Modelling interactions between farm-level structural adjustment and a regional economy: A case of the Australian rice industry

Climate change and on-going water policy reforms will likely contribute to on-farm and regional structural adjustment in Australia. This paper gathers empirical evidence of farm-level structural adjustments and integrates these with a regional equilibrium model to investigate sectoral and regional impacts of climate change and recent water use policy on rice industry. We find strong evidence of adjustments to the farming system, enabled by existing diversity in on-farm production. A further loss of water with additional pressures to adopt less intensive and larger-scale farming, will however reduce the net number of farm businesses, which may affect regional rice production. The results from a regional CGE model show impacts on the regional economy over and above the direct cost of the environmental water, although a net reduction in real economic output and real income is partially offset by gains in rest of the Australia through the reallocation or resources. There is some interest within the industry and from potential new corporate entrants in the relocation of some rice production to the north. However, strong government support would be crucial to implement such relocation.

Preventing weed spread: a survey of lifestyle and commercial landholders about Nassella trichotoma in the Northern Tablelands of New South Wales, Australia

Nassella trichotoma (Nees) Hack. ex Arechav. (common name, serrated tussock) occupies large areas of south-eastern Australia and has considerable scope for expansion in the Northern Tablelands of New South Wales. This highly invasive grass reduces pasture productivity and has the potential to severely affect the region’s economy by decreasing the livestock carrying capacity of grazing land. Other potential consequences of this invasion include increased fuel loads and displacement of native plants, thereby threatening biodiversity. Rural property owners in the Northern Tablelands were sent a mail questionnaire that examined use of measures to prevent new outbreaks of the weed. The questionnaire was sent to professional farmers as well as lifestyle farmers (owners of rural residential blocks and hobby farms) and 271 responses were obtained (a response rate of 18%). Key findings were respondents’ limited capacity to detect N. trichotoma, and low adoption of precautions to control seed spread by livestock, vehicles and machinery. This was particularly the case among lifestyle farmers. There have been considerable recent changes to biosecurity governance arrangements in New South Wales, and now is an ideal time for regulators and information providers to consider how to foster regional communities’ engagement in biosecurity, including the adoption of measures that have the capacity to curtail the spread of N. trichotoma.