IDEAS home Printed from https://ideas.repec.org/p/ags/aare09/47947.html
   My bibliography  Save this paper

Seasonal labour is the most profitable use of labour in broadacre crop dominant farms

Author

Listed:
  • Rose, Gus
  • Kingwell, Ross S.

Abstract

Labour scarcity and affordability have encouraged many farmers in Western Australia to focus more on cropping than sheep production. Many farmers are opting to run low input livestock systems. This paper examines labour demand for sheep and cropping during the production year, combined with various scenarios of labour availability and cost. The implications for farm profitability and enterprise selection are examined using the bio-economic farming systems model MIDAS (Model of an Integrated Dryland Agricultural System). Labour requirements for sheep are far greater than those for cropping. Additionally the labour requirements for sheep are high in all production periods whilst the seasonal nature of cropping means more time is required only at certain times of the year, particularly at seeding and harvest. This means that the most profitable labour option is employing casual labour during periods of peak demand for cropping. The lesser relative profitability of the sheep enterprise makes employing a permanent worker the least profitable labour option. By contrast, employing casual labour during busy periods for cropping is more profitable but it is also associated with only small areas of perennial pastures being sown which has environmental implications. The logistics of employing labour at only certain times of the year compared to employing a full time worker means that farmers need to pay more per week to employ these workers or do the extra work themselves.

