Economic Comparison of Honey Mesquite Control Methods with Special Reference to the Texas Rolling Plains

Abstract

Although economic responses to honey mesquite control varied considerably within and among resource regions in Texas, aerial applications of herbicides generally produced higher annual rates of return on the investment than did mechanical alternatives. Statewide, aerial applications of 2,4,5-T produced the greatest annual rates of return, averaging 15.7% for deep range sites and 11.0% for shallow range sites for projected livestock responses when cattle prices were estimated to average $0.97/kg ($44.00/cwt, 1978 dollars). Statewide, annual rates of return from aerial application of herbicides for honey mesquite control on shallow sites (statewide) varied from -8.3% to 18.1%, based on the $0.97/kg livestock price. When cattle prices were varied from $0.82/kg ($37.00/cwt) to $1.05/kg ($47.50/cwt), annual rates of return from aerial application of 2,4,5-T to deep sites on the Rolling Plains and Rolling Red Plains of Texas ranged from 9.6% to 17.9%. Chaining of honey mesquite on deep sites of the Rolling Plains and Rolling Red Plains produced rates of return from 7.1% to 12.5%. While the economic feasibility of herbicides in general was determined to be greater than that from the use of mechanical practices, rates of return from herbicides are more price sensitive than mechanical treatments. Over the 20-year planning period, tame pastures in the Rolling Plains produced the greastest accumulated net present value ($/ha) when the annual interest rate charged to the added investment was 5% or less. When the annual interest rate was 7% or 9%, the net present values of herbicide treatments exceeded those of the mechanical methods.