Estimating the economic implications for grazing properties in the Mackay Whitsunday catchments of practice changes to more sustainable landscapes.

In the Mackay Whitsunday region, the dominant grazing based operations are small intensive systems that heavily utilise soil, nutrient and chemical management practices. To improve water quality entering the Great Barrier Reef, graziers are being encouraged to adopt improved management practices. However, while there is good understanding of the management changes required to reach improved practice classification levels, there is poor understanding of the likely economic implications for a grazier seeking to move from a lower level classification to the higher level classifications. This paper provides analysis of the costs and benefits associated with adoption of intensive grazing best management practices to determine the effect on the profitability and economic sustainability of grazing enterprises, and the economic viability of capital investment to achieve best management. The results indicate that financial incentives are likely to be required to encourage smaller graziers to invest in changing their management practices, while larger graziers may only require incentives to balance the risk involved with the transition to better management practices.

Implementation costs of Agricultural Management Practices for Water Quality Improvement in the Great Barrier Reef Catchments. CSIRO: Water for Healthy Country National Research Flagship

Executive summary. In this report we analyse implementation costs and benefits for agricultural management practices, grouped into farming systems. In order to do so, we compare plot scale gross margins for the dominant agricultural production systems (sugarcane, grazing and banana cultivation) in the NRM regions Wet Tropics, Burdekin Dry Tropics and Mackay Whitsundays. Furthermore, where available, we present investment requirements for changing to improved farming systems. It must be noted that transaction costs are not captured within this project. For sugarcane, this economic analysis shows that there are expected benefits to sugarcane growers in the different regions through transitions to C and B class farming systems. Further transition to A-class farming systems can come at a cost, depending on the capital investment required and the length of the investment period. Obviously, the costs and benefits will vary for each individual grower and will depend on their starting point and individual property scenario therefore each circumstance needs to be carefully considered before making a change in management practice. In grazing, overall, reducing stocking rates comes at a cost (reduced benefits). However, when operating at low utilisation rates in wetter country, lowering stocking rates can potentially come at a benefit. With win-win potential, extension is preferred to assist farmer in changing management practices to improve their land condition. When reducing stocking rates comes at a cost, incentives may be applicable to support change among farmers. For banana cultivation, the results indicate that the transition to C and B class management practices is a worthwhile proposition from an economic perspective. For a change from B to A class farming systems however, it is not worthwhile from a financial perspective. This is largely due to the large capital investment associated with the change in irrigation system and negative impact in whole of farm gross margin. Overall, benefits will vary for each individual grower depending on their starting point and their individual property scenario. The results presented in this report are one possible set of figures to show the changes in profitability of a grower operating in different management classes. The results in this report are not prescriptive of every landholder. Landholders will have different costs and benefits from transitioning to improved practices, even if similar operations are practiced, hence it is recommended that landholders that are willing to change management undertake their own research and analysis into the expected costs and benefits for their own soil types and property circumstances.

Fauna community trends during early restoration of alluvial open forest/woodland ecosystems on former agricultural land

Vertebrate fauna was studied over 10 years following revegetation of a Eucalyptus tereticornis ecosystem on former agricultural land. We compared four vegetation types: remnant forest, plantings of a mix of native tree species on cleared land, natural regeneration of partially cleared land after livestock removal, and cleared pasture land with scattered paddock trees managed for livestock production. Pasture differed significantly from remnant in both bird and nonbird fauna. Although 10 years of ecosystem restoration is relatively short term in the restoration process, in this time bird assemblages in plantings and natural regeneration had diverged significantly from pasture, but still differed significantly from remnant. After 10 years, 70 and 66% of the total vertebrate species found in remnant had been recorded in plantings and natural regeneration, respectively. Although the fauna assemblages within plantings and natural regeneration were tracking toward those of remnant, significant differences in fauna between plantings and natural regeneration indicated community development along different restoration pathways. Because natural regeneration contained more mature trees (dbh > 30 cm), native shrub species, and coarse woody debris than plantings from the beginning of the study, these features possibly encouraged different fauna to the revegetation areas from the outset. The ability of plantings and natural regeneration to transition to the remnant state will be governed by a number of factors that were significant in the analyses, including shrub cover, herbaceous biomass, tree hollows, time since fire, and landscape condition. Both active and passive restoration produced significant change from the cleared state in the short term.