Modelling Agricultural Land Use Allocation in Regional Australia

19 Pages Posted: 21 Jun 2013

See all articles by Edward Oczkowski

Edward Oczkowski

Charles Sturt University - Faculty of Commerce

Yapa M.W.Y. Bandara

Charles Sturt University

Date Written: July 2013

Abstract

An analysis of the drivers of agricultural land use is important for policy makers as the issues of climate change and food security become increasingly prominent in the political landscape. This paper analyses the role of prices, total land holdings and climate on land use in Australia. The analysis relates to a unique comprehensive coverage of commodity types at a regional level. An explicit treatment of missing data and the novel use of cluster analysis is employed within a partial adjustment framework for modelling land allocation. The majority of commodity types across regions exhibit significant degrees of slow partial adjustment for land allocation, the frequency of slow adjustment is greatest with crops and livestock and weakest for vegetables. In general, relative own and cross prices, total land holdings and rainfall only have a minor impact on short‐term land allocations, however numerous individual commodity/regional combinations have identified significant short‐run impacts.

Keywords: horticulture, land use & tenure, livestock, supply analysis

Suggested Citation

Oczkowski, Edward and Bandara, Yapa M.W.Y., Modelling Agricultural Land Use Allocation in Regional Australia (July 2013). Australian Journal of Agricultural and Resource Economics, Vol. 57, Issue 3, pp. 422-440, 2013, Available at SSRN: https://ssrn.com/abstract=2282917 or http://dx.doi.org/10.1111/1467-8489.12002

Edward Oczkowski (Contact Author)

Charles Sturt University - Faculty of Commerce ( email )

Wagga Wagga, NSW 2678
Australia
061 02 69332521 (Phone)
061 02 69332125 (Fax)

Yapa M.W.Y. Bandara

Charles Sturt University ( email )

Panorama Avenue
Bathurst, NSW 2678
Australia

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