As a processing and manufacturing heartland, Western Sydney plays a key role in food and fibre supply chains. Food manufacturing is the largest component of the manufacturing sector in Western Sydney and is an important employment and economic contributor. It is also undergoing growth. Shifting consumer preferences and growing international and domestic demand for provenance-based food experiences and marketing will create stronger demand for premium processing and packaging. The growing popularity of pre-packaged meals, made famous by brands such as HelloFresh and Marley Spoon, is also contributing to this trend. 

Australian meat, horticultural and dairy products continue to grow in popularity throughout countries with relative proximity to Australia, such as China, Japan and Vietnam. The new Western Sydney International Airport, slated to open in 2026, as well as the accompanying agri-precinct (which NSW Farmers successfully advocated for) will create new opportunities for producers and will directly feed into the value-adding potential of the Western Sydney area. With talks of dedicated cargo planes to transport fresh Australian produce to lucrative export destinations, the future is looking bright for local producers.

As a heavyweight in fresh food production, the Central West region would be a key beneficiary of the new airport and agri-precinct. The Central West has a gross value of product close to $2 billion per year and agriculture accounts for roughly 13 per cent of this. A strong emphasis on local produce and wine has spawned a strong hospitality and tourism economy in regional centres such as Orange.

Greater access to the Western Sydney International Airport would help Central West producers build on their domestic success. Orange is just over 200km away from the new airport site, yet a journey using either the Great Western Highway or the Bells Line of Road takes at least three hours. NSW Farmers has made ongoing calls for the upgrade of the Great Western Highway to shorten this journey and enable the efficient transport of premium fresh goods destined for overseas markets. It is disappointing that projects to upgrade the highway have been stalled due to funding constraints. 

Food security

Due to natural borders to the south, east and north, Sydney can only feasibly grow in the westerly direction. By 2031, Sydney’s population is projected to have increased by 1.5 million to over 5.8 million (63 per cent of the projected NSW population). Western Sydney will be home to a many of these new residents, with the Department of Planning and Environment predicting the region to supply roughly 60 per cent of Greater Sydney’s new dwellings in the period between 2021 and 2025.

Ironically, Sydney’s growing population also means the gradual loss of one of its key food sources. Food production in the Sydney Basin is worth almost $1 billion per year, with the bulk of Sydney’s vegetables and eggs coming from this food bowl. Sydney’s expanding perimeter has gradually led to the erosion of farmland, with many farmers in the area concerned about encroachment on their land. Some estimates place the loss of agricultural land at up to 60 per cent over the decade from 2011. 

The Sydney Basin is a case study in the tension between competing land uses and how governments manage and plan for this. With housing a priority as Western Sydney expands, it is imperative agriculture is not seen as an afterthought. This has been an advocacy priority for NSW Farmers as land use tensions play out in various forms across the state; whether it be to do with renewable and traditional energy generation or the urban sprawl that is impacting several regional centres across the state. What is key here is that food production is not taken for granted. Once land is industrialised, its potential for productive use is diminished. 

Feeding the future

The theme of the NSW Farmers state election platform was Feeding the Future, and it is a theme we continued into the 2023 Annual Conference. The key message is that consumers are key beneficiaries of a productive agriculture sector; a poignant point amid the cost-of-living crisis, which is disproportionately impacting communities in the western suburbs of Sydney. If agriculture is supported to be profitable – whether that is through managing land use tensions, water and environmental challenges, or increasing market complexities – then Australians can continue to have access to affordable, healthy and quality food and fibre. 

NSW Farmers held its 2023 Annual Conference at Rosehill Gardens Racecourse. Nestled in the manufacturing precincts of Western Sydney, the new venue was an apt change after years of Annual Conference being held at Luna Park. In a prelude event to Annual Conference, NSW Farmers hosted five panellists exploring the Feeding the Future theme (see more on page 17 of this issue). The panellists unpacked the risks and opportunities for the sector in meeting growing food and fibre demand as the operating, political and social environment grows more complex.

The post The growing hub of Western Sydney appeared first on The Farmer Magazine.

While these deals offer income diversification opportunities, hidden costs are increasingly coming to the surface. With energy companies – or, more often, their contractors – entering private properties to install infrastructure, some farmers are now in uncharted territory, citing fears of biosecurity breaches and unexpected liability if projects do not go to plan.

Chair of the NSW Farmers Biosecurity Committee, Ian McColl has noted an uptick in members calling out the actions of energy companies and their contractors.

“There is either a lack of knowledge or a lack of care when it comes to these big companies engaging with private landholders to access their properties,” he says.

“They might not know how serious biosecurity is and the risk foreign vehicles pose, but after hearing various anecdotes from members, it also sounds like there is little incentive to actually care.”

The Farmer interviewed two landholders for this story. Both have chosen to remain anonymous for legal reasons. Jack* says the problem tends to start hundreds of kilometres
away from the farm.

“These companies are looking at a map from their office in Sydney, and charting a route to access the location where they want to install infrastructure. They are not consulting us to check the conditions of the property – like whether it’s too boggy or the roads are usable,” he says.

“These big energy companies are hiring contractors, and the contractors are often hiring subcontractors themselves. While the big companies tend to have biosecurity policies, responsibilities tend to get muddied when the physical job gets passed down the line.”

New legislation came into effect in August 2019 to penalise anyone failing to comply with a landholder’s Biosecurity Management Plan. Penalties can include an on-the-spot fine of $1000 or a court-ordered fine of $220,000 for individuals and $440,000 for corporations.

Biosecurity Management Plans typically require visitors to limit contact with animals and plant matter, clean and check vehicles before entering a property, and contact the property owner before entering. The plan must be displayed by a landholder for them to assert a breach, and concerns can be reported to a Local Government Weed Officer or Local Land Services officer.

“When inspections were arranged, vehicles often failed. We found significant plant and soil material on vehicles, including under the chassis and on top of the spare wheel.”

MICHAEL*
Farmer, south-western NSW

Jack* says that while these obligations exist, a weed infestation caused by accidental cross- contamination might only become known months down the track.

“You can’t know for sure that these companies are not bringing pest weeds onto your property, and you might not even find out until six months later. Then there is every possibility you could have that weed problem for the next 20 years.

