A financial analysis of lime application in a long-term agronomic experiment on the south-western slopes of New South Wales
Guangdi D. Li A C , Rajinder P. Singh A , John P. Brennan A B and Keith R. Helyar A BA E H Graham Centre for Agricultural Innovation (alliance between Industry & Investment NSW and Charles Sturt University), Wagga Wagga Agricultural Institute, PMB, Wagga Wagga, NSW 2650, Australia.
B Retired.
C Corresponding author. Email: guangdi.li@industry.nsw.gov.au
Crop and Pasture Science 61(1) 12-23 https://doi.org/10.1071/CP09103
Submitted: 31 March 2009 Accepted: 7 October 2009 Published: 17 December 2009
Abstract
Management of Acid Soils Through Efficient Rotations (MASTER) is a long-term agronomic experiment commenced in 1992. There were 3 fundamental treatment contrasts in this experiment: (a) annual systems v. perennial systems; (b) limed v. unlimed treatments; and (c) permanent pastures v. pasture–crop rotations. The soil was acidic to depth with pH (in CaCl2) below 4.5 and exchangeable Al above 40% at 0.10–0.20 m when the experiment started. Lime was applied every 6 years to maintain soil pHCa at 5.5 in the 0–0.10 m soil depth. A financial analysis was undertaken to estimate potential benefits and costs involved in liming acid soils on the south-western slopes of New South Wales, based on data from the MASTER experiment. The most important finding from the current study is that liming pastures on soils that have a subsurface acidity problem is profitable over the long-term for productive livestock enterprises. The pay-back period for liming pastures, grazed by Merino wethers, was 14 years for both annual and perennial pastures. More profitable livestock enterprises, such as prime lambs or growing-out steers, were estimated to reduce the pay-back period. This gives farmers confidence to invest in a long-term liming program to manage highly acid soils in the traditional permanent pasture region of the high-rainfall zone (550–800 mm) of south-eastern Australia. Results from the current study also confirmed that the total financial return from liming is greater if the land is suitable for operation of a pasture–crop rotation system. The positive cash flows generated from cropping in a relatively short time can significantly shorten the pay-back period for the investment in lime. But cropping without liming on soils with subsurface acidity was worse than grazing animals. Crop choice is crucial for the perennial pasture–crop rotation. Inclusion of high-value cash crops, such as canola or a wheat variety with high protein, would lead to a rise in the aggregate benefits over time as the soil fertility improved and soil acidity was gradually ameliorated.
Additional keywords: animal, pasture, crop, gross margin, cash flow, profitability.
Acknowledgments
A large team effort was required to set up, run, and maintain this long-term experiment over the past 15 years. Many scientists within Industry and Investment NSW and outside the Department made significant contributions to the experiment, and several technical staff supplied quality technical support during various funding periods. Mr Geoff Casburn offered valuable assistance with the calculation of livestock gross margins. The authors are grateful for the critical and constructive comments from two anonymous referees. Special thanks are offered to the Hurstmead Pastoral Co. for the lease of the land, and supporting the project for the whole period. The project was funded by Industry and Investment NSW with additional financial support from Australian Wool Innovation Limited (1991–97, 2003–07), Grain Research and Development Corporation (1997–2002), the Acid Soil Action NSW Government Initiative (1997–2003), Meat and Livestock Australia (1994–97), and Land and Water Australia (1994–97). We thank Incitec-Pivot Pty Ltd for supplying fertilisers, and Omya Australia Pty Ltd for supplying lime.
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