Economic Impact Assessment of Leafy Spurge in Southern Manitoba. Final
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ECONOMIC IMPACT ASSESSMENT OF LEAFY SPURGE IN SOUTHERN MANITOBA FINAL REPORT October 2010 Rural Development Institute, Brandon University Brandon University established the Rural Development Institute in 1989 as an academic research centre and a leading source of information on issues affecting rural communities in Western Canada and elsewhere. RDI functions as a not-for-profit research and development organization designed to promote, facilitate, coordinate, initiate and conduct multi-disciplinary academic and applied research on rural issues. The Institute provides an interface between academic research efforts and the community by acting as a conduit of rural research information and by facilitating community involvement in rural development. RDI projects are characterized by cooperative and collaborative efforts of multi-stakeholders. The Institute has diverse research affiliations, and multiple community and government linkages related to its rural development mandate. RDI disseminates information to a variety of constituents and stakeholders and makes research information and results widely available to the public either in printed form or by means of public lectures, seminars, workshops and conferences. For more information, please visit www.brandonu.ca/rdi. ECONOMIC IMPACT ASSESSMENT OF LEAFY SPURGE IN SOUTHERN MANITOBA FINAL REPORT Submitted to: Kim Wolfe Agricultural Sustainability Initiative Program Coordinator Agri-Environment Knowledge Centre Manitoba Agriculture, Food and Rural Initiatives Box 1240, 810 Philips Street Portage la Prairie, MB R1N 3J9 Submitted by: Wm. (Bill) Ashton, Ph.D. Director Rural Development Institute Brandon University 270-18th Street Brandon, MB R7A 6A9 Prepared by: Karen Rempel, Ph.D. Research Affiliate Rural Development Institute Brandon University Brandon, MB R7A 6A9 Acknowledgements Funding for this project was provided by the Canada and Manitoba Governments through Growing Forward, a federal-provincial-territorial initiative. Project guidance and contributions were provided by the following individuals: Michele Ammeter, John Johnston, Manitoba Weed Supervisors Association Manitoba Weed Supervisors Association Doug Cattani, Wanda McFadyen Manitoba Agriculture, Food and Rural Leafy Spurge Stakeholders Group Initiatives Wayne Digby, Chair Sherry Punak-Murphy Leafy Spurge Stakeholders Group Canadian Forces Base Shilo Derrek Eberts Jane Thornton Brandon University Manitoba Agriculture, Food and Rural Initiatives Bill Gardiner, Dion Wiseman Manitoba Agriculture, Food and Rural Brandon University Initiatives Cheryl Heming, Chair Invasive Species Council of Manitoba Table of Contents Executive Summary ......................................................................................................................... i 1.0 Overview of the Report ........................................................................................................ 1 2.0 Background .......................................................................................................................... 2 2.1 The 1999 Leafy Spurge Impact Assessment ........................................................................ 2 2.2 The 2010 Economic Impact Assessment of Leafy Spurge in Manitoba .............................. 2 2.3 Understanding „invasiveness‟ .............................................................................................. 4 3.0 Calculating the distribution and density of leafy spurge ..................................................... 6 3.1 Defining the study area .................................................................................................... 6 3.2 Data collection and analysis processes................................................................................. 7 3.3 Total distribution and density of leafy spurge in southern Manitoba ................................ 10 4.0 Estimating the Economic Impact of Leafy Spurge ............................................................ 12 4.1 The influence of economic factors on invasive species ..................................................... 12 4.2 Limitations to the economic impact assessment of leafy spurge ....................................... 14 4.3 Direct economic costs ........................................................................................................ 15 4.4 Indirect economic costs ...................................................................................................... 21 4.5 The economic impact of leafy spurge: Direct and indirect costs ....................................... 22 4.6 Conclusion .......................................................................................................................... 23 References ..................................................................................................................................... 26 Appendix A: Distribution and Density of Leafy Spurge in Manitoba .......................................... 28 Appendix B: Options for Economic Assessment Models of Leafy Spurge................................. 34 Appendix C: Potential Impact of Leafy Spurge on Beef Herds and Sheep Flocks in Manitoba ~ An illustration ............................................................................................................................... 37 Executive Summary In 1999, the LSSG undertook efforts to estimate the amount of leafy spurge infestation in Manitoba at that time, and its potential impact. Estimations of the amount of leafy spurge came from a survey of weed control districts, reports from southern Manitoba agricultural representatives and information from a 1981 survey. Economic impacts were calculated based on the reduced carrying capacity of the land and an estimation of the secondary economic impacts. Findings from these efforts were contained in the 1999 report, Leafy Spurge Impact Assessment prepared by the Leafy Spurge Stakeholders Group (LSSG). These findings indicated that (a) there were at least 340,000 acres of leafy spurge in Manitoba; (b) there was a total economic impact of $20 million based on the direct costs associated with a reduced carrying capacity of grazing, the impacts on public lands for recreation and reduced habitat value, and the impact of infestation on right-of-ways and the indirect or secondary economic impacts. The report cautioned that the analysis was based on data that was available at that time and that the estimated number of acres was an underestimation of the extent of infestation across Manitoba. Driven by the 1999 report‟s acknowledgement of the underestimation of acres of leafy spurge at the time, the nature of leafy spurge patch expansion and current economic values, the Rural Development Institute on behalf of the LSSG, sought and received funding support to prepare the 2010 economic impact assessment of leafy spurge in southern Manitoba. The aim of this report is to assess the economic impact of leafy spurge in the province, with a focus on southern Manitoba. The acreage of leafy spurge was based on geographic land use information, existing databases on known spurge infestation and consultation with weed supervisors and technical experts. In addition to presenting a map showing the potential distribution of leafy spurge in southern Manitoba, the report also provides a brief overview of the invasion process with a focus on identifying the economic factors which cause the spread of invasive species. Calculations for direct costs were based primarily on the value of lost grazing capacity of pastures, and indirect costs were calculated using an animal production input-output multiplier of 2.36. This 2010 economic impact assessment found that, based on available information and data, there are in excess of 1.2 million acres of leafy spurge in Manitoba. The areas most affected are pastures, natural areas, hay or forage land, and road sides, rail lines and utility corridors. This represents a 3.5 times increase of infested areas in ten years. This acreage of leafy spurge results in a total economic impact to Manitoba of $40.2 million, nearly a twofold economic impact over the 1999 assessment. This total is comprised of $10.2 million in direct costs based on the value of lost grazing capacity of pastures for livestock production, $5.8 M in costs for chemical applications specifically for leafy spurge on roadsides, and indirect costs of $24.1 M. Economic Impact Assessment of Leafy Spurge, Final Report i 1.0 Overview of the Report This report describes the economic impact of leafy spurge in southern Manitoba based on data collected and available in 2009. This data includes the best available information on the acreage of leafy spurge infestation in Manitoba and economic variables from 2009. The report also provides a brief overview of the invasion process with the identification of economic factors that contribute to the spread of invasive species such as leafy spurge. While the long-term efforts to document and to research invasive alien species in croplands have helped eradicate, manage and control these species, these extensive efforts are in stark contrast to the lack of effort for invasive alien weed species, such as leafy spurge, that invade natural vegetation. Pasture lands, natural areas and hay lands suffer from far too little documentation, research, or intensive efforts for eradication, management and control of invasive weed species (Thomas & Leeson, 2007). The report is organized into the following sections: . Section 2 provides general