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Economic case study of ABCD cane management practices in the Tully region

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


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


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 Tully region 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 by the wet tropics natural resource management region. The framework for wet tropics 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 Tully region was provided by the APSIM model.

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)
Corporate Creators:Department of Employment, Economic Development and Innovation (DEEDI), Agriculture and Food, CSIRO
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; Tully; Queensland.
Subjects:Plant culture > Economic botany
Agriculture > Agriculture (General) > Agricultural economics
Agriculture > Agriculture (General) > Agriculture and the environment
Deposited On:01 Mar 2012 00:40
Last Modified:08 Jun 2015 15:59

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