Program 4:  Future Agricultural Systems

4.1 Global Competitiveness	4.2 Resilient Agricultural Systems
4.3 Human Capital, Communications and Information Systems

• Support analyses identifying new opportunities in the market place. Develop collaborative links with the Government’s ‘Supermarket to Asia’ initiative. Develop a research program supporting the development of a more globally focused competitive food sector.
• Support analyses focussing on domestic impediments to industry performance, thereby enhancing export performance and an export culture particularly in those industries which have previously been focussing domestically.
• Develop options and strategies improving global competitiveness of the agricultural sector by improving the current set of trade policies and therefore removing existing trade barriers.
• Develop a better understanding of domestic and international markets for agricultural products when there is a clearly established market failure in the provision of such information.
• Support analyses of the linkages between various stages in the producer to consumer chain and identify areas - regionally, domestically and internationally - where these linkages can be better integrated and their efficiency improved.
• Evaluate other existing and alternative policies and institutions affecting the development of a globally competitive agricultural sector.

Background

International trade liberalisation and the general globalisation of the world economy during the past two decades has meant that all countries have had to focus attention on ensuring that their industries are globally competitive.

Many studies have been conducted which highlight the substantial benefits to the world that can be gained from this liberalisation process. Some of these studies have shown that the Australian agricultural sector in particular stands to gain billions of dollars in welfare gains from this process.

While the evidence for these longer-term gains is clear, the processes involved in achieving them can often be complex and difficult to understand. The process of adjustment to these changes will, in many cases, require challenges that many business and community groups are not familiar with and will therefore often find challenging.

RIRDC believes that research can provide improved understanding in many areas that will support this process of change and ensure the benefits from it are maximised and the difficulties associated with the change minimised. It believes that the nature of much of the research related to understanding the processes for these changes has public good characteristics and therefore will not necessarily be undertaken if left to the private sector.

Achievements for 1997-98

• Developed a report in collaboration with the Government’s Supermarket to Asia initiative highlighting the outcomes of a set of regional export fora, aimed at further enhancing the developing export culture in many rural areas of Australia.
• Held an ABARE Outlook Conference session which focused on the implications of the Asian financial crisis for Australian food exports.
• Held a major symposium discussing potential strategies ensuring trade liberalisation at an international level continues at a rate benefiting the Australian rural sector. A follow-up trade policy symposium was held for international farmer organisation representatives, complementing the Cairns Group meeting in Sydney. Developed a series of trade policy related reports which aim to provide research support in the lead up to the next WTO round of trade negotiations.
• Identified new food market channels emerging in North Asia and their implications for Australian firms.
• Reported on the food sector in Myanmar.
• Analysed the demand for food and the performance of wholesale markets in China and their implications for Australian exporters.
• Published, with GRDC, a ‘Grain Marketing Handbook’ providing farmers with a guide to operating in a less regulated grain market.
• Published an overview of Australian agribusiness opportunities on the Indian Ocean Rim.

Strategies for 1998-99

• In association with Supermarket to Asia, development of a series of reports which synthesis past research on export potential and developments for a range of Asian countries, with special focus on the implications of the Asian financial crisis.
• Through collaboration with the Governments recently established Agricultural Trade Consultative Group, development of a set of reports that will provide research background and support for Australia’s input into the next WTO round of trade policy negotiations and other important trade policy fora.
• Support for an analysis of the reasons for the export led growth and success of the Australian wine industry and especially implications for other emerging industries.
• Analysis of market power and competitiveness implications of important links between producers and consumers in the food chain both in Australia and internationally.

Expected key outcomes in 1998-99

• Several reports on Asian market prospects for Australian exporters.
• Several reports on the implications of trade policies changes for Australian agriculture and the Australian economy in general.
• A compendium of Asian religious and cultural events and customs that impinge on food consumption patterns and are potentially important to firms contemplating entering these markets.
• An analysis of structural change in the Australian farm input supply sector and implications for improved efficiency for the agricultural sector.
• An analysis of cooperative marketing arrangements in Japan and implications for Australian exporters.
• A report outlining the results of an innovative approach to hands on experience as part of training for potential agribusiness leaders of the future.

