The Plan has been prepared by the JVAP Management Committee. It builds on the strengths of the collaborative model developed under phase 1 and recognises the ongoing challenges facing the sector in meeting multiple needs. To date the Program has been successful with high recognition and support within the sector and natural resource management stakeholders.

In formulating the Plan we have drawn from the:

The Plan is for all stakeholders in the agroforestry industry and Australian government. This includes both traditional tree crop industries, and new ventures which plant woody perennials to achieve commercial, social and environmental benefits. The R&D outcomes are intended to feed into farm management practices and policy development by government. The Program complements the substantive support for farm forestry developed within the respective agencies and works closely with grower groups.

The Plan will be used by JVAP to guide the ongoing R&D investments that are made. The Plan will be implemented in accordance with the provisions of the Primary Industries and Energy Research and Development Act 1989.
 

Peter O’Brien Managing Director Rural Industries Research and Development Corporation

Andrew Campbell Chairman, Program Management Committee Joint Venture Agroforestry Program

The Plan seeks to encourage collaboration on, and coordination of, agroforestry R&D between farmer organisations, wood and other forest product processing industries, the JVAP, R&D Corporations and various research agencies, government departments determining policy, community organisations, and others involved in the uptake of agroforestry research.

The goal is to build a knowledge base that underpins investment in agroforestry products and systems so that they move beyond demonstration phase to realising sufficient scale to be profitable industries. As part of this, agroforestry can deliver services and products relevant to natural resource management needs.

The Plan sets out the objectives of the R&D, and strategies to achieve these objectives. The strategies provide a guide for research proposals to the Program. Proposals for other activities will need to make a strong case for consideration by the R&D Management Committee.

Performance indicators are selected to assist monitoring of the projects and ensure the program remains focused and relevant. The Plan will be reviewed informally each year to ensure that the objectives and strategies are still the most appropriate for achieving the vision for the development of viable industries incorporating agroforestry.
 

2. Background to the Joint Venture Agroforestry Program

• Guiding Objective
• The role of the JVAP

Agroforestry has two key aspects: development of new commercial industries, and integration of trees in agricultural landscapes in commercial and semi-commercial configurations to achieve natural resource management benefits. The joint venture approach ensures that outcomes from agroforestry R&D expenditure are balanced amongst these benefits by focussing resources on an agreed set of priorities.

In the past twelve years, JVAP has provided approximately $23 million towards farm forestry and agroforestry R&D, with a similar leverage from industry and research partners. The JVAP invested $2.2 million per year on average in agroforestry R&D over the three years 2001/02-2003/04.

Figure 1. JVAP partners and their interests.

Guiding Objective
To provide knowledge to underpin profitable, sustainable and resilient agroforestry within Australian farming systems and landscapes.

The role of the JVAP

The key roles for JVAP, together with an indicative budget allocation are:

• Investing in research and development to build a knowledge base that underpins the development of agroforestry industries (75%)
• Improving the overall coordination of agroforestry research in Australia (10%)
• Improving information delivery to increase decision-making capacity of all agroforestry stakeholders (15%)

3. Products and industry development
Trees and other woody perennials can provide six main product streams and services: wood and fibre, eucalyptus oil and oil products, other extractives, energy, environmental services and carbon sequestration, and food and fodder (Box 1). The range of products and services have different relevance for different regions.

In high rainfall zones, there has been a significant expansion in plantations and farm forestry (for wood and fibre products) over the past ten years in Australia, with a substantial increase in the area of small grower plantations (Stephens 2001) (Figure 2). Small grower plantations (where the farmers own the trees and the land) total more than 67,000 hectares representing 5 per cent of Australia’s plantation resource of 1.485 million hectares (as at September 2000) and are owned by an estimated 13,400 landholders. An additional 4,200 landowners are involved in farm forestry through joint venture and leasehold schemes with industrial, corporate or government growers. More than 50% of the farm forestry is blue gum (Eucalyptus globulus) planted for woodchip (refer Box 1). There is also evidence of an increase in the active management of privately owned native forests for commercial forest products and environmental services (Parsons 1999).

