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2030 Roadmap

Australian Agriculture’s Plan for a $100 Billion Industry


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Contents
Foreword 1

Our Vision 3

Industry Values 3

About This Roadmap 5

Situational Snapshot 7

2030 Megatrends 9

Pillar 1: Customers and the Value Chain 13

Pillar 2: Growing Sustainably 17

Pillar 3: Unlocking Innovation 21

Pillar 4: People and Communities 25

Pillar 5: Capital and Risk Management 29

Structuring Ourselves for Success 33

Where to from here? 35

Pillars in Action: Delivering on 2030 37

Contributors and Acknowledgements 41

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Foreword

Australian agriculture plays a unique role in Australian society. It is both a major


economic driver and the lifeblood of our regional and rural communities. It is an industry
underpinned by innovative and resilient individuals who run their businesses in an
increasingly complex and challenging environment. My overwhelming experience of
those members of our agricultural communities is they take on these challenges with
positivity and determination.
As a predominantly export focused sector, Australian agriculture has experienced
significant growth over the past decade, which has boosted farm gate returns to more
than $60 billion in 2016-17. This growth is in part due to continued and extended access
to international export markets, but also due to our world class production systems
underpinned by cutting edge research and development and a reputation for clean and
green products.
To maintain this competitive advantage the Australian agricultural industry must
continue to think strategically, work collaboratively and exhibit strong leadership that will
drive it towards the vision of this Roadmap – to exceed $100 billion by 2030.
I commend the National Farmers’ Federation (NFF), along with its members and other
industry stakeholders involved in charting this Roadmap, for pulling together to
articulate the steps required over the coming decade to ensure a strong and sustainable
future for Australian agriculture.
I look forward to working closely with NFF and industry across the board to ensure that
government and industry form an even stronger bond, based on a shared vision, that
ensures a legacy for our industry, economy and community.

Hon. David Littleproud MP


Minister for Agriculture and Water Resources

1 2030 Roadmap
Australia’s agriculture sector has a bright future. Just how bright will depend on how well
we capitalise on our strengths and opportunities.
To ensure our food and fibre production is sustainably profitable, industry must be
guided by a strong plan focussed on the financial, human, natural resource,
infrastructure and research capital that drives it.
We know that in the coming decades agricultural trade - both domestic and export - will
continue to drive employment and wealth creation in our regional and rural communities.
With this in mind, never has ‘brand Australia’ been more important.
The continuing strength of our brand - synonymous with high quality and safe food and
fibre - requires us to capitalise now on what we do best, whilst challenging ourselves to
continually innovate and improve into the future. This is increasingly important as we
strive to meet the growing expectations of our community and customers, both in
Australia and globally. Increasingly, they want food and fibre which has been produced
in a clean, sustainable and ethical manner.
Whilst industry will drive this innovation and improvement, government must provide the
policy guidance, the tools, and the support needed to fulfil the sector’s aspirations. And
to achieve success, we must work together in a collaborative manner to both overcome
the challenges and to make the most of the opportunities.
The 2030 Industry Roadmap, developed by the NFF in conjunction with key industry
stakeholders, will be a crucial tool in assisting this collaborative relationship. I
congratulate the NFF and industry on driving this initiative and look forward to working
with its membership to reap the rewards that will come from a strategic and forward-
looking approach to Australian agriculture as we move towards 2030.

Hon. Joel Fitzgibbon MP


Shadow Minister for Agriculture, Fisheries and Forestry

Australian Agriculture’s Plan for a $100 Billion Industry 2


Our Vision
To exceed $100 billion in
farm gate output by 2030

Industry Values

Smart Profitable Sustainable Unified


An industry focused on The rewards of A commitment to Our strength and
innovation and agriculture’s success are sustainability is at the success are built on a
improvement. We realised at the farm gate core of our industry’s commitment to
attract, train and retain and shared with our culture. Healthy people collaboration and
the best people. employees and and environments are a partnership. We
communities. key measure of success. navigate challenges and
engage our
stakeholders as an
industry.

