Economic benefits of mechanical soil aeration to alleviate soil compaction on a dairy farm

This paper used investment analysis to assess the potential economic benefit of mechanical soil aeration to alleviate severe soil compaction on a North Otago Rolling Downlands dairy farm. Soils on this farm had been structurally damaged following four years of consecutive winter forage crop grazing by beef cattle. Reported benefits of mechanical aeration prior to re-sowing of pasture show a 13% increase in annual pasture production over two years. Estimated changes in dairy farm profitability from soil aeration have been calculated taking into consideration both the fixed and variable costs associated with the modelled farm enterprise. Response in farm profitability to greater pasture growth was realised through an increase in stocking rate and associated milk production. The net economic benefit from aeration was $1,354 per year over a 12 year planning horizon (the assumed lifespan of pasture), which equates to a net increase in profit of $67 per hectare per year of winter forage crop paddock that was aerated.