Figure 2: The increase in the area of independently owned small-grower plantation in Australia.
Source: Reid and Stephens (2006) modified from Stephens (2001).

Agroforestry has the potential to provide both public and private benefits (Appendix 1). The importance of its public benefits, especially from natural resource management, are recognised in Australian government policy (Appendix 2). Responsibility for planning and implementing regional natural resource management (NRM) now rests with regional NRM bodies, whose plans are accredited by the Australian Government and respective State/Territory Governments, leading to investment (funding) for these regions. Importantly, the Program has provided the NRM sector with confidence in the role of farm forestry and significantly influenced and informed the scope for plantings for a range of benefits. This is reflected in major demand in regional NRM plans, and the adaptation of technology to meet innovative needs.

There are three key factors which influence agroforestry’s effectiveness for achieving natural resource management benefits:

Uptake of agroforestry is likely to be affected by prices of competing commodities. For example, as world oil prices rise, bioenergy options become a more realistic alternative. Other factors that affect agroforestry industry development include domestic and international sawlog and woodchip prices and a lack of effective agroforestry product supply and marketing. R&D cannot readily influence trade prices, but it can provide tools and techniques to allow industry to respond to opportunities.

Agroforestry provides the opportunity to address natural resource management issues and create commercial returns on a wide range of landscapes. This diversity is also one of the challenges for large-scale industry development. The scope for development in some regions will be affected by policy and markets.

Development of agroforestry needs champions and leadership in industry and government. Agroforestry and NRM are both long term commitments, therefore sustained investment and supportive institutional arrangements are needed. For example, previous horticultural and forestry tree crops (e.g. Pinus radiata) have taken years of investment to select appropriate genetic stock and develop commercial systems of silvicultural management. Partnerships between industry and natural resource management (NRM) will be important to ensure that this happens. JVAP will encourage industry investments within JVAP projects.

4. Research Directions

• JVAP’s R&D achievements
• Setting Future Priorities

JVAP’s R&D achievements
Over the past twelve years, JVAP has funded a wide range of research, including tree improvement, biodiversity assessment, testing and evaluation of plantation-grown wood, new products from native species, and evaluating the role of trees in lowering water tables to reduce the effects of dryland salinity. Some key research achievements are shown in Box 2.

JVAP’s research has been undertaken in all States and territories of Australia and represents most agricultural zones with more than 600 mm rainfall per year (sometimes as low as 250 mm).

JVAP research has produced over 160 research reports and agroforestry guidelines, which are available in hard copy and via the RIRDC web site. In addition, summaries are available in the Short Report and Research Update series. JVAP material is used in determining government policy, and by farm forestry advisors, researchers, universities and the Master TreeGrowers training courses, among others.

RIRDC has recently undertaken a triple bottom line evaluation of projects in the Agroforestry and Farm Forestry Program. Many projects related to agroforestry are difficult to evaluate or are undervalued because they require an estimation of the value of non-market benefits. Nevertheless, the recent analysis estimated internal rates of return ranging between 11 and 24 percent per project (Bauer and Gordon 2003).

On a more qualitative basis it can be argued that the successful integration of agroforestry into Australian farming systems can deliver large public and private benefits, and this is relected in NRM regional plans and state farm forestry strategies. However there remain significant knowledge and public perception gaps that could impede the realisation of these benefits (Appendix 3).

Investment in the JVAP’s integrated set of R&D priorities will address some of these gaps and therefore has the potential to realise a substantial positive benefit:cost ratio.

Setting Future Priorities
In early 2002, the Centre for International Economics evaluated RIRDC’s Agroforestry and Farm Forestry Program R&D portfolio from 1990 to early 2002 (including JVAP) and its expected impact (Bauer et al. 2003). The evaluation broadly characterised the spread of projects by research stage and industry investment.

Broadly, funding allocation to research stage was (Bauer and Gordon 2003):

43% on the investigation stage of R&D (basic or fundamental research),
31% applied R&D, and
26% on industry development (through communication, extension of information and innovations to potential users).

