Socio Economics of Fireweed Workshop May

May Today Overview Feedback from consultation – Impacts – Response Quantification Discussion on conclusions and principles

May Review of studies The socio-economic work to date is very localised and is generally reported as part of a bio-physical study There seems to be no detailed study of management options and their effectiveness, measured by impacts on farm returns or profitability

May Value of Agricultural Production by LGA – 2001

May Value of Agricultural Production by Industry – 2001

May Farm Holding Areas ABS 1,452 holdings There are 177 Southern RLPB ratepayers with more than 200 ha Number of Ratepayers by Holding Size

May Overview of available information Low profit High off-farm wage income Average age of 60 Capital appreciation – 21% between 2000 and 2005

May Consultation 18 surveys in October 2007 and stakeholders

May Stocking rates and area - variable

May Gross margins Average gross margin $145,000 before fixed costs and depreciation Dairy lift this – non dairy gross margin $220 / ha For nine beef/sheep properties under $60,000

May Response to fireweed

May Impacts Reduced productivity Annual control costs Change in management and infrastructure costs

May Reduced Carrying Capacity There was a wide range of estimates provided. These ranged from 15% to 50% and were dependent on the length and extent of infestation and also the management regime implemented

May Treatment The average costs associated with hand pulling assuming a $20/hr opportunity cost is approximately $3,500 per year Chemical costs typically $5,500 per farm (if they did use chemical control)

May Aggregation of impacts

May Social Social conflict between land holders Emotional problems experienced by those managing fireweed Viability and succession issues for farm families Long run impacts on land values and perceptions Issues associated with the State and Local government

May Future Approach to fireweed to date has been very reactionary Emphasis on individual effort Key message with options available is be aware and dedicated to management/control

May Next Fireweed has a significant impact on the carrying capacity of a farming system Fireweed also has a high economic cost in terms of the time required for control. All options require significant change or capital investment

May Development of Strategy Control options for all landholders and industries in the Southern Coastal Region Consider landholders who do not rely on agriculture for income Examine possibilities for integrated control Include the social circumstances facing the farming population Options on a regional or national scale for control