Newsletter on bioeconomic and social research on
Sustainability and Economics in Agriculture


Issue 5, November 1999

Editor: Dave Pannell, University of Western Australia, email David.Pannell@uwa.edu.au
SEA Project main funder: Grains Research and Development Corporation
Address of the SEA News web site:
http://www1.crcsalinity.com.au/newsletter/sea/

In This Issue

Editorial

In Brief
Launch of RIM - Ryegrass Integrated Management decision support system. Soil monitoring kits. New web site on sustainable rural development. Acid sulfate soils - farmers' ideas. Carbon trading.

Policy Forum:
Rethinking the Externality Issue for Dryland Salinity

Articles:
Understanding Farmers' Monitoring of Groundwater Levels
Farmer Perceptions of Dryland Salinity
"Salty Business": A Game for Learning About Farm Management and Salinity
The Adoption Problem for Dryland Salinity

Regular Bits and Pieces
News and Coming Events - Overview of the SEA Project - People in the SEA Team - Publications available

Editorial

This issue of SEA News contains a set of five articles that deal with dryland salinity, although with strikingly different aspects of it. As a group, they highlight the diversity and complexity of issues related to dryland salinity. We believe that the Policy Forum article on externalities has particularly important implications for policy, extension, research and individual farmers. Anyone concerned with salinity should read this article.

Despite the salinity focus in this issue, the most significant event for the SEA Project recently has been the public launch of RIM, our new computer package for evaluating alternative weed management systems, particularly for farmers struggling with herbicide resistance. See "In brief" for an introduction to RIM. In future issues we will present more detailed information about RIM, and results from its application.

For newcomers, SEA News is a newsletter canvassing issues related to sustainability and economics in agriculture. Our focus is on bioeconomic and social research results and their implications. Much of the research is from the SEA project, funded by Grains Research and Development Corporation. The main way to access SEA News is through email and the web site, but you can also elect to receive a hard copy of the newsletter by snail mail if you prefer.

In Brief

RIM Launched. On October 13 1999, the SEA project launched the world's first decision support tool for evaluating integrated weed management systems. The package, called RIM, allows farmers, consultants and researchers to test the long-term impacts of different combinations of selective herbicides, non-selective herbicides and non-chemical weed control methods. RIM is particularly helpful for assessing strategies for dealing with herbicide resistance. It represents ryegrass, Australia's most important crop weed and the weed with the highest rate of herbicide resistance in the world. RIM was developed in collaboration with the Western Australian Herbicide Resistance Initiative (WAHRI) and Agriculture Western Australia. For more information about RIM, and an order form, see the RIM web page: http://www.general.uwa.edu.au/u/dpannell/rim.htm

New Web Site. You may like to inspect the new web site of the Northern Agriculture Region's Sustainable Rural Development Program, cordinated by Nancye Gannaway, Landcare Development Officer, Agriculture Western Australia, Geraldton: http://www.agric.wa.gov.au/programs/srd/NorthAg/

Acid Sulfate Soils: Farming Community Ideas About the Way Forward. A new publication is available investigating the plight of farmers and others in New South Wales facing a major environmental problem, acid sulfate soils (ASS). Written by Alice Woodhead, NSW Agriculture, the booklet is based on a research project exploring farmers’ attitudes, knowledge and management practices on ASS. For more information, see: http://www.general.uwa.edu.au/u/dpannell/acidss.htm

Carbon Trading and Agriculture. A new report titled "Greenhouse, Carbon Trading and Land Management" examines what the currently unratified Kyoto Protocol may mean for carbon trading in Australia, as well as the implications for land management and environmental issues. The report is available from the AFFA Shopfront on 1800 020 157 (within Australia) for $10 plus postage, and will soon be available at the LWRRDC web site at http://www.lwrrdc.gov.au/. Select "Publications" and then "On-Line publications".

Policy Forum

Rethinking the Externality Issue for Dryland Salinity by Dave Pannell, Don McFarlane and Ruhi Ferdowsian
"Externalities have been greatly over-emphasised in the shaping of salinity policy and extension in Western Australia, with important negative consequences."

