The economics of temperate pasture systems on the central and southern Tablelands of New South Wales

Abstract

Pastures are the basis of most forms of agricultural production on the New South Wales central and southern tablelands. Pastures occupy the bulk of the region's landmass and pasture-based livestock production annually contributes more than three-quarters of the regional gross value of rural production. Throughout the region, there is substantial variation in pasture composition, ranging from high quality introduced perennial grasses and legumes to pastures comprising mainly low quality native species. This paper examines the economics of the main categories of temperate pastures over a range of soil fertility-rainfall environments on the south-eastern tablelands areas of New South Wales. Using a linear programming model and discounted development budgets, the results demonstrate the strong influence of the environment on the economics of the individual pasture systems. The highest economic returns in both the short and longer-terms were to the introduced perennial grass pastures in most of the environments. Pastures based on introduced legumes and the high quality native species also generated sound economic returns, although there are recognised problems with the persistence of the legume pastures. Over time, the returns to the better quality native pastures compare favourably with the introduced legumes and are better suited to acidic soils than the perennial grasses. Low quality native species produced relatively poor economic returns in all environments and unfortunately, are the main pasture type in the region's less favourable environments.