1. The scope of salinity economics research in NSW DPI Bob Farquharson & Andrew Bathgate University of NSW Workshop 1 December 2005

2. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Importance of salinity research Substantial effort and resources committed by NSW DPI to salinity economics research in NSW Driven by political & funding priorities at Federal and State level

3. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Background Recharge increases from clearing Water table rises Salt mobilised by water Salt discharged to soil surface and directly to streams

4. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Background Land salinisation –reduction in arable area –negative environmental impact – threat to biodiversity Steam salinisation –urban and industrial infrastructure –changed ecosystems –decreases irrigated crop yields

5. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Funding history Salinity Strategy Salinity CRC NAPSWQ Phase 1 –priority projects NAPSWQ Phase 2 –State level projects –CMAs

6. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Salinity management Main focus is on recharge management Less focus on discharge management Few options profitable NAPSWQ aims to pay farmers to adopt Salinity CRC aims to improve profitability of perennial plant species

7. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Aim of economics work in NSW DPI Quantifying the private and public benefits of salinity management –research and extension –farmer action –policy and regulation

8. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Approach Bio-economic analysis –economics/agric. production/hydrology models –work across disciplines –farm and catchment levels Optimisation and simulation approaches Extend focus beyond salinity to other NMR issues –2 years funding at present

9. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Objective Address a component of information problem –explain/predict cause and effect relationships in eco-systems –investigate the economic consequences of NRM change Estimate opportunity costs arising from salinity issues –first on-farm costs –then downstream costs

10. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Issues If possible, incorporate estimates of benefits from dealing with environmental issues through policy measures The value to society on environmental changes including non-market values

11. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Clients Researchers –Salinity CRC –other CRCs Policy makers –CMAs –bureaucrats (Federal) –State agencies Farmers/extension

12. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Linkages Farm level –pasture/animal production Catchment level –hydrology Decision support –quantify trade-offs

13. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Issues for catchment modelling Farm is the fundamental unit for decision making Catchment plans must account for economic reality confronting farmers and the spatially variable catchment characteristics Analysis tools must account for the impacts of land use change on a range of catchment objectives –salinity, streamflow, carbon sequestration, turbidity, biodiversity –eg decreasing salinity may lead to significant costs in terms of reduced stream flow, biodiversity plantings may lead to increased salinity

14. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Value of extra energy

15. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Associated Projects Salinity CRC –EVERGRAZE –Grain & Graze –SGSL Economics Theme –SGSL Producer Network –Companion cropping –Farm Forestry –Lucerne prospects

16. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER State-level Projects NAP –TOOLS2 –Key Sites –Planted Forests –Extension and Education

17. PRESENTATION TITLE --- NAME, POSITION TITLE….GO TO VIEW, MASTER, SLIDE MASTER Partners and Collaborators NSW DPI Divisions NSW DNR Victorian DPI CSIRO SARDI CSU Wagga Wagga/Albury WADA WWARI NSW DEC