Dryland salinity has been conceived of as a problem involving massive off-site impacts and therefore requiring coordinated action to ensure that land managers reduce those off-site impacts. In economic terms, salinity is seen as a problem of "market failure" due to "externalities", including external costs from one farmer to another and from the farm sector to the non-farm sector. The idea is that if farmers properly weighed up the impacts of their actions on others, (that is, if the externalities were "internalised"), they would do more to prevent off-site salinity impacts originating on their farms. However, we argue that, at least in Western Australia, externalities are much less important as a cause of market failure than has been widely believed. If all externalities from salinity in WA were to be internalised, the impact of this on farm management would be small. There are a number of factors contributing to this conclusion, both hydrological and socioeconomic. Together, they mean that, relative to common belief, the true physical severity of externalities is diminished, and the economic significance of the remaining externalities is further diminished. This does not mean, however, that we can leave salinity management to the free market, as there are other major causes of market failure, specifically public-good issues in research and development, and a range of problems related to farmer adoption of salinity treatments. Current misconceptions about the importance of externalities from salinity are directing policy attention away from the really important issues, and are acting as an unnecessary brake on farmers acting individually.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap9911.htm (114K)

Articles

Understanding Farmers' Monitoring of Groundwater Levels: A Useful "Sustainability Indicator"? by Sally Marsh, Michael Burton and David Pannell

"Monitoring is more likely to continue when farmers are clearly able to link the collected information with land management practices."

A number of projects are in progress to provide a more comprehensive picture of the location and extent of potential saline areas in the landscape. Associated with some of these projects, a large number of bores (piezometers) have been installed or are being installed throughout the agricultural area to provide information on depth to groundwater and changes in water levels over time. These bores provide information about whether and when the ground water will reach the surface, causing losses of agricultural production through salinisation of soils. Using data from the Jerramungup Land Conservation District (LCD) we have explored factors influencing the behaviour of farmers in monitoring or not monitoring their bores. In 1989, 110 bores were sunk in 7 catchments in the Jerramungup LCD. Monitoring responses were initially exceptionally high, with 96 percent of bores observed in 1990, but then fell steadily to 44 percent by 1997. Our statistical analysis indicates that the probability that a bore will be monitored decreases with time and is influenced by the depth to groundwater, the salt stored in the soil and the bore’s location. As well as these physical factors, we explored some of the sociological and economic factors that influence bore monitoring behaviour. For reasons related to the economic theory of information, the initial groundwater monitoring is relatively valuable. Monitoring is more likely to continue when farmers are clearly able to link the collected information with land management practices, such that the information is of potential economic value.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap9907.htm (141K)

Farmer Perceptions of Dryland Salinity by Elizabeth Kington and Dave Pannell

"The survey reveals a contrast between what farmers think will fix the problem and what they have actually implemented."

As part of a study of the performance of salinity policies, Liz Kington surveyed farmers in the upper Kent River catchment, near the south coast of Western Australia. This article reports what the farmers’ salinity management practices have been and are likely to be, how they view the salinity problem and its recommended treatments, and farmers’ perceptions of why the salinity problem continues to worsen. The farmers have high levels of knowledge about salinity and its treatment, although their perceptions appear to be overly optimistic on a number of aspects of the problem. As a group they are highly uncertain about its extent and rate of worsening, and their responses highlight the complexity, modest effectiveness and relatively poor economic performance of available treatment options. It appears that the scale of salinity prevention practices in the catchment is insufficient to prevent ongoing increases in the area of saline land.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap9909.htm (105K)

"Salty Business": A Game for Learning About Farm Management and Salinity by Sally Marsh

"Different people, given the same farm and subjected to the same weather conditions and prices, achieve vastly different results."

Salty Business is a game, developed by a team working in the Agricultural and Resource Economics group at the University of Western Australia, designed to teach the principles of, and processes for, managing agricultural risk. Agricultural professionals are often unaware in a practical sense of the risks and uncertainties faced by farmers, and the constraints that this can have on the operation of the farming business. Participants are placed in the role of a farmer and have to "manage" a typical Western Australian eastern wheatbelt farm, located in a catchment under threat of dryland salinity, for a number of seasons under conditions of climatic, yield and price uncertainty. Three workshops were held in the country locations of Geraldton, Merredin and Moora and were attended by 49 agency staff and other interested professionals. The workshops provide an enjoyable and effective learning environment for agricultural professionals to gain an understanding about a range of issues. These include the practicalities of managing agricultural risk, the stresses faced by farmers managing farms in an uncertain environment, why farmers facing similar uncertain circumstances respond in different ways, and the difficulties of incorporating an advocated ‘sustainable’ farming practice (tree planting) into farm businesses.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap9910.htm (67K)

The Adoption Problem for Dryland Salinity by Dave Pannell

"Current policy measures are doing little to change the underlying causes of non-adoption."

