The value of Australia's biosecurity system at the farm gate: an analysis of avoided trade and on farm impacts

This report estimates the value of Australia's biosecurity system at the 'farm gate'. The report considers the effect on farm profits of an outbreak of six potentially significant biosecurity threats to Australian agriculture: Foot and Mouth Disease (FMD), Mexican feather grass, citrus greening, highly pathogenic avian influenza (HPAI), Karnal bunt and red imported fire ants (RIFA).

The value of biosecurity is estimated as the on-farm costs and losses avoided due to biosecurity efforts that target the pathways through which pests, diseases and weeds enter, become established and spread throughout Australia. Avoided costs and losses include expenditures on control measures for damage mitigation, and diminished revenue arising from production losses and export market losses.

The report finds that the additional costs and losses incurred by farmers following a pest, weed or disease incursion can be significant. This is particularly the case for biosecurity threats which can disrupt market access and reduce farm gate prices. For example, in the absence of Australia's current biosecurity system: • the annual profits of beef, dairy and sheep enterprises would be 8 to 12 per cent lower due to the higher risk of an FMD incursion. The annual profits of pig enterprises would be 15 per cent lower • the annual profits of cropping enterprises would be 7 per cent lower due to a higher risk of a Karnal bunt incursion. Broadacre farms typically undertake a range of cropping and livestock activities, and farm profits may be affected by several pests and diseases. In the absence of Australia's current biosecurity system: • annual broadacre farm profits would be $12 000 to $17 500 less due to the higher risk of FMD, Mexican feather grass and Karnal bunt outbreaks. The farm gate value of Australia's biosecurity system will also be reflected in higher land values. This is because the profits generated by broadacre farming activities are higher than they would have been in the absence of Australia's current biosecurity system.