Appendix 1: Assumptions used in economic analysis
The assumptions used in the economic analysis in this report were based on those in Harris et al (2004). This document should be referred to for the full assumptions. A summary of the assumptions used are provided below.
Table 5: Gross margin assumptions ($/ha)
|
Dryland |
Irrigation |
||||
|---|---|---|---|---|---|
|
Grazing |
Arable |
Grazing |
Dairy support |
||
|
us Ohau A |
Low |
4.25 |
0 |
230 |
230 |
|
Mid |
8.5 |
0 |
565 |
565 |
|
|
High |
106 |
0 |
900 |
900 |
|
|
us Waitaki |
Low |
180 |
450 |
760 |
650 |
|
Mid |
270 |
650 |
1050 |
1150 |
|
|
High |
360 |
1000 |
1450 |
1600 |
|
Table 6: Water use assumptions (mm/ha/year)
|
Irrigation |
|||
|---|---|---|---|
|
Grazing |
Dairy support |
||
|
us Ohau A |
Low |
500 |
500 |
|
Mid |
600 |
600 |
|
|
High |
700 |
700 |
|
|
us Waitaki |
Low |
600 |
600 |
|
Mid |
700 |
700 |
|
|
High |
800 |
800 |
|
Table 7: On-farm capital costs ($/ha)
|
Irrigation |
|||
|---|---|---|---|
|
Grazing |
Dairy support |
||
|
On farm capital |
Low |
1700 |
1700 |
|
Mid |
1850 |
2200 |
|
|
High |
2700 |
2700 |
|
|
Farm transition cost |
1000 |
500 |
|
Table 8: Off-farm O&M costs ($/ha/annum)
|
Location |
Low |
Mid |
High |
|---|---|---|---|
|
Benmore, Aviemore, Waitaki |
200 |
225 |
250 |
|
us Ohau A |
100 |
125 |
150 |
Table 9: Off-farm capital estimates ($/ha)
|
Location/scheme |
Capital estimate ($/ha) |
|---|---|
|
us Ohau A |
500 |
|
us Waitaki |
1500 |
Table 10: Scheme description and land use assumptions
|
Demand description |
System location |
Current profile (%) |
New profile (%) |
||
|---|---|---|---|---|---|
|
Dryland |
Irrigated |
||||
|
Grazing |
Arable |
Grazing |
Dairy support |
||
|
us Ohau A |
us Ohau A |
100% |
0% |
80% |
20% |
|
us Waitaki |
us Waitaki |
100% |
0% |
80% |
20% |