Suggested Citation

  • Rose, Gus & Kingwell, Ross S., 2009. "Seasonal labour is the most profitable use of labour in broadacre crop dominant farms," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47947, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare09:47947
    DOI: 10.22004/ag.econ.47947
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/47947/files/Rose.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.47947?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Flugge, Felicity & Schilizzi, Steven, 2005. "Greenhouse gas abatement policies and the value of carbon sinks: Do grazing and cropping systems have different destinies?," Ecological Economics, Elsevier, vol. 55(4), pages 584-598, December.
    2. Bathgate, Andrew & Pannell, David J., 2002. "Economics of deep-rooted perennials in western Australia," Agricultural Water Management, Elsevier, vol. 53(1-3), pages 117-132, February.
    3. Gibson, Lauren & Kingwell, Ross & Doole, Graeme, 2008. "The role and value of eastern star clover in managing herbicide-resistant crop weeds: A whole-farm analysis," Agricultural Systems, Elsevier, vol. 98(3), pages 199-207, October.
    4. Michael A. Kouparitsas, 2005. "Is there evidence of the new economy in U.S. GDP data?," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 29(Q I), pages 12-29.
    5. Yukako Ono & Victor Stango, 2005. "Outsourcing, firm size, and product complexity: evidence from credit unions," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 29(Q I), pages 2-11.
    6. Kingwell, R., 2002. "Sheep animal welfare in a low rainfall Mediterranean environment: a profitable investment?," Agricultural Systems, Elsevier, vol. 74(2), pages 221-240, November.
    7. O'Connell, Michael & Young, John & Kingwell, Ross, 2006. "The economic value of saltland pastures in a mixed farming system in Western Australia," Agricultural Systems, Elsevier, vol. 89(2-3), pages 371-389, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kotir, Julius H. & Bell, Lindsay W. & Kirkegaard, John A. & Whish, Jeremy & Aikins, Kojo Atta, 2022. "Labour demand – The forgotten input influencing the execution and adoptability of alternative cropping systems in Eastern Australia," Agricultural Systems, Elsevier, vol. 203(C).
    2. Kingwell, Ross S., 2011. "Managing complexity in modern farming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 1-23.
    3. Rose, G. & Mulder, H.A. & Thompson, A.N. & van der Werf, J.H.J. & van Arendonk, J.A.M., 2014. "Varying pasture growth and commodity prices change the value of traits in sheep breeding objectives," Agricultural Systems, Elsevier, vol. 131(C), pages 94-104.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bathgate, A. & Revell, C. & Kingwell, R., 2009. "Identifying the value of pasture improvement using wholefarm modelling," Agricultural Systems, Elsevier, vol. 102(1-3), pages 48-57, October.
    2. Kingwell, Ross S., 2011. "Managing complexity in modern farming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 1-23.
    3. Kingwell, Ross S. & Metcalf, Tess, 2009. "Low Emission Farming Systems: A whole-farm analysis of the potential impacts of greenhouse policy," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48162, Australian Agricultural and Resource Economics Society.
    4. Kragt, Marit Ellen & Pannell, David J. & Robertson, Michael J., 2011. "Easy winnings? The economics of carbon sequestration in agricultural soils," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100575, Australian Agricultural and Resource Economics Society.
    5. Kingwell, Ross & Fuchsbichler, Amy, 2011. "The whole-farm benefits of controlled traffic farming: An Australian appraisal," Agricultural Systems, Elsevier, vol. 104(7), pages 513-521, September.
    6. 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.
    7. Kopke, Emma & Young, John & Kingwell, Ross, 2008. "The relative profitability and environmental impacts of different sheep systems in a Mediterranean environment," Agricultural Systems, Elsevier, vol. 96(1-3), pages 85-94, March.
    8. Tas Thamo & Ross S. Kingwell & David J. Pannell, 2013. "Measurement of greenhouse gas emissions from agriculture: economic implications for policy and agricultural producers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(2), pages 234-252, April.
    9. Kingwell, Ross S., 2010. "Managing Complexity in Modern Farming," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 59090, Australian Agricultural and Resource Economics Society.
    10. Flugge, Felicity & Schilizzi, Steven, 2003. "Greenhouse Gas Abatement Policies and the Value of Carbon Sinks: Do Grazing and Cropping Systems have Different Destinies?," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57865, Australian Agricultural and Resource Economics Society.
    11. Gibson, Lauren & Kingwell, Ross & Doole, Graeme, 2008. "The role and value of eastern star clover in managing herbicide-resistant crop weeds: A whole-farm analysis," Agricultural Systems, Elsevier, vol. 98(3), pages 199-207, October.
    12. Flugge, Felicity & Schilizzi, Steven, 2003. "Alternative Policies with Complementary Benefits: Targeting Greenhouse Emissions or Water Recharge on Farming Systems?," 14th Congress, Perth, Western Australia, August 10-15, 2003 24392, International Farm Management Association.
    13. 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).
    14. Doole, Graeme J. & Romera, Alvaro J. & Leslie, Jennifer E. & Chapman, David F. & Pinxterhuis, Ina (J.B.). & Kemp, Peter D., 2021. "Economic assessment of plantain (Plantago lanceolata) uptake in the New Zealand dairy sector," Agricultural Systems, Elsevier, vol. 187(C).
    15. Soichiro Takagi, 2017. "Organizational Impact of Blockchain through Decentralized Autonomous Organizations," International Journal of Economic Policy Studies, Springer, vol. 12(1), pages 22-41, January.
    16. Benati, Luca, 2007. "Drift and breaks in labor productivity," Journal of Economic Dynamics and Control, Elsevier, vol. 31(8), pages 2847-2877, August.
    17. Hajkowicz, Stefan & Young, Michael D., 2003. "Economic Impacts Of Dryland Salinity For Grains Industries," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57884, Australian Agricultural and Resource Economics Society.
    18. Thamo, Tas & Addai, Donkor & Kragt, Marit E. & Kingwell, Ross S. & Pannell, David J. & Robertson, Michael J., 2019. "Climate change reduces the mitigation obtainable from sequestration in an Australian farming system," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), October.
    19. Senthold Asseng & David Pannell, 2013. "Adapting dryland agriculture to climate change: Farming implications and research and development needs in Western Australia," Climatic Change, Springer, vol. 118(2), pages 167-181, May.
    20. Donal G. MCKILLOP & Barry QUINN, 2015. "Web Adoption By Irish Credit Unions: Performance Implications," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(3), pages 421-443, September.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aare09:47947. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.