Costing yield loss from acidity, sodicity and dryland salinity to Australian agriculture

Salinity, sodicity and acidity are three major soil constraints that limit crop and pasture yields in Australia. In this paper estimates are made of the potential benefits arising from their treatment by measuring and mapping their impact on agricultural profit. This is achieved-by estimating the increase in profit for Australia's main commodities that would occur if the three soil constraints were costlessly ameliorated. These estimates reveal the upper achievable limit on investment returns. They are also indicative of each soil constraint's economic significance to Australian agriculture. It was found that costless removal of salinity would increase annual profits by A$187 million, sodicity by A$1034.6 million and acidity by A$1584-5 million. This equates to 2.9 per cent, 15.8 per cent and 24.2 per cent of total net economic return. It was also found that worsening salinity extent and severity over 2000-2020 has a present value of A$496-A$712 million. Although soil salinity is currently the focus of much public attention, this analysis suggests that from a production viewpoint the correction of sodic and acidic soils may create greater private economic benefit. Opportunities vary considerably among industries. In particular, there is considerable opportunity for the horticultural and viticultural sector to address acidity issues. Whether gross benefits translate into net benefits is a complex question requiring access to context and location-specific information. Copyright (c) 2005 John Wiley & Sons, Ltd.