R&D needs for agroforestry and priorities for JVAP were evaluated in 2003 by Agtrans Research and Farm Tree Systems (2003). The review included extensive consultation with tree growers, farmer representative groups, private forestry development committee representatives,land managers, researchers and government agencies. Key issues identified were:

1. demonstrating commercial options for agroforestry through analysis and design;
2. ensuring ecosystem services are quantified and appropriately valued;
3. improving product-market linkages;
4. facilitating new policy and institutional arrangements to stimulate agroforestry investment; and
5. improving information delivery to increase decision-making capacity of all agroforestry stakeholders. Further information is in Appendix 3.

The Joint Venture Agroforestry Program – key R&D achievements
Early investment in blue gum (Eucalyptus globulus) research by JVAP contributed to industry uptake – there has been a significant expansion in blue gum plantations in Australia; managed investment scheme companies raised over $750 million in 2004-2005, mostly for blue gum establishment.

Oil Mallee – A JVAP scoping study and subsequent R&D funds, led to substantial investment by Western Power in building the pilot Integrated Wood Processing plant at Narrogin in the Western Australian wheatbelt. The pilot plant will test integrated production of energy, eucalyptus oil and activated carbon using biomass from purpose-grown mallees – of which more than 10,000 ha have been established in the wheatbelt in configurations that also help to halt the rise of highly saline groundwater. A successful plant of this type will generate regional power supply and new sources of revenue and employment for the region.

JVAP contributed to early carbon accounting research –international markets plus the establishment of a carbon market in 2004 in New South Wales have resulted in contracts for significant plantations for carbon sequestration.

Early work on markets for ecosystem services contributed to establishment of pilot markets for environmental services in Victoria and New South Wales, and a national Market Based Instruments research program.

The catchment characterisation framework developed within JVAP has been adopted by Murray-Darling Basin Commission for prioritising saline catchments.

The National Windbreaks Program has provided a predictive capability for farmers to determine the impacts of windbreaks on crop, pasture and animal productivity. It was by far the most comprehensive study of windbreaks undertaken in the world.

Phase farming and alley belts - Design of new options for managing groundwater in saline catchments while underpinning an expansion of commercial farm forestry. Currently over 10,000 hectares of mallees are planted in Western Australia in alley belt systems integrated with existing agriculture.

Design principles for agroforestry – JVAP has produced four agroforestry design guidelines to assist landholders and extension workers with the principles for agroforestry design, including use of trees for shelter, biodiversity and the placement of trees in the landscape to manage groundwater. These guidelines are used by the Master TreeGrowers program and other advisory networks, and as a text in agroforestry courses at universities and other educational institutions.

The Master TreeGrower Program, funded by JVAP for eight years, has held 63 courses across all states, involving 1240 participants and over 30 participant organisations. The program uses participatory learning to work with landholders to identify farm problems and incorporate farm forestry to solve them. It trains leading farmers who can act as regional knowledge brokers for new entrants to farm forestry.

Figure 3. Location of Master TreeGrower course locations from 1996 to 2004.
Source: Reid and Stephen (2006)

5. The Research and Development Program

Objective One - Products

Objective Two - Product-market linkages

Objective Three –Integration and optimisation of commercial

environmental and social factors

There are three objectives for R&D investment. The objectives are:

Objective
Identification and development of new or existing agroforestry products and services – develop new commercial products and value-add existing products to promote profitable agroforestry industries

Background
Agroforestry can provide multiple products and services: energy, wood and fibre, eucalyptus oil and oil products, other extractives, environmental (ecosystem) services and carbon sequestration, and food and fodder. Investment in agroforestry will be encouraged where production, harvesting and processing are demonstrated to be efficient and commercial, and products are targeted to markets. Objective Two will provide feedback on markets and opportunities for value-adding and product improvement. Objective One will address product quality and volume, and required changes in technology or production efficiencies. That is, growers and processors need to plan and manage their resource to achieve a product which matches market needs and meets farm goals. As well, new products and production systems are needed to promote investment in agroforestry in low to medium rainfall zones. Agroforestry can also be integrated into agricultural systems to provide environmental services – to facilitate markets in this area, ecosystem services must be appropriately quantified, valued and monitored.

