Large areas of undeveloped pastures in non-arable hill country in eastern New South Wales could be improved by aerial methods. The potential economic benefits of pasture improving a portion of the hill country area were evaluated in terms of the economic welfare changes in the Australian wool industry. Hill country wool producers and international wool consumers would derive nearly all of the benefits from this process. Other Australian and international wool producers would lose economic welfare because of the reduced price from increased regional wool production. For conservative anticipated levels of pasture improvement adoption, the overall benefits to the Australian wool industry had 15-year mean present values of between $30.2 million and $122.1 million, depending on whether the introduced pasture was predominantly perennial grass or legume based. The value of this analysis is that it provides improved economic information for planning investment in new pasture technologies in the Australian livestock industries.