Farm businesses, wool production & biodiversity project

1. Farm businesses, wool production & biodiversity project Funded through: Land Water & Wool Project length: September 2002 - May 2006 Project Team: Jim Moll, Josh Dorrough, Jim Crosthwaite, Claire Moxham, Andrew Straker

2. AIM OF RESEARCH Devise practical ways woolgrowers can protect and enhance biodiversity whilst managing for whole farm profitability and other goals. Context: • A concern of Australian Wool Innovations and Land & Water Australia • 1 of 5 projects in the LWW program that focus on Native Vegetation and Biodiversity. Others are in Qld, SA, NSW & Tas

3. Location of Research (3-4 case study farms in 5 regions---17 farms)

4. REGIONAL CONTEXT Sheep grazing, some cattle and cropping Rainfall 530 - 670 mm yr-1; 60% between May and October Slopes and hills of sedimentary and granitic origin with some broad alluvial plains. Originally treed Native vegetation is highly fragmented Regional catchment strategies call for significant increase

5. What’s been done on each farm • Financial, agronomic and biodiversity assessments • Modelling, manipulating of collected data • Whole farm planning approach

7. Four strategies tested 1. Use deferred grazing on hill country - take stock off Nov-March 2 & 3. Use intensive rotational grazing or soil nutrient correction across the farm, with 15% managed for biodiversity 4. Establish shelter using natural regeneration All result in improved biodiversity gain, though fertiliser strategy can lead to some losses and off-site effects

8. Method for this talk • Representative wool growing property of 1,400 ha • 13,000 DSE (9.3 DSE/ha) • 63% property area classified “hill country” (slope >3%) • GM = $20/DSE or $180 /ha • Further analysis looking at variation across the 17 farms

9. Profitability of the four strategies DG = Deferred Grazing CND = NutrientsIRG = Intensive rotational grazing Shelter = Natural Regeneration

10. Cumulative cash flow for each management strategy DG = Deferred Grazing CND = NutrientsIRG = Intensive rotational grazing Shelter = Natural Regeneration

11. DISCUSSION - the findings • Trade-offs can be low or zero • Deferred grazing - if no purchased feed required for stock taken off hills, IRR = 20% • Nutrient management - SR increase potentially higher, but loss of native grass base. Low fertiliser option? • Intensive rotational grazing - suits only some farmers • Shelter via natural regeneration - depends on stock removal period • Why not combine several strategies?

12. DISCUSSION - policy issues • Putting the farm business first - makes it easy to work with farmers and DPI on biodiversity issues • Integrating biodiversity and fertiliser advice - economics indicates farmers will continue to use it! • Valuing native pasture in R&D, extension, and farmer practice - basis for 2 sound grazing strategies • Using natural regeneration instead of tree planting - it is cheaper

13. 3 KEY MESSAGES 1. Managing native vegetation can be profitable for woolgrowers - 4 strategies identified 2. The project has already produced a legacy----the project findings are being taken up widely in Victoria through CMA, DPI & DSE programs 3. Project findings have generated wide interest and future work involving on-ground application is in demand

15. Optional overheads follow

16. PROJECT FINDING 1. Use deferred grazing on hill country to improve profits and manage native vegetation 1. Woolgrowers managing hill country can improve stocking rate by 25% (conservatively) and profits by 10% (up to 30%) by strategic spelling during early summer. • 2. Deferred grazing provides better pasture cover during summer and protects bare hills from erosion. • Increase in perennial native pastures • increase in diversity of native pastures • increase in ground cover

17. PROJECT FINDING 2. Whole farm planning can indicate where intensive rotational grazing or soil nutrient correction can offset native vegetation management costs on other parts of the farm 1. Whole farm planning improves wool profits and NV management at the same time • 2. Lift profits by correcting soil nutrient deficiencies or intensive rotational grazing on the most productive parts of the farm

18. PROJECT FINDING 2. ------correcting soil nutrient deficiencies • Regular soil testing and correcting soil nutrient deficiencies is often overlooked. • A fertiliser program based on regular soil testing and analysis, enables pasture growth to be improved and carrying capacity to be lifted. • Costs involved can be minimal and often fit within the existing fertiliser budget, especially if only a couple of paddocks are targeted for improvement each year. • On wool growing properties assessed across central and northern Victoria, on average stocking rates could be conservatively lifted by 1.5 DSE/ha or 17% across the whole farm by correcting soil nutrient deficiencies.

19. PROJECT FINDING 2.------intensive rotational grazing. • Intensive rotational grazing is one grazing system that has been proven to increase stocking rates on both native and introduced pastures. • Results from the Broadford grazing trials have shown an increase in carrying capacity of 35% over 4 years on paddocks with low soil phosphorous (P) levels, and 37% on high soil P areas. • The added advantage of intensive rotational grazing is its likely positive effect on native perennial pasture cover, diversity and persistence.

20. PROJECT FINDING 2. -----Managing native vegetation • Fencing off individual and clumps of trees • using fencing to restrict stock access to waterways, remnant bush, and hill tops • change grazing management of hills • planting/establishing using natural regeneration, trees on priority areas eg. waterways, areas adjacent to remnant bush, and hill tops

21. PROJECT FINDING 3. Natural regeneration is a cost effective way to establish shelter that contributes to farm profitability 1. Having more tree shelter reduces lamb and off-shears mortality by up to 5% per year, equivalent to an extra $1 / DSE per year. • 2. Mature paddock trees can provide a free source of future trees