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


Issue 8, December 2000

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
E-letters

In Brief
W.E. Wood Award to Richard George - Obituary: Emeritus Professor Gordon Lee (Bill) McClymont, AO 1920-2000 - Landcare

Policy Forum:
Salinity policy: A tale of fallacies, misconceptions and hidden assumptions

Articles:
The value of "green manuring" for managing a herbicide-resistant weed
Explaining groundwater trends
Assessing greenhouse gas abatement policies
Ethics and the economics of environmental care
The RIM model for integrated weed management
Market-based economic instuments for dryland salinity

Ideas and Lessons on Sustainability from Overseas:
Risk and the adoption of new farming technologies in Argentina

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

Editorial

Welcome to another issue of SEA News. Our busy schedule has meant that this issue is a little later than planned. The up side is that it is the biggest issue yet.

The article on ethics and salinity in SEA News #7 prompted a big response from readers. A number of letters about it are included here. In order to include a couple of longer letters and replies, a separate page for letters is provided this time. There is also another article on ethics, this time from Steve Schilizzi, taking a broader and more detailed look at ethics and environmental care.

Since last issue, the Australian Government has announced a new A$1.4 billion "National Action Plan" to combat salinity. The policy forum article this issue provides a pointed critique of the government's policy directions, past and present. An earlier version of this article was distributed widely via email, like one of those humorous or alarming pieces which people email on to all their friends. It does seem to have struck a chord with many, although it has also struck a raw nerve with some. The version included here has been refined in response to the many comments received. Other articles cover herbicide resistance, greenhouse gas abatement, a new method for the analysis of groundwater trends and adoption of new farming technologies in Argentina.

E-letters

Thanks for the information re SEA #7 I'm very interestred in the subject and would like to receive editions regularly. I think your articles and approach are very useful
Daniel Connell, Media Liaison, Murray-Darling Basin Commission

Just read your paper 2000/04 [Ethics and Salinity] and was, again, impressed. Congratulations. The argument would be heartily supported by my landholder panels in the context of fencing riparian areas for biodiversity protection.
Neil MacLeod, CSIRO

I am not a trained economist, but have dabbled in farm forestry economics for a number of years now. Anyway have just read SEA News #5 and really impressed by the links between eco and socio-eco. Is it possible to be placed on the SEA News email list. Thanks and have already book marked SEA web site.
Peter Stephen, Department of Forestry, Institute of Land and Food, The University of Melbourne

Your comments on the ethics of salinity reinforce to me that voluntary action for natural resource management is unlikely, on its own, to be sufficient in either spatial scale or time. We will need to use carefully the full mix of market, regulatory and ethical forces. There are plenty of examples elsewhere in society where each of these has been used to great effect. Keep up the stimulating work please!
Phil Price

I'm sure it's not your intention, but I'm concerned that your forcibly-put arguments might bolster a backlash against resourcing efforts to improve the design and implementation of collaborative strategies. It's not only your R&D foci that are under-resourced - the lack of discernable outcomes from collaborative processes is often because they are run 'on the cheap'.
Graham Marshall, University of New England

Thanks for another excellent newsletter. It is a valuable resource for me because of its relevance to that strange brew of agronomy, sociology and economics that is the real world [of agricultural sustainability].
Brett Robinson

Longer letters and some replies can be viewed at http://www.general.uwa.edu.au/u/dpannell/letter08.htm

In Brief

W.E. Wood Award to Richard George. At the National Dryland Salinity Program conference in Bendigo in November 2000, it was announced that the W.E. Wood national award for research into salinity has gone to Dr Richard George of Agriculture Western Australia. To mark the award, Richard gave a talk providing "a view on where we are with dryland salinity" in Perth on December 14. We include here a synopsis of the talk: http://www.general.uwa.edu.au/u/dpannell/wewood.htm

Obituary: Emeritus Professor Gordon Lee (Bill) McClymont, AO 1920-2000. Eminent scientist, educator agriculturalist, humanitarian, visionary and Foundation Dean, Faculty of Rural Science (1955-1976) University of New England. http://www.general.uwa.edu.au/u/dpannell/mcclymont.htm

Landcare has been a good nurse. John Bartle from the Department of Conservation and Land Management (Western Australia) has written a brief parable about Landcare and what is needed to address land degradation. http://www.general.uwa.edu.au/u/dpannell/bartle.htm

Policy Forum

Salinity Policy: A Tale of Fallacies, Misconceptions and Hidden Assumptions by Dave Pannell

"It is time to get realistic about what it would really take to get treatments implemented on the necessary scale."

