Farmer’s decision parameters on diversification and supply responses to dryland salinity - modelling across the Australian wheat-sheep zone
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Dryland salinity has resulted from clearing of deep-rooted plant species for farming.
Farm diversification with trees and perennial pasture species may therefore reverse this
problem. However, current opinion is that existing land uses are close to economic
optimum and therefore changes involving perennials may not be viewed as desirable.
Socially there is a trade-off between the opportunity cost of changing existing land use
with the perennials and the current salinity reduction targets. In this context, this paper
investigates the economic implications of key decision parameters of farmers on their
response to achieve farm diversification involving farming with the perennials. This
research aims to model diversification and supply responses of, in particular, wheat
across the Australian wheat-sheep zone, and between the regions of NSW and Western
Australia.