Sub-Program 4.2: Resilient Agricultural Systems
 

• Support research which addresses cross sectoral needs and delivers outcomes with a focus at the interface between imperatives for agricultural economic development and for sustainability.
• Develop and test the applicability of internationally acceptable accreditation schemes for sustainable production and facilitate obtaining premiums for products produced in accordance with ecologically sustainable development principles.
• Enhance the capacity of the rural sector to manage risk, and improve land use planning and decision making.
• Assist in the development of strategies which address threats arising from shorter run climate variability and the longer run climate change.
• Support opportunities and identify risks arising from new biotechnological developments.
• Foster the development of new agricultural systems including non-traditional systems such as integrated aquaculture, hydroponics, microbiological systems and the integration of wild plant and animal resources with other land uses.
• Facilitate the development of management strategies for pests, weeds and diseases which are designed to improve outcomes from existing and emerging agricultural systems.

Background

Over recent decades Australia’s terms of trade for many rural products have shown a steady decline that is the major influence on Australian agriculture and people in the bush. Australian farmers have responded by reducing costs and increasing productivity. Yet there are physical limits to the capacity to do so and to make demands on Australia’s supporting resources of water, soil and air. This becomes most apparent in drought.

Dealing with these issues is a priority for economic viability of rural properties sustainability and the very existence of many country communities. Finding solutions requires an approach which is interdisciplinary and holistic - that is it involves a study of the whole system rather than a study of components. It encompasses disciplines relating to the natural environment, the socio economic environment, and production agriculture and focuses on the interactions between them.

The Corporation has a unique national, across enterprise, catalytic role in this process and the identification of ways to develop resilient agricultural systems. It seeks to enhance the capacity of the rural sector to manage risk, maintain and enhance the quality of soils and water, and control pests, weeds and diseases.

Economics and sustainable agricultural resource use

Integration of economic and resource use models can play a major role in understanding how to have resilient systems that can be profitable while being ecologically sustainable. Profitability can be improved by increasing returns from sales, lowering unit costs or switching resources to alternative, more profitable enterprises. Sustainability is maintained by the rate and manner in which finite and renewable resources of soil and water are used.

Landuse planning and resource allocation

Many decisions about industry development and use of land are taken at a regional level. They have an important bearing on profitability and sustainability. There is a need to assist development of better methods for landuse planning, resource evaluation and setting of priorities.

Innovation and enterprise diversity

A key aspect encouraging diversity is to integrate alternative production systems with other land uses and to facilitate new and emerging non-traditional agricultural systems for food and fibre. Given that two thirds of Australia is unsuitable for intensive agriculture, an important innovation is to incorporate conventional livestock management with harvesting and ranching of wild plant and animal resources, particularly as a means of providing support for Aboriginal communities. Other innovations are integrated aquaculture production, hydroponics, microbiological systems and application of biotechnology.

