Economic modelling of grazing systems in the Fitzroy and Burdekin catchments

The Great Barrier Reef (GBR) is the largest reef system in the world; it covers an area of approximately 2,225,000 km² in the northern Queensland continental shelf. There are approximately 750 reefs that exist within 40 km of the Queensland coast. Recent research has identified that poor water quality is having negative impacts on the GBR (Haynes et al. 2007). The Fitzroy Basin covers 143,000 km² and is the largest catchment draining into the GBR as well as being one of the largest catchments in Australia (Karfs et al. 2009). The Burdekin Catchment is the second largest catchment entering into the GBR and covers 133,432 km².The prime determinant for the changes in water quality entering into the GBR have been attributed to grazing, with beef production the largest single land use industry comprising 90% of the land area (Karfs et al. 2009). Extensive beef production contributes over $1 billion dollars to the national economy annually and employs over 9000 people, many in rural communities (Gordon 2007). ‘Economic modelling of grazing systems in the Fitzroy and Burdekin catchments’ was a joint project with the Fitzroy Basin Association and the Queensland Department of Employment Economic Development and Innovation. The project was formed under the federally funded Caring For Our Country and the Reef Rescue programs. The project objectives were as follows; * Quantifying the costs of over-utilising available pasture and the resulting sediment leaving a representative farm for four of the major land systems in the Burdekin or Fitzroy catchments and identifying economically optimal pasture utilisation rates * Estimating the cost of reducing pasture utilisation rates below the determined optimal * Using this information, guide the selection of appropriate tools to achieve reduced utilisation rates e.g. extension process versus incentive payments or a combination of both * Model the biophysical and economic impacts of altering grazing systems to restore land condition e.g. from C condition to B condition for four land systems in the Burdekin or Fitzroy catchments.

Objective `Safe' Grazing Capacities for South-West Queensland Australia: Model Application and Evaluation

This paper describes the employment of two experienced graziers as consultants to apply and evaluate a model for calculating 'safe' long-term grazing capacities of individual properties. The model was based on ecological principles and entailed estimates of average annual forage grown (kglha) on the different land systems on each property and the calculation of the number of livestock (dry sheep equivalents, DSE) required to 'safely' utilise this forage. The grazier consultants applied and evaluated the 'safe' grazing capacity model on 20 properties of their choosing. For evaluation, model results were compared with; (a) the Department of Lands rated carrying capacities for those properties and (b) the grazing capacity assessed independently by the owners of those properties. For the 20 properties, the average 'safe' grazing capacity calculated by the model (21.0 DSE/kmZ) was 8% lighter than the average of the owner assessed capacities (22.7 DSE/kmZ), which in tum was 37% lighter than the average of the pre-1989 Department of Lands rated carrying capacity (31.0 DSE/kmZ). The grazing land management and administrative implications of these results and the role graziers played as consultants are discussed.

Optimal management of agricultural systems

To remain competitive, many agricultural systems are now being run along business lines. Systems methodologies are being incorporated, and here evolutionary computation is a valuable tool for identifying more profitable or sustainable solutions. However, agricultural models typically pose some of the more challenging problems for optimisation. This chapter outlines these problems, and then presents a series of three case studies demonstrating how they can be overcome in practice. Firstly, increasingly complex models of Australian livestock enterprises show that evolutionary computation is the only viable optimisation method for these large and difficult problems. On-going research is taking a notably efficient and robust variant, differential evolution, out into real-world systems. Next, models of cropping systems in Australia demonstrate the challenge of dealing with competing objectives, namely maximising farm profit whilst minimising resource degradation. Pareto methods are used to illustrate this trade-off, and these results have proved to be most useful for farm managers in this industry. Finally, land-use planning in the Netherlands demonstrates the size and spatial complexity of real-world problems. Here, GIS-based optimisation techniques are integrated with Pareto methods, producing better solutions which were acceptable to the competing organizations. These three studies all show that evolutionary computation remains the only feasible method for the optimisation of large, complex agricultural problems. An extra benefit is that the resultant population of candidate solutions illustrates trade-offs, and this leads to more informed discussions and better education of the industry decision-makers.