3 2030 Roadmap
Pillars of the Roadmap

Pillar 1:
CUSTOMERS AND THE VALUE CHAIN
• Agriculture is ranked Australia's most
trusted industry.
• Australia's freight cost per tonne-
kilometre is competitive with major
agricultural exporting nations.
• An average tariff faced by agricultural
exports of 5%.
Pillar 2:
• A 50% reduction in agriculture exports
GROWING SUSTAINABLY
experiencing non-tariff barriers each • The net benefit for ecosystem services
year. is equal to 5% of farm revenue.
• Australian agriculture is trending
towards carbon neutrality by 2030.
• A 20% increase in water use efficiency
Pillar 3: for irrigated agriculture by 2030.
• Maintain Australia's total farmed area
UNLOCKING INNOVATION at 2018 levels.
• Australia becomes a Top 20 nation for • Halve food waste by 2030.
innovation efficiency.
• Every Australian farm has access to
infrastructure and skills to connect to
the Internet of Things.
• Australia's farm energy sources are
50% renewable by 2030.
Pillar 4:
PEOPLE AND COMMUNITIES
• Double the number of tertiary and
vocational agriculture graduates.
• Increase the available work force by
25%.
• Achieve gender parity in the
Pillar 5: agricultural workforce, and double the
number of women in management
CAPITAL AND RISK MANAGEMENT roles.

• 90% of family farms which have 2+ • A mean score of 5 for Physical Capital
generations working in the business sub-measure in the Regional Wellbeing
have a documented succession plan. Survey.

• Year on year increase in equity • Zero farm fatalities.


investment in Australian farm • Close the gap between the
businesses. psychological wellbeing of farmers and
• 90% of Australia’s farmers employing the broader community.
multiple financial tools to manage risk.

Australian Agriculture’s Plan for a $100 Billion Industry 4


About This Roadmap
This Roadmap began with a central vision: to
make agriculture Australia’s next $100 billion
industry by 2030. 380 Talking
2030
We recognised that delivering on this ambition Participants
required a gutsy plan with the support and
endorsement of all stakeholders. We needed a
roadmap for agriculture’s next decade.
What follows is the result of exhaustive

NFF Members
consultation with leaders right along the
agricultural value chain: farmers, researchers, KPMG
agribusinesses, educators, the community, Discussion
government and more. Paper
This 2030 Roadmap lays out where we want to
head, and how we intend to get there.
It will form the basis of a collaborative effort, led
by the NFF, to pursue common industry goals.
This document now becomes the yardstick by
Targeted
which we measure our success, and hold
Industry
ourselves to account.
Consultation

Consultation Member Oversight


The NFF led a 6-month The 2030 Roadmap carries the
consultation effort to inform the full endorsement of the NFF’s
Roadmap. It began with a member organisations, who
Discussion Paper which distilled reviewed and provided input on
insights from leading experts, this plan throughout its
before commencing a nationwide development.
roadshow, where we spoke to
Our members – through our
over 380 farmers and other
representative structures – will
industry experts to field their
continue to play a critical role in
views. As we consolidated this
the future of this Roadmap.
feedback, we engaged regularly
with industry stakeholders and
experts to ensure the ideas we’re
putting forward are credible and
impactful.

5 2030 Roadmap
Policy
Research

Annual Report Card


Collaboration

2030
Roadmap

Advocacy

Leadership

2030 Roadmap Implementation Report Card


A consolidated plan for industry - The NFF will lead a collaborative The NFF will report annually on
articulating our aspirations for approach by all stakeholders to key industry trends and progress
2030, along with practical actions progress the Roadmap agenda. against the Roadmap metrics.
and metrics for success. The NFF will invest in policy This will provide an opportunity to
research to build the evidence hold ourselves and other
The Roadmap extends well
base for key changes, and stakeholders to account. We will
beyond the headline growth
partner with industry participants also review the content of the
target of $100 billion to provide a
to promote and adopt new ideas. Roadmap at the same time, and
vision for communities, the
We will call for Government to tweak it as appropriate to ensure
environment and more.
embrace this plan, by developing it remains relevant.
Some actions are within the a National Agriculture Strategy
control of the NFF, many will which commits all levels of
require us to collaborate and government to a proactive
partner to achieve the aspirations agenda for the agricultural value
of this plan. chain.

