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Financial Returns and Capital Requirements for Optimum Pasture Improvement Plans

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  • Pearse, Robert A.
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    Since World War II there has been a rapid increase in the area sown to improved pastures in Australia generally and New South Wales in particular. Despite this increase there has been much speculation as to the reasons why even more country has not been improved, especially as spectacular increases in carrying capacity result. There have been a number of studies of economic aspects of pasture improvement stimulated by these observations. This study is intended to extend or supplement them, because much of the previous work has been somewhat limited. The objects of this paper are to:- (1) Outline the basic asumptions on which the whole study is based. (2) Determine, where finance is provided from savings supplemented by reinvestment of all profits (when necessary) due to the improvement programme:- (a) Whether the level of capital availability affects:- (i) The total capital required to get the property wholly under improved pasture. (ii) The rate of return on the money invested. (iii) The time before the programme becomes self financing. (iv) The years when capital is most limiting. (b) The optimum method or methods of sowing pasture, and whether sowing should be yearly or at irregular intervals.

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    Article provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.

    Volume (Year): 31 (1963)
    Issue (Month): 04 (December)

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    Handle: RePEc:ags:remaae:9011
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