An Economic Evaluation of Research into the Improved Management of the Annual Grass Weed Vulpia in Temperate Pastures in South-Eastern Australia

NSW Agriculture has a history of research investment in managing weed problems in the temperate pasture areas. One focus of that research has been on the development of improved management practices for the major annual grass weed vulpia. Recent surveys have found that weeds comprised up to 80% of pasture biomass in some temperate areas and that typical vulpia contents are between 30 and 40% of pasture biomass. Temperate pasture degradation is recognised as being a major contributor to the wider environmental problems of soil erosion, salinity and acidity. This evaluation related to a project (1996-2002) that focussed on the vulpia problem in the New South Wales temperate pasture areas. The benefits of that research were measured as the difference in the economic returns from the project (the with-research scenario) and those that would have resulted if the project had not been initiated (the without-research scenario). The results indicated high levels of economic benefits from the vulpia project. The annual net project benefit had a mean value of $58 million. The benefit-cost analysis generated a mean NPV of $196.9 million and a mean BCR of 22.2. These results demonstrate that research by NSW Agriculture into the improved management of vulpia has the potential to generate substantial long-term economic benefits. Other socio-economic aspects of the results showed that wool producers outside the New South Wales temperate areas lost economic surplus (from a mean -$21.7 million to -$47.8 million) because they were unable to adopt the cost-reducing technology and faced a reduced wool price. All wool consumers gained from vulpia research because of expanded wool production and lower wool prices. Improved vulpia management is also considered to produce important environmental benefits by encouraging a greater use of deep-rooted perennial grasses and the beneficial effects of these on mitigating soil problems and reducing water table discharges.