Co-benefits and trade-offs between agriculture and conservation: A case study in Northern Australia

After controlling for biophysical factors (e.g. rainfall, soil type), we found little evidence of trade-offs between market and non-market outcomes. We found that farms with many weeds had poor market efficiency scores, suggesting that weed-reduction programmes could generate substantive co-benefits for agriculture and biodiversity. Properties managed by people who preferred a small steady income (over a large uncertain income) had higher non-market efficiency scores, suggesting a link between conservation and attitudes to risk. Our results also suggest that encouraging on-farm agricultural diversification, the adoption of environmentally focused land-management plans, and a generally more positive attitude towards conservation could improve environmental outcomes without compromising market outcomes.