Peter Donaghy

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.

Economically viable land regeneration in Central Queensland and improved water quality outcomes for the Great Barrier Reef

The impact of excessive sediment loads entering into the Great Barrier Reef lagoon has led to increased awareness of land condition in grazing lands. Improved ground cover and land condition have been identified as two important factors in reducing sediment loads. This paper reports the economics of land regeneration using case studies for two different land types in the Fitzroy Basin. The results suggest that for sediment reduction to be achieved from land regeneration of more fertile land types (brigalow blackbutt) the most efficient method of allocating funds would be through extension and education. However for less productive country (narrow leaved ironbark woodlands) incentives will be required. The analysis also highlights the need for further scientific data to undertake similar financial assessments of land regeneration for other locations in Queensland.

Improved grazing management practices in the catchments of the Great Barrier Reef, Australia: does climate variability influence their adoption by landholders?

The declining health of the Great Barrier Reef from diffuse source pollutants has resulted in substantial policy attention on increasing the adoption of improved management practices by agricultural producers. Although economic modelling indicates that many improved management practices are financially rewarding, landholders with dated management practices remain hesitant to change. This research involved bio-economic modelling to understand the variance in private returns for grazing enterprises across a climate cycle. Results show that financial returns to landholders can vary substantially across different 20-year periods of a climate cycle, demonstrating that the variability in expected returns may be an important reason why landholders are cautious about changing their management practices. Although previous research has separately identified financial returns and attitudes to risk and uncertainty of landholders as key influences on decisions concerning adoption of improved management practices, this research demonstrates that it is the interaction between these factors that is important to understand when designing policy settings.

Assessing the cost-effectiveness of water quality interventions in South-east Queensland

The focus of this article is on the cost-effectiveness of mitigation strategies to reduce pollution loads and improve water quality in South-East Queensland. Scenarios were developed about the types of catchment interventions that could be considered, and the resulting changes in water quality indicators that may result. Once these catchment scenarios were modelled, the range of expected outcomes was assessed and the costs of mitigation interventions were estimated. Strategies considered include point and non-point source interventions. Predicted reductions in pollution levels were calculated for each action based on the expected population growth. The cost of the interventions included the full investment and annual running costs as well as planned public investment by the state agencies. Costeffectiveness of strategies is likely to vary according to whether suspended sediments, nitrogen or phosphorus loads are being targeted.