Abstract: | It is proposed that the standard economist's model of optimum land use is extended to include the interaction with land cover and land condition. Such a model allows consideration of the influence of market factors and government policies and programmes on land use patterns and management practices, and the feedback effect on land cover and land condition. Recent developments in the approach to modelling land condition, which include the joint consideration of economic factors and physical processes, are discussed. Factors affecting the pattern of agricultural land use in Australia are then reviewed. The importance of considering economic and physical interactions when assessing land use patterns is increasingly being recognized in research and policy development. If research is to meet the needs of land managers in the future then economists and physical scientists will need to integrate their data modelling capabilities in order to address natural resource management issues. |