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Managing Woodlands for Income Maximisation in Western Queensland, Australia: Clearing for Grazing Versus Timber Production Tyron J

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Managing Woodlands for Income Maximisation in Western Queensland, Australia: Clearing for Grazing Versus Timber Production Tyron J Forest Ecology and Management 185 (2003) 291–306 Managing woodlands for income maximisation in western Queensland, Australia: clearing for grazing versus timber production Tyron J. Venna,*, Robbie L. McGavinb, Howard M. Rogersc aSchool of Economics, The University of Queensland, St. Lucia, Qld 4072, Australia bQueensland Forestry Research Institute, Salisbury, Qld 4107, Australia cDepartment of Natural Resources and Mines, Barcaldine, Qld 4725, Australia Received 22 January 2003; received in revised form 27 February 2003; accepted 5 May 2003 Abstract Queensland, Australia, has a proud pastoral history; however, the private and social benefits of continued woodland clearing for pasture development are unlikely to be as pronounced as they had been in the past. The environmental benefits of tree retention in arid regions of the State are now better appreciated and market opportunities have arisen for the unique timbers of western Queensland. A financial model is developed to facilitate a comparison of the private profitability of small-scale timber production from remnant Acacia woodlands against clearing for pasture development in the Mulga Lands and Desert Uplands bioregions of western Queensland. Four small-scale timber production scenarios, which differ in target markets and the extent of processing (value-adding), are explored within the model. Each scenario is examined for the cases where property rights to the timber are vested with the timber processor, and where royalties are payable. For both cases of resource ownership, at least one scenario generates positive returns from timber production, and exceeds the net farm income per hectare for an average grazing property in the study regions over the period 1989–1990 to 2000–2001. The net present value per hectare of selectively harvesting and processing high-value clearwood from remnant western Queensland woodlands is found to be greater than clearing for grazing. # 2003 Elsevier B.V. All rights reserved. Keywords: Farm forestry; Acacia woodlands; Land clearing; Cattle grazing; Financial analysis 1. Introduction the scarcity of straight-boled trees, their typically small stem diameters, the prevalence of timber The Acacia and Eucalyptus woodlands of western defects, and remoteness from major timber markets, Queensland, Australia, contain a substantial timber has lowered private landholder valuation of these resource that has been traditionally viewed as an woodlands. By 1997, approximately 24 million ha impediment to agricultural (predominantly pastoral) (23%) of Queensland’s Acacia and Eucalyptus wood- development. Lack of information about the resource, lands had been cleared (National Land and Water Resources Audit, 2001). * Low commodity prices and drought brought finan- Corresponding author. Tel.: þ61-7-3346-9456; fax: þ61-7-3365-7299. cially difficult times to Queensland graziers throughout E-mail address: [email protected] (T.J. Venn). much of the late 1980s and the 1990s, and there is 0378-1127/$ – see front matter # 2003 Elsevier B.V. All rights reserved. doi:10.1016/S0378-1127(03)00225-1 292 T.J. Venn et al. / Forest Ecology and Management 185 (2003) 291–306 substantial economic pressure on many to increase where high timber prices have been obtained. This productivity to remain viable (Rolfe, 2000). For many information has slowly filtered to landholders and led graziers, clearing the land of woody vegetation for some to change long-held attitudes; woodlands are establishment of pasture is the most obvious means of being seen less as an impediment to their enterprises increasing productivity and, over the period 1997– and more as an economic opportunity. 1999, clearing of remnant and regrowth vegetation in In 1992, the Queensland Forestry Research Institute Queensland proceeded at the rate of 446,000 ha per (QFRI) identified demand from landholders for an year, predominantly within the Eucalyptus and Acacia assessment of the commercial viability of small-scale woodlands of western Queensland. Clearing on free- timber production from remnant natural woodlands in hold and leasehold land accounted for 70 and 29% western Queensland. Preliminary investigations high- of this total, respectively (National Land and Water lighted that some research has been performed within Resources Audit, 2001). other Australian semi-arid woodlands, notably in the Land clearing for pasture development has become Western Australian Goldfields (Brennan and Newby, a highly emotive and politically charged issue in 1992; Siemon and Kealley, 1999). However, while the Queensland. For most of the State’s history, clearing Goldfields