Although the farming community in Western Australia has become much more aware of issues of natural resource conservation in the past two decades, its response so far to the salinity problem has been on a scale that is orders of magnitude smaller than recommended by scientists. This paper explores reasons for this, based on empirical and theoretical literature concerned with adoption of innovations, decision making under uncertainty, the value of information, the economics of farm management, the theory of market failure, and transaction costs. Lack of awareness of salinity is probably not a major factor explaining slow and low adoption of the recommended practices. Rather, the major factors relate to the economic costs and benefits of current treatment options, the difficulties of trialling the options, long time scales, externalities, and social issues. This combination of factors means that the problem in many regions is extremely adverse to rapid adoption, probably more so than for any other agricultural issue in Australia. In other words, farmer reluctance to adopt the radical changes being recommended is completely understandable and, indeed, reasonable from the farmers' perspectives. Current policy measures and extension programs are doing little to change the underlying causes of non-adoption. Measures that would begin to do so are urgently needed. Suggestions about what they might include are made.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap9908.htm (49K)

Regular Bits and Pieces

Overview of the SEA Project

This project has a strong integrative focus, bringing together several sustainability issues and considering their biological, physical and economic implications at the whole-farm level. The main issues being researched in the project are soil salinisation, soil acidification, management of herbicide-resistant weeds, farmer adoption of sustainable practices and the economics of monitoring sustainability indicators. Main funding: Grains Research & Development Corporation. Commencement: 01-Aug-97 Completion: 30-Jun-02

People in the SEA Team

Direct collaborators - Economists: Martin Chopping (Department of Environmental Protection), Gavin White (Campbell White and Associates), Simone Blennerhassett (Agriculture Western Australia), Amir Abadi, Anne Bennett (University of Western Australia), Vanessa Stewart (Agriculture Western Australia). Bio-physical scientists: Don McFarlane, Ruhi Ferdowsian, Bill Porter, Chris Gazey, David Bowran, Dan Carter and Rob Hetherington (Agriculture Western Australia), Steve Powles + WAHRI team, David Jasper (University of Western Australia), Norm Campbell, Tom Hatton + team (CSIRO).

Publications available

As well as the articles summarised in this Newsletter, the SEA Project has a range of publications which we invite you to read. A list is shown at the following web page address. You can view and print most of the papers directly in your browser.
Web page: http://www.general.uwa.edu.au/u/dpannell/seapprs.htm

We also have a page with papers that focus on agricultural extension, and adoption and diffusion of innovations in agriculture: Web page: http://www.general.uwa.edu.au/u/dpannell/adoppprs.htm

Other issues of SEA News

Issue #1, May 1998
Issue #2, September 1998
Issue #3, February 1999
Issue #4, June 1999
Issue #5, November 1999
Issue #6, April 2000
Issue #7, July 2000
Issue #8, December 2000
Issue #9, June 2001
Issue #10, September 2001
Issue #11, December 2001
Issue #12, September 2002
Issue #13, September 2002
Index

Copyright note: Some articles in SEA news have subsequently been submitted for publication in journals or books. SEA News contains pre-publication versions of these articles. They have not been subject to peer review, and copyright rests with the authors. When an article is formally published, the version on the SEA News web site is not updated to the published version, as this would violate copyright. However, the citation shown on the web page is updated to allow readers to identify the published version. Readers are encouraged to make use of the material present on the web site, provided that its source is acknowledged. Readers who wish to make direct quotes from an article in SEA News should not attribute the quote to a more formal (e.g. journal) published version of the paper without checking the published version, since the quote may have been alterred or even omitted from the published version.

If you have any comments about SEA News or wish to make additions or deletions to our mailing list, contact David.Pannell@uwa.edu.au


The SEA Project acknowledges support from

Grains Research and
Development Corporation

Copyright © David J. Pannell, 1999
Last revised: June 10, 2004.