“If there’s a delayed weed outbreak on your property, how are you supposed to hold these companies to account? The contractors won’t be held liable because they are protected by the bigger companies. There is no incentive to show the utmost level of care, really.”

While there is a risk that land access issues will become more prevalent with the increase in renewable energy infrastructure across the state, such tensions have accompanied mining and exploration for years.

Michael*, a farmer based in south-western NSW, says the mining exploration company he signed an access agreement with had breached the biosecurity plan for his property on several occasions, and he had nowhere to turn to hold the company to account.

“The company would arrange for some vehicles to be inspected but would send other vehicles out uninspected,” he says.

“We regularly found uninspected vehicles travelling through our paddocks, as well as drilling equipment and motorbikes that were brought in unchecked.

“When inspections were arranged, vehicles often failed. We found significant plant and soil material on vehicles, including under the chassis and on top of the spare wheel.”

Michael* recounts one memorable occasion when a drilling rig was inspected on his neighbour’s property prior to entering his own property.

“The rig had moved to my neighbour’s property from Stradbroke Island in Queensland,” he says.

“The rig had wasp nests and other insects on it, and the company washed it down directly onto our neighbour’s paddock without any protection in place. This was about 500 metres from our boundary fence.”

This farmer’s relationship with the exploration company broke down after that event and he denied them access to his property.

According to him, the company then decided to travel through his property to access his neighbour’s property, despite not having an easement to travel there. These vehicles were uninspected.

After directly contacting the company to request it cease bringing vehicles and equipment onto his property, Michael* was informed he would need an injunction to stop the action.

“We reached out to the Local Land Services, NSW Police and Crown Lands for support, but no organisation offered much help,” he says.

“NSW Police tried to investigate the issue, but the exploration company did not cooperate, and the investigation stalled while the issue continued for more than 12 months.”

He says after making multiple complaints to the NSW Resource Regulator, investigations are almost complete, and the mining company finally stopped travelling through his property in January this year.

“To date we have not had an apology, compensation or any findings against this mining company for their actions,” he says.

“The only reason the company stopped travelling through our paddock is that they negotiated an access route into our neighbouring property through another neighbour, so the company now travels on the other side of our boundary fence.”

In Michael’s* case, the company’s use of his roads without an easement gave him grounds to dispute the company’s actions. However as Jack*, the other landholder interviewed by

The Farmer for this article points out, services and utilities companies will typically have rights to access properties – which can complicate liability in the event of a weed infestation or other harm caused.

“The situation is not black and white. These companies have easement rights to be on your property. It’s not like a burglar robbing a store.

“Obviously that’s a big issue in the case of a delayed weed outbreak, but it can also be challenging for farms growing produce organically, as foreign matter can be difficult to trace.”

This farmer also says the relationship between farmers and energy companies could create a ‘David and Goliath’ situation in the event of a liability dispute.

“I am concerned that if we hold these projects up in any way, be it to undertake a vehicle washdown or request the vehicles don’t come onto the property, then we might wear the costs for time lost on the project.

“There is a lot of uncertainty in the farming community and we don’t have a great deal of support, particularly when the LLS is chronically understaffed.”

According to the NSW Department of Primary Industries’ website, the department is working with key utilities and service providers in the state to reach an agreement on how biosecurity practices will be managed when their employees and workers visit properties.

The post My farm… my rules? appeared first on The Farmer Magazine.

But while the NSW Government cannot change interest rates, Martin is clear on what the government can do: help farmers become more productive and profitable. It’s a sentiment shared in the NSW Farmers state election platform, which focuses on five key areas where government and industry can partner to build agriculture for the benefit of farmers, regional communities, and the consumers who rely on access to affordable, clean, and healthy food and fibre. 

Relief quickly turned to concern

For Martin and his family, who run a 340-hectare cropping farm business near Delungra, relief at finally entering the farm property market in 2020 quickly turned to worry as loans across the country began to swell.

Martin said, “Like most young farmers who have just bought in, we are pretty well leveraged to the bank. Rising farm input costs have not helped. Grain and beef prices have been strong, but they have been winding back.”

Martin and his wife Rachel, who have a two year-old son and another child on the way, might be considered lucky to even be able to enter the farm property market.

Wearing his other hat as chair of the NSW Young Farmers Council, Martin’s key state election priority is to advocate for strategies to help new young farmers to purchase or lease farmland.

“Support measures including business capability initiatives, stamp duty rebates, and low documentation loans through the Farm Innovation Fund need to be explored.

“There are support schemes for young farmers in Victoria and Queensland. It’s time to bring one to NSW.”

Martin Murray, Chair of the NSW Young Farmers Council

But first things first: with Martin’s phone dropping out several times during his chat with The Farmer, improving telecommunications would also get his tick of approval.

“Delungra is a shocker for mobile service, which really can inhibit the farm business.”

Innovation is the answer

Martin wants to look to the future rather than dwell on the challenges. For him, a lot of answers lie in innovation.

“With rising costs, we are going to need to be as smart and efficient as possible in the next few years to maximise returns from the farm.”

“Research and development is key to driving productivity and paying that interest bill. The more that can be spent on researching new varieties, new techniques and new technology, the better it will be in terms of improving farm productivity and profitability.”

Martin Murray, Chair of the NSW Young Farmers Council

As part of its state election platform, NSW Farmers is calling for the expansion of the Farm Innovation Fund and Seafood Innovation Fund beyond the $1 billion already committed to date to help build the resilience of farms. The group is also calling for the establishment of a dedicated Climate and Emissions Reduction Innovation Fund to help find emissions reduction solutions on farms, such as non-petroleum-based fuels.

Infrastructure is also key

Martin said road, rail and port infrastructure investment should also be a priority for the next state government.

“In terms of future investment for our farm, the priority would be grain storage. That would help with our marketability and efficiency of grain production. It would be much better for us to sell direct from the farm rather than use bulk handlers because we are relatively close to the Port of Newcastle.

“We grew durum wheat last year, which was exported from the Port of Newcastle. The next state government must continue to support the expansion of container exports at Newcastle, and I know that grain traders in this region back that.”

An ongoing advocacy priority for NSW Farmers is to expand access to ports, including the Port of Newcastle. Legislative changes made last year meant a fee liability to the NSW Government when the port reached certain levels of container movements was replaced with a more equitable pro-rata compensation payment. Now, the priority for the advocacy group is to push for 100 per cent of bulk grain to be delivered to port by rail.

