LDC New Incentives Report | Page 60

measures medium technical feasibility has been assumed. Adoptability was estimated based on the categories shown in Appendix A( which were adapted and simplified from categories used in the Investment Framework for Environmental Resources, INFFER). Additional information about profitability and costs are outlined below:
Grazing management practices: �
Profitability was assessed as low( for moving from C to B) from grazing workshop, but other information, from the long-term Wambiana grazing trial and RCS Consulting( Terry McCosker, personal communication.) suggests that profitability can be moderate. RCS suggest that sustainable stocking rates will vary with land type but are likely to be in the region of 10-14 LSU day / ha / 100 mm. A clear view of whether moving from C-B grazing practices is sufficiently profitable to not require incentives is needed for the LDC project. Currently we have assumed that financial incentives are not needed.
Fencing to land type and provision of water points to ensure achieve end-of- dry season ground cover targets: The grazing workshop suggested profitability was neutral to negative. RCS Consulting figures suggested much lower fencing and off-stream watering costs than using conventional fencing and therefore costs from the grazing workshop are suspected to be over-estimates.
Hillslope gullies 3 �
The grazing workshop results( Park and Dickson, 2015) were used to interpret likely private net benefit, comments on adoption and non-profit related barriers.
Costs were assumed from discussion with Andrew Brooks as part of a Reef Trust Project‘ Agricultural Renewal Investment Fund’ 1. Costs were based on a notional typical 20,000 ha farm assumed to contain hillslope gullies on non-river frontage country – contains patchy linear gullies, typically expect 20-50 ha gullies at range $ 10,000-30,000 / ha.
� Assume average 35 ha x $ 20,000 = $ 700,000 / farm where major works are required. � Assume $ 350,000 / farm where minor works are required.
Alluvial gullies: �
WQIP Grazing workshop results were used( same as for hillslope gullies) although the distinction between alluvial and hillslope gullies was not made at the workshop.
Costs from the discussion with Andrew Brooks 1 were assumed for a notional 20,000 ha farm on river frontage county where one might expect 100-500 ha gullies at rehabilitation costs ranging from $ 20,000-100,000 / ha. Assume average 300 ha x $ 60,000 / ha = $ 18 million( range $ 2 million- $ 50 million).
� $ 18 million was used for practices requiring major works on 300 ha gullies. � $ 2 million was used for minor works farm( 100 ha gullies x $ 20,000 / ha).
Streambank erosion: �
Adoption comments were used from the grazing WQIP workshop notes were used( Park and Dickson, 2015).
58 | Landholders driving change: Exploring new incentives