Developing sustainable banana production systems: a case study from tropical Australia

The north Queensland banana industry is under pressure from government and community expectations to exhibit good environmental stewardship. The industry is situated on the high-rainfall north Queensland coast adjacent to 2 natural icons, the Great Barrier Reef to the east and World Heritage-listed rain forest areas to the west. The main environmental concern is agricultural industry pollutants harming the Great Barrier Reef. In addition to environmental issues the banana industry also suffers financial pressure from declining margins and production loss from tropical cyclones. As part of a broader government strategy to reduce land-based pollutants affecting the Great Barrier Reef, the formation of a pilot banana producers group to address these environmental and economic pressures was facilitated. Using an integrated farming systems approach, we worked collaboratively with these producers to conduct an environmental risk assessment of their businesses and then to develop best management practices (BMP) to address environmental concerns. We also sought input from technical experts to provide increased rigour for the environmental risk assessment and BMP development. The producers' commercial experience ensured new ideas for improved sustainable practices were constantly assessed through their profit-driven 'filter' thus ensuring economic sustainability was also considered. Relying heavily on the producers' knowledge and experience meant the agreed sustainable practices were practical, relevant and financially feasible for the average-sized banana business in the region. Expert input and review also ensured that practices were technically sound. The pilot group producers then implemented and adapted selected key practices on their farms. High priority practices addressed by the producers group included optimizing nitrogen fertilizer management to reduce runoff water nitrification, developing practical ground cover management to reduce soil erosion and improving integrated pest management systems to reduce pesticide use. To facilitate wider banana industry understanding and adoption of the BMP's developed by the pilot group, we conducted field days at the farms of the pilot group members. Information generated by the pilot group has had wider application to Australian horticulture and the process has been subsequently used with the north Queensland sugar industry. Our experiences have shown that integrated farming systems methodologies are useful in addressing complex issues like environmental and economic sustainability. We have also found that individual horticulture businesses need on-going technical support for change to more sustainable practices. One-off interventions have little impact, as farm improvement is usually an on-going incremental process. A key lesson from this project has been the need to develop practical, farm scale economic tools to clarify and demonstrate the financial impact of alternative management practices. Demonstrating continued profitability is critical to encourage widespread industry adoption of environmentally sustainable practices

The bioeconomic potential for agroforestry in Australia's northern grazing systems.

Although agriculture generates 16% of Australia's greenhouse gas emissions, it also has the potential to sequester large quantities of emissions through land use management options such as agroforestry. Whilst there is an extensive amount of agroforestry literature, little has been written on the economic consequences of adopting silvopastoral systems in northern Australia. This paper reports the financial viability of adopting complementary agroforestry systems in the low rainfall region of northern Australia. The analysis incorporates the dynamic tradeoffs between tree and pasture growth, likely forest product yields, carbon sequestration and livestock methane emissions in a bioeconomic model. The results suggest there are financial benefits for landholders who integrate complementary agroforestry activities into existing grazing operations at even modest carbon prices.

Runoff, soil loss, and nutrient transport from cropping systems on Red Ferrosols in tropical northern Australia.

Runoff, soil loss, and nutrient loss were assessed on a Red Ferrosol in tropical Australia over 3 years. The experiment was conducted using bounded, 100-m(2) field plots cropped to peanuts, maize, or grass. A bare plot, without cover or crop, was also instigated as an extreme treatment. Results showed the importance of cover in reducing runoff, soil loss, and nutrient loss from these soils. Runoff ranged from 13% of incident rainfall for the conventional cultivation to 29% under bare conditions during the highest rainfall year, and was well correlated with event rainfall and rainfall energy. Soil loss ranged from 30 t/ha. year under bare conditions to <6 t/ha. year under cropping. Nutrient losses of 35 kg N and 35 kg P/ha. year under bare conditions and 17 kg N and 11 kg P/ha. year under cropping were measured. Soil carbon analyses showed a relationship with treatment runoff, suggesting that soil properties influenced the rainfall runoff response. The cropping systems model PERFECT was calibrated using runoff, soil loss, and soil water data. Runoff and soil loss showed good agreement with observed data in the calibration, and soil water and yield had reasonable agreement. Longterm runs using historical weather data showed the episodic nature of runoff and soil loss events in this region and emphasise the need to manage land using protective measures such as conservation cropping practices. Farmers involved in related, action-learning activities wished to incorporate conservation cropping findings into their systems but also needed clear production benefits to hasten practice change.