“Rail lines are improving for the transport of grain, but traders tell me the chokepoint is now at the ports,” said Martin. 

At a farm level, however, the chokepoint is the state of local roads.

“The state of the roads is appalling. Our farm is at the end of a road that is managed by two councils, so we never get a look in,” said Martin. 

A key request in the NSW Farmers state election platform is for greater and more sustainable funding for councils to undertake the significant road work required following severe and ongoing storms and floods across regional NSW, including an amendment to the current grants process.

The headline ask is a $1 billion commitment to improve the roads in regional, rural and remote areas – which, at the time of writing this article, had the backing of the Coalition if re-elected.

Regional debate series focuses on key issues

NSW Farmers hosted a Regional Debate series leading up to the election. The forums, held throughout regional NSW, focused on key issues for voters including environment, water, infrastructure, land use and energy, and featured the relevant Minister, Shadow Minister and spokespeople from the cross bench. 

Politicians attend Environment Forum

Environment policy was the focus of the first NSW Farmers Regional Debate in Goulburn. Politicians who attended included Minister for Environment and Heritage, the Hon. James Griffin MP, Shadow Minister for Environment and Heritage, the Hon. Penny Sharpe MLC, Sue Higginson MLC of The Greens, and the Hon. Robert Borsak MLC of the Shooters, Fishers and Farmers Party (SFF).

Each panellist agreed with the importance of balancing productivity and environmental conservation, the need to engage consultatively with landholders, and the need for a strong partnership between government and industry. While there was some disagreement about the approach needed towards climate change regulation, it was generally agreed that land management in the future must be incentive-based and not impeded by red tape.

Biosecurity on public land was recognised as an important issue. Going into the election, NSW Farmers has a headline policy supporting the establishment of an independent Natural Resource Regulator to enforce required management of public lands including National Parks and Crown lands. In Budget Estimates 2022, the Department of Primary Industries confirmed there had been no prosecutions made by public land managers since 2016 for animal pests.

Key issues discussed at Water Forum

NSW Farmers put water management in the spotlight at the second regional debate in Bega. Politicians who attended included Minister for Water, the Hon. Kevin Anderson MP, Shadow Minister for Water, the Hon. Rose Jackson MLC, Cate Faehrmann MLC of The Greens, the Hon. Mark Banasiak MLC of SFF, and the Hon. Rod Roberts MLC of Pauline Hanson’s One Nation.

With coastal harvestable rights and a new water sharing plan as the key local issues on the night, panellists primarily discussed water capture and the balance between agricultural productivity and environmental outcomes. The construction of new dams was a sticking point for panellists, particularly in relation to the definition of first, second and third order streams under the new water sharing plan in the Bega Valley.

Key priorities highlighted in marginal seats

With several marginal seats in doubt, NSW Farmers took a closer look at two key regional seats ahead of the election. Goulburn and Myall Lakes currently sit with the Coalition, with the former held by Liberal Wendy Tuckerman and Myall Lakes by Nationals member Stephen Bromhead.

In the seats of Goulburn and Myall Lakes, the cost of living consistently remained the key issue on voters’ minds. In Myall Lakes, most voters do not believe either major party will address the issue, contributing to primary swings against Labor and The Nationals and increases in minor party and independent voters. In this relatively safe seat held by The Nationals, around a third of voters have indicated a departure from the major parties – a significant shift away from the two-party system compared to previous elections, such as the 2019 election when almost 78 per cent of Myall Lakes voters gave their primary vote to one of the major parties.

In Goulburn, polling suggests the outcome could go either way.  As well as cost of living, aged care and health are key issues for Goulburn voters.

In both Goulburn and Myall Lakes, the state of roads registered as the headline issue for voters in terms of the NSW Farmers’ election priorities.

If you enjoyed this story on the NSW Election, you may like to read our feature on food security.

The post NSW Election: farmers share concerns appeared first on The Farmer Magazine.

Food access and supply are becoming bigger issues, particularly with supply chain disruptions and the high cost of living. Even in a wealthy country such as Australia, food security is not guaranteed; the latest Foodbank Hunger Report reveals only 55 per cent of Australians consider themselves highly food secure while two million people experienced severe food insecurity in 2022.

NSW Farmers has argued that agricultural productivity is about more than farmers and the communities they are part of; it is also about the innumerable consumers that rely on them for local food and fibre production. NSW Farmers has drawn on its membership and policy experts to identify road and rail infrastructure, biosecurity, farm productivity, workforce, and land use pressures as the five key areas where work is needed to strengthen the long-term success of agricultural production in the state.

Road and Rail Infrastructure

Ongoing flooding and wet weather conditions have put many regional roads into a state of disrepair. NSW Farmers has called for more sustainable funding for councils to undertake repair work on local roads, deeming the current grants system inadequate.

Chair of the Rural Affairs Committee, Deb Charlton, said councils needed funding certainty to undertake this critical work.

“The rolling flooding events have been disastrous for roads, but there is now an opportunity to fix the roads properly and make sure they can withstand future events.”

Chair of the Rural Affairs Committee, Deb Charlton.

Chair of the Business, Economics and Trade (BEAT) Committee and Lowther farmer, John Lowe, agrees.

“It’s difficult for councils to do this work properly when they have to apply for the funding, and then they might be facing labour and material shortages as well,” John says.

In October last year, NSW Farmers had a significant advocacy win when legislation to remove an anti-competitive deed relating to the Port of Newcastle was passed. The port is no longer penalised for exceeding 50,000 containers in a year, making way for a new container terminal.

Chair of the NSW Farmers Grains Committee and Howlong farmer, Justin Everitt, said this was a significant win for farmers, particularly grain growers in the north of the state.

“We have had successive bumper crops, but we have been caught off-guard by not having the infrastructure in place to get all our produce off to export. The state needs to be better prepared for boom cycles and expanding reliance on rail is a welcome thing.”

Chair of the NSW Farmers Grains Committee and Howlong farmer, Justin Everitt.

Last year, NSW Farmers established the new Modernising Rail Infrastructure Taskforce to look at the rail opportunities across the state. At its helm is Moree grain grower Matthew Madden, who said the government needed to look at the rail connections to the state’s three ports – Port of Newcastle, Port Kembla and Port Botany.

