Issues of size and viability of pastoral holdings in the Western Division of New South Wales.

Abstract

Uany pastoral leases in western New South Wales are too small to ensure that viable pastoral enterprisu will persist in the medium to longer term. Apartfrom attendant welfare problems for leaseholders and their dependants, there is some evidence that this has exacerbated overgrazing problems whichcreates undesirable and potentially irreversible degradation of vegetation and soil resources.Arguably, the small size problem has sufficiently weakened the economic welfare of many lessees to make private acquisition of additional areas andlor adoption of conservation oriented management practices non-economic. The future scenario is then one of greater public involvement in propertyadjustment measures; or a growing population of non-viable pastoral enterprises with its attendant efficiency, welfare and resource conservationproblems.The paper examines trends in property enterprise size, structure and concentration and the existence and extent of size economies for wool and livestockproduction in western New South Wales. Several issues are addressed concerning the economic viability of pastoral properties and several public policyprescriptions are presented for addressing the sizehiability problem.