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There is a long tradition of expectation that, in time, land use in the better-endowed areas of Australia's semi-arid tropics would intensify from beef production on grassy woodlands to broadacre production of dryland crops. However, successive development attempts have yet to result in a substantial field crop industry.

This paper reflects on a recent 20-year research and development episode in which ley farming, so successful in the wheat-sheep zone of southern Australia, was adapted and trialed in the tropical north. The system tested in the tropics was one which featured (i) coarse grain crops in rotation with legume leys and (ii) cattle grazing native pasture in the crop growing season and ley and crop residues in the dry season. It can be concluded that this system is technically successful. But compared with the ley system in southern Australia, the benefits of pasture legumes are less efficiently captured, both in the animal and the crop production enterprises. In addition, in this climate and on these soils, pastures with the high legume composition needed to substantially substitute for nitrogen fertiliser in the crop phase pose a serious threat of soil acidification.

In contrast to legume leys, the advantage of no-tillage, mulch farming practices over conventional cultivation is much greater in this semi-arid tropical region than in temperate or Mediterranean areas: by slowing evaporation, mulch is often crucial in reducing high temperature injury or impedance to emerging seedlings as well as reducing the deleterious effects of intensive summer rainfall. But even with this improvement the climatic risks in dryland grain cropping remain a strong deterrent to crop industry development.

Today, the findings from past experimentation, accrued farming experience, and new information products combine to provide what seem to be more realistic expectations for agriculture in this region. Even with the 'best' technology, this region suffers comparative disadvantage with respect to dryland field crop production and marketing. However, the region enjoys comparative advantages in the production of several other types of commodities, and a more realistic approach to 'Research and Development' includes a shift of resources toward activities with production and marketing advantages.