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Socio Economics of Fireweed

Socio Economics of Fireweed. Workshop May 28 2008. Today. Overview Feedback from consultation Impacts Response Quantification Discussion on conclusions and principles. Review of studies.

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Socio Economics of Fireweed

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  1. Socio Economics of Fireweed Workshop May 28 2008

  2. Today • Overview • Feedback from consultation • Impacts • Response • Quantification • Discussion on conclusions and principles

  3. 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

  4. Value of Agricultural Production by LGA – 2001

  5. Value of Agricultural Production by Industry – 2001

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

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

  8. Consultation 18 surveys in October 2007 and stakeholders

  9. Stocking rates and area - variable

  10. 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

  11. Response to fireweed

  12. Impacts • Reduced productivity • Annual control costs • Change in management and infrastructure costs

  13. 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

  14. 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)

  15. Aggregation of impacts

  16. 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

  17. 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

  18. 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

  19. 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

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