AARES News and Views



Newsletter of the Australian Agricultural and Resource Economics Society Inc.

Volume 15, Number 1, April 2003


President’s Column: Bill Malcolm

Reports to the 2003 Annual General Meeting
    President’s Report – Ron Duncan
    Secretary’s Report – Liz Petersen
    Treasurer’s Report – Mal Wegener
    AJARE Editors’ Report – Chris O’Donnell and John Mullen
    Manager – Promotion and Development’s Report – Lisa Brennan

AARES Annual Symposium 2003 – Market-based tools for environmental management


AARES 2003 47th Annual Conference

Contact Details for Office Bearers and Central Office

Deadline and Advertising

Editor: Tracy Henderson, Sugar Research and Development Corporation, thenderson
Note: click on logo at the start of each section to jump to next section.

AARES News and Views





It seems unanimous that the Freemantle Annual Conference was a fantastic experience - another case of what happens when you put over-achieving Western Australians in charge. Superb place, excellent organization, terrific company, and first class papers as well. The appreciation of the AARES membership to the WA branch and the Local Organising Committee (LOC) for the Conference is manifold.


The contribution of Ron Duncan as 2002 President is widely recognized by a grateful membership, and Julian Alston's time on Council as Pre-President, President, and Post-President has been served. Grand contributions both, and thanks.


The incoming Council met at the finish of the conference. Among other things, the Council noted:

·        the AARES has cash reserves of $165,000

·        the past couple of conferences have been well sponsored, and thus have made decent surpluses

·        membership fees and institutional subscriptions cover around half of the society's annual operating costs (including payments to branches), and thus we rely on cash surpluses from the Conference and the Annual Symposium to meet annual operating costs

·        The Manager Promotion and Development, Lisa Brennan, will focus on the increasingly important role of raising sponsorships for our main events, and some of the other tasks of the current role of the Manager Promotion and Development duties are likely to be seperated

·        AARES has a major commitment on which to deliver: the 2006 International Agricultural Economics Association Conference, in Brisbane. The 2006 Annual AARES Conference is also the 50th AAES/AARES annual conference, and will be held in conjunction with the international conference.

A two day Annual Symposium on Market Based Tools for Environmental Management will be held in Canberra in September.


A potential future development the Society might investigate; namely, transforming all the past editions of the AJAE/AJARE and the RMAE into electronic format, was also raised at Council. The costs of doing this are going to be explored. Members of the executive would be interested to hear from members about whether they think this might be a good suggestion or not, and about perceived benefits of having past copies of the journals available in electronic form.


The call for the next team of editors for the Journal has gone out. AARES members are urged to give some serious consideration to forming a team and having a go at this task. It is a professionally rewarding activity and a terrific contribution to the profession.


A warm welcome is extended to Jeff Bennett as AARES President Elect. Jeff has the pleasant creative challenge of putting together the program for the 2004 Annual Conference in Melbourne - a top choice for making such choices. Similarly, Mark Eigenraam is Chair of the LOC. It will all be happening in Melbourne next summer.


The University of Sydney, Faculty of Rural Management, Orange Campus has initiated a proposal for a group of people representing a wide range of farm management related skills and interests to form a national 'Farm Business Management Network' to further the interests and development of the farm management profession in Australia.


The survey of AARES members interests revealed one third of members were interested in farm management economics. As well, a reasonable quantity of work presented nowadays at AARES conferences is in the field of applied farm management economics - applied both on farm and at private-public resource management boundaries.


It is likely that following discussions AARES will opt to be involved in some way with this Network - not least to ensure that the core discipline of farm business management, economics, is fully and properly represented. Though oft-times it seems that in questions about resource use, whether private or public, everything is important except economics. as Jack Makeham always argued, following Earl Heady and John Dillon, 'economics is not an optional extra!


Nil Desperandum

Bill Malcolm

AARES News and Views



President’s Report

By Ron Duncan

I am pleased that I can report to you that the Society is in a strong position, both financially and in terms of membership numbers, as well as in terms of its professional activities.  This robust position is the outcome of the innovativeness and hard work of the past several Councils.  As you will hear in the reports from Council members, we have been able to increase the funds held in reserve, membership numbers are doing well in most branches, the Journal’s pipeline is in good shape, and the Society’s communications arrangements and outreach are improving, as reflected for example in the continued development of the website.

The Society continues to showcase the high quality and topical work of its members in various ways.  For example, the Annual Symposium has raised the public profile of the profession significantly through the discussion of topical issues, and has become a very effective way of increasing membership.  The 2003 Symposium looks to be another highly relevant and very successful event.  The Society is indebted to the initiators of this event and to all those who help to put them on.

The arrangements with the Australian Agribusiness Association have progressed very well and have been formalised this year with the signing of a Memorandum of Understanding between the two associations that encourages various kinds of collaboration.  The joint publication, Connections, seems to have been successful so far, encouraging the Council to continue the contribution of $5,000 to this year’s publications.

We have mourned the passing of three outstanding members of the Society, John Dillon, Ross Parish and John Quilkey.  They made lasting contributions in terms of their activities in the Society, their research, and their training of generations of members of the profession.  It is fitting that the Society honours their contributions and the contributions of other giants of the profession.  To that end the Council decided that this Conference would be the final year of the Alan Lloyd Fellowship and that a fund would be set up so that each Annual Conference would honour in a similar manner one of our distinguished fellows.

A challenge for incoming Council and the next will be to ensure that appropriate arrangements are made for the 2006 IAAE meeting to be held in Brisbane.  In particular, there is the question of what joint arrangements should be made between AARES and the IAAE Conference.

In conclusion, I would like to thank the members of Council for their contributions to the Society and for making my job such an enjoyable and fulfilling one.  I also thank again the 2003 Local Organising Committee for making this Conference so interesting and enjoyable.

I wish the incoming President and Council a very successful year.

Secretary’s Report

By Liz Petersen

Activities of the Society during 2002

1. Council of the Society

The 2002 Annual General Meeting was held on 14 February 2002 at the Rydges Hotel Lakeside, Canberra.  At the meeting, the following office bearers were elected:


Ron Duncan

President Elect:

Bill Malcolm


Liz Petersen


Mal Wegener

Manager Promotion and Development:

Lisa Brennan

Julian Alston automatically assumed membership of Council on becoming Immediate Past President. David Feldman attended Council meetings in 2002 as Chair of the Local Organising Committee for the 2003 conference. The Editors of The Australian Journal of Agricultural and Resource Economics are John Mullen and Chris O’Donnell – Chris O’Donnell is a member of the Council. Tracy Henderson is Editor of News and Views but is not a member of Council.

