Factors influencing potential scale of adoption of a perennial pasture in a mixed crop-livestock farming system

Evaluating the potential scale of adoption of a technological innovation or management practice at the farm business scale can help gauge the potential size of an industry for the purposes of prioritising resources for research and development. In this paper we address the question of quantifying the potential area of adoption of a perennial pasture, lucerne (Medicago sativa L.), in dryland mixed farming systems in Australia. Lucerne pastures play a significant role in dryland farming systems in the wheat-sheep zone of southern and western Australia. While there are benefits of integrating lucerne into cropping systems there will inevitably be additional costs, and the scale of adoption of lucerne will depend largely on the increase in farm profit resulting from the introduction of lucerne. Whole-farm economic models of representative farms in the Australian wheat-sheep belt were used to determine the key drivers for the scale of adoption of lucerne. For a particular farming system the optimal area of lucerne which maximises whole-farm profit is found to depend on production, price and cost conditions. Generally, no more than 30% of a farm was allocated to lucerne according to those conditions and location of the farm. For most scenarios examined the response of profit was flat around the optimal area. This implies that lucerne could be grown on areas greater than the optimum, in order to reduce groundwater recharge (and thereby reduce the risk of dryland salinity), without greatly reducing whole-farm profit. The optimal area of lucerne in all regions was limited by the area of suitable soil types and proportion of lucerne in the most profitable lucerne-crop sequences.