences for each farming system were simulated over a 5-year and 10-year planning horizon to determine the net present value of changing across different management practices. PiRisk was used to test uncertain parameters in the economic analysis and the potential risk associated with a change in value.

Item Type:Monograph (Other)
Projects:Australian Government’s Caring for our Country, CSIRO, Reef Catchments.
Business groups:Agriculture and Food
Additional Information:© The State of Queensland, Department of Employment, Economic Development and Innovation. 2010. Copyright protects this publication. Except for purposes permitted by the Copyright Act 1968, reproduction by whatever means is prohibited without prior written permission of the Department of Employment, Economic Development and Innovation. Enquiries should be directed to Commercialisation Unit SAFTRSCopyright@deedi.qld.gov.au or telephone the Business Information Centre on 13 25 23 (Queensland residents) or +61 7 3404 6999.
Keywords:Farming practices; economic impact; management; water quality; crop modelling; natural resources; Burdekin River (BRIA); Queensland.
Subjects:Plant culture > Economic botany
Agriculture > Agriculture (General) > Agricultural economics
Agriculture > Agriculture (General) > Agriculture and the environment
Deposited On:01 Mar 2012 00:12
Last Modified:08 Jun 2015 15:59

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