When income returns from traditional farming industries fall income diversification becomes almost a necessity but in reality the options for involvement in other rural enterprises are very limited. This is particularly the case with the North Coast beef cattle industry.

However while cattle prices have been fluctuating timber prices have continued upward. Something in the order of a 37% increase in the last 5 years and over 100% increase since 1989. (See Table 1)

TABLE 1. Yield and return from a Spotted Gum Forest in good condition. Cut every 10 years. Annual Growth Rate 2m3 annum.

Product	Volume m3/ha	Value 1989 $ per m3	Value 1995  $ per m3	Value 2000 $ per m3	Total (2000) $
Poles	3	45	50	70	210
Veneer	5	30	45	60	300
Sawlogs	7	17	35	55	275
Lower Quality Logs	7	6	14	12	84
				TOTAL	$869*

SOURCE. Casino State Forests. Updated 2000.
* or $86+ per hectare per annum

In addition recent reforms creating more National Parks, shifting logging out of old growth forests and reducing logging quotas from crown lands has created a flow through effect to increase the value of timber growing on private properties.

Integrating Beef Production and Farm Forestry
Trees grow well on the North Coast and many properties have existing stands of native forest, but what is required for beef producers to get involved in farm forestry and convert their existing enterprise to one featuring returns from regular harvesting of timber? Two major requisites are suggested:~

1. To be a viable proposition for farmers and graziers farm forestry must be integrated with existing farm enterprises. This is because timber is a long term crop, change to timber production can not happen overnight, and money needs to be generated for short term income. Integration of both native forest and timber plantation farm forestry with enterprises like beef cattle grazing, cropping etc will require farm planning skills, and adoption of agroforestry concepts such as grazing under trees.
2. Graziers will also need to acquire tree management (silvicultural) skills and learn how to manage native forests and plantations to produce quality timber products, know what those products are, and know how to harvest and market them to best financial advantage.

1. Growing plantations of trees is one option and there are industry and government initiatives such as the State Forests Joint Venture Eucalypt Plantation Scheme available to assist landholders.
2. The owners of private native forests can utilise them for ad-hoc grazing and random timber production as per traditional management.
3. Owners can prepare property management plans incorporating farm forestry, plan management of their private native forests and embark on learning best practice forestry skills in order to lift forest quality, timber production and associated income returns.
4. For beef producers who already own native forest country there is a meat and timber option which promises annual livestock returns with significant returns from timber sales through regular logging cycles (on average every ten years). This meat and timber (or agroforestry) option is particularly suited to dry hardwood forests commonly found on low nutrient soils in the Clarence and Richmond.

Option 2. Traditional Management
Has involved leaving the forest to grow naturally to provide random and usually inefficient timber production and some unimproved winter grazing for cattle.

Option 3. Planned Management of Private Native Forests
Planned forest management will integrate forestry into the overall farm operation, optimise timber production, maintain environmental values and ensure operations comply with existing legislation. It can put control of forest operations firmly in control of landowners and is strongly recommended. Grazing is a component of forest management and can include agroforestry options.

Option 4. Agroforestry
A system involving the establishment of shade tolerant legumes and grasses under the forest to provide a greener, more digestible, higher protein, higher energy diet to lift winter grazing returns and provide short term income (money to live on). Includes managing the same forest for major longer-term income from timber production (about every 10 years). Successful management will require silvicultural skills, including thinning and harvesting to improve the quality of the forest, and an ability to identify and market timber products.

This system not only allows cleared pasture improved country to be spelled but also provides cattle with high quality pasture through the winter months with potential to lift beef cattle performance. Importantly it allows landholders to practice farm forestry knowing that the land is still available for grazing if the need arises.

The System.

Step 1.
A combined operation involving logging, salvage logging and poisoning of poorly grown and rubbish trees. This will open up the forest for pasture improvement and initiate an improvement in the quality of the timber stand.

Step 2.
Exclusion of stock to build up ground fuel for a forest burn.

Step 3.
Burn of ground fuel to provide a seedbed. Aiming for a cool burn in the spring months

Step 4.
Aerial sowing (fixed wing or helicopter) of seed and fertiliser, preferably with rain, from late spring through to early autumn. The most reliable time will be late summer to early autumn. The bulk of suitable legumes and grasses are subtropical suited to summer establishment. To keep costs down hand broadcasting using say, a horse and saddlebags, is an option.

Step 5.
Paddock locked up for 12 months before commencing a winter grazing regime. For example into paddock in May and out in November. This will allow pasture species to bulk up, flower, seed and regenerate in the summer months before cattle are re-introduced.

Pregnant cows are suggested as the best class of cattle with the better quality pasture providing the opportunity for cows to calve in better condition, get back in calf quicker and produce heavier weaners.