Strategies

Performance Indicators

Objective
Product-market linkages –Analyse markets for product suitability, value and regional development options.

Background
Agroforestry industry development requires a value-chain approach – understanding consumer and processor needs, finding markets and uses, finding value-adding opportunities, marketing, responding to market feedback and planning for quantity and continuity of supply. This includes defining product groups; identification of niche and commodity products; analysis of regional supply; and coordination, where appropriate, with supply and marketing of existing and future industrial scale plantation products in some regions. Research is needed to evaluate current products with respect to existing and potential markets, and marketing methods. Greater emphasis is needed on forward planning by growers, investors and processors. Markets for co-products (to diversify or increase income sources), and issues of conversion technology and supply are also relevant.

Strategies

Objective

A key public benefit of agroforestry is the provision of environmental (ecosystem) services, including maintenance or improvement of landscape visual amenity, biodiversity and water quality, prevention of soil, wind and water erosion, and reduction or prevention of dryland salinity. Rewarding landholders for providing ecosystem services would help make agroforestry a more attractive option.

Quantification of the impact of agroforestry on ecosystem services will facilitate testing of markets for ecosystem services, and modelling of catchment-scale issues such as the effect of scaling up agroforestry on catchment water supply and salinity.

The ‘design’ research needs to address landholder, investor or catchment manager decision making processes, particularly with regard to management practices and trade-offs to ensure the system is commercially, socially and ecologically viable. Research can also address policy and institutional requirements to promote investment in agroforestry, and the impact of policy and trade on industry development. Development of new institutional arrangements for investment must address risk, legal, financial and organisational aspects.

Strategies

Activities will be to:

• Monitoring and evaluation

The JVAP can maximise its impact by concentrating on R&D that has a national focus and that provides the knowledge base to increase the confidence of investors in agroforestry. The program can also address some of the above risks by ensuring that, where relevant, research outcomes are built into advice on design principles and guidelines for agroforestry systems, and there is effective dissemination of research results to policy, farmer and agroforestry advisor networks, and catchment management groups.

Monitoring and evaluation
The Joint Venture recognises the need for continuing monitoring and evaluation of the Program’s performance. RIRDC has processes in place to monitor progress in funded projects, to publish and promote research outcomes, and use external consultants to evaluate the Program’s performance and effectiveness. JVAP will also analyse research needs and project outcomes on an annual basis, to assess the continued relevance of R&D strategies.

References
Agtrans Research and Farm Tree Systems (2003) Priorities and strategies for JVAP: 2004-2008. Report prepared for the Joint Venture Agroforestry Program, Rural Industries Research and Development Corporation, Canberra.

Bauer, M. and Gordon, J. (2003) Evaluation of the Agroforestry and Farm Forestry Program – an overview of all projects – stage 1. RIRDC Publication No 03/041. Rural Industries Research and Development Corporation.

Bauer, M., Kirchner, A., Humphreys, J., van Beuren, M. and Gordon, J. (2003) Evaluation of the Agroforestry and Farm Forestry Program: An assessment of benefits– stage 2. RIRDC Publication No 03/042. Rural Industries Research and Development Corporation.

National Land and Water Resources Audit (2001) Dryland Salinity in Australia: a summary of the National Land and Water Resources Audit's Australian Dryland Salinity Assessment 2000. Commonwealth of Australia (http://audit.ea.gov.au/ANRA/docs/summary_reports/dryland_salinity/salinity_summary.pdf)

Natural Resource Management Ministerial Council (2005) National Action Plan for Salinity and Water Quality, and Natural Heritage Trust Regional Programs Summary Report 2003-2004. Departments of the Environment and Heritage and Agriculture, Fisheries and Forestry, Canberra.

