Nitrogen (N) fertiliser management is increasingly important in sugarcane production as imperatives to reduce environmental impacts of N escalate. In this paper we report testing of a new concept for N management in sugarcane, the N Replacement system. This system relies on soil N cycling to 'buffer' differences in crop N needs and N fertiliser supply to individual crops, and aligns N applications with actual cane production over the longer-term rather than potential production. In 11 experiments, conducted in a wide range of environments over two to five crops, cane and sugar yields in the N Replacement treatment were similar to those achieved with the farmers' conventional N management, with a trend over successive crops for yields to increase relative to conventional management. At sites where experiments ran for at least 4 years, this trend resulted in cumulative sugar yields being higher in the N Replacement treatment. Average N applications were 35% lower in the N Replacement treatment, and N lost to the environment was estimated to be ∼50% lower. Soil N 'buffering' was adequate to maintain sufficient N supply to crops even when yields were up to 30% greater than expected. Thus, it is not necessary to align fertiliser applications to potential sugarcane yields, which are rarely achieved in practice. Our results show that the ecologically-based N Replacement system has promise to deliver superior environmental outcomes without significantly reducing production of sugarcane, and potentially other semi-perennial crops, in the tropics and subtropics. Further evaluation of the system will be beneficial, and there is scope for determining more sitespecific values of parameters in the system. However, care must be taken to evaluate the system over sufficient time frames (e.g. >2 crops) so that productivity improvement trends in the N Replacement system can be expressed.

Abstract. Worldwide, coastal and marine ecosystems are affected by water pollution originating from coastal river catchments, even though ecosystems such as the Great Barrier Reef are vital from an environmental as well as an economic perspective. Improved management of coastal catchment resources is needed to remediate this serious and growing problem through, e.g. agricultural land use and management practice change. This may, however, be very costly and, consequently, there is a need to explore how water quality improvement can be achieved at least cost. In the present paper, we develop an environmental-economic modelling approach that integrates an agricultural production system simulation model and a catchment water quality model into a spatial environmental-economic land-use model to explore patterns of land use and management practice that most cost-effectively achieve specified water quality targets and, in turn, estimate corresponding water pollution abatement cost functions. In a case study of sediment and nutrient water pollution by the sugarcane and grazing industries in the Tully-Murray catchment (Queensland, Australia), it is shown that considerable improvements in water quality can be obtained at no additional cost, or even benefit, to the agricultural industry, whereas larger water quality improvements come at a significant cost to the agricultural industry.

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