Technical support improved Best Management Practices in irrigated grains farming systems in the Fiztroy Basin Association priority catchments

Broadscale irrigation is a major land use in many of the priority neighbourhood catchments (45,218 hectares in Central Highlands and Dawson) and there is a requirement to provide technical support to sub-regional group field officers and landholders in these priority catchments. This technical support will assist field staff and land managers to identify and implement appropriate, sustainable technologies and management practices.

Grazing for Healthy Coastal Wetlands: Guidelines for managing coastal wetlands in grazing systems.

Grazing for Healthy Coastal Wetlands has been developed to provide graziers, landowners and extension officers with information on managing grazing in and around Queensland’s coastal wetlands to maintain healthy coastal wetlands and productive grazing enterprises. It provides practical advice on how grazing and associated land management practices can be implemented to support the long-term health of coastal wetlands whilst maintaining production. The guidelines have been compiled from published literature, grazier knowledge, wetlands managers and the experience of extension and natural resource management professionals. They reflect the current knowledge of suitable management practices for coastal wetlands. They are designed to complement and be considered in conjunction with existing information resources including the EDGEnetwork Grazing Land Management series and best management practice guidelines from regional Natural Resource Management (NRM) groups. While the recommendations apply broadly to Queensland’s coastal wetlands, regional, catchment and landscape-scale variations in wetland characteristics and the objectives of the individual grazing enterprise should be taken into account in planning and deciding management actions for wetlands. An individual grazing property may even have a range of wetland types with different management needs and objectives which should be identified during whole of property planning. Specific land and wetland management advice should also be sought from local grazing extension officers and NRM professionals.

Can soil nematode community structure be used to indicate soil carbon dynamics in horticultural systems?

There is a need to develop indicators that relate the dynamics of soil organic carbon (SOC) with changes in land management of horticultural production systems. Soil nematode communities have been shown to be sensitive to land management changes, but often do not include plant-parasites in the calculation of soil nematode community indices. The concept of nematode functional guilds was used to estimate the proportion of carbon entering the soil ecosystem through different channels, such as through decomposition of organic material, the detrital channel, through the roots of plants, the root channel or recycled through the activity of predators, a predation channel. Calculations of the indices were developed and validated using case studies in the north Queensland banana industry. Firstly, a survey of organic and conventional banana farms found a greater proportion of C entering the soil ecosystem through the detrital channel and a reduced proportion of C originating through the root channel at the organic sites relative to conventional sites. Secondly, a field experiment comparing compost amendments, found application of fresh compost significantly increased the proportion of C entering the soil ecosystem through the detrital channel and decreased proportion of C originating from the root channel. Thirdly, a field experiment comparing 'conventional' banana production to an 'alternative' system which incorporated organic matter, found the proportion of C entering the soil ecosystem through the root channel was significantly greater in the conventional systems relative to the alternative system. This research demonstrates that nematode indices can be used to assess horticultural systems, by indicating the origins of SOC.

Can sustainable cotton production systems be developed for tropical northern Australia?

This article reviews research coordinated by the Australian Cotton Cooperative Research Centre (CRC) that investigated production issues for irrigated cotton at five targeted sites in tropical northern Australia, north of 21°S from Broome in Western Australia to the Burdekin in Queensland. The biotic and abiotic issues for cotton production were investigated with the aim of defining the potential limitations and, where appropriate, building a sustainable technical foundation for a future industry if it were to follow. Key lessons from the Cotton CRC research effort were: (1) limitations thought to be associated with cotton production in northern Australia can be overcome by developing a deep understanding of biotic and environmental constraints, then tailoring and validating production practices; and (2) transplanting of southern farming practices without consideration of local pest, soil and climatic factors is unlikely to succeed. Two grower guides were published which synthesised the research for new growers into a rational blueprint for sustainable cotton production in each region. In addition to crop production and environmental impact issues, the project identified the following as key elements needed to establish new cropping regions in tropical Australia: rigorous quantification of suitable land and sustainable water yields; support from governments; a long-term funding model for locally based research; the inclusion of traditional owners; and development of human capacity.