“The world’s best performing ports have turnaround times more than three times faster than Australian ports, including Sydney, so it’s high time we look at the connecting infrastructure more closely,” Matthew says.

Big year for biosecurity

Last year was a big year for biosecurity, with localised outbreaks of varroa mite, QX disease and Japanese encephalitis. But the threat of foot and mouth disease spreading here from hotspots such as Bali was what captured headlines and triggered a strong government response.

In light of this threat, the NSW Government announced in July that the sheep and goat industries would be transitioning to a new traceability system, with electronic identification at the centre of the reform.

Speaking on behalf of the NSW Farmers Sheepmeat and Wool committees, Jenny Bradley said the reform process needed to recognise the significant costs associated with the changes.

“Farmers cannot be expected to shoulder this on their own, and we are calling for a realistic transition period and a support package that looks at cost-sharing across the entire supply chain.”

NSW Farmers Sheepmeat and Wool committees, Jenny Bradley.

NSW Farmers has emphasised that biosecurity is not just about keeping risks at bay, but also about the pests and weeds in our own backyard.

Headlining this is a request for an independent Natural Resource Regulator to enforce planned management of public lands including National Parks and Crown lands.

Conservation, Resource and Management committee chair Louise Burge said that despite there being requirements for management of public lands, they were often not being met.

“Farmers neighbouring public lands are being impacted by the threat of pests and weeds coming from over the fence, and it’s time public authorities are held to higher account for their management of these threats,” Louise says.

Ian McColl, chair of the NSW Farmers Biosecurity Committee, said NSW Farmers had been advocating for stronger biosecurity systems underpinned by sustainable funding for some time now.

“It’s good to see funding dedicated to this important issue but it is critical that this funding is sustainable and not just injected when there’s a major threat.”

Issue with the workforce

Agriculture is among the sectors heavily impacted by worker shortages in the wake of Covid-19. A slump in global migration — including a loss of two thirds of the backpackers in Australia before the pandemic — has hurt agricultural businesses, particularly those reliant on seasonal labour.

Apple grower and chair of the NSW Farmers Horticulture Committee, Guy Gaeta, said better coordination of harvest workers was needed.

“NSW needs to be seen as the destination of choice for backpackers and seasonal workers, and we need a strategy for attracting, retaining and coordinating these workers, such as an extension of Help Harvest,” Guy says.

According to Justin Everitt, securing the workers is one thing, whereas housing them is another.

The Grains Committee chair said key growing regions such as Moree were facing situations where job vacancies far outpaced rental vacancies.

“Rural livability is a huge aspect of finding a reliable agricultural workforce, and in the short-term that’s about delivering more affordable housing in rural and regional areas,” Justin says.

Farm Productivity

Farm businesses are abnormally exposed to external factors such as climate variability, high energy and input costs, and labour availability — many of which have come to a head over the past year.

But according to BEAT committee chair John Lowe, these businesses will be increasingly impacted by shifting market trends such as consumer sentiment changes and a push to meet environmental, social and governance (ESG) credentials, especially by the finance sector.

“It’s critical that agriculture isn’t burdened with inefficient taxes or legislative requirements to meet climate and environmental targets,” John says.

“Instead, we need investment in research and development to find technological efficiencies and practical solutions to climate change and emissions reduction.”

BEAT committee chair John Lowe.

In its platform, NSW Farmers is calling for the establishment of a dedicated Climate and Emissions Reduction Innovation Fund to help find emissions reduction solutions on farms.

Chair of the NSW Farmers Young Farmer Council, Mitch Hyett, said talking about the ongoing productivity of agriculture was redundant without addressing how the next generation of farmers would be fostered.

“Getting your foot in the farm property ladder is difficult and could be seen as a deterrent for industry entrants or those considering farming,” Mitch says.

“Strategies to help new young farmers enter agriculture, such as business capability initiatives, stamp duty rebates, and low documentation loans through the Farm Innovation Fund, need to be explored.”

Water is key to farm productivity and the NSW Farmers Dairy Committee is calling for further changes to coastal harvestable rights to maximise agricultural opportunity and build resilience for drier times.

Head of the committee, Colin Thompson, said an increase from 30 per cent to 40 per cent across intensive and extensive industries was needed.

“A big part of farming is preparing for what’s around the corner, and this increase could be a game-changer for farmers down the road,” Colin says.

Land Use Pressures

A longstanding advocacy priority for NSW Farmers has been to secure a land use planning strategy that recognises the need to protect the future use of strategic agricultural land.

NSW Farmers led calls for the state’s first Agriculture Commissioner prior to the 2019 state election. Now the group is calling for this role to be made statutory, and for the establishment of an Agriculture Commission, with an immediate priority to get the state’s land use planning system fit for purpose.

The renewable energy transition is also placing pressure on farming land. Five Renewable Energy Zones planned or underway across the state, as well as the linear infrastructure needed to connect these zones to the grid.

Chair of the NSW Farmers’ Renewable Energy Transition Working Group, Reg Kidd, said enough productive agricultural land had already been lost to extractive industries and urban sprawl.

“Some regional areas are also undergoing change with urban sprawl and an uptick in boutique farming and agritourism ventures. What we need to remember is that agriculture remains the economic dynamo and social heartbeat of most rural and regional towns, and the state cannot afford to compromise the future use of productive agricultural land,” Reg says.

“An effective planning strategy balancing agricultural production with a growing list of other land uses will be the most important legacy any state government can leave for agriculture and our nation’s food security.”

If you enjoyed this feature on NSW Farmers‘ priorities ahead of the state election, you might want to read our feature on the federal election candidates in March 2022.

The post State election: targetting feeding the future appeared first on The Farmer Magazine.

Businesses across various commodities have been struggling to shore up enough workers — from skilled to unskilled— to pick, pack, and process food and fibre. A slump in migration and a competitive domestic labour market are key contributors, but a melting pot of factors has added to a predicament few farmers have been in before.

Not a unique problem

Agriculture is not the only sector suffering from the legacy of Covid-19 travel restrictions. Despite borders reopening at the start of the year, migration to Australia remains low compared to pre-pandemic levels.

Worker shortages were a key discussion point at the Albanese government’s inaugural Jobs and Skills Summit held in early September, where the government announced Australia’s migration cap would be increased by 35,000 places and pensioners would be eligible for a $4,000 income bank credit to allow them to work without their pension being affected.