During 2002, the following members represented their Branches at Council meetings:

New South Wales:

John Mullen, Jason Crean

Australian Capital Territory:

Ron Duncan, Liz Petersen


Bill Malcolm


George Antony, Mal Wegener

Western Australia:

Ross Kingwell, Michael Burton

New England:

Garry Griffith, Bob Farquharson

South Australia:

no representation

North America:

Julian Alston, Phil Pardey, Jennifer James

New Zealand:

no representation

2. Business of Council

Council met four times since the last AGM: 15 February 2002, 31 May 2002, 18 September 2002 and 11 February 2003.

Some of the more important matters considered by Council in 2002 were: 

Financial management of the Society

3. Committees

The following members were appointed to committees of the Society in 2002:

PhD Thesis Award Panel:

Philip Hone (chair), Christy Chang, and Kevin Parton.

Masters Thesis Award Panel:

Paul Winter (chair), Rodney Beard, and Michael Burton


4. Branch Activities

Branch office bearers listed are those as at 31 December 2002.

Australian Capital Territory

President: Martin van Bueren

Secretary: Deborah Templeton

Treasurer: Michael Potter

Councillor: Paul Morris

Meetings held since 2002 AGM





Martin v Bueren, Prof Wolfgang Kasper, Larry Acton (NFF), Warwick Moss (WWF), Jim McColl (CSIRO)

Property Rights Symposium:  “Property rights and the rural environment - beyond the textbook”


Dan Sumner

Sundowner: Market and Environmental impacts of the 2002 US Farm Bill


David Vincent

Lunch-time Seminar: Effects of globalisation and economic development on the Asian livestock sector


John Brennan

Lunch-time Seminar: International agricultural research spillovers from ICARDA to Australia


Hannes Gissurarson

Sundowner: Icelandic system of Individual Transferable Quotas (ITQs) in fisheries


Other branch activities:

New England

President: Bob Farquharson

Treasurer: Gary Griffith

Secretary: Robyn Hean 

Councillor: Bob Farquharson

The New England Branch didn’t provide a report.


New South Wales

President: Bryony Mika

Treasurer: Zhangyue Zhou

Secretary: Inderpal Singh

Councillor: Jason Crean

Meetings held since 2002 AGM




3 July 2002

Professor Graeme Hugo

Regional Australia: Definitions, Diversity and Dichotomy

1 August 2002

Judson Agius

Biodiversity Credits

28 August 2002

Professor Jeff Bennett

Non-Market valuation and natural resource management

14 October, 2002

Dr Graeme Marshall

Adaptive management in collaborative NRM: The economics of walking the talk

12 December 2002

Dr Gerry Bates

Duty of care for the environment



President: Mary-Ann Franco-Dixon

Treasurer: Dinesha Emmery

Secretary: Tracy Henderson

Councillor: George Antony


Meetings held since 2002 AGM





John Ritchie

Use of seasonal forecasting of streamflow in the Border Rivers.


Paul Reithmuller

Some Aspects of the Livestock Industries in the Asia Pacific Region


Lew Williams

Queenslands commercial and recreational fisheries - technical and some economic issues


John Rolfe

Valuing environmental, social and cultural heritage impacts of

water resource development in the Fitzroy basin


Jeff Bennett

Non-market valuation and natural resource management


Glen Dixon

Pricing weather derivatives in the Australian market


George Antony

Torn between social equity and economic efficiency: the evolution and crisis of institutional relationships in the Australian sugar industry


Trevor Wilson

Does PNG have a future?


Mary-Ann Franco-Dixon

Queensland Branch AARES AGM & Presidential Address (topic TBA)


South Australia

President: Thea Mech

Secretary: Jack Langberg

Treasurer: Julian Morison

Councillor: Thea Mech (acting)

Meetings held since 2002 AGM





Simon Ward

Insight into UK and EU agriculture policy


James A. Carouso

US trade policy, issues in international trade as Doha approaches and the US Farm Act



President: Mark Eigenraam

Treasurer: Arthur Ha

Secretary: Charlotte Duke

Victoria has agreed to host the 2004 AARES Conference.


Western Australia

President: Ben White

Treasurer: Michael Burton

Secretary: Tennille Winter

Councillor: Ross Kingwell


Meetings held since 2002 AGM




March 8

Nuri Dewi Yanti, PhD student

Sustainability analysis of local and transmigrant farming systems in tidal swamplands: a case study in South Kalimantan, Indonesia

March 15

Marta Monjardino, PhD student

The economics of integrated weed management: a multi species approach

March 22

Prof Kay Muir-Leresche

Secure property rights and sustainable development: lessons from Zimbabwe

April 12

Dr Marian Garcia

A repositioning strategy for olive oil in the UK market

April 19

Dr Mathew Tonts

The implications of plantation forestry for rural communities: case studies from WA and SA

April 26

Ben White

Value at risk as a method of measuring farm revenue risk

May 3

Jo Pluske

An economic model to assist the decision in plant breeding

May 10

Dr Marian Garcia

The impact of private standards on exports from developing countries. The case of fresh produce from Mediterranean countries

May 17

Steffanie Scott


May 31

Atakelty Hailu

Agent based modeling for salinity analysis

June 7

Michele John

The farm economics of salinity management in a low rainfall agriculture environment.

July 26

Dr Atakelty Hailu

Carbon shadow prices for Canadian macroeconomy

August 2

Donna Brennan

Risk aversion and technology choice for Vietnamese rice shrimp farmers

August 9th

Steven Schilizzi

Presidential Address: Contributions to economics to the management of our natural assets: past present and future

August 9th

WA Branch


August 16

David Feldman

The WA potato industry

August 23

Garry Griffith UNE

Evaluating the returns from beef cattle genetics R&D in Australia

August 30

Tennille Graham PhD student

Salinity, policy, instruments: where to for WA?