Achievements for 1997-98

• Sponsored an investigation into ‘Australian farm families experiences of the drought of the 1990s’. The Report discusses the sociological effect of drought, differing consequences for men and women and the economic impact on rural communities, especially when coupled with declining terms of trade for rural produce.
• As a member of the consortium, participated in the development of the National Climate Variability R & D Program which aims to better prepare the agricultural sector to manage the vagaries of Australia’s climate by producing better information and implementing strategies for adapting to drought.
• Supported further development and application of Australian RAINMAN as a Windows, multi-media CD, Internet compatible product. RAINMAN seeks to improve management of climate variability and enhances knowledge and skills in rural communities about climatic risks and opportunities It advises on seasonal forecasts, and ways to improve management decisions.
• Collaborated with other R&D Corporations to establish joint funding arrangements for farmer integrated aquaculture; (Fisheries R&D Corporation), soil biodiversity and management, identification of sustainability indicators (LWRRDC, GRDC, HRDC, DRDC, and IWS).
• Successfully trialed innovations utilising saline ground water to produce marine fish species, Beta-Carotene, potable water and commercial salt.
• Identified means of more effectively transferring farms between generations. Sponsored a conference that brought together professional and participant stakeholders associated with the transgenerational transfer of family farms. Identified new sources of toxin within the soilborne bacterium Bacillus thuringiensis (Bt) which may be useful for engineering into viral insecticides to enhance their effectiveness.
• Showed that concentrations of various soil fumigants required to kill soilborne pathogens can be reduced thereby reducing costs to growers.
• Held an important national workshop, to explore opportunities for developing pesticide risk reduction strategies, particularly for export industries.
• Developed guidelines for commercially establishing advisory services to assist growers in their management of nematode diseases in a range of crops.
• Developed new toxic baiting techniques for more effectively controlling termites.

Strategies for 1998-99

• Support projects to improve the management remediation and recycling of waste from animal and agricultural industrial sources.
• Support innovative pasture species that will reclaim salt affected soils and turn a liability into an asset.
• Through the Climate Variability and Climate Change Programs support Australian agriculturists, business operators and policy makers to develop strategies to address threats arising from climate variability and the opportunities and uncertainties arising from climate change.
• Develop and test the applicability of internationally acceptable accreditation schemes for sustainable production and review role of partnerships between producers, retailers and environmental organisations with a view to producing products in accordance with ecologically sustainable development principles.
• Contribute to the development of models for assisting less developed/smaller industries attain minor crop registrations of pesticides.
• Develop new and novel molecular techniques for diagnosing the presence of the important soilborne fungal pathogen, Verticillium.
• Improve the dispersal of information on management of pests, weeds and diseases by developing a national electronic modelling network.

Expected key outcomes in 1998-99

• Agreement on priorities for research to manage soil biodiversity for agricultural sustainability.
• A review and feasibility study to test the applicability of internationally acceptable Accredited Sustainable Production Systems.
• Development of a plan to improve diversity of farm enterprises, particularly irrigation enterprises, by integrating aquaculture into operations.
• A joint strategy on bioremediation and waste-water management between RIRDC, CSIRO, other R&D Corporations and other stakeholders.
• A report on potential benefits of rare earths to agriculture.
• Guidelines for the operation of advisory services for nematode pests.
• Development of the mycoinsecticide Metarhizium for use against locusts and grasshoppers,
• Rationalisation of the use of methyl bromide for soil fumigation by the more effective definition of effective application rates
• Identification of opportunities for pesticide risk reduction in a range of Australian agricultural industries.
• A new model/s to facilitate minor crop registration of pesticides.
• Improved molecular diagnostic techniques for soilborne pathogens, in which combinations of pathogens can be screened for in a single test.
• Possible development of a mycoinsecticide for controlling aphids.
• Improved remote sensing techniques for detecting the presence of weeds such as Nassella tussock and thistles.

Sub-Program 4.3: Human Capital, Communications and Information Systems

• Develop accessible, client-centred information and communication systems.
• Develop more effective communication and education processes.
• Investigate research priority areas in relation to rural communities and social issues.
• Evaluate existing and alternative policies and institutions affecting the development of a more innovative rural sector.
• Develop and facilitate best practice in farm health and safety.
• Support rural leadership development for RIRDC related industries.
• Provide research scholarships for RIRDC industries.

Background

Significant productivity gains in agriculture were achieved in the past by adopting new technical products or processes. Today productivity growth requires the adoption of a whole range of new skills and activities in addition to new production technologies. Growth now involves investing in human skills and education, analysing and using information, developing quality systems, marketing products, financial, technical and personal management and adapting the institutional organisation and structure of the industry.