NSW Farmers President Xavier Martin says while the changes are welcome, they do not come close to what NSW Farmers was calling for — a threefold increase to the 18 hours pensioners could work per fortnight before their payment was compromised.

“I know plenty of retirees who want to help farmers with the harvest. We need to be embracing any opportunity to find workers.”

NSW Farmers President Xavier Martin.

“It makes a lot of sense for pensioners to play a role in the seasonal workforce. If they are travelling around Australia in their RV, why not stop off at farms and help pick fruit along the way?”

What about backpackers?

Backpackers typically make up the bulk of Australia’s seasonal agricultural workforce. The number of backpackers who returned to Australia in early 2022 — which the National Farmers’ Federation estimates to be about 7000 — is a drop in the ocean compared to the 40,000 here before the pandemic. Changes under the UK’s free trade agreement with Australia mean British backpackers – who have typically made up about a quarter of the horticultural workforce – are no longer required to carry out 88 days of farm work to extend their working holiday visas.

Potato and cereal cropper and member of the NSW Farmers Horticulture Committee, Geoff Moar, says the shortage of backpackers has created a hole in the seasonal workforce.

“The past 12 months have been the hardest I have ever experienced in terms of getting casual labour. I’ve never seen it like this before. The backpackers are just not there.”

‘It’s not just farmers, though. I drive into town and every shop has a sign up saying they are looking for staff. It just goes to show how many jobs had been filled by backpackers before. We took them for granted.”

Potato and cereal cropper and member of the NSW Farmers Horticulture Committee, Geoff Moar.

How is the industry getting innovative?

When it comes to finding workers, farmers might be inadvertently going about it the wrong way. That is according to the founder of Seasonal Work Australia, Heidi Morris, who uses social media to connect workers with farmers — primarily around her native Moree, but also Wagga Wagga and even Western Australia.

Heidi says when looking for workers, farmers need to start embracing people who might not have years of work experience but have a good attitude and an ability to show up.

“I have worked cropping seasons for the last eight years, and I know firsthand that attitude is the most important thing,” Heidi said. “I also know from experience that Gumtree ads tend to not work very well because potentially great employees are turned off by experience requirements and how impersonal the ads can be. People are reaching out to me on Instagram because they feel more comfortable there, and the process is a lot more straightforward.”

What about family helping to solve the labour shortage issue?

Oliver Pope is typical of his generation. Despite having strong ties to his family farm – a mixed egg and cropping enterprise spread across three properties near Goulburn and Cooma – he relocated to Sydney in his twenties to pursue study and work. But after the retirement of two long-serving farm staff, and a “revolving door” of workers, Oliver and his family decided it was time for him to return to the farm full-time.

“I’d been travelling between Sydney and Goulburn regularly, and my brother was already back there full-time from the city. But I eventually realised I needed to move back to help ease the stress of staff shortages,” he said.

“Maintenance jobs and improvements on the farm were being delayed because my brother, who manages the egg farm, was having to cover staff shortages in the egg packing room and deliveries to customers.”

Oliver has no regrets. He says his new role has enabled him to spend more time with his family and ease their workload. “It really makes a difference when you’ve all got the same goal in mind when working together,” he said.

Making a broader impact

According to the newly formed National Food Supply Chain Alliance, 172,000 workers are needed across Australia’s food supply chains to avoid food shortages and higher food prices. Australian consumers are not naive to the possibility of such outcomes. During the year, the cost of fresh food items spiralled amid supply issues caused by flooding in key growing regions. In June, the Consumer Price Index reached its highest level in 21 years at 6.1 per cent.

Labour access issues are part of a ‘bigger picture’ that may well end with the consumer, but where do they begin?

According to Geoff Moar, it’s in the classroom.

“Agriculture is deemed a low-priority option for school leavers, and this has a lot to do with the way the sector is portrayed at school,” Geoff says. “This outdated image of farmers holding pitchforks and chewing straw still does the rounds, even though it is clearly not representative or accurate. The sector is fast-evolving, and it uses state-of-the art technology and sophisticated practices.”

Geoff laments that while Australians have grown more appreciative of farmers over recent years, the profession is still not respected as much as it should be and more needs to be done to raise the sector’s profile.

“Agriculture might well be the backbone of Australia’s food security and regional economies, but I don’t think it is seen that way. Changing peoples’ perceptions would make it easier to attract skilled workers.”

Image: Kids to Farms picture. Caption: NSW Farmers delivers the Kids to Farms program, which is funded by the federal Department of Agriculture, Fisheries and Forestry. The program offers farm excursions or classroom incursions with a single purpose: to raise primary students’ awareness of how food and fibre is produced.

Workers need houses to help solve the labour shortage crisis

Housing availability and affordability are often cited as key factors in ongoing labour shortages in regional areas. In what has been labelled a crisis, rental prices in some regional areas have almost doubled and property vacancies have reached single figure territory.

Data obtained on 13 September 2022 showed 17 rental vacancies in cropping hub Moree, where there were also 112 jobs advertised. In Griffith on the same day, there were just six rental vacancies and 300 jobs going.

Heidi Morris puts the competitive rental market in Moree down to Inland Rail workers being in town, and says it is affecting more industries than just agriculture.

“How are we going to attract doctors and nurses, who are already in short supply in regional areas, when they can’t find somewhere to live?” she queried.

According to Claire McClelland, chief executive of horticultural industry body Australian Fresh Produce Alliance, accommodation is the main limitation for employers in finding workers.

“It’s something the horticulture industry and agriculture more broadly need to get serious about,” she said. “Currently, there are several roadblocks. There’s just not enough houses available in regional towns and council restrictions can make it difficult to build housing on-farm. Some farmers have resorted to purchasing properties in town.”

The dedicated agricultural visa

Having a dedicated agricultural visa in place was a key industry policy driven by the NFF Horticulture Council. While it was adopted by the former Coalition government earlier in the year, it has been redirected by the current Labor government to the PALM scheme.

According to Claire McClelland, PALM is one of the main migration pathways farmers use to find workers for their farms. There are currently 20,000 workers in Australia under PALM, which is a consolidation of the Seasonal Worker Program and the Pacific Labour Scheme.

But Claire says one of the scheme’s main limitations is the six-month minimum period an employer must engage a worker.

