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BushTender—trialling outcome-based contracts
Currently in Victoria private land accounts for 12 per cent of remaining native vegetation, which provides habitat to 30 per cent of threatened species populations. Furthermore, 60 per cent of the native vegetation on privately owned land consists of threatened native vegetation, demonstrating the importance of private landholder action in achieving biodiversity outcomes.

Since the inception of the BushTender program in Victoria in 2001 there have been numerous BushTender and other tender projects implemented by the Victorian Department of Sustainability and Environment (DSE) and Victorian Catchment Management Authorities (CMAs). The BushTender program can be considered one of most successful programs in Australia for managing biodiversity outcomes using a market environment. In 2009–10 the BushTender program trialled the use of outcome-based contracts.

How does BushTender work?

BushTender traditionally uses a competitive, auction-based approach to achieve biodiversity outcomes with private landholders. Eligible landholders submit their bids based on the conservation value of their property and the land management practises proposed. Bids are assessed based on the metric developed for the program and the best value for money.

The BushTender program allows landholders to decide on the management practices they wish to implement on their property and the price for which they are willing to offer these services. This selection of management practices and pricing reflects the flexibility of the program to landholders compared to alternate incentive schemes.

Since 2001, there have been 33,000 hectares signed under BushTender agreements to manage and protect native vegetation on privately owned land across Victoria.

Trialling outcome-based agreements

In 2009–10 the Victorian Government launched another innovative BushTender project trialling outcome-based agreements. The project is a collaboration between landholders on the northern plains of Victoria and the Victorian Government to better understand the applicability and uptake of outcome-based agreements.

In most BushTender projects, landholder agreements are input-based, where landholders are required to undertake certain management actions and commitments to be eligible for annual payments.

Under this particular BushTender project, landholders with certain vegetation types were given the option of using a traditional input-based agreement or to participate in the trial of outcome-based agreements. Under outcome-based agreements landholders are required to meet certain biodiversity outcomes to maintain the biodiversity values on the site. These outcomes relate to the cover and diversity of native plants compared to non-native plants on the site. If the outcomes are not met, the landholder is ineligible for annual payments relating to the outcomes.

In addition to satisfying biodiversity outcomes, landholders are also required to provide the Victorian Government with additional information regarding how they achieved the outcomes. The government can then compare this information with detailed biodiversity information collected on the site to better inform management decisions in certain vegetation communities.

Outcomes

The use of outcome-based agreements is in the trial stage and will wrap up in 2014. While contributing to knowledge regarding management of certain vegetation communities in Victoria’s northern plains, the trial will also provide evidence of the applicability of such an approach and the capacity of landholders to deliver outcome-based agreements in natural resource management.

Baseline data was collected in October 2009 and again from the same sites a year later in October 2010. Results so far indicate that the majority of landholders are on track to meet specified biodiversity outcomes.

Evaluation

The trial is in its early stages, marking its second anniversary in October 2011. Upon completion of the trial in 2014 the results will be collated in a detailed project report including recommendations regarding the use of outcome-based agreements in natural resource management.

Find out more

www.dse.vic.gov.au/bushtender or contact Michelle Ballentine, Senior Project Officer at the Victorian Department of Sustainability and Environment on 03 9637 9027.

Sources
BushTender Northern Plains Report, Department of Sustainability and Environment
http://www.dse.vic.gov.au/__data/assets/pdf_file/0008/119276/Project-report_BTNP.pdf
Currently in Victoria private land accounts for 12 per cent of remaining native vegetation, which provides habitat to 30 per cent of threatened species populations. Furthermore, 60 per cent of the native vegetation on privately owned land consists of threatened native vegetation, demonstrating the importance of private landholder action in achieving biodiversity outcomes.

Since the inception of the BushTender program in Victoria in 2001 there have been numerous BushTender and other tender projects implemented by the Victorian Department of Sustainability and Environment (DSE) and Victorian Catchment Management Authorities (CMAs). The BushTender program can be considered one of most successful programs in Australia for managing biodiversity outcomes using a market environment. In 2009–10 the BushTender program trialled the use of outcome-based contracts.

How does BushTender work?

BushTender traditionally uses a competitive, auction-based approach to achieve biodiversity outcomes with private landholders. Eligible landholders submit their bids based on the conservation value of their property and the land management practises proposed. Bids are assessed based on the metric developed for the program and the best value for money.

The BushTender program allows landholders to decide on the management practices they wish to implement on their property and the price for which they are willing to offer these services. This selection of management practices and pricing reflects the flexibility of the program to landholders compared to alternate incentive schemes.

Since 2001, there have been 33,000 hectares signed under BushTender agreements to manage and protect native vegetation on privately owned land across Victoria.

Trialling outcome-based agreements

In 2009–10 the Victorian Government launched another innovative BushTender project trialling outcome-based agreements. The project is a collaboration between landholders on the northern plains of Victoria and the Victorian Government to better understand the applicability and uptake of outcome-based agreements.

In most BushTender projects, landholder agreements are input-based, where landholders are required to undertake certain management actions and commitments to be eligible for annual payments.

Under this particular BushTender project, landholders with certain vegetation types were given the option of using a traditional input-based agreement or to participate in the trial of outcome-based agreements. Under outcome-based agreements landholders are required to meet certain biodiversity outcomes to maintain the biodiversity values on the site. These outcomes relate to the cover and diversity of native plants compared to non-native plants on the site. If the outcomes are not met, the landholder is ineligible for annual payments relating to the outcomes.

In addition to satisfying biodiversity outcomes, landholders are also required to provide the Victorian Government with additional information regarding how they achieved the outcomes. The government can then compare this information with detailed biodiversity information collected on the site to better inform management decisions in certain vegetation communities.

Outcomes

The use of outcome-based agreements is in the trial stage and will wrap up in 2014. While contributing to knowledge regarding management of certain vegetation communities in Victoria’s northern plains, the trial will also provide evidence of the applicability of such an approach and the capacity of landholders to deliver outcome-based agreements in natural resource management.

Baseline data was collected in October 2009 and again from the same sites a year later in October 2010. Results so far indicate that the majority of landholders are on track to meet specified biodiversity outcomes.

Evaluation

The trial is in its early stages, marking its second anniversary in October 2011. Upon completion of the trial in 2014 the results will be collated in a detailed project report including recommendations regarding the use of outcome-based agreements in natural resource management.

Find out more

www.dse.vic.gov.au/bushtender or contact Michelle Ballentine, Senior Project Officer at the Victorian Department of Sustainability and Environment on 03 9637 9027.

Sources
BushTender Northern Plains Report, Department of Sustainability and Environment
http://www.dse.vic.gov.au/__data/assets/pdf_file/0008/119276/Project-report_BTNP.pdf