Water repellency: a whole-farm bio-economic perspective

A whole-farm bio-economic model was used to assess the profitability of innovations aimed at improving agricultural production on the non-wetting sands of wheatbelt farms of Western Australia. It was found that amelioration of water repellency might be an economical option for some farms in the northern wheatbelt of Western Australia. It was shown that a minimum of 30% increase in lupin yields and a 10% increase in wheat yields would be required before expenditure on innovations aimed at improving production on non-wetting soils could be justified. However, due to costs of amelioration of repellency much higher crop yield responses may be required for economical adoption of such innovations on most farms. The decision to ameliorate water repellency depends not only on the consideration of direct benefits and costs per hectare of ameliorated sand but also on other whole-farm factors. One such factor found to be important was the scale of relevance or the soil mix of the farm. It was found that farms with proportionately large areas of non-wetting sands were more likely to benefit from adoption of innovations aimed at amelioration of repellency. Another important factor in the decision to adopt innovations for amelioration of water repellency is availability of alternative enterprises on the non-wetting soils. In particular, whether or not sandplain lupins (lupinus cosentinii) and tagasaste (chamaecystisus proliferus) were options that a farmer could consider determined the profitability of taking remedial measures against water repellency. This study identified, through a series of sensitivity analyses, the magnitude of production responses that maybe required for profitable amelioration of water repellency. Some gaps in our knowledge of biological and economic parameters related to costs and benefits of various innovations have also been highlighted and discussed. (C) 2000 Elsevier Science Ltd All rights reserved.