“That six-month minimum is far longer than the typical duration of most horticultural harvests, leaving businesses in a tricky position,” she said.

While this requirement could change following a review of the scheme’s guidelines, Claire says a middle ground needs to be found between the reliability of PALM and the flexibility of the Working Holiday Maker (backpacker) programs.

“The PALM is great because many workers will return to Australia with the same employer year after year, so they become quite skilled. If we can reach an outcome where workers can be engaged by multiple employers over the six months, as was tested in a pilot a few years ago, then that would be an ideal outcome.”

According to Claire McClelland, Chief Executive of horticultural industry body Australian Fresh Produce Alliance.

If you enjoyed this feature on the labour shortage in ag, you might want to read our story on allowing pensioners to work to help the crisis.

The post Resolving the labour shortage in ag appeared first on The Farmer Magazine.

Many agricultural commodities will benefit from immediate and phased-in tariff cuts when the agreement comes into effect later in the year. Sheep meat, wine, fruit, nuts, vegetables, wool, dairy concentrates, lentils and seeds are among the big winners following decade-long negotiations between Canberra and New Delhi.

Jenny Bradley is a sheep producer based near Armatree in central New South Wales and is the chair of the NSW Farmers Sheep Meat Committee. She welcomes the immediate removal of a 30 per cent tariff on Australian sheep meat and looks forward to a more competitive international market for producers.

“This trade deal will make us less exposed to fickle export markets, like what we saw in 2020 when a major trading partner added hefty tariffs to several Australian goods overnight.”

Jenny Bradley, sheep producer and is the chair of the NSW Farmers Sheep Meat Committee.

“It is also great timing for lamb producers given our sheep numbers and prices are reaching historic highs. The timing really could not be better.”

The wool industry is another key beneficiary of the proposed trade agreement, buoying the already strong presence of Australian wool in India.

India has become the third largest importer of Australian wool in recent years, and an 82 per cent year-on-year increase in volume purchased between July 2021 to January this year means the agreement is ideally timed.

Horticulture: a big winner

The interim trade agreement, when ratified, will phase out tariffs over seven years on a range of horticultural commodities, including cherries, raspberries, blueberries, macadamia nuts, hazelnuts, avocados, lettuce, celery and spinach.

The macadamia industry sees enormous potential from the scaled back tariff. Chief executive officer of the Australian Macadamia Society, Jolyon Burnett, says the deal coincides with the industry’s drive to make India one of its key export destinations.

“This agreement opens the door to a potentially huge market at a time when the industry is rapidly increasing supply and actively looking for new markets.”

Jolyon Burnett, CEO of the Australian Macadamia Society,

“Eating nuts is part of the Indian way of life and with the necessary market research and trade development, India has the potential to be worth up to $100 million to the industry.”

What about the booming cropping sector?

For the cropping sector, which is set to experience its third consecutive bumper crop, the proposed trade deal is mostly business as usual. But industry leaders remain hopeful that come September, when the interim agreement is reviewed, the Indian government will realise an opportunity in Australia’s booming cropping industries.

Grain Producers Australia chair Barry Large said the interim agreement is a positive start but could harness more potential from Australian production.

“Reducing tariffs and other trade barriers for Australian grains will not only open up better opportunities for Australian growers, but it can also deliver real benefits for 1.3 million Indian consumers who can access our high-quality products in their daily diets,” he says.

The omission of chickpeas from the tariff cuts has come as a shock to industry. India – where pulses are a dietary staple – was the dominant export market for Australian lentils and chickpeas prior to the introduction of hefty tariffs in December 2017.

According to the Department of Foreign Affairs and Trade (DFAT), Australian lentil exports to India were worth almost $1 billion while Australian chickpeas had an almost $1.4 billion stake in the Indian market.

While the 2022 interim agreement has given renewed hope to lentil growers, the prohibitive 66 per cent tariff on chickpeas will remain intact.

Pulse Australia chief executive officer Nick Goddard said this is a disappointing outcome that will negatively impact both Australia and India.

“With India effectively shutting the door to Australian chickpeas, not only will Australian growers remain locked out of what was their main export market, but India will be reliant on its domestic crop,” Nick says.

Chickpeas are consumed as a wholefood and they are a key ingredient in dhal, a popular Indian dish, so any disruption to domestic production would be keenly felt there.

“Monsoon conditions present the biggest risk to India’s chickpea production. With the monsoon coinciding with an off-season for chickpea production here, there is no way Australia could just step in during an emergency.”

Nick Goddard, CEO Pulse Australia.

Nick said the tariffs imposed in 2017 were a significant blow to the pulse sector, which had fine-tuned its exports for the Indian market.

“When David Littleproud became Agriculture Minister, one of his first priorities was to have the prohibitive tariffs removed, and within weeks of entering office he was on a plane to India to negotiate with leaders there,” he recalls.

New South Wales had been a leader in breeding chickpeas tailored to the Indian market, with the NSW Department of Primary Industries a co-collaborator with the Grains Research and Development Corporation for the national chickpea breeding program, Chickpea Breeding Australia.

However, the interim agreement is not all unwelcome news for the pulse and oilseed industries. The phase-out of tariffs on crude canola oil over seven years has opened significant market and value-add opportunities. New South Wales will be a key recipient of this value, with canola processing plants in Wagga Wagga, Cootamundra, Manildra and Newcastle. While the removal of an 11 per cent tariff on lentils would only apply up to 150,000 tonnes, Nick says it provides a glimmer of hope and a foot in the door for Australian growers.

Meanwhile, Australian chickpea exporters will have to focus on the burgeoning export market in one of India’s closest neighbours, Sri Lanka.

Move away from China?

While the interim agreement left some industries disappointed, commentators agree it is a positive step in relations between India and Australia. It also comes amid a push to diversify export markets and a possible transition away from China as our dominant trading partner.

According to DFAT, almost one third of Australia’s global trade is done with China, but trade between the two countries has decreased in recent years. Reduced service exports during the pandemic are the main factor behind this drop, but trade restrictions imposed by China in 2020 also explain a 3 per cent drop in that year alone.

China surprised Australian producers in 2020 when it placed tariffs on a range of Australian goods. A prohibitive 80 per cent tariff on Australian barley drastically altered the industry’s exports to what was its biggest global customer.

