ECONOMIC IMPACTS OF DRYLAND SALINITY FOR GRAINS INDUSTRIES

Abstract

This paper explores some possible economic impacts of worsening salinity severity and extent in the grains industry across Australia. It also looks at the potential to increase agricultural profits through remediation. The analysis is based on a spatial model of agricultural profits and salinity related crop/pasture yield losses. It is estimated that grains industry farming profits across Australia would rise by an upper limit $138 million per year were salinity costlessly removed from the landscape. It is also estimated that the present value of grains industry profit losses from worsening salinity extent and severity over the next 20 years is$237 million. These amounts can be considered against the costs of repair.Crop Production/Industries, Environmental Economics and Policy,