Profitability and environmental implications of innovative practice changes and irrigation improvements

Abstract

The economic and environmental benefits of practice changes and irrigation improvements are explored based on three grower case studies in the Bundaberg, Burdekin and Mackay regions that consider grower investments in best management practices, including irrigation changes. How the practice changes influenced farm economic and environmental performance are determined. Economic, biophysical and farm management data before and after the changes were used to calculate the economic benefit (Annualised Equivalent Benefit) with the Farm Economic Analysis Tool (FEAT) and an investment analysis. The economic benefit was positive for all farms, ranging from AUD29 to AUD377 per hectare per year. The same data were used to calculate indicators of environmental performance (per tonne of harvested cane) using the Cane Life Cycle Assessment (CaneLCA) tool. There were reductions in fossil-fuel use, greenhouse-gas emissions, and a potential for water pollution curtailment. For the Bundaberg case, a transition from furrow to low-pressure boom irrigation increased electricity use, which was offset by energy savings from other aspects of the production system changes. For the Burdekin case, improved water-use efficiency on a farm with permeable soils resulted in less electricity use and greenhouse gas emissions. For the Mackay case, improved utilisation of water allocation increased cane productivity and contributed to improved economic and eco-efficiency outcomes. While total water use increased, it is noted that water availability is not a constraint for the Mackay region outside of drought impacts. The Mackay case also involved a supplementary analysis of solar energy use. Overall, the case studies showed that the suites of irrigation improvements and practice changes resulted in both economic and eco-efficiency benefits.