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Abstract
Labour scarcity and affordability have encouraged many farmers in
Western Australia to focus more on cropping than sheep production.
Many farmers are opting to run low input livestock systems. This paper
examines labour demand for sheep and cropping during the production
year, combined with various scenarios of labour availability and cost. The
implications for farm profitability and enterprise selection are examined
using the bio-economic farming systems model MIDAS (Model of an
Integrated Dryland Agricultural System). Labour requirements for sheep
are far greater than those for cropping. Additionally the labour
requirements for sheep are high in all production periods whilst the
seasonal nature of cropping means more time is required only at certain
times of the year, particularly at seeding and harvest. This means that the
most profitable labour option is employing casual labour during periods of
peak demand for cropping. The lesser relative profitability of the sheep
enterprise makes employing a permanent worker the least profitable
labour option. By contrast, employing casual labour during busy periods
for cropping is more profitable but it is also associated with only small
areas of perennial pastures being sown which has environmental
implications. The logistics of employing labour at only certain times of
the year compared to employing a full time worker means that farmers
need to pay more per week to employ these workers or do the extra work
themselves.