Remote Sensing and Range Monitoring and Assessment: A Cost-Benefit Analysis of the Grazing Gradient Approach

Abstract

The CSIRO Centre for Arid Zone Research has so far produced two operational computer-based programmes for range condition monitoring and assessment. These programmes are based on the so-called “grazing gradient” approach, which utilises remotely-sensed satellite data.

The Wet Period Average Cover approach has been designed to aid the monitoring of range condition at a regional level. Even accounting for research and development costs, notional application of this approach to the Barkly Region alone yielded—over a 20-year period—benefits to government with a net present value in the order of $130,000, a benefit/cost ratio of around 1.2 and an internal rate of return of 2.7 per cent. This suggests that there are potentially very substantial benefits to the more general adoption of this technology by agencies charged with responsibility for range monitoring and management.

Resilience Analysis is a property-level application of the grazing gradient method designed to aid in forage management through ecologically-sensitive grazing management and property improvement. Under the assumptions applied in this study, use of this technology over a 20-year period was shown to yield discounted net benefits to an average cattle producer in the Northern Territory rangelands ranging from $100,000 to $1 million. The benefit/cost ratios and internal rates of return associated with these net benefits were 1.6 and 30 per cent, and 3.9 and greater than 100 per cent, respectively. Aggregating these property-level benefits suggested that benefits to the Northern Territory cattle industry in the order of $40–$70 million could potentially be achieved.

While the conclusions of this study are to some degree sensitive to the assumptions made, they are reasonably robust. Furthermore several, possibly substantial, benefits of the grazing gradient technology and associated research programme could not be valued. Quantification and inclusion of any of these would enhance the positive results already obtained.