Barley producer and Chair of the NSW Farmers Grains Committee Justin Everitt says fickle trade dynamics impacted on a farmer’s bottom line.

“Exporters are at the mercy of global politics and decision-making, but at the end of the day we just want a decent price for our produce.”

Justin Everitt, barley producer and Chair of the NSW Farmers Grains Committee.

However, many in the grains sector believe there are problems at home as well as abroad, with Justin hinting at a push among growers to obtain greater price transparency through an Australian Competition and Consumer Commission inquiry.

“International prices are highly disparate to what we’re receiving, and this has come into sharp focus with the war in Ukraine pushing the global wheat price right up,” he says.

Where does India currently sit in Australia’s trade portfolio?

India is Australia’s seventh biggest trade partner after China, United States, Japan, Republic of Korea, United Kingdom and Singapore. Agricultural exports were worth $49.6 billion in 2021, making it the third biggest export sector after minerals and fuels and the service sector. Beef has been Australia’s main agricultural export, while cropping and dairy have seen significant growth over recent years.

Australia signed a free trade agreement with the United Kingdom in December 2021, which is expected to come into effect this year. Under the agreement, tariffs on Australian wine, beef, sheep meat and sugar will be removed immediately for over eight to ten years.

Snapshot of interim trade deal with India

• Sheep meat tariff of 30 per cent eliminated immediately.
• Wool tariffs of 2.5 per cent eliminated immediately.
• Tariff of 50 per cent on infant formula and protein concentrate phased out over seven years.
• Tariffs up to 30 per cent on cherries, raspberries, blackberries, blueberries, currents, macadamia nuts, cashews, shelled pistachios, hazelnuts, avocados, onions, shallots, leeks, lettuce, cucumbers, asparagus, spinach, artichokes, celery and olives eliminated over seven years.
• Tariffs on peas, figs, dates, strawberries, kiwifruit, lychees, garlic and pineapples halved over seven years.
• Tariffs on barley and oats bound at zero per cent.
• Tariffs up to 30 per cent on sunflower seeds, safflower seeds, linseed and poppy seeds eliminated over seven years.
• Tariffs on adzuki beans, kidney beans, broad beans and split beans eliminated over seven years.
• Tariff of 11 per cent on lentils eliminated up to 150,000 tonnes per year.
• Tariffs up to 45 per cent on crude canola oil, crude palm oil and olive oil eliminated over seven years.
  
  If you enjoyed this story, you might like our feature on China’s tariffs leading farmers to other markets.

The post Trading places: a trade agreement with India appeared first on The Farmer Magazine.

The Kids to Farms project is an initiative that brings the farmgate closer to the classroom, teaching children about common farm practices and processes.

It also helps simplify how farm produce gets from paddock to supermarket shelf – knowledge that is more in demand following major disruptions to supply chains over COVID-19.

Over the past year NSW Farmers has been delivering the Kids to Farms program, which has allowed primary school students from all corners of the state to get a taste of farming and learn more about where their food and fibre comes from.

More than $20,000 has been awarded to NSW primary schools for excursions, thanks to funding from the Department of Agriculture, Water and Environment.

More than 900 students from 19 primary schools have benefited from this funding, with schools from the north to south coast and western NSW enjoying farm visits or classroom ‘incursions’ to date.

NSW Young Farmers committee member and teacher Charlotte Groves said more funding is available for terms three and four.

“The program offers significant flexibility and adaptability to suit teachers’ needs,” Charlotte said.

“If an excursion isn’t possible, Kids to Farms can connect schools with virtual or in-person farmer visits to classrooms.”

Since the program’s commencement in March 2021, over 2500 students have connected with agriculture via Kids to Farms resource kits, virtual visits during lockdown, in-person visits, workshops, and excursions.

“Kids to Farms is built on the ethos of “2 by 12”, or two farm-related experiences by the age of 12.

With fewer children growing up on farms of having a family connection to farming, initiatives such as Kids to Farms play a key role in bridging the widening gap between city and country.”

“All Kids to Farms opportunities are tailored to the classroom syllabus. With funding available to access this great initiative, it’s a no-brainer for teachers in terms three and four.”

Head to https://kidstofarms.com.au/ for more information and to apply for funding.

The NSW School Merino Wether Challenge offers a hands-on learning project for high school students. Read more here.

The post Kids to Farms heads into term three appeared first on The Farmer Magazine.

Does diesel really need to go? The rise in diesel ‘alternatives’ is showing the farmer’s preferred fuel doesn’t necessarily have to be dumped; it’s the fossil fuels used to create it that must go. The baby doesn’t need to be thrown out with the bathwater, so to speak, and the government and private sectors have been looking at diesel alternatives for years – producing a range of compelling options. 

Diesel has a hold on the agriculture sector. About 80 per cent of production is reliant on it, and any changes to its price or availability are heavily felt by farmers. 

According to John O’Connor, Research Officer at the Energy Efficiency Solutions Climate Branch at the NSW Department of Primary Industries, diesel is popular for a reason. It’s reliable, accessible, and easy to store. And John is adamant diesel engines don’t need to be abandoned any time soon. The fuel itself just needs to get cleaner.

“Diesel engines are not entirely the problem, and in fact they have come a long way over the past 20 years. The addiction farmers have to diesel isn’t necessarily a bad one.” 

John O’Connor, Research Officer at the Energy Efficiency Solutions Climate Branch at the NSW Department of Primary Industries.

Is renewable diesel the answer?

There are ways of overcoming a reliance on fossil fuels to produce diesel, and renewable diesel is a frontrunning option – for the foreseeable future, at least. 

Renewable diesel is an advanced biofuel made using renewable materials such as straw, biomass, sewage, vegetable oils, and animal fats. It can be used as a ‘drop-in’ replacement for conventional diesel because it doesn’t require engine modification, can be blended, and can run in existing pipelines. 

With the viability of renewable diesel having been demonstrated in the US, John O’Connor said its uptake here was more about an attitude shift. 

“The supply of alternative fuels is still too small to be a replacement, but that will need to change over coming years,” he says, noting policy support and community awareness were key.

Biodiesel & hydrogen in the spotlight

Biodiesel is another low carbon option that uses oil and fats as feedstocks. Although it can already be blended with conventional diesel (typically at 5 per cent) biodiesel is not a complete replacement and therefore, according to John, “is not the full answer”. 