Parsons, M. (1999) Native Forests on Farms. RIRDC Publication No. 99/21, Rural Industries Research and Development Corporation, Canberra.

Reid, R and Stephens, P. (2006) The Australian Master TreeGrower Program: Development, delivery and impact of a national outreach and education program (1996-2004). RIRDC Publication No. 06/029, Rural Industries Research and Development Corporation.

Stephens, N. (2001) The contribution of farmers and individual landholders to commercial plantation development in Australia. Paper presented at the IUFRO Working Party (S6.06-03) Symposium Forestry Extension - Assisting Forest Owner, Farmer and Stakeholder Decision-Making 29th Oct – 2 Nov 2001. http://www.anu.edu.au/forestry/IUFROFE2001/index.html.

Appendices

• Appendix 1. Driving forces for Agroforestry
• Appendix 2. Where agroforestry sits in the policy framework

Appendix 3. Key issues for Agroforestry

Appendix 1. Driving forces for Agroforestry
Agroforestry can be defined broadly as the management of trees and shrubs integrated with agricultural systems for multiple products and benefits.

Agroforestry integrates trees or woody perennials, grown for fruits, nuts, seeds, plant extracts, timber, fodder or natural resource management, with grazing, cropping or other farm enterprises. Farm forestry is one type of agroforestry, where trees are managed in stands or woodlots for traditional wood products, but integrated into the whole-farm plan and farm business.

Driving forces for agroforestry development in Australia include:

Also, woody trees and shrubs such as tagasaste, kurrajong and old man saltbush can be integrated into farm management to offer supplementary fodder plus shade and soil protection. Integration of trees and woody shrubs can improve overall farm sustainability, and resilience in dry seasons and drought.

In Australia over the last two centuries, trees have been cleared over large areas to facilitate agriculture. The widespread clearing of trees and other native vegetation in Australia has had significant consequences, such as:

Agroforestry is regarded as an important management tool to rehabilitate existing saline lands and prevent further dryland salinity. To stimulate broadscale planting of trees, particularly in the low to medium rainfall zones, commercial or at least semi-commercial solutions must be demonstrated.

Appendix 2. Where agroforestry sits in the policy framework

Farm forestry and natural resource management are recognised in a range of national policy documents and government initiatives:

Informing a range of policies is the National Land and Water Resourced Audit (2001, and current revision) as discussed above. Two key national issues are dryland salinity, and regional natural resource planning and management.

In October 2001, the Australian and state governments signed a bilateral agreement for implementation of the National Action Plan for Salinity and Water Quality (NAP). In December 2002 a bilateral agreement was signed for implementation of the National Heritage Trust (NHT) funds. The aim of these agreements is to facilitate integrated delivery of Natural Resource Management priority issues, including salinity and water quality. Investments under NAP and NHT are made via single regional plans. There are 57 regions identified (Natural Resource Management Ministerial Council 2005). For each region, an Integrated Natural Resource Management Plan is developed by local communities supported by Government and science. The plans include an investment strategy based on clear targets for management and monitoring of natural resource issues. To June 2004, 25 regions have had NRM plans accredited by governments. The investment for these approvals focus on regional on-ground activities (72%), resource condition and resource assessment, planning and capacity building. Agroforestry is a tool for addressing a range of natural resource issues, but has different relevance and recognition within regional plans.

In December 2002, four national research priorities and their priority goals were announced by the Prime Minister. Two of these are relevant to agroforestry and the goals of JVAP – An environmentally sustainable Australia, and Frontier technologies for building and transforming Australian industries.

These priorities include strategies such as sustainable water management practices; reducing the environmental impacts of resource-based industries; overcoming soil loss, salinity and acidity; reducing emissions in energy generation; frontier technologies exploiting niche markets; and new products and services through biotechnology and genomics; and other cutting-edge science and advanced materials. The recent priorities for the RDCs align with the national research priorities. Achieving NRM goals and finding new products and energy from woody perennials support these goals.