Sept 6

Sarah Lumley

Environmental justice and sustainability

Sept 13

Greg Hertzler

A $2.5 million gamble on crop insurance

Sept 20

Dan Rigby

U of Manchester

Right target, wrong mechanism? Agricultural mechanization and poverty reduction in Uganda

Oct 11

Kath Broderick

PhD student

Indicators of ecosystem health in a WA salinity recovery catchment

Oct 18

Jing Zhang

MSc Student

Understanding behaviors of recreational fishers and valuing recreational fishing

Oct 25

Emeritus Prof Bob Lindner

The economics of crop variety testing

Nov 1

Dan Rigby

U of Manchester

Organic food miles and sustainability spatial scale

Dec 9th

Bob Chambers (Uni of Maryland), Ross Kingwell and Ben White

Contracts Between Government and the Firm: case studies from agriculture and environmental regulation.

Feb 11th 2003

Robyn Hean, Craig Beverley and variety of other speakers


Dryland Salinity: Economic issues at farm, catchment and policy levels.

Feb 11th 2003

Greg Hertzler and various other speakers


Managing climate risk in agriculture


New Zealand Branch

President: Caroline Saunders

Treasurer: Murray Doak

Secretary: Anita Wreford

Councillor: Frank Scrimgeor


 Meetings held since 2002 AGM




5-6 July 2002


NZARES Annual Conference “New Zealand – the international citizen”

5 July 2002




North American Branch

President: Jennifer James

Treasurer/Secretary: Laura McCann

Councillors: Julian Alston, Nick Piggott


 Meetings held since 2002 AGM




July 29, 2002


Annual Branch meeting

July 30, 2002


Business meeting

The annual branch meeting was held at the American Agricultural Economics Association meetings in Long Beach, CA and consisted of a reception at Shoreline Park.  Sixty-two people attended, 15 people joined the Society, and 6 renewed their memberships at the event.  Liz Petersen, the first winner of the AARES-AAEA Young Professionals “Heading North” Travel Award, was recognized, and the second “Heading South” was awarded to Tom Marsh of Kansas State University who will be attending the meetings in Fremantle.  Nick Piggott coordinated the judging.

A business meeting was held the following day, and the primary topic of discussion was the future of the Young Professionals Travel Awards.  The branch would like to see more applications and encourages less senior faculty members to apply.  We plan to write department heads and Branch officers to advertise the awards. 

An application was submitted to the American Agricultural Economics Foundation for continuation of funding for the new AARES-AAEA Young Professionals awards.  The awards have two components, a “Heading South” award to support a North American’s attendance at the AARES conference, and a “Heading North” award to support an Australian/New Zealander’s attendance at the AAEA conference.  We requested funding for another two years of the program, and have not yet heard the Foundation’s decision.

Dan Phaneuf of North Carolina State, the winner of the first “Heading South” award attended the AARES conference in Canberra.  As mentioned, Liz Petersen, the winner of the first “Heading North” award attended the AAEA conference in Long Beach.  Both rated their trips professionally and personally successful, and personal statements to that effect were published in the News and Views.

5. Prize winners

Undergraduate prize winners:

New England: Stephen Dalton, University of New England

New South Wales: Paul Burke, University of Sydney

Queensland: Jonathon Newby, University of Queensland

ACT: Andrew Hodges, Australian National University

New Zealand: Jenny-Marie Wakelin, Lincoln University

Western Australia: Michael Young, University of Western Australia

South Australia: Julia Tan, University of Adelaide

Victoria: Not prize awarded


Masters Prize winner:

Ben Henderson of the University of Western Australia

The title of his Masters thesis is “Efficiency in Western Australian Broadacre Agriculture: A Comparison between Data Envelopment Analysis and Stochastic Frontier Analysis”.

Primary Supervisor: Ross Kingwell


PhD Prize winner:

Graham Marshall of the University of New England

The title of his PhD is “Crafting Cooperation in the Commons: An Economic Analysis of Prospects for Collaborative Environmental Governance”

Primary Supervisor: Brian Dollery


Prize for the Best Article in the Australian Journal of Agricultural and Resource Economics: Michael Harris and Iain Fraser.

The title of the article is “Natural resource accounting in theory and practice: A critical assessment”


AARES /AAEA Young Professionals Exchange Travel Award - Heading South

Tom Marsh, Kansas State University


AARES /AAEA Young Professionals Exchange Travel Award - Heading North

John Gibson, the University of Waikato


2002 Distinguished Fellows

Jock Anderson

Tony Chisholm

Brian Fisher

Bob Lindner


2002 Distinguished Life Member

There were no nominations for a Distinguished Life Member

Winners of AARES financial support to attend the 2003 Conference of the International Association of Agricultural Economists

Anita Wreford, Lincoln University

Graham Marshall, The University of New England


Treasurer’s Report

By Malcolm Wegener

Financial position – cheque account

The balance in the Society’s cheque account on 31 December 2002, after reconciliation for unpresented cheques was $21,493.

Financial position – fixed deposits

In 2002, the majority of the Society’s surplus funds were invested in a Commercial Bill with the Commonwealth Bank which matured on 24 January 2003 having accumulated interest of $4 620.  There were sufficient funds in the cheque account after receiving the surplus from the Canberra conference and advance payments on 2002 subscriptions from Blackwell to place another
$50 000 on Fixed Deposit in November.

When these two investments matured, the principal and most of the accumulated interest, making a total of $165 000 were re-invested in a Term Deposit on 3 February 2003 for 100 days at an interest rate of 4.6 percent (to mature on 14 May 2003).

Investment Schedule

Fixed Deposit

Date of investment


Interest rate

Interest paid this year

CBA Certificate of Deposit

24 January 2002

365 days (maturing 24 January 2003)

4.2 percent

$4 620 paid at maturity

CBA Term Deposit

1 November 2002

3 months (maturing 30 January 2003)

4.4 percent

$542 paid at maturity

An investment of the size that the Society now has represents a prudent approach to financial risk management.  The Society is clearly dependent on the financial surpluses from its annual conference to meet a significant proportion of its operating costs each year since membership fees and institutional subscriptions cover just over half of our annual operating costs.  In the unlikely event of a failed conference, we need to have sufficient funds available to enable the Society to continue operating for at least one year.  The Society has also entered into a number of long-term commitments for which funding needs to be secure.

The healthy financial position of the Society is due largely to the exceptionally big surplus from the Adelaide conference in 2001, the good surplus from the Canberra conference in 2002, and the continuing recruitment of new members into the Society by branches.

