Profitability of Intensifying Cropping in the Mallee Region of Victoria
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A whole farm linear programming model, PRISM, was used to investigate the
profitability of adopting a more intensive crop rotation in the central Mallee region of
Victoria (annual rainfall 300-350mm). The model was optimised for farm profit with
different amounts of working capital so that optimal proportions of a wheat-field peawheat-
lupin rotation and a pasture-pasture-wheat rotation were included in the
enterprise mix. Based on average yields from a 10 year rotation at the Mallee
Research Station, Walpeup, increasing crop intensity from 33% of the farm to 77% of
the farm increased annual profit by 38%. When the model was run again using
typical input costs and average yields achieved in the region, intensification of
cropping decreased annual profit by 86%. Average crop yields and wheat growing
costs in the region were 20% lower than the Mallee Research Station, Walpeup. The
analysis indicated that the profitability of more intensive cropping in this region is
highly dependant on crop yields.