The Renewable Energy Action Agenda (2000), developed by industry with support by government, has the objective of providing a framework to underpin growth of a commercially viable and international competitive Australian renewable energy sector. Biomass is one of a range of renewable energy sources addressed. The main driver is reduced greenhouse gas emissions, while creating commercial business opportunities. The Government’s Mandatory Renewable Energy Target commenced on 1 April 2001 to facilitate the use of tradeable renewable energy certificates..

Waste material from agricultural and forestry industries and dedicated energy crops have the capacity to supply a significant proportion of Australia’s renewable liquid fuels and electricity markets. Regulation and legislation governing use of forest and plantation wood waste and dedicated tree energy crops is under review, and offers a potential future source of renewable energy in regional and remote areas of Australia.

A carbon market has been formed internationally and in New South Wales; other Australian states are considering enabling similar arrangements. Such trading could provide private benefits to landholders, emitters of greenhouse gases (such as power companies) and brokers. It may also provide public benefits by reducing the national contribution to the enhanced greenhouse effect.

Appendix 3. Key issues for Agroforestry
The following summary is drawn largely from Agtrans Research and Farm Tree Systems (2003) review of research priorities.

Markets, products and investment
Farm forestry is most developed in regions of relatively high rainfall that are close to timber markets or wood processing facilities. Here, the significant expansion in plantations and farm forestry has been largely through investment by government, private companies and individual landholders in short rotation tree crops. Some institutional investors have also invested in longer term environmental plantings to provide an ethical investment component to their portfolio. There is also some government investment in long rotation plantations.

Agroforestry is less well advanced and less easily driven by wood fibre production in the sheep-wheat belts and pastoral zones, which generally are further from markets and processing facilities, and have lower rainfall.

In these circumstances a mix of public and private investment may be needed to encourage agroforestry in these areas. Mechanisms to achieve more investment by private companies and institutional investors are not yet clear.

Australian agroforestry is geographically dispersed, and for off-farm products, the challenge is to coordinate and provide continuity of supply to markets. Research is needed to define common product groups across agroforestry regions, find mechanisms to coordinate supply, find markets and uses, and develop market recognition for agroforestry-grown products that give market advantage (e.g. certify for environmental sustainability; establish an agroforestry label). In some cases this can be achieved by analysis and synthesis of existing research information and improved delivery to users.

Landowners need to manage and value-add their tree crop over time to meet market specifications for products. Farmers need greater awareness of market prices and specifications, value-adding and marketing of tree crops and products.

Integration and improvement of agroforestry designs - to show the economic, environmental and social management trade-offs
There is a need to demonstrate the regional applicability of agroforestry designs and species options, evaluate the economics, and increase public understanding of commercial options. There is a lack of clear economic information as to when and where agroforestry is commercially viable, or at least when it is at break-even point so that investment can be considered for other on-farm and off-farm natural resource and sustainability benefits.

Analysis of agroforestry designs must include demonstration of the environmental, commercial and social benefits and costs of the designs. In lower rainfall regions, more information is needed on how to optimise the commercial benefits for farmers.

Regional issues to consider are the effect of agroforestry on regional biodiversity, catchment water balances and competition between agroforestry and other land uses. The management recommendations must aim for improvements on-farm and at the landscape scale for conservation purposes, and/or improvements in best practice for the agroforestry industry.

Policy environment and infrastructure
A number of current issues impact on policy, and the potential for agroforestry research, development and adoption. The main ones are:

The challenge is to increase understanding of the role of agroforestry by catchment managers, agribusiness advisors and landholders, and increase their capacity to support or adopt agroforestry. Traditional state government extension, previously linked with forestry and agricultural research, has been significantly reduced, and there is an increasing disconnect between research and delivery to landholders (lack of supporting knowledge systems). Extension is now often delivered through groups such as Private Forestry Development Committees, Greening Australia and agribusiness advisors. There is an opportunity to provide catchment planners with clearer information as to when farm forestry and agroforestry can meet their catchment management targets. Regional delivery of agroforestry research results is needed, and will require some re-packaging of research results to be locally relevant.