Statement of income and expenditure

The Society had another financially successful year in 2002 with an estimated surplus over operating costs of approximately $19 000.  A copy of the statement of income and expenditure for 2002 is presented in the next table.  However, the success was almost totally due to the excellent results from the Canberra conference (with a surplus of nearly $18 000) meaning that the combined effect of the Society’s other activities was to just cover costs.

In spite of our healthy bank balance, the Council has been concerned for some time to strengthen the financial base of the society.  Subscription rates for Australian and New Zealand members were raised for 2003 and the publishing contract with Blackwell was re-negotiated in 2001 to permit AARES to receive a share of the subscription revenue paid by libraries and institutions and to impose page charges on articles accepted for publication in 2002.  These decisions are mostly reflected in the higher amounts budgeted from these sources for 2003.

Subscription rates for Australian and New Zealand members were raised to $90 for 2003 while keeping subscriptions for members in other countries at their existing level in order to partly remove the disparity in real cost of membership between countries due to the exchange rate.

Statement of cash income and expenditure, 2002

2002 Budget

1 Jan-31 Dec 2002

2002 Outcome

2003 Budget

18 000
43 200
4 000

4 500

Operating income
CD sales
Conference surplus (net of direct costs)
Other income

1 502.27
23 526.61
1 579.98
53 344.00
7 980.91

 1 500
15 000
6 500
57 000
15 000
3 000

75 800

Total Operating income

88 220.51

98 400

33 000
5 000
7 250
1 000
8 000
7 000
5 00
4 000
4 500

1 250

Less Operating expenses
AJARE Editorial office
Alan Lloyd Fellowship
Awards and prizes
Bank charges
Branch payments
Connections and Newsletter
Council expenses
Conference expenses
Sundry expenses

29 162.60
2 026.10
4 224.09
9 954.00
6 038.26
5 853.49
3 000.00
6 069.86
1 141.00

35 000
5 000
4 500
10 000
6 000
1 000
6 000
3 000
6 000
1 250

72 000

Total Operating Expenses

69 008.82

78 650

3 800

Operating surplus

19 211.69

19 750

32 000

Add extraordinary income
Less extraordinary expenses

32 063.00


35 800

Cash surplus

51 274.69


Notes and explanations:

1. Interest income was reduced in 2002 by the decision to invest surplus funds in a 12-month Commercial Bill with the Commonwealth Bank which was the highest interest rate offered at the time.

2. Other income includes editorial royalties and sundry items.  Page charges were introduced for articles accepted for publication in AJARE from 2002. Under the re-negotiated agreement with Blackwell, 92% of the revenue from this source will be passed on to the Society.

3. Extraordinary income in 2002 included a late payment of membership subscriptions from Blackwell which was received after the end of 2001 financial year.

4. News and Views was distributed electronically in 2002 at a considerable cost saving to the Society.  Council agreed to continue publication of Connections in 2003.

Statement of Assets and Liabilities

31 December 2001


31 December 2002

40 732
12 355

108 287

Current Assets
AARES General Account
GASP (Alan Lloyd Fellowship Fund)
Aust Tax Office (GST refund)
Commonwealth Bank (Fixed Deposits)
Total Current Assets

14 165.41
7 328.70
160 000.00
181 708.92


Non-Current Assets
Equipment (at written-down value)
Journal and Review stocks


162 145

Total Assets

182 375.92

162 145

Members’ Equity

182 375.92

Note: The nominal amount previously included for AJARE and Review stocks has been written off.

Council decided during the past year to re-name the Alan Lloyd Fellowship Fund as the Distinguished Fellows Fund and agreed to replenish the Fund in view of the substantial surpluses made from Annual Conferences and Symposia in the past two years.  An amount of $30 000 of the Society’s funds, currently part of the funds held on Fixed Deposit with the Commonwealth Bank, will be reserved to fund the Distinguished Fellows address at Annual Conferences over the next five years, with the option of continuing the lecture series for a further five years if considered desirable.


The accounts for the Society for 2002 have been audited by John Johnstone.  His report was received and endorsed by the Council at its meeting on 11 February 2003.   The returns required by the Victorian Corporate Affairs Commission from the Public Officer for the Society were duly submitted during the year.


The Society is registered for Goods and Services Tax and quarterly BAS statements have been submitted regularly since the scheme was introduced.

A significant proportion of the Society’s cash flows, particularly the receipt of subscription income from Blackwell is an international transaction that is not subject to GST.  The following table summarises GST activity for the past year.

 Summary of GST payments for 2002 (cash basis)






Total income for quarter

Income (GST liable)

GST payable

Total expend-iture

Expend-iture for input tax credits

GST (input tax credits)

ATO payment (refund)

31 Mar
30 June
30 Sept
31 Dec

34 678
20 692
6 582
58 334

1 145
1 563
6 181
17 875

 1 787

14 872
20 812
3 602
22 026

11 611
8 450
2 232
20 031

 1 100
2 002



120 286

26 764

2 638

61 312

42 324

4 185

(1 554)


Branch grants

A transfer of funds totalling $9 954 was made to branches in December 2002.  Payments are made in proportion to the branches current membership numbers and growth during the year.  Details of membership numbers and branch payments are provided in the following table.

The standard practice is for branches to receive a base grant of $300 in addition to $7.50 per ordinary member or equivalent plus a $24 bonus for each new member recruited during the year.  The Victorian Branch had the highest number of new members due to the successful Symposium held in Melbourne in October 2001.  A share of the surplus from the Canberra Annual Conference is due to the ACT Branch.  The ACT, NSW and North American Branches all recruited substantial numbers of new members during the year.  While 128 new members were added to the membership list during 2002, the total number of members at the end of the year was only a little higher than for the previous year.  This turnover in membership represents a problem that the Society needs to address.

Branch membership and branch grants, 1999 – 2002









New South Wales
Uni of New England
South Australia

Western Australia
North America
Other overseas





1 396
2 068
1 326
1 257






$9 954



The Society has agreed to continue joint publication of the electronic journal Connections with the Agribusiness Association of Australia for another year at a cost of $5 000 and held discussions with AAA about the possibility of other joint activities.

The editorial office for AJARE continues to be located at the University of New England while Blackwell Publishing maintain the membership directory and undertake printing and distribution of the Journal.  Blackwell did indicate their intention to relocate management of the Journal to their Melbourne office in 2002 but this was deferred.  The shift when it occurs will have GST implications for membership subscriptions since the notices are currently issued from Blackwell’s Oxford UK office and are regarded as international payments for GST purposes.

