Incentives for Conservation in WA Wheatbelt

An innovative trial of a market-based approach to land management in Western Australia's Wheatbelt has been a great success, with economists estimating the conservation auction scheme is two to three times more efficient than a traditional grants program.

WWF-Australia Project Coordinator Cheryl Gole said the Auction for Landscape Recovery is a tender process by which farmers nominate a price for the environmental works they are willing to undertake.

"The process allows farmers to tender for funding to enhance nature conservation, and also improve water quality, control rising water tables and associated dryland salinity," she said.

Funding

Supported with $495,000 from the Australian and State Governments, the scheme is a voluntary land and nature conservation program for farmers in the north east Wheatbelt.

"Farmers are able to nominate the activities they're willing to undertake to protect environmental assets on their land and nominate how much money they'll require to do that work," Cheryl said.

"Some place a cost on the materials alone, others combine materials and the cost of their labour and a few have even hired contractors.

"The tenders are compared with each other in terms of the environmental benefits delivered and only the most competitive, in terms of value for money, are successful.

Activities

"We've had two tender rounds so far and 88 successful tenders for practical works such as fencing native vegetation and wetlands, replanting native vegetation, the creation of wildlife corridors and feral animal control."

The Auction for Landscape Recovery is one of 11 trials of 'market-based instruments' around Australia being funded by the Australian Government.

"We're trying to create a market by paying farmers for providing environmental services like biodiversity conservation," Cheryl said.

Achievements

"A key factor in the success of the scheme has been the involvement of three field staff who've made face-to-face contact with the farmers, been able to answer their questions and give them detailed information on how the tender process works.

"Economists from the University of Western Australia's School of Agriculture and Resource Economics have been involved from the beginning and have compared the efficiency of auctions as compared to fixed-price schemes such as grants. They've found the scheme is two to three times more economically efficient.

"Farmers have also responded positively and appreciate the flexibility of tenders, compared to grants.

"This scheme recognises the time and commitment it takes for farmers to undertake environmental work and gives them a tangible economic benefit for their efforts."

More information

1. Cheryl Gole, WWF-Australia Southwest Australia Ecoregion Coordinator: (08) 9293 4958 or CGole@wwf.org.au
2. Market-based Instruments: www.napswq.gov.au/mbi/round1/project21.html

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