Ex ante Benefit Cost Analysis of 3.1 Productivity On Farm

Summary

MLA business plan 3.1 'Increasing productivity on-farm' has a vision of delivering new knowledge, tools and technologies that support producers to become more productive and efficient. The business plan targets specific investments in the northern beef, southern beef, feedlot, lamb / sheepmeat and goatmeat sectors. Twelve case studies from the business plan were developed to provide insight on likely investment returns.
A subset of case studies were also analysed using a separate approach - the Rendell-McGuckian model.  Results achieved by AgEconPlus are comparable to those delivered with the Rendell-McGuckian model. Returns from the case studies were also compared to overall business plan investment costs. A total business case investment of present value $85.5 million will produce total case study benefits of present value $261.09 million. Return on investment from the case studies, which account for 36% of total planned investment, is sufficient to justify delivery of the total business plan.