What to Sow - (See Appendix 1).
Example: From Appendix 1 a best bet pasture mix for drier country between Casino and Grafton is:-

Archer Axillaris --------------------------------------------------------1kg/ha
Wynn Cassia -----------------------------------------------------------1kg/ha
Bahia Grass (Competidor or Argentine) -----------------------2kg/ha
Pasture P (or equivalent) 17.3P:9.5S:14.3Ca ---------------125kg/ha

• All legume seed lime pelleted, inoculated and treated with Molybdenum (Mo) trioxide powder at 150gms/ha.
• Estimated cost of $189 per hectare made up of seed $80, fertiliser $69 (including Mo trioxide) and aerial application $40 (2000 prices). All costs include GST but dependant on property location.

• A sub-tropical twining, climbing legume of African origin;
• Tolerates broad range of soil types including low nutrient soils;
• Does well under trees and is drought tolerant;
• Persists because it is strongly perennial and has a hard seed carry over (30% hard seed content common);
• Seeds May/June/July and should be occasionally allowed to go to seed before grazing to build up pasture sward;
• Susceptible to set stocking and continuous grazing but cool season grazing poses no problems;
• Can be unpalatable to stock at certain growth stages but this is seen as a plus being a deterrent to over grazing;
• Does require maintenance topdressing;
• Can be managed by grazing, topdressing and fire; Commercial seed supply is limited.

• Does best in sands and loams;
• Weekly perennial. Without frost will survive 2-3 years;
• However survives under heavy grazing because it forms a flat rosette on the ground;
• Compatible with Bahia Grass;
• Persists through heavy seeding and hard seed carry over (40% hard seed content common).

• Competidor and Argentine recommended varieties. Pensacola not as shade tolerant nor as palatable and not recommended;
• Both good palatable grasses which will handle extremes of grazing pressure;
• Doesn't require a lot of nitrogen to grow and this could be provided by companion legume;
• 20 plus years on it may suppress companion legume but not Cassia which is very compatible;
• CSIRO work in 1990 indicated Bahia Grass produced 35% higher dry matter yield under shade in spring/summer than it did in full sun;
• In all seasons under shade it produced greater greenleaf, nitrogen and water content than in full sun and provided a more digestible and higher protein diet;
• Slow to establish. Two (2) plus years.

• Soil test is recommended. Generally phosphate fertilisers with a sulphur content will be required in dry forest areas (ie superphosphate equivalent);
• For forest country, where keeping costs down is important, rate of application should be reasonable rather than an optimum;
• High analysis, low bulk fertiliser (with adequate sulphur content) are suggested to keep aerial application costs down;
• Legumes must be treated with Mo trioxide powder under acid coastal soil conditions to ensure effective nodulation. Subtropical legumes require higher rates than temperate species;
• Insecticides applied to the pasture seed will reduce seed loss from ant theft.

Improved Pasture

• The sub-tropical improved pasture species Archer Axillaris, Wynn Cassia and Bahia Grass (Argentine) grew and produced well in dry hardwood forest under conditions of shade and low nutrient soils.
• When compared with unimproved forest country left to native ground covers pasture improvement resulted in substantially more green dry matter and a more digestible, higher protein, higher energy pasture for grazing cattle. The result after three years was an increased carrying capacity of 125%.
• Pregnant cows grazing the improved pasture put on more weight prior to calving, lost less weight after calving (with potential to get back into calf quicker), and produced heavier calves than cows grazing unimproved pasture.
• A fixed analysis of financial results from trial work, based on a constant beef price and a livestock gross margin for unimproved dry forest at the 1995 level, was undertaken. The result showed that the increase in carrying capacity and increase in weaner weights would offset the costs of establishment in the first three years.
• Beef production from unimproved hardwood forest country probably produces a margin of $35 per hectare/annum in 2000 down from $45 in 1995. M W Pitt, Economist, DLWC, Coffs Harbour. With pasture improvement using Bahia grass and legumes at an average estimated cost of $189 hectare (2000) economic answers will depend very much on increases in beef prices.
• There is a current upward trend in beef prices and this will raise the beef production margin per hectare from improved hardwood forest country significantly and result in quicker recovery of pasture establishment costs.

• Most private property native forests have been managed "traditionally" and have not had the benefit of best practice forest management and consequently are not producing at an optimum level. With the implementation of silvicultural programs to achieve timber stand improvement timber returns can be significantly increased. "Silviculture" being the art and science of growing and maintaining trees.
• · At 2000 prices native forests correctly managed may have the potential to produce $86 per hectare/year based on a 10 year logging cycle. This, it is believed, is significantly above what the bulk of private native forests are currently producing.

• A system which integrates pasture with timber production and requires the implementation of best practice silvicultural management for the timber component. A selective logging to open the forest for pasture improvement can be used as a means to finance the pasture improvement.
• Obviously integrating the pasture with the timber will raise the expected margin per hectare significantly. The actual percentage increase will depend on what the land is currently producing.

A rather interesting mathematics exercise for the income conscious landholder.

An added benefit could be an increase in the diameter of trees growing in pasture improved forest. Queensland Department of Primary Industries Gympie reported a 30% increase in diameter of trees under pasture improvement over those growing in native pasture after a 10 year period. Queensland Agricultural Journal, Volume 110, Number1, 1984.

Bruce Cole-Clark
Resource Officer Agroforestry
Department Land and Water Conservation
GRAFTON

Updated November 2000

Go to Appendix 1