Table 3. Deterministic analysis of per farm Net Present Value (NPV) of renovating dams on beef cattle farms in NSW and Victoria over a 50-year period.
($’000).
| Item | NSW: per farm | Victoria: per farm |
|---|---|---|
| PV($2019) | PV($2019) | |
| Benefits | ||
| Value of additional weight gain | 420 | 326 |
| Fertiliser saving | 50 | 59 |
| Saving due to reduced frequency of desilting dams | 74 | 28 |
| Present Value ($2019) of benefits | 544 | 413 |
| Costs | ||
| Construction of dam fence | 204 | 76 |
| Construction of hardened watering point | 114 | 42 |
| Planting vegetation | 14 | 5 |
| Dam fence maintenance | 13 | 5 |
| Hardened watering point maintenance | 27 | 10 |
| Present Value ($2019) of costs | 372 | 138 |
| Net Present Value ($2019) | 172 | 275 |
| Benefit Cost Ratio | 1.5 | 3.0 |
Notes: PV($2019): Present Value (PV) expressed in real (2019) dollars by converting all prices using the Consumer Price Index (CPI) published by the Australian Bureau of Statistics (Cat. No. 6401.0). Present values are based on a 50-year period and 7% per annum real discount rate. The farms included in the calculations are those in Local Government Areas of the Grassy Box-Gum woodlands used in Table 2. The higher Net Present Value (NPV) per farm in Victoria is due to the greater number of cattle per ha (an average of 0.74 for Victoria vs 0.23 cattle per ha for NSW).