Acid and acidifying soils occur extensively in Australia. Currently, some 90 million
hectares of agricultural land in Australia is considered to be acidic and around 35
million hectares are considered to be highly acidic which is both a serious
agricultural and environmental problem. The nature, impact, and causes of soil
acidification vary across Australia, as do farming systems and the institutional and
socioeconomic issues relating to land management. In high-rainfall areas of
south-eastern Australia, managing acid soils is particularly difficult in permanent
pasture systems. In this paper, an economic analysis is made of the results of a
long-term trial (MASTER β Managing Acid Soils Through Efficient Rotations) aimed
at developing a sustainable agricultural system which can stop soil acidification and
ameliorate subsurface acidity in the 500-800 mm rainfall zone . Data from four basic
treatments (with and without lime) such as annual pastures, annual pastures / crop
rotation, perennial pastures and perennial pastures / crop rotation were analysed. We
used average crop yields and wool cuts during 1992 to 1997 and calculated gross
margins for the options. Using discounted cash flows, the economic benefits of the
different treatments were examined. The implications for farmers in those regions are
identified and explored