Introduction: A key question for regional environmental sustainability is whether adoption of natural resources management (NRM) actions such as plantings for carbon can be achieved while still maintaining economic viability. In order to arrive at outcomes that fulfil environmental, but also economic and social needs, questions need to be asked if areas for change actually exist and what the economic repercussions to these management changes are.

Objective: This research attempts to provide spatial estimates of financial returns from wheat cropping at the resolution of precision agriculture data across the farm and regional extent.

Methods: We have developed correlation models between sub paddock level precision agriculture data and regional scale remotely sensed imagery. These are used to extrapolate sub field level estimates to the surrounding South Australian NRM regions and to develop regional economic indices. Areas of economic profit and loss can then be identified using simple gross margin analysis of the regional yield image. The resulting income to area relationships generated from the image will then be investigated.

Results: Identifying the apparent spatial variability of grain yield through precision agriculture technology highlights production areas that are either more profitable or comparable to returns from alternative land uses which provide greater environmental benefit. The development of wheat yield-remote sensing relationships allows extrapolation of the method to other regions without the need for a broad-scale adoption of precision agriculture technology.

Conclusion: From this information, a greater understanding of the magnitude of economic trade-offs required to provide an environmental benefit can be explored.