Reconfiguring agriculture through the relocation of production systems for water, environment and food security under climate change

The prospect of climate change has revived both fears of food insecurity and its corollary, market opportunities for agricultural production. In Australia, with its long history of state-sponsored agricultural development, there is renewed interest in the agricultural development of tropical and sub-tropical northern regions. Climate projections suggest that there will be less water available to the main irrigation systems of the eastern central and southern regions of Australia, while net rainfall could be sustained or even increase in the northern areas. Hence, there could be more intensive use of northern agricultural areas, with the relocation of some production of economically important commodities such as vegetables, rice and cotton. The problem is that the expansion of cropping in northern Australia has been constrained by agronomic and economic considerations. The present paper examines the economics, at both farm and regional level, of relocating some cotton production from the east-central irrigation areas to the north where there is an existing irrigation scheme together with some industry and individual interest in such relocation. Integrated modelling and expert knowledge are used to examine this example of prospective climate change adaptation. Farm-level simulations show that without adaptation, overall gross margins will decrease under a combination of climate change and reduction in water availability. A dynamic regional Computable General Equilibrium model is used to explore two scenarios of relocating cotton production from south east Queensland, to sugar-dominated areas in northern Queensland. Overall, an increase in real economic output and real income was realized when some cotton production was relocated to sugar cane fallow land/new land. There were, however, large negative effects on regional economies where cotton production displaced sugar cane. It is concluded that even excluding the agronomic uncertainties, which are not examined here, there is unlikely to be significant market-driven relocation of cotton production.

Strategic tillage in no-till farming systems in Australia’s northern grains-growing regions: I. Drivers and implementation

Development of no-tillage (NT) farming has revolutionized agricultural systems by allowing growers to manage greater areas of land with reduced energy, labour and machinery inputs to control erosion, improve soil health and reduce greenhouse gas emission. However, NT farming systems have resulted in a build-up of herbicide-resistant weeds, an increased incidence of soil- and stubble-borne diseases and enrichment of nutrients and carbon near the soil surface. Consequently, there is an increased interest in the use of an occasional tillage (termed strategic tillage, ST) to address such emerging constraints in otherwise-NT farming systems. Decisions around ST uses will depend upon the specific issues present on the individual field or farm, and profitability and effectiveness of available options for management. This paper explores some of the issues with the implementation of ST in NT farming systems. The impact of contrasting soil properties, the timing of the tillage and the prevailing climate exert a strong influence on the success of ST. Decisions around timing of tillage are very complex and depend on the interactions between soil water content and the purpose for which the ST is intended. The soil needs to be at the right water content before executing any tillage, while the objective of the ST will influence the frequency and type of tillage implement used. The use of ST in long-term NT systems will depend on factors associated with system costs and profitability, soil health and environmental impacts. For many farmers maintaining farm profitability is a priority, so economic considerations are likely to be a primary factor dictating adoption. However, impacts on soil health and environment, especially the risk of erosion and the loss of soil carbon, will also influence a grower’s choice to adopt ST, as will the impact on soil moisture reserves in rainfed cropping systems.

Review of greenhouse gas emissions from the storage and land application of farm dairy effluent

The amounts of farm dairy effluent stored in ponds and irrigated to land have steadily increased with the steady growth of New Zealand's dairy industry. About 80% of dairy farms now operate with effluent storage ponds allowing deferred irrigation. These storage and irrigation practices cause emissions of greenhouse gases (GHG) and ammonia. The current knowledge of the processes causing these emissions and the amounts emitted is reviewed here. Methane emissions from ponds are the largest contributor to the total GHG emissions from effluent in managed manure systems in New Zealand. Nitrous oxide emissions from anaerobic ponds are negligible, while ammonia emissions vary widely between different studies, probably because they depend strongly on pH and manure composition. The second-largest contribution to GHG emissions from farm dairy effluent comes from nitrous oxide emissions from land application. Ammonia emissions from land application of effluent in New Zealand were found to be less than those reported elsewhere from the application of slurries. Recent studies have suggested that New Zealand's current GHG inventory method to estimate methane emissions from effluent ponds should be revised. The increasing importance of emissions from ponds, while being a challenge for the inventory, also provides an opportunity to achieve mitigation of emissions due to the confined location of where these emissions occur. © 2015 © 2015 The Royal Society of New Zealand.