Australian Agriculture’s Plan for a $100 Billion Industry 6


Situational Snapshot
Australian agriculture has enjoyed a
period of substantial growth in the
last decade – surpassing $60 billion
in farm gate output for the first time.
To achieve our vision of $100 billion
by 2030, we must continue to build
on our achievements to date,
capitalise on new opportunities and
find innovative solutions to those
challenges that threaten the future
growth of our sector. This Snapshot
sets out the foundations on which our
vision is built.

Our Farms

There are

85,000
farm businesses in Australia,

99%
are wholly Australian owned.
Agricultural
businesses manage

48% The average age of a farmer is


56 years old;
17 years older than
Australian farms provide of Australia’s landmass.
the average worker.
93%
of Australia’s domestic
food supply.

7 2030 Roadmap
Our Industry

250,700
The total value of Australia’s Agriculture, forestry and
agricultural production for fishing represent

2018-19 2.4% of
Australia’s GDP
Australians are employed
by the agriculture industry.
is forecast to be
with the whole agricultural

$60bn supply chain totalling

remaining above the 10 year 12%


average of $56bn.

CO2
Price growth has been
responsible for CO2

90% of CO2

growth Australia invests Agriculture has reduced


$3.3 billion greenhouse gas emissions intensity
by 63% between 1996 and 2016,
in farm gate
in rural research and however increasing climate
output since
development each year but variability will require further
2010.
ranks only 76th globally for reductions.
innovation efficiency.

The Global Markets

Agricultural exports are Australian agricultural exports


forecast to total
face increasing
$47 billion competition
for 2018-19, accounting from traditional as well as new
for 70% of agricultural 70% competitors.
production by value. Australia’s farms remain
among the least subsidised in
the OECD (second only to
Our
New Zealand).
top markets
for agricultural exports are:
Recent trade deals
– including with
China, Japan and
Korea – have
China Japan European United Korea Indonesia created new export
Union States opportunities.

Australian Agriculture’s Plan for a $100 Billion Industry 8


2030 Megatrends
Driver Outlook Assessment

Burgeoning global populations and incomes –


particularly on our Asian doorstep – will fuel
Unprecedented demand for food and fibre in years to come.
Strength
demand Improved market access will position Australia to
service that demand, amplifying our geographic
advantage.

Environmental, health, and welfare considerations Opportunity


will increasingly sway purchasing decisions. Meeting
Heightened Opportunity/
these expectations presents opportunities to build
expectations on our competitive advantage. It also increases Weakness
reputational risks if expectations are not met. Weakness

Digital and genetic technologies promise to unlock


new waves of productivity growth across the sector.
Disruptive
Automation will continue to improve quality of life Opportunity
technology for farmers, while reshaping the sector’s skills
needs.

Climate change will play a major role in Australian Opportunity


agriculture’s next decade, exacerbating climate risk
while creating diverse new income opportunities.
Responding to
Australia’s policy response can position us as a Opportunity
climate change global leader in low-emissions agriculture. Done
poorly, our policy response could saddle farm
businesses with additional costs. Threat

Without intervention, growth in Australia’s major


cities and regional centres will continue to outstrip
Consolidating
that of our smaller towns. This will compound Weakness
communities existing pressure on labour and services for farm
businesses and families.

Competition will intensify as developing nations


modernise their farming practices and supply
chains. Competition will also arrive from non-
Fierce new
traditional sources, as alternative proteins stake out Threat
competition a larger portion of the market. Meanwhile, global
forces threaten to disrupt the established rules of
international trade.