Outlook for 2003

Continuation of the Society’s activities remains dependent on the successful financial outcomes from conferences and symposia despite recent steps by the Council to strengthen other sources of revenue such as a share of the subscription income from the Journal and setting page charges on published articles.

The results for the 2003 conference seem assured and plans for the symposium on “Market-based instruments for natural resource management” to be held in Canberra later this year are well in hand.  The Council is aware of the responsibility delegated to local organising committees to organise and manage these events profitably and is moving to formalise agreements for these activities so that everyone is clear where responsibility lies for financial and other matters.  One of the key issues concerns sponsorship for these events which, if available, facilitates successful events by including international speakers as part of the program and permits a lower registration fee to be charged for both members and non-members than would otherwise be the case.  Members of local organising committees usually have close professional relationships with potential sponsors who we expect will continue to contribute an increasing proportion of the funding needed to support the Society’s activities and help it deliver on the “public good” aspects of its charter.

Editors’ Report

By Chris O'Donnell and John Mullen



This report covers the twelve month period to 31 December 2002.

  1. Statistics. Summary statistics on numbers of pages and articles printed, papers received, decisions taken, papers under review and the ranking of the Journal are provided in the table overleaf.  Highlights include:
  2. Publishing. All issues in the 2002 volume were published on schedule.  Proofs for the March 2003 issue are still with authors and the Blackwells Production Editor, Elissa Wilson.  All but two papers for the June 2003 issue have been submitted to the publishers.
  3. Supply of Manuscripts. We have not yet been in a position where we have had to defer a paper because of space constraints, and there are currently no papers available for despatch to the publishers for publication in the September issue.  Fortunately, there are a reasonably large number of papers currently under review.
  4. Editorial Board.  Members of the Editorial Board serve to enhance the status of the Journal and generally contribute to maintaining the quality of our Journal as an outlet for applied economics research related to agriculture and the management of natural resources. We sometimes ask Board members to referee papers, and we occasionally ask them to adjudicate when referees hold contrary views about the merits of a paper.  It is AJARE policy to change three members of the Editorial Board each year (usually the longest serving members).  There have been no changes to the composition of the Board for two years, so this year we changed seven members of the Board.  New Board members in 2003 include David Pannell, Deborah Peterson, Donna Brennan, Kerry Smith, Grant Scobie, Yiping Huang and Phil Pardey.  These new members replace Colin Brown, Brian Fisher, Yujiro Hayami, Allan Rae, Alan Randall, Carolyn Tanner and Brian Wright.  We are extremely grateful for the service these latter Board members have provided to the Journal over many years, and the prestige they brought to the Journal as members of the Board.

Finally, we would like to thank the Associate Editors (Jeff Bennett from ANU, Ray Trewin from ACIAR, Garry Griffith from NSW Agriculture and Paul Winters from the Inter-America Development Bank), the Book Review Editor (Graham Marshall from UNE), authors and reviewers for their contributions to AJARE over the last twelve months.  Special thanks also go to Honey Greenwood in the AJARE/AARES office.

Chris O'Donnell, University of Queensland

John Mullen, NSW Agriculture

Co-Editors, AJARE

Summary Information 1999-2002






Published Volumes





Volume Number





Number of Issues





Page Budget





Pages a




















Policy Forum Papers





Book Reviews










Papers Receivedb




















Decisions Taken










Revise and resubmit















Total c





Acceptance Rate (%)d





Papers under review at 31 Dec.





ISI Ranking





ISI Impact Factore





a  Includes editorial text and Blackwell advertising as per agreement with Blackwell.

b  Book reviews and obituaries are not included; each resubmission of the same paper is counted separately.

c  The total number of decisions does not always equal the total number of papers received because some decisions are made in respect of papers received in the previous year(s).

d Acceptance rate in year x = (papers accepted in year x)/(new papers received in year x) × 100.

e  Impact factor in year x  =  .


Manager - Promotion and Development’s Report

By Lisa Brennan

This report summarises activities in 2002 relevant to two key areas:

a) growing and maintaining a viable membership base to support the products and services provided by the Society to members, and

b) ensuring that membership of AARES continues to create value for members


At end of 2002 there were:

-  218 Institutional Subscribers, down from last year’s count of 305

-  670 individual members, an increase of 31 members since 2001.

Branch numbers remained relatively stable, but with a notable increase in Victoria. The 38 new memberships attributable to the 2000 AARES Annual Symposium in Melbourne would have influenced this increase.






















North America































































[1] The astute reader will notice that the sum of the branch totals is actually 665. At the time of report preparation, there were five members that did not have a branch affiliation specified in our membership records. This discrepancy is being followed up.

The Annual Conferences and Symposia draw in the bulk of new members – together, they added 60 new members to the Society in 2002.  Approximately 200 members did not renew their membership in 2002 (this is similar to the previous year’s number of 168). Although lapsed memberships are expected, particularly given that most new members join through Conference/Symposium attendance, this does highlight that promotion and development activities should not only target increasing the number of memberships, but ensuring that the products and services offered by the Society are valued by existing members.

In my report to last year’s AGM, I mentioned that there were concerns about errors in the processing of membership subscriptions, which are managed by Blackwell. In 2002, we believe that the situation has improved considerably, with few problems reported.  That said, members who do experience any difficulties associated with the processing of their membership subscription should notify the AARES Central Office. The contact details are:

Ms Honey Greenwood

AARES Central Office Manager,

School of Economics, University of New England,


Phone:  02 6773 3278 Fax:  02 6773 3607

Email: journal.ajare

This will ensure that the Office is aware of the concern, and it will be followed up on the member’s behalf as promptly as possible.

Members have their say - 2002 AARES Survey of Members

AARES members were surveyed to obtain feedback on a) ways to improve existing products and services offered by the Society and b) to guide the development of new initiatives to benefit members.  The survey was conducted electronically, with members directed to the survey by email on 25/9/02. A reminder email was sent on 8/10/02 and responses were collated after the close of the survey on 14/10/02. The survey returned a response rate of 34%, equating to 221 respondents.

A sincere thank you is extended to members who completed the survey, and to Tracy Henderson who converted the questionnaire into an electronic format.  Many respondents generously supplemented their responses to the survey questions with valuable comments for improving branch meetings, the Annual Conferences and Symposia, and the various publications of the Society.

