1. Managing water as a Scare Resource in Beef Feedlots
- Author
-
Pluske, Johanna M. and Schlink, A.C.
- Subjects
water police ,Managing water ,Production Economics ,water price ,temperature changes ,water supply ,Resource /Energy Economics and Policy ,beef feedlot ,Livestock Production/Industries ,water ,Demand and Price Analysis ,greenhouse effect ,price ,water costs ,H20 Beef ,Agricultural and Food Policy ,water demand ,Farm Management ,Agribusiness ,Environmental Economics and Policy ,bio-economic model ,net benefits ,economic viability ,Research Methods/ Statistical Methods ,water consumption - Abstract
Using a bio-economic model, H2OBeef, that includes traditionally considered parameters associated with running a beef feedlot but also incorporates aspects associated with water, changes that can alter water consumption and or price are examined. The results indicate that when water does not incur a cost, the net benefits of the feedlot used as the example in this paper, are in excess of one million dollars (Australian) over a 20 year period. However, with the inclusion of reasonable water costs ($1.20 to around $1.90/kL) and/or slight changes in water use within the feedlot, due to temperature changes from Greenhouse effects, the net benefits can fall to zero. Although water makes up a relatively small proportion of the total feedlot cost, if changes to water demand, supply and/or policy drive up price, then water can play a significant part in determining the economic viability of a feedlot.
- Published
- 2007
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