This article provides a critique of past and present policies for dryland salinity in Australia. There are a number of fundamental problems in the hidden assumptions behind the government’s various policy approaches. The Natural Heritage Trust and the National Landcare Program were based on highly unrealistic assumptions about the availability of viable treatments, the level of sacrifice that farmers can and should make, and the effectiveness of catchment planning to achieve change on the scale needed. The new National Action Plan is structured in ways that will make it very difficult to avoid spreading money thinly and non-strategically. A new approach to policy is needed, focusing on development of profitable perennials, development of profitable uses for salinised resources, and well-targeted expenditure to protect specific public assets.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap0008.htm (26K)

Articles

Marta Monjardino The Value of Green Manuring in the Integrated Management of a Herbicide-Resistant Weed by Marta Monjardino, Dave Pannell and Stephen Powles

"In some cases, it is a valuable tool, while in others it detracts significantly from profitability."

Herbicide resistance has become a major problem in Australian dryland agriculture. This situation has resulted from the repeated use of herbicides in place of the traditional weed control provided by cultivation and grazing. Farmers have addressed the problem of herbicide resistance by adopting a system of integrated weed management that allows weed control with a range of different techniques and herbicides. One of the non-chemical methods being considered by farmers is "green manuring", which involves ploughing a healthy growing crop or pasture into the soil in order to prevent weed seed production and provide other benefits. In this study, the trade-offs between the effective weed control and biological benefits provided by green manuring and the large short-term economic losses associated with this practice are investigated for various rotations and patterns of herbicide use. This analysis is conducted using RIM, a bio-economic management model for ryegrass (Lolium rigidum).
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap0011.htm (132K)

Ruhi Ferdowsian Explaining Groundwater Trends: Separating Atypical Rainfall Events from Time Trends by Ruhi Ferdowsian, Dave Pannell, Clare McCarron, Arjen Ryder and Lisa Crossing

"The HARTT method provides high quality fits to observed data in all but shallow bores (for which trend estimation is of less interest in any case)."

The cause of dryland salinity in southern Australia is excessive recharge under traditional agriculture, leading to rising groundwater levels. Monitoring changes in groundwater levels is helpful in indicating the degree of threat to agricultural land and public assets. Many researchers have studied groundwater level rises and attempted to explain them statistically. We present an approach for statistically estimating trends in groundwater levels. The approach separates the effect of atypical rainfall events from the underlying time trend and the lag between rainfall and its impact on groundwater is explicitly represented. Rainfall is represented as an accumulation of deviations from average rainfall. Application of the approach is demonstrated using data from 49 bores in Jerramungup Shire, Western Australia. The approach provides high explanatory power, particularly for deeper bores.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap0012.htm (82K)

Assessing Greenhouse Gas Abatement Policies on the Predominantly Grazing Systems of South-Western Australia by Liz Petersen, Steven Schilizzi and David Bennett
"With the introduction of a taxation policy, under realistic tax levels, total emissions do not change substantially."
Steve Schilizzi

Three policy options for greenhouse gas abatement are analysed for the predominantly grazing systems of south-west Western Australia. The two taxation policies (a tax on total emissions, and a tax on methane emissions only) are only effective at extreme tax rates ($85/t carbon dioxide equivalents). The farming systems become unprofitable at around $33/t under these policies, at which only about 10 percent of emissions are abated. Estimates of the cost of nationally traded carbon emission permits show that A$33/t is a plausible tax figure. Tax emission policies would send such farms into bankruptcy for just a 10% reduction in GHG emissions! The third policy option, emission restrictions, allows the farm to remain profitable at 4 to 5 times greater abatement levels than the taxation policies and is found to be the most effective and efficient policy option studied. Results reflect a large proportion of soils unsuitable for cropping and a heavy dependence on a ruminant livestock enterprise.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap0013.htm (140K)

Steve Schilizzi Ethics and the Economics of Environmental Care by Steven Schilizzi

"Economics help avoid unethical decisions while ethics help provide a social bonus."