A draft report of the survey results was presented to the AARES Outgoing Council Meeting, 11/02/03, and a final report of the findings will be published in the next edition of News and Views.

Branch support

Correspondence with branches in 2002 included: 

News and Views now electronic

News and Views was distributed to members electronically for the first time in 2002, as a measure to reduce the costs of printing, postage and labour associated with the production of News and Views in hard copy form. News and Views is made available on the AARES web page and members are alerted to its posting by email.

The transition to electronic distribution ran smoothly, with the only troublesome aspect being the difficulties making electronic contact with members, despite efforts to get email addresses updated prior to electronic distribution. Accurate email addresses are vital to our ability to deliver services to members electronically. Please help us ensure your current email address is on the News and Views mailing list by visiting the AARES web site and checking your details. 


I would like to acknowledge Tracy Henderson (News and Views Editor), Dave Pannell (former AARES Web Manager) and Atakelty Hailu (AARES Web Manager) for their fantastic efforts in producing News and Views in 2002.

AARES Web Page

David Pannell handed over the reins to new Web Manager to Atakelty Hailu after 5 years of service in managing the content, layout and programming of our web site. Dave significantly enhanced the web site during his time as Web Manager and his efforts are gratefully acknowledged. Under Atakelty’s management, the Society’s web page at http://come.to/aares has and will continue to grow, evolve and improve.

Connections continues 

Connections: Farm, Food and Resource Issues is now into its second year. This electronic publication is a joint product of the Australian Agricultural and Resource Economics Society (AARES) and the Australian Agribusiness Association (AAA). Connections publishes topical material on policy and marketing, primary industries and resources, farm and agribusiness in rural and regional Australia. Connections represents a commitment by both groups to the extension of information about economic and business issues affecting rural industries, resources and communities. The editors of Connections, Bill Malcolm and Glenn Ronan, are keen to receive feedback from you about published articles and issues.  You can get access to Connections on the web-site of the Agribusiness Association of Australia at http://www.agribusiness.asn.au/Connections/Index.htm

Strengthening links with sponsors

AARES gratefully acknowledges the support of our sponsors, and the need to engage our Conference and Symposium sponsors in program planning to a greater extent.  The duties of Manager Promotion and Development were expanded in 2002 to assist the LOCs in this regard. Learnings from tentative activities in 2002 have provided direction for strengthening our linkages with sponsors in 2003.

Your feedback wanted!

AARES exists for its members – your feedback is valued! Any comments on promotion and development activities undertaken in 2002, proposed initiatives for 2003, or any other suggestions on ways to improve benefits for members are always welcome. Please direct comments to the AARES Central Office or contact me directly  (Lisa.Brennan or 07 3214 2375).


The input and support that many AARES members, particularly those of the AARES Executive Committee, have contributed to promotion and development activities in 2002 is gratefully acknowledged.  The Society is grateful to the Agribusiness Association of Australia for hosting the AARES directory page on its web site, in association with our joint publication "Connections".


AARES News and Views







September 2-3, 2003, Canberra, Australia


Market based instruments are emerging as an important tools for management of natural and environmental resources.  Recent applications of market mechanisms in Australia include salinity management (Hunter River salinity trading scheme, NSW EPA), environmental services (Victoria’s Bushtender pilot program) and renewable energy (Renewable energy tradeable certificates, AGO).  Non-government examples include the ‘piggy-backing’ of environmental outputs on other products via labelling, for example Banrock Wines bundles wetland protection with wine consumption.  The importance of these instruments will increase under the sponsorship of the National Market Based Instruments Pilots Program.



A linked two-day symposium exploring the concepts, practice and complexities of applying market based instruments to the management of natural resources and the environment will be held in Canberra in September 2003.  Day one will develop the fundamentals and core concepts of market-based instruments for natural resource and environmental management, the underpinning economic principles and a review of their current extent and status in Australia as well as impediments to their further adoption.  Day two will delve into these issues in detail including natural resource and environmental management problems and market creation, the potential and limits to market based mechanisms in Australia, market performance measures and integration of more traditional tools with market based instruments.


This workshop is a must for:

Registration will be available for the whole Symposium or each day separately. 


To receive registration material and further Symposium information contact:

               Stuart Whitten

               The Markets for Ecosystem Services Project

               CSIRO Sustainable Ecosystems

               Ph: 02 6242 1683

               Fax: 02 6242 1705

               Email: stuart.whitten

AARES News and Views




AARES members have their say

Many thanks to members who completed the recent AARES survey of members. The survey returned a 34% response rate. Results are now being collated and analysed and will be reported shortly. Respondents were not lost for words!  Many supplemented their answers to the survey questions with valuable comments for improving branch meetings, the Annual Conferences and Symposia, and the various publications of the Society.

5th Annual AARES Symposium: The US Farm Bill and implications for agricultural trade & John L. Dillon Commemorative Day

A very successful AARES Symposium was held on Thursday 19th September 2002 at The University of New England (UNE), hosted by the New England Branch of AARES.  The new US Farm Bill will have important impacts upon international agricultural trade and the pace of international agricultural trade reform. The AARES Symposium attracted an audience of 32 who wished to understand the nature of the Farm Bill and what it means for those involved in international agricultural trade, especially Australian exporters. The Symposium was opened by Dennis Gebbie, Chief International Agricultural Advisor to Agriculture, Fisheries and Forestry Australia.  Two senior academics from the US then addressed the Symposium: Professor Daniel Sumner of the University of California at Davis, visiting Fulbright Senior Specialist at UNE and former Senior Staff Economist on the US President’s Council of Economic Advisors; and Professor David Orden of Virginia Polytechnic Institute and State University, co-author of the recently published "Policy Reform in American Agriculture: Analysis and Prognosis". During the rest of the day, perspectives on the issue were provided by David Fetter of the US Embassy, Ivan Roberts of ABARE, Donald MacLaren of the University of Melbourne, Allan Rae of Massey University and Warren Males of the Queensland Sugar Limited. In each session, ample time was allowed for airing of alternative viewpoints and general discussion. Kym Anderson of the University of Adelaide summed up the day's discussions.

