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4. Factors Affecting the Importance of Pulses and Oilseeds

4.1 Influential Factors in Role of Pulses and Oilseeds

There are several factors that can affect the relative importance of pulse and oilseed crops in a
farming system. The relative economic returns, as indicated by gross margins, from the
different crops play a critical role in the farmers’ decisions on which crops to include in their
farming systems, as well as the rotational benefits from the pulse and oilseed crops. The two
main components of change in gross margins are relative yields and relative prices. These two
factors are explored in some detail in the following sections.

4.2 Changes in Relative Yields of Pulse and Oilseed Crops in NSW

The relative level of yields per hectare, and the rate of yield improvement over time, are
important factors in determining the relative importance of pulse and oilseed crops in a
farming system. A brief examination is made of the relative yields for pulses and canola crops
in NSW in relation to wheat yields, to determine if there are any significant trends and issues
emerging.

The average yield of the main pulse crops and canola as a percentage of average wheat yields
in recent years for NSW is shown in Figures 5 and 6. Any such aggregated comparisons can
be confounded by differences in crop location, differences in the use of irrigation, etc.
However, they can provide a broad indication of trends in the relative competitiveness of
these crops. Apart from faba beans, which for most of the period prior to 1995 had yields
between 80% and 100% of wheat yields, pulse crops have generally been in the range of 50%
to 70% of wheat yields, except for the 2002 drought. In the five years to 2001, the average
ratio of canola to wheat yields was 70%, while pulse yields averaged somewhat lower:
chickpeas 44%, faba beans 65%, lupins 64% and field peas 58% of wheat yields.

At the aggregate state level, canola yields exceeded wheat yields in 1989, but have been
below wheat yields in recent years. The yield of canola was more than 80% of wheat from the
late 1980s to the mid 1990s, but has declined since that time.

The success of canola as an alternative crop in rotations has been related to the development
of
napus varieties that have lifted yield levels substantially, in addition to well-defined
rotation benefits. While canola appears to be reaching its potential level in some regions,
notably in the south-east region of NSW, in other areas it still has considerable potential for
growth. On the other hand, most of the pulse crops have not achieved a similar yield break-
through in NSW, so that pulse crops are awaiting further research and development before
they can achieve similar prominence.

Apart from the 2002 drought, there has been a tendency for the yield ratios to decline slightly,
implying that wheat yields have been increasing more rapidly since 1984 than pulse and
canola yields. These slower rates of yield improvement have been one of the factors affecting
the slow rates of increase in the area sown to pulse crops. In addition, the decline in recent
years in the yields of canola in many producing areas has had a major impact on slowing the
rate at which canola area has been growing. Conversely, the yield increase of wheat can be
partly attributed to the role of broadleaf crops in the rotations.



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