Farming systems throughout the Murray-Darling Basin are under increasing scrutiny from the perspective of ecological sustainability of farm and catchment systems. In northern Victoria, the dairy industry is a major user of water, and contributes to the environmental issues. Changes in irrigation...

With the 2009 milk prices still fresh on everyone’s mind, there has been increased interest in ways to limit milk price volatility. Using SERF, this paper determined some dairies are willing to pay for limited milk price volatility and found a value they are willing to pay using risk premiums.