The John L. Dillon AO Commemorative Day on "Agricultural Research: Challenges and Economics in the New Millennium" followed on Friday 20th September 2002 at the same venue. This day was organised by Emeritus Professor Jock Anderson to acknowledge the outstanding contributions that the late John Dillon made to the national and international community, particularly his contributions in the way of fostering agricultural research and development that was his main interest during the latter part of his career. A variety of national and international speakers provided accounts of the challenges facing agricultural research at the present time to an audience of approximately 40.  The day began with the renaming of Lecture Theatre 4 in the Faculty of Economics, Business and Law at UNE as the John L. Dillon Lecture Theatre.

On the night of 19th September a dinner was held for those attending one or both days. Emeritus Professor Jack Lewis, founder of agricultural economics at UNE, provided great entertainment in his after-dinner address.  Several former colleagues, students and friends of John Dillon spoke of his involvement in their lives. It was a memorable occasion for the more than 50 attendees.

The John L. Dillon Commemorative Day and Dinner broke even financially, while the 5th Annual AARES Symposium is estimated to have generated a surplus of around $2,400. A special thanks is extended to sponsors of the Symposium and Dillon Day: Agriculture, Fisheries and Forestry Australia; the Fulbright Foundation; the Rural Industries Research and Development Corporation; Tyrrell's Wines, the Agricultural Business Research Institute at UNE, the UNE Faculty of Economics, Business and Law and the UNE Development Office.


Introduction to the AARES Web Manager – Atakelty Hailu


As the new manager of the AARES web site, I thought I should introduce myself to AARES members. My name is Atakelty Hailu. I came from Canada to Australia about a year ago to take up a position as a lecturer in the School of Agricultural and Resource Economics at the University of Western Australia. My primary research interests are in the application of agent-based computational economics and environmentally sensitive productivity analysis towards the design of appropriate policies. 

I have recently taken over from Dave Pannell the responsibility of managing the society’s web site. I would like to take this opportunity to thank Dave for the wonderful job he has done in designing and organizing the web site over the past four years. That has made my job relatively easy. Dave was also kind enough to find the time in his hectic pre-holiday weeks as well as afterwards to help me get up to speed with the details of managing the site. 


I look forward to working with AARES members and office bearers to keep the web site a useful means of communication. I also look forward to receiving comments and suggestions for improvement.


International Agricultural Economics Association Conference, 2006


The 2006 Conference of the International Agricultural Economics Association will be at the Brisbane Convention Centre in August 2006.  Even though this is a long way off, planning for the conference has started.  AARES Federal Treasurer, Mal Wegener, is the interim convenor for the conference organising committee and he is in the process of contacting members to join the organising committee for this event.  While the committee will be based in Brisbane, Mal is seeking wide representation on the committee from AARES members in all states.  A number of members responded to an expression of interest included in the previous issue of News and Views and they have been approached to join the committee.


At its last meeting in Armidale on 18th September, the AARES Council decided to invite the New Zealand Agricultural Economics Society and the Asian Agricultural Economics Society each to nominate a representative to sit on the organising committee.  These invitations are currently being processed through Federal President, Ron Duncan.


One of the early tasks of the organising committee will be to select a Professional Conference Organiser for IAAE 2006 who ideally should be named before the next IAAE conference to be held in Durban, South Africa, in August 2003.  The other major task is the preparation of a formal proposal for the 2006 conference to present to the IAAE Executive which will meet during the Durban conference.

So watch this space for unfolding announcements about IAAE 2006.  It will be the 50th anniversary conference of AARES and we wish to celebrate this significant event in the life of our profession with international guests.

Important notice from Blackwell Publishing

There are problems with the renewal notices recently sent from Blackwell Publishing to all AARES members for 2003 membership subscriptions. 

Unfortunately, the rates stated are incorrect, and Blackwell Publishing would like to apologise for any inconvenience caused.  Revised notices will be issued shortly with the following correct rates:


Australia and NZ


Rest of world

Ordinary members




Student members








In the meantime AARES members can return the current renewal form with payment at the correct rates.  Alternatively members can wait for the revised renewal form before making payment. Any members who have already paid at the incorrect rate will receive a refund of the difference from Blackwell Publishing shortly. If you have any queries, please feel free to contact AARES Central Office or Jennifer McDonald at Blackwell Publishing Asia on (03) 8359 1027 or jennifer.mcdonald

International Conference of the European Society for Ecological Economics

The Fifth International Conference of the European Society for Ecological Economics will take place February 12 – 15 in Tenerife, Canary Islands, Spain.  Detailed descriptions of subject areas, forms and conference information can found at http://www.euroecolecon.org/frontiers

Australian Farming Systems Conference

The First Australian Farming Systems Conference will be held 7 – 10 September 2003 in Toowoomba, Queensland.  The Conference aims to provide a forum for exposure, dialogue and learning about Farming Systems approaches, methodologies, methods, and their application.  The purpose of the conference is to explore and challenge current thinking by sharing contemporary experiences and achievements from a diverse range of situations (including social, international, inter-disciplinary). 

Intending authors are invited to submit the titles of proposed papers together with an abstract of about 300 words outlining the aim, content and the conclusions of their papers by 8 February 2003.  For further information please contact The Conference Secretariat, Meetings and Events Department, University of Southern Queensland, PO Box 282, Darling Heights Q 4350; email stewartc; phone 07 4631 2190; fax 07 4635 5550. 

Journal of Agricultural & Food Industrial Organisation (JAFIO)

The Berkeley Electronic Press is pleased to announce the launch of the Journal of Agricultural & Food Industrial Organization (JAFIO), a peer-reviewed electronic journal. To view the inaugural issue visit http://www.bepress.com/jafio.  Submissions can also be made from the same website by clicking the "Submit Article" link in the upper right corner.  Journal of Agricultural & Food Industrial Organization provides a unique forum empirical and theoretical research in industrial organization with emphasis on the agricultural and food industry worldwide. An important aim is to foster use of modern advances in game theory, economics of information, transaction cost economics, and bargaining theory in the analysis of agricultural and food industrial organization and policy issues.  Of particular interest are issues related to regulatory economics and competition policy, horizontal and vertical coordination, mergers and acquisitions, contracts, auctions, monopolistic competition and product differentiation, food labeling, food safety, cooperatives and strategic alliances, economics of innovation and property rights, strategic trade, market structure and environmental economics, and political economy.