Full-time farming operations are business firms, and farmers are business managers: they must sell their produce and make a profit if they are to survive in a market economy. As with all businesses, environmental care can sometimes conflict with the demands of profitability. The spontaneous reaction by environmentally sensitive people, and policy-makers, is to ask farm business managers to show responsibility and "do their duty" to the rest of society, to future generations, or to mother nature itself. This paper expands David Pannell’s views (SEA News #7) by generalising beyond salinity management and investigating the relative influences of ethics and economics on any form of environmental care. At bottom, the issues are: 1) society’s interests compared to the interests of private business; 2) who in ‘society’ defines and mandates ‘environmental care’; and 3) what is the aim of such a mandate? Ethical injunctions of the type "thou shalt care" assume businesses have a certain degree of freedom in meeting profits. Because of different technology-product mixes, this is usually true. If it is not, then trying to ‘moralise’ them is one way of trying to achieve environmental care, but usually not the most effective way.
For a longer abstract, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap0014b.htm (9K)
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap0014.htm (102K)

The RIM Model for Integrated Weed Management by Dave Pannell, Vanessa Stewart, Anne Bennett, Marta Monjardino, Carmel Schmidt and Stephen Powles

"The economically preferred combination of alternative weed control practices is approximately as effective in weed control as the system including herbicides."

Marta Monjardino

The RIM (Ryegrass Integrated Management) model represents a wide diversity of herbicide and non-herbicide based weed management options, in the context of the non-irrigated extensive farming system of southern Australia. The enterprise choices include cereals, lupins, canola and three types of pastures for grazing by sheep. Users of RIM may specify the enterprise sequence and any feasible combination of the 35 weed treatment options each year over 10 or 20 years. Weed treatment options include selective herbicides (11), non-selective herbicides (5), non-chemical treatments (16) and user-defined treatments (3). The model represents weed and seed bank population dynamics, weed-crop competition, weed treatment impacts (including phytotoxicity), agronomic details, and financial details. Economic and biological model results are presented for scenarios with differing levels of availability of selective herbicides and different rotational sequences.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap0010.htm (122K)

Market-Based Economic Instruments for Dryland Salinity by Dave Pannell

"The scope for economic instruments to make a positive difference to salinity is limited."

There has been high interest in the use of market-based economic instruments (such as tradeable salinity permits, environmental credits and auction-based systems) to address dryland salinity in Australia. There are many possible instruments available. This discussion paper outlines a set of broad principles and existing knowledge that determines the potential for economic instruments, and suggests how we should move forward in this area.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/dpap0009.htm (23K)

Ideas and Lessons on Sustainability from Overseas

To help us think laterally about the problems we face in Australia, SEA News includes examples from overseas.

Risk and the Adoption of New Technologies Among Small Agricultural Producers in Argentina by Leopoldo Allub

"Income diversification was negatively correlated with the adoption of new technologies."

This article analyzes the independent effects of attitudes toward risk and income diversification on the degree of adoption of new farming technologies among small producers from the province of San Juan (Argentina). Both variables emerge as important predictors of the adoption of new technologies. Later we develop a second model that attempts to identify the factors explaining risk aversion. Socioeconomic stratum emerges as the most important predictor for variations in the farmers' aversion to risk.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/seaos8.htm (44K)

Regular Bits and Pieces

News and Coming Events

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

Publications available

As well as the articles summarised in this Newsletter, the SEA Project has a range of publications available. 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

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

Papers that focus on dryland salinity:
Web page:
http://www.general.uwa.edu.au/u/dpannell/saltpprs.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 to or deletions from our mailing list, contact David.Pannell@uwa.edu.au


The SEA Project acknowledges support from

Grains Research and
Development Corporation

Copyright © David J. Pannell, 2000
Last revised: June 10, 2004.