This program focuses on developing effective, accessible, client-centred information, communication and education systems and processes. It will fund underpinning R&D which will enhance the capacity of farm managers to identify, acquire and apply the skills and information needed to improve the performance of their farm business both in terms of profitability and sustainability.

The program also aims to enhance human capital available to rural industries through improved practices for farm health and safety, research related to social issues in rural communities and households and provision of scholarships for rural leadership and post-graduate research.

Achievements for 1997-98

Information and Communications Systems

• Jointly produced "The Australian Farmers’ Guide to the Internet" with Farmwide which has proved to be very popular with farmers using or connecting to the Internet.
• Released the Rural Guide to Telecommunications.
• Produced and disseminated a framework to develop regional communications initiatives.
• Held a workshop and produced a report which provided guidelines to changing policies regarding public and private sector extension provision.
• Released a joint newsletter with Farmwide disseminating RIRDC’s R&D relating to electronic information systems to over 20,000 stakeholders.
• Produced a report examining computer use by farmers providing useful strategies for increasing and enhancing usage.

• Finalised a report on a policy framework to guide future education and training strategies and related R&D.
• Produced a handbook of techniques for evaluation of extension.
• Reviewed communication planning procedures of R&D Corporations and other related agencies to assist in determining ‘best practice’ for R&D communication.

• Reviewed an enterprise program on rural youth development indicating significant benefits to both enterprise development and personal development.

• A national research project was launched by Senator Troeth at Outlook quantifying and defining the role that women play in the agricultural sector and recommending strategies for enhancing women’s participation in decision making.

• Finalised a three to five year Joint Farm Health and Safety Program Strategy with GRDC, IWS and CRDC as partners with one year’s preliminary contribution from MRC.
• Analysed farmers’ perceptions of risks to improve the effectiveness of farm health and safety programs resulting in new strategies recommended for promotion of safe practices with respect to different types of hazards.

• Awarded two scholarships for participation in the ARLP.

• Awarded three new scholarships for PhD studies in RIRDC related areas of study.

Strategies for 1998-99

A major focus for the program will continue to be on the development of accessible client-centred information and communication systems and processes.

A new focus for the program will be on social issues relating to rural communities both in towns and on farms bearing in mind that the program focus is on farming in a rural community context. As such an overall review paper, workshop and specific issues papers will be commissioned.

These issues papers will consider RIRDC’s role in rural health policy and issues relating to rural youth.

Regarding Farm Health and Safety – a framework will be established for delivery of the Managing Farm Safety Course to farm managers nationally.

The Leadership and Scholarships sub-programs will continue to identify high calibre leaders and students with the potential to contribute positively to rural Australia.
 

Expected key outcomes in 1998-99

Information and Communications Systems

• An assessment of the capacity of existing infrastructure to meet demand for on-line services in rural and regional Australia.
• A report on the actual and potential impact of Internet use on Australian farmers.
• A conference (in conjunction with the NFF) to stimulate interest and demand in new forms of communications services for rural Australia.
• The potential of a coordinator of Australian Rural On-line services will be assessed.

• Research to assist successful structuring and delivery of management and marketing training for farmers.
• Practical guidelines for the effective use of groups.

• An assessment of the effectiveness and economics of investment through tax-driven capital raising schemes in new agricultural/horticultural industry development.
• Principles and models will be identified which enhance the expression of creativity in agricultural R&D.

• Develop framework for delivery of the Managing Farm Safety Course to farm managers.
• A description of causes of traumatic deaths on farms in Australia will provide a basis for strategies to prevent further deaths.

• An assessment of R&D priorities for social issues in rural communities will be completed.
• In conjunction with the ABC, development and provision of leadership training for rural youth will be provided.
• Rlationship between the social costs of diminishing infrastructure and economic viability of farms will be established.

• Two ARLP scholarships will be awarded.

• Three scholarships will be awarded.