Biodiesel is not always better for the environment than conventional diesel, either. The feedstock, farm practices, production process, energy source and distribution process all have a bearing on the carbon emitted – with varying outcomes. 

Hydrogen offers another low carbon fuel option, albeit a longer term one. Hydrogen is not a new energy source, but the processes used to create it can evolve to emit less or no carbon. 

Dr Neil Thompson, an Adjunct Professor at the Queensland University of Technology and a farmer based near Kingaroy, said the first battlefront for hydrogen was transitioning away from so-called grey hydrogen – which uses natural gas – and toward green or possibly blue hydrogen. 

Green hydrogen is produced using renewable electricity generated by the likes of wind turbines and solar panels to split water intro hydrogen and oxygen. Producing green hydrogen is carbon neutral, but the infrastructure needed to make it is expensive, unlike the much more common and carbon-emitting grey hydrogen. Blue hydrogen is made using the same process as grey hydrogen, but the carbon is captured and stored. 

The carbon capture and storage (CCS) technology used to make blue hydrogen is the centrepiece of the federal government’s Technology Investment Roadmap to lowering emissions and was one of Australia’s key submissions to the 2021 Glasgow Climate Change Conference. 

However the efficacy of CCS has been questioned by numerous experts, and according to Professor Thompson, was more expensive to produce than green hydrogen when additional storage costs and risk premiums were considered.

Green hydrogen is attracting growing interest from the commercial sector, with a potential $4 billion investment in the Hunter and Illawarra Hydrogen Hubs flagged by the NSW Government. 

Treasurer and Energy Minister Matt Kean said commercial bids for these hubs included a plan to develop up to 5,900 megawatts of electrolyser capacity to produce green hydrogen. According to Minister Kean, the “ market has spoken”, with green hydrogen expected to meet 24 per cent of global energy by 2050 and be worth an estimated $900 billion. 

Farmers more heavily hit

NSW Farmers has been looking at the future of diesel for its members, and President James Jackson said agriculture couldn’t afford to be caught flat-footed on any changes to diesel use. However farmers don’t have the time or investment capacity to be finding greener solutions on their own. 

“Agriculture as a sector is typically asked to carry a heavier load when it comes to meeting carbon reduction targets.”

NSWF President James Jackson.

“Suggestions that fuel tax credits be repurposed away from farmers’ pockets and toward the exploration of low carbon options is frankly alarming when farmers shouldn’t be taxed for road use in the first place. And the tax credits are the only way they can recoup their losses.”

What about electric?

Electric vehicles are considered the primary driver of lower emissions in the transport sector, and the Australian Government’s plan for minimising transport emissions seemingly relies on subsidies and infrastructure to push EV use. 

According to Nathan Gore-Brown, senior consultant at MOV3MENT, electric motors are much more efficient than combustion motors and some of the biggest advancements in vehicle energy efficiency have been made with some electric assistance. 

“A lot of low- or no-carbon solutions – from diesel-electric hybrids, through battery electric solutions, to hydrogen fuel cells – rely on some degree of electrification using electric motors to replace or support diesel engines,” he says. 

But many commentators agree that battery cells have limitations in agriculture. 

John O’Connor says that the immense size and scale of agriculture in Australia meant battery cells were not yet fully viable. “We simply don’t yet have the infrastructure needed to go fully electric in Australia – especially in agriculture,” he says.

Professor Thompson said he wished he could buy an electric tractor for his farm, but the weight and duration limitations made it unfeasible. 

“We saw electric ride on mowers developed in the US during the 1973 oil crisis so the current global oil price shock might expedite similar development of larger battery electric and hydrogen fuel cell electric tractors,” he says.

But while light trucks and machinery in peri-urban areas could feasibly go electric, John stresses the need to be realistic and to only electrify where practicable – not “just because”. 

Moving to Methane

Methane is another avenue being explored, and recently New Holland released a methane tractor prototype. The world’s first 100 per cent methane powered production tractor which is said to provide a ‘virtuous cycle’ whereby crop waste is used to power the tractor which helps grow those very crops. 

But while methane’s potential has been showcased in Europe where smaller distances, intensive production, and favourable environmental laws make it viable, full-scale adoption in Australia’s agriculture sector is not likely. 

What’s more, methane is a highly potent greenhouse gas and any leaks from the supply, distribution and use stages seriously impacts methane’s emission reduction potential.

Fuel security 

Australia imports about 90 per cent of its liquid fuels, with only two oil refineries remaining in the country. The COVID-19 pandemic and the war in Ukraine revived discussions on Australia’s fuel security and sovereign fuel stocks, with diesel prices hiking as high as $3 per litre amid sanctions on Russia, the world’s second biggest exporter of crude oil.

John and Professor Thompson were both excited by the low- or no-carbon opportunities to shore up fuel supply if new biofuel refineries and electrolysis infrastructure are established in Australia. 

Australia’s two remaining refineries – Viva Energy in Geelong and Ampol in Brisbane – have both publicly expressed a commitment to de-carbonisation, with the latter set to pilot a green hydrogen production plant. Professor Thompson says there is an opportunity for these refineries to differentiate themselves in the market with a greener product as they try to compete with overseas refineries. 

“Building up local refineries would be huge for our food and even military security,” Professor Thompson said. 

Australia currently has the capacity to produce enough biodiesel to constitute 4 per cent of agriculture’s fuel. But Australia’s only biodiesel refinery, Barnawartha, exports most of its fuel to more lucrative overseas markets.

Where to next for the future of fuel?

Diesel will still have a place in powering agriculture over the next 20 years. While the fuel itself will need to get cleaner, Nathan Gore-Brown said fuel efficient practices and electrification of equipment will also play a role in reducing carbon emissions.

Several commentators agree that the long game will involve replacing combustion engines with cleaner fuel cells. Hydrogen fuel cells, which are effectively electric vehicles with a hydrogen rather than battery energy storage system, are being touted as a key option. 

The Renewables in Agriculture conference will see industry leaders converge in August this year – with diesel alternatives high on the agenda. Meanwhile, the NSW DPI’s Exploring Beyond Diesel events continue to look at low or no carbon fuel options under development.

If you enjoyed this feature on the future of fuel, you might like our story on innovations in ag.

The post The future of fuel: Is diesel here forever? appeared first on The Farmer Magazine.