9 2030 Roadmap
9.7bn – expected global population Projected 54% rise in food demand
by 2050. (CSIRO, 2018) by 2050. (FAO)

88% of Chinese consumers research


products before purchasing More than 300 companies faced
(compared to 84% globally). activist demands in 2014 alone.
(Kantar TNS) (McKinsey)

Australian agricultural output


volumes are projected to rise by at
least 50% by 2050, in line with long Full adoption of digital agriculture
term productivity trends. (ABARES) could yield $20.3bn by 2050. (AFI)

By 2050 the carbon market could


2.7% - the projected yield impact on provide income of $40 billion to the
Australian agriculture due to climate land sector (with particular
change by 2050. (World Bank) opportunities for agriculture). (CSIRO)

35% →65% - population shift of


Australians living in our capital cities Regional city populations have tripled
between the start of the 20th to 21% in the same period.
century and now. (CSIRO, 2018) (CSIRO, 2018)

60% → 40% - drop in Australia’s


$US500m → $US4bn – change in market share for wheat exports to
Beef exports from Brazil from 2000 South East Asia from 2012 to 2017.
to 2014. (ABARES) (Rabobank)

Australian Agriculture’s Plan for a $100 Billion Industry 10


Industry Collaboration
Achieving the vision of this Roadmap will
require the energy and commitment of all the
stakeholders referenced below.

The NFF will look to deepen its collaboration with


the stakeholders referenced here, as part of a
broad partnership approach to achieving our
vision for the industry.

The NFF Family


NFF members (including state
farming organisations and
commodity groups) and partner
organisations.

Value Chain Partners


Government Transporters, processors,
Federal, state/ territory input providers, investors,
and local governments. retailers, and others in the
agricultural value chain.

2030
Farm Businesses Roadmap Community
Individual farmers and The Australian and
farm businesses. global community.

Research and extension bodies Education and training providers


Research & Development Schools, higher and vocational
Corporations, universities, government education providers, leadership and
research & extension agencies, grower professional development bodies.
groups, and technical advisers.

11 2030 Roadmap
Australian Agriculture’s Plan for a $100 Billion Industry 12
Pillar 1:
Customers and the Value Chain

It’s 2030. Australia is banking the


dividends from a decade of smart
investment in agricultural transport
infrastructure, which has driven down
the cost of reaching key markets.
Value added food products have fuelled
a resurgence in Australian
manufacturing, thanks to incentives
which seeded dedicated precincts
across the country.
Technology has changed the way we
trade – making market access
seamless, safe and streamlined - and
providing clear market signals to guide
industry investment.
The brand of Australian agriculture
stands for quality and integrity, and
commands a premium price to match.
At every step on this journey, we have
engaged our customers – giving them a
transparent insight into the way we
farm and meeting their changing
expectations.

13 2030 Industry
Roadmap Roadmap

Maintaining trust and support is
critical. We need to invest in
programs and technologies which

Too often the benefits of supply chain
efficiencies never reach the farm gate.
We need to embrace a long-term
inform and engage our end partnership approach that shares both
customers. the risks, and the rewards.
Talking 2030 Participant Talking 2030 Participant

Australian Agriculture’s Plan for a $100 Billion Industry 14


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Pillar 1: Customers and the Value Chain

Insight Aspiration Actions Impacts Metric

Greater reach and impact of


1.1.1 industry communications
Grow or establish industry
Industry understands and
initiatives to improve two-way
responds to community
communication with the
expectations
community, including a strategy
to educate the public about Shared respect and
agricultural practices and advise understanding
industry where practice change
is needed. Customers are more informed
1.1 about Australian farming practices
83% of Australians
describe their The agricultural value Recognised and trusted ‘Brand Agriculture is
connection with chain has deep 1.1.2 Australia’ ranked Australia's
agriculture as engagement with its Establish a consistent brand for most trusted
'distant' or 'non- customers, based on Australian agricultural products. Increased collaborative marketing industry.
existent‘. (NFF) trust and spend
transparency.
Improved understanding of
provenance and production
attributes
1.1.3
Build on existing traceability and Product integrity and biosecurity
labelling systems to improve the as a competitive advantage
integrity of product information
Labelling laws which help
provided to the community.
consumers make fact based
decisions on imported or
'alternative' foods

