Determinants of the proportion of break crops on Western Australian broadacre farms

Abstract

Break crops (e.g. pulses, lupins, canola, oats) underpin the continued profitability of cereal (wheat or barley) based cropping sequences. The area sown on farms to break crops varies widely across geographical regions according to climate, soil type mix, enterprise mix (crop v. livestock), and other constraints such as the prevalence of soil-borne disease. Given recent fluctuations in the area of established break crops in Western Australia, there are concerns about their long-term prospects in the farming system. A survey of the area and grain yield of break crops on-farm was combined with whole-farm bio-economic modelling to determine the upper limit to the area of break crops on representative farms in 4 agro-climatic regions. Sensitivity analysis was conducted to ascertain the potential effects of varying commodity prices (sheep and grain), costs of production, and assumptions on the yield of break crops and the boost to the yield of following cereals. The survey revealed that the two dominant break crops, lupins and canola, occupied 8–12% and 8–9%, respectively, of farm area on those farms that grew them in the medium-rainfall zone and this declined to 6–8% and 7–10% in the drier region. Nevertheless, the modelling results show that break crops are an important component of the farming system, even where the area is small, and the response of whole-farm profit to percent of the farm allocated to break crops is relatively flat near the optimum of 23–38%. The modelled area of break crops at maximum profit is higher than that found in farm surveys. The discrepancy could possibly be explained by the lower break crop yields realised by farmers and a reduced boost to cereal yields following break crops than assumed in models. Also, deterministic models do not account for risk, which is an important consideration in the decision to grow break crops. However, the yield difference does not explain the discrepancy entirely and raises questions about farmer motivations for adoption of break crops. The scope for increased area of break crops beyond 23–38% of the farm is limited, even with increases in the yield enhancements in subsequent cereal crops, higher break crop prices, and higher fertiliser costs. Further research is required to better quantify costs and benefits of break crops in Western Australian farming systems.