OVERSEER’s significant contribution to New Zealand agriculture
“OVERSEER is a tool that has given a great deal to the agriculture sector and will keep giving for the foreseeable future,” says Caroline Read the General Manager of OVERSEER. “It’s a gift that keeps giving,” she says. This follows the release of an independent valuation report prepared by Hamilton-based agricultural economist Phil Journeaux entitled “Valuation of the Benefits of the OVERSEER® Nutrient Budget Model”. In his report, Journeaux points out that OVERSEER has become a vital tool for managing nutrient use by providing a picture of nutrient movement on a farm, including estimating nutrient leaching. To derive similar information to that provided by OVERSEER would involve significant costs to users, especially farmers and regional councils, and may not be as accurate or effective in predicting nutrient use for individual farms. “The already sunk cost of the agricultural sector into OVERSEER is estimated at around $12m over its 16 year history. Journeaux’s estimates of the benefit to the sector far exceed this cost,” says Read. With or without-OVERSEER scenarios were considered by a range of experts interviewed by Journeaux during the three months of field research he undertook. He focused on three areas: fertiliser application, nutrient management on-farm and research, to arrive at an average benefit of $271m per year. This value projected over a 50 year lifetime is calculated as $3.3b. “This is a very large figure. It is useful to have specified this figure using recognised valuation criteria as it confirms that there is real and solid value in OVERSEER. It demonstrates that the investment of the OVERSEER owners has been more than justified and has created substantial value for the sector,” she says. The report notes that without OVERSEER, nutrient budget assessments would be more manual, taking more time and requiring more information and calculations. Soil testing […]