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Wet season resting - economic insights from scenario modelling

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MacLeod, N.D., Nelson, B.S., McIvor, J.G. and Corfield, J.P. (2009) Wet season resting - economic insights from scenario modelling. The Rangeland Journal, 31 (1). pp. 143-150.

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Article Link: http://dx.doi.org/10.1071/RJ08043

Publisher URL: http://www.publish.csiro.au


Pasture degradation, particularly that attributable to overgrazing, is a significant problem across the northern Australian rangelands. Although grazing studies have identified the scope for wet season resting strategies to be used to rehabilitate degraded pastures, the economic outcome of these strategies has not been extensively demonstrated. An exploratory study of the prospective economic value of wet season resting is presented using an economic simulation model of a 28000 ha beef enterprise located in the Charters Towers region of north-eastern Australia to explore seven hypothetical scenarios centred on the projected performance of a wet season resting strategy. A series of 20-year simulations for a range of pasture recovery profiles, stocking capacity, animal productivity responses, beef prices and agistment options are compared with a baseline scenario of taking no action. Estimates of the net present value of the 20-year difference in total enterprise gross margins between the various resting options and the 'do nothing' option identify that wet season resting can offer a positive economic return for the range of scenarios examined, although this is contingent on the assumptions that are made concerning the trajectories of change in carrying capacity and animal productivity. Some implications for management and policy making to support the practical implementation of wet season resting strategies are discussed.

Item Type:Article
Additional Information:© Australian Rangeland Society.
Keywords:Economics; rangelands; pasture degradation; overgrazing.
Subjects:Animal culture > Rangelands. Range management. Grazing
Agriculture > Agriculture (General) > Agricultural economics
Live Archive:16 Feb 2012 02:18
Last Modified:03 Sep 2021 16:49

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