1. Socio Economics of Fireweed Workshop May 28 2008

2. May 2008 2 Today Overview Feedback from consultation – Impacts – Response Quantification Discussion on conclusions and principles

3. May 2008 3 Review of studies The socio-economic work to date is very localised and is generally reported as part of a bio-physical study There seems to be no detailed study of management options and their effectiveness, measured by impacts on farm returns or profitability

4. May 2008 4 Value of Agricultural Production by LGA – 2001

5. May 2008 5 Value of Agricultural Production by Industry – 2001

6. May 2008 6 Farm Holding Areas ABS 1,452 holdings There are 177 Southern RLPB ratepayers with more than 200 ha Number of Ratepayers by Holding Size

7. May 2008 7 Overview of available information Low profit High off-farm wage income Average age of 60 Capital appreciation – 21% between 2000 and 2005

8. May 2008 8 Consultation 18 surveys in October 2007 and stakeholders

9. May 2008 9 Stocking rates and area - variable

10. May 2008 10 Gross margins Average gross margin $145,000 before fixed costs and depreciation Dairy lift this – non dairy gross margin $220 / ha For nine beef/sheep properties under $60,000

11. May 2008 11 Response to fireweed

12. May 2008 12 Impacts Reduced productivity Annual control costs Change in management and infrastructure costs

13. May 2008 13 Reduced Carrying Capacity There was a wide range of estimates provided. These ranged from 15% to 50% and were dependent on the length and extent of infestation and also the management regime implemented

14. May 2008 14 Treatment The average costs associated with hand pulling assuming a $20/hr opportunity cost is approximately $3,500 per year Chemical costs typically $5,500 per farm (if they did use chemical control)

15. May 2008 15 Aggregation of impacts

16. May 2008 16 Social Social conflict between land holders Emotional problems experienced by those managing fireweed Viability and succession issues for farm families Long run impacts on land values and perceptions Issues associated with the State and Local government

17. May 2008 17 Future Approach to fireweed to date has been very reactionary Emphasis on individual effort Key message with options available is be aware and dedicated to management/control

18. May 2008 18 Next Fireweed has a significant impact on the carrying capacity of a farming system Fireweed also has a high economic cost in terms of the time required for control. All options require significant change or capital investment

19. May 2008 19 Development of Strategy Control options for all landholders and industries in the Southern Coastal Region Consider landholders who do not rely on agriculture for income Examine possibilities for integrated control Include the social circumstances facing the farming population Options on a regional or national scale for control