Reminder: AARES-AAEA "Young" Professionals Travel Exchange Awards

AARES and the Foundation of the American Agricultural Economics Association (AAEA) will offer two travel awards again this year.  These awards are intended for agricultural and resource economists (of all ages) in the early stages of their careers, in order to provide them with an opportunity for professional and personal development and international professional and cultural exchange.  Stage of career rather than age is what defines an appropriate applicant. Each award will have a value of US$2,000 to be used to assist the winner to participate in the annual conference of either the AARES or the AAEA.  Applicants for both awards must be members of both the AARES and the AAEA.

The 2003 “Heading South” award has been awarded to Tom Marsh of Kansas State University to support his participation in the AARES 2003 annual conference to be held in Fremantle next February. 

The second award, “Heading North,” will be given to a resident of Australia or New Zealand to support their participation in the 2003 Annual Conference of the AAEA. The value of the award will be US$2,000. Award recipients will be determined based on a submitted paper, a one-page biographical statement, and a one-page statement in support of their application. They will be expected to present the paper at the AAEA conference. 

AARES and AAEA members resident in Australia or New Zealand are hereby invited to apply for the “Heading North” award, for travel to the AAEA conference to be held in Montreal, Canada from July 27-30, 2003.  Applications should include (1) a paper for presentation at the conference, representing their original and unpublished work, (2) a one-page biographical statement, and (3) a one-page statement in support of their application, indicating what they would hope to accomplish through the award, and why they would be deserving of the award.  The winner of the award will be determined by a committee, based on the submitted materials, with some emphasis on the quality of the paper.  Electronic submissions (preferably in PDF form) should be e-mailed to Garry Griffith (garry.griffith).  Applications must be received by Friday December 20, 2002, and the winner will be announced at the AARES conference in Fremantle.  Please address any questions about the application process to Garry Griffith (garry.griffith, (02) 6770 1826).

Concessional rates for emeriti

AARES Federal Council has established a membership category of “Emeritus” for retired AARES members.  The membership subscription will be the same as for student members, which is set at one-half of full members.  We feel that it is important for the Society to maintain the participation of older members and it is hoped that this move will help in doing that.


Connections: farm, food and resource issues

The Spring edition of Connections was published in late November, and features articles by John Freebairn on drought policy, Tim Cummins on future developments in water markets, Tony Fischer on world food supply and rural landscapes and Venton Cook on keeping track of changes in food processing performance. Following its pilot year, Connections has been granted a further licence to publish in 2003 by AARES and the Australian Agribusiness Association (AAA).

The editors of Connections Glenn Ronan and Bill Malcolm would like to ensure that the coverage of material that is being written, and sometimes is presented at fora, around the country, is comprehensive. Whilst they have a reasonable access to what is going on in their immediate vicinity (i.e. South Australia and Victoria), they would really like to have some co-operating co-editors in each of the other States and Territories to keep an eye out for possible Connections material. To this end, Glenn and Bill invite anyone from different parts of Australia who might be willing to act as a co-editor with them to contact them. The role is as simple as identifying potential material and alerting the editors about it - if so inclined, co-editors can also be involved in the boiling down process that converts 'a lot of material of little interest to anyone' to 'a little material of a lot of interest to everyone'. Anyway, please get in touch with Glenn Ronan (ronan.glenn)or Bill Malcolm (b.malcolm) if interested in acting as a co-editor of Connections.

View published issues of Connections at http://www.agribusiness.asn.au/Connections/index.htm


Expressions of Interest in the Position of Editor: Australian Journal of Agricultural and Resource Economics

The Co-Editors of AJARE have advised that they will not be seeking to renew their positions following the completion of their current term in June 2004.  Accordingly, expressions of interest are sought from individuals or teams interested in filling these prestigious positions.  Interested persons are advised that:

·         The normal length of term for an editorial team is three years.

·         The Editors are supported by Associate Editors and an Editorial Board.

·         The Editors work closely and collaboratively with our publisher, Blackwell.

·         Financial support for editorial assistance is available from AARES, at a level to be negotiated.

·         The Editorial Assistant also fills the role of the Central Office Manager for the Society. This involves administration, liaison, mailouts and database management.

·         One Editor becomes a member of AARES Council Executive.

Interested teams and individuals are encouraged to discuss the requirements of the position with Chris O'Donnell (Phone +61 2 6773 2815 or email codonnel) or John Mullen (Phone +61 2 6391 3608 or email john.mullen) and to prepare and submit a proposal to Council by June 2003.  Such proposals should be sent to:

Professor Ron Duncan 

National Centre for Development Studies 

Asia Pacific School of Economics and Management 

The Australian National University 

Canberra ACT 0200 

Email: ronald.duncan

A final decision will be made by Council at its meeting in September 2003.

AARES News and Views



For details of the AARES 2003 47th Annual Conference and Pre-Conference workshops, please go to http://www.agric.uwa.edu.au/ARE/AARES 


AARES News and Views



Ron Duncan 
Phone: (02) 6125 4765/3100 
Fax: (02) 6125 5448
Email: ronald.duncan

Liz Petersen
Phone: (02) 6125 4953
Fax: (02) 6125 4896
Email: Liz.Petersen

Mal Wegener 
Phone: (07) 3365 2939 
Fax: (07) 3365 9016 
Email: malcolm.wegener
Manager: Promotion and Development 

Lisa Brennan
Phone: (07) 3214 2375 
Fax: (07) 3214 2308
Email: Lisa.Brennan
Web Manager:

Atakelty Hailu

Phone: (08) 9380 2538
Fax: (08) 9380 1098
Email: atakelty.hailu

Editor: AARES News & Views

Tracy Henderson
Phone: (07) 3365 1860
Fax: (07) 3365 9016
Editors: AJARE

Chris O’Donnell
Phone: (02) 6773 2815
Fax: (02) 6773 3607

John Mullen
Phone: (02) 6391 3608
Fax: (02) 6391 3650 

Manager: AARES Central Office 

Honey Greenwood
School of Economics
Armidale NSW 2351
Phone: (02) 6773 3278
Fax: (02) 6773 3607

AARES News and Views



The deadline for submissions for the next edition of AARES News & Views is Friday March 14, 2003.  Please send items to Honey Greenwood, Manager: AARES Central Office, journal.ajare

Advertisements in AARES News & Views are welcomed.  Mailing list exceeds 700.  Prices range from $250 to $500 (including GST). Enquiries to Lisa.Brennan


Editor: Tracy Henderson, University of Queensland
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Connections: Farm, Food and Resource Issues

Copyright © Australian Agricultural and Resource Economics Society, 2002
Last revised:May 20, 2003.
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