An evaluation of carbon offset supplementation options for beef production systems on coastal speargrass in central Queensland, Australia

In 2014, the Australian Government implemented the Emissions Reduction Fund to offer incentives for businesses to reduce greenhouse gas (GHG) emissions by following approved methods. Beef cattle businesses in northern Australia can participate by applying the 'reducing GHG emissions by feeding nitrates to beef cattle' methodology and the 'beef cattle herd management' methods. The nitrate (NO3) method requires that each baseline area must demonstrate a history of urea use. Projects earn Australian carbon credit units (ACCU) for reducing enteric methane emissions by substituting NO3 for urea at the same amount of fed nitrogen. NO3 must be fed in the form of a lick block because most operations do not have labour or equipment to manage daily supplementation. NO3 concentrations, after a 2-week adaptation period, must not exceed 50 g NO3/adult animal equivalent per day or 7 g NO3/kg dry matter intake per day to reduce the risk of NO3 toxicity. There is also a 'beef cattle herd management' method, approved in 2015, that covers activities that improve the herd emission intensity (emissions per unit of product sold) through change in the diet or management. The present study was conducted to compare the required ACCU or supplement prices for a 2% return on capital when feeding a low or high supplement concentration to breeding stock of either (1) urea, (2) three different forms of NO3 or (3) cottonseed meal (CSM), at N concentrations equivalent to 25 or 50 g urea/animal equivalent, to fasten steer entry to a feedlot (backgrounding), in a typical breeder herd on the coastal speargrass land types in central Queensland. Monte Carlo simulations were run using the software @risk, with probability functions used for (1) urea, NO3 and CSM prices, (2) GHG mitigation, (3) livestock prices and (4) carbon price. Increasing the weight of steers at a set turnoff month by feeding CSM was found to be the most cost-effective option, with or without including the offset income. The required ACCU prices for a 2% return on capital were an order of magnitude higher than were indicative carbon prices in 2015 for the three forms of NO3. The likely costs of participating in ERF projects would reduce the return on capital for all mitigation options. © CSIRO 2016.

Strategic tillage in no-till farming systems in Australia's northern grains-growing regions: I. Drivers and implementation

Development of no-tillage (NT) farming has revolutionized agricultural systems by allowing growers to manage greater areas of land with reduced energy, labour and machinery inputs to control erosion, improve soil health and reduce greenhouse gas emission. However, NT farming systems have resulted in a build-up of herbicide-resistant weeds, an increased incidence of soil- and stubble-borne diseases and enrichment of nutrients and carbon near the soil surface. Consequently, there is an increased interest in the use of an occasional tillage (termed strategic tillage, ST) to address such emerging constraints in otherwise-NT farming systems. Decisions around ST uses will depend upon the specific issues present on the individual field or farm, and profitability and effectiveness of available options for management. This paper explores some of the issues with the implementation of ST in NT farming systems. The impact of contrasting soil properties, the timing of the tillage and the prevailing climate exert a strong influence on the success of ST. Decisions around timing of tillage are very complex and depend on the interactions between soil water content and the purpose for which the ST is intended. The soil needs to be at the right water content before executing any tillage, while the objective of the ST will influence the frequency and type of tillage implement used. The use of ST in long-term NT systems will depend on factors associated with system costs and profitability, soil health and environmental impacts. For many farmers maintaining farm profitability is a priority, so economic considerations are likely to be a primary factor dictating adoption. However, impacts on soil health and environment, especially the risk of erosion and the loss of soil carbon, will also influence a grower's choice to adopt ST, as will the impact on soil moisture reserves in rainfed cropping systems. © 2015 Elsevier B.V.