eucalypt resource shares a similar climate was actively encouraged by the State Government, and degree of remoteness from major markets, the with clearing targets incorporated into the conditions majority of western Queensland acacias have higher placed on leases (Rolfe, 2000). While such conditions densities, greater hardness, more defect, less shrinkage, had been removed by the mid 1980s, some perverse shorter log lengths, and smaller log diameters. This land clearing incentives still exist; for example, land means processing techniques suitable for Goldfields clearing confers a tax deduction benefit, and although eucalypts may not be appropriate for western Queens- the sale of harvested timber on leasehold land attracts land acacias. Information about the utilisation of wes- a royalty payable to government, government tern Queensland hardwoods is scarce. Consequently, approved clearing and burning of Acacia and Euca- QFRI performed research to: determine the geographi- lyptus woodland types not subject to the Vegetation cal distribution, merchantable wood volumes and wood Management Act 1999 does not. Graziers assert that properties of selected tree species; estimate costs and tree clearing is necessary for the prosperity of their recoveries of harvesting and portable sawmilling families and regional communities, while environmen- operations; recommend appropriate seasoning meth- tal organisations assert that the total economic value ods; estimate graded (saleable) product recoveries; (use and non-use values) of additional land clearing and identify potential markets for western Queensland in Queensland is negative. Environmental scientists hardwoods (Cause, 1999; Swift et al., 2002; Venn et al., question whether the short-term productivity gains 2002). outweigh the longer-term costs of continued land This paper assesses the private profitability of clearing, e.g. increased impact of dryland salinity, managing remnant Acacia woodlands for small-scale carbon release and biodiversity loss. Some of the timber production versus clearing for pasture devel- State’s western woodland ecosystems, for example, opment in the Mulga Lands and Desert Uplands those dominated by brigalow (Acacia harpophylla), bioregions1 of western Queensland. The next section are now threatened (Department of Environment, outlines the benefits and opportunities provided by 1995), and many grazing properties are suffering ser- western Queensland hardwood utilisation. Character- ious land degradation, increasing abundance of unpa- istics of the timber resources and grazing enterprises latable shrubs and decreasing abundance of palatable in the Mulga Lands and Desert Uplands follow. perennial grasses (Department of Natural Resources Four timber production scenarios are then detailed, and Mines, 2001). followed by a description of the financial model In recent years, the unique timber properties of several western Queensland hardwoods, particularly 1 Australia has been divided into 85 bioregions according to the Acacia species, have become better appreciated in dominant landscape scale attributes of climate, lithology, geology, Australia and, to a limited extent, overseas. Small landforms and vegetation (National Land and Water Resources volumes have been utilised in specialty applications Audit, 2001). T.J. Venn et al. / Forest Ecology and Management 185 (2003) 291–306 293 developed to assess these scenarios. The private profit- suppliers (Venn et al., 2002). Market research high- ability of timber production in western Queensland is lighted several other high-value markets where western reported, discussed and compared with clearing for hardwoods are perceived to have favourable wood pasture development. Policy implications are outlined. properties, including manufacturers of parquetry floor- ing, furniture, custom knife handles, indigenous tools and weapons, martial arts sticks, and plaques. These 2. Opportunities for and benefits of forestry in timbers were also found to have high export potential, western Queensland with ringed gidgee being highly regarded by knife handle manufacturers in the USA, and UK flooring Many western Queensland hardwoods possess suppliers reportedly interested in western Queensland unique timbers, having high air-dry (12% moisture hardwoods for parquetry flooring (Venn et al., 2002). content) densities of between 1000 and 1300 kg mÀ3, Timber production in western Queensland is likely high Janka hardness (13–18 kN), low shrinkage from to generate considerable economic benefits in rural green to air-dry (many about 1.5% radial and 2.5% communities, including employment creation, local tangential), and sound gluing properties. The range of skill development, income diversification, and tourism western Queensland hardwoods offer a variety of opportunities. Timber production potentially offers a attractive timber colours from yellows through to light more stable income stream
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