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Balancing land use to manage river volume and salinity: Economic and hydrological consequences for the Little River catchment in Central West, New South Wales, Australia

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  • Finlayson, John
  • Bathgate, Andrew
  • Nordblom, Tom
  • Theiveyanathan, Tivi
  • Farquharson, Bob
  • Crosbie, Russell
  • Mitchell, David
  • Hoque, Ziaul

Abstract

It has been widely suggested that changing land use from annual to perennial crops reduces land and stream degradation due to salinisation. However, annual crops are financially attractive and increases in perennials can reduce stream flows with adverse effects on stream values. As such, salinity control is likely to involve tradeoffs between public and private costs and benefits. This study quantifies the expected on-farm economic and catchment-level water yield and salinity effects of altering land use among trees, perennial pastures and cereals. The structure of a two stage linear-programming (LP) process is described. The first stage is the MIDAS farm-level model of mixed cropping and sheep enterprises which provides inputs to a second stage catchment-level LP. It was concluded that perennial pastures can be used in conjunction with trees as a stream salinity-management tool in low to intermediate rainfall areas in New South Wales. The results indicate that land-use decisions should be informed by site-specific information if adverse effects on streams are to be avoided.

Suggested Citation

  • Finlayson, John & Bathgate, Andrew & Nordblom, Tom & Theiveyanathan, Tivi & Farquharson, Bob & Crosbie, Russell & Mitchell, David & Hoque, Ziaul, 2010. "Balancing land use to manage river volume and salinity: Economic and hydrological consequences for the Little River catchment in Central West, New South Wales, Australia," Agricultural Systems, Elsevier, vol. 103(3), pages 161-170, March.
    • Handle: RePEc:eee:agisys:v:103:y:2010:i:3:p:161-170
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    1. Nordblom, Thomas L. & Finlayson, John D. & Hume, Iain H., 2011. "Disposition of precipitation: Supply and Demand for Water Use by New Tree Plantations," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 101225, Australian Agricultural and Resource Economics Society.
    2. Nordblom, Tom & Finlayson, John D. & Hume, Iain H. & Kelly, Jason A., 2009. "Supply and Demand for Water use by New Forest Plantations: a market to balance increasing upstream water use with downstream community, industry and environmental use?," Research Reports 280785, New South Wales Department of Primary Industries Research Economists.
    3. Claire Settre & Jeff Connor & Sarah Ann Wheeler, 2017. "Reviewing the Treatment of Uncertainty in Hydro-economic Modeling of the Murray–Darling Basin, Australia," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-35, July.
    4. Aein, Reza & Alizadeh, Hosein, 2021. "Integrated hydro-economic modeling for optimal design of development scheme of salinity affected irrigated agriculture in Helleh River Basin," Agricultural Water Management, Elsevier, vol. 243(C).
    5. Finlayson, John & Real, Daniel & Nordblom, Tom & Revell, Clinton & Ewing, Mike & Kingwell, Ross, 2012. "Farm level assessments of a novel drought tolerant forage: Tedera (Bituminaria bituminosa C.H. Stirt var. albomarginata)," Agricultural Systems, Elsevier, vol. 112(C), pages 38-47.
    6. Nordblom, T.L. & Hume, I.H. & Finlayson, J.D. & Pannell, D.J. & Holland, J.E. & McClintock, A.J., 2015. "Distributional consequences of upstream tree plantations on downstream water users in a Public–Private Benefit Framework," Agricultural Systems, Elsevier, vol. 139(C), pages 271-281.
    7. Nordblom, Thomas L. & Finlayson, John D. & Hume, Iain H., 2012. "Upstream demand for water use by new tree plantations imposes externalities on downstream irrigated agriculture and wetlands," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(4), pages 1-20, December.

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