1.2.1 Depoliticise regional economic


Establish Regional Agriculture development
Deals to provide a multi- Evidence-based decisions
government framework for incorporating local knowledge
physical infrastructure
investment and regional Coordinate efforts of three tiers of
development policy. government

1.2.2 Reduced value chain bottlenecks


1.2 Map strategic transport
Lower transport and logistics costs
Our value chain infrastructure for Australian
Road-, rail- and agriculture to identify cost Australia's freight
port-based freight provides a reduction opportunities.
Improved global competitiveness cost per tonne-
movements are competitive kilometre is
expected to double connection to global 1.2.3 competitive with
Harmonised transport rules across
between 2010 and markets, and delivers Introduce consistent national major agricultural
clear market signals state and territory borders
2040. (BITRE) transport regulations. exporting nations.
to guide paddock-to-
plate investment. 1.2.4 Increased value-adding
Establish food manufacturing
precincts in key growing regions Increased employment in food
with access to export facilities. manufacturing

1.2.5 Increase product value


Implement value chain Market driven production systems
technologies and processes that
inform prices and strengthen Meet and anticipate customer
market signals. needs

15 2030 Roadmap
Insight Aspiration Actions Impacts Metric

1.3.1 Access to high value markets


Champion efforts to open new
markets, reduce tariffs and New market opportunities
increase quotas for Australian
produce. Higher farm gate returns
An average tariff
1.3.2 faced by
1.3 Work with government to Reduced non-tariff barriers agricultural
70% of Australia’s Australia has world- establish globally accepted exports of 5%.
total agricultural leading market product certification processes.
production is access, and the A 50% reduction
exported overseas. capacity to maximise 1.3.3 Greater value chain integrity in agriculture
(ABARES) the economic Support global technology exports
benefits. platforms that link the value experiencing non-
chain (including the farmer) to tariff barriers
Higher value for exports each year.
customers and help better utilise
our existing trade agreements.

1.3.4 Greater industry and public


Reinforce the importance of awareness of biosecurity
domestic biosecurity.

Australian Agriculture’s Plan for a $100 Billion Industry 16


Pillar 2:
Growing Sustainably

It’s 2030. Australia’s farms lead


the world in environmentally-
friendly practices.
Investment in research and
market-based incentives has
made the entire agricultural value
chain carbon neutral.
Sustainability is an integral part
of the industry’s culture, and
individual businesses judge their
own performance using the triple
bottom line approach.
Farmers are recognised by the
community as trusted and
proactive stewards of Australia’s
landmass.
A collaborative and evidence-
based process has delivered
lasting resolution to disputes
regarding water and land access.
As a result, the operating
environment for farmers is more
stable and predictable.

17 2030 Roadmap
Roadmap

We have already made a quantum
leap in sustainability within just the
last generation, but we can’t stop
there.
Talking 2030 Participant


Politicisation of environmental laws
presents an ever-present risk for our
business. We need a genuine
partnership approach between all
parties to restore stability.
Talking 2030 Participant

Australian Agriculture’s Plan for a $100 Billion Industry 18


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Pillar 2: Growing Sustainably

Insight Aspiration Actions Impacts Metric

2.1.1
Implement a cross-sectoral Implementation of Agricultural
Agricultural Sustainability Sustainability Framework by 2025
Framework.

Investment in a conservation tax


instrument
2.1
Farmers continue to Biophysical asset management
embrace sustainable balances production with
An ecosystem farming methods as 2.1.2 conservation
services approach part of a coordinated Establish a government-backed The net benefit
has been adopted national framework Environmental Stewardship for ecosystem
Remuneration for positive
by the EU, UK, US, that drives Fund, aimed at seeding a services is equal
environmental contributions
Canada and New productivity and marketplace for private sector to 5% of farm
Zealand. (World profitability, while investment. revenue.
A natural capital accounting
Resource Institute) recognising and
system
rewarding
environmental
An active market for private
stewardship.
investment in on-farm stewardship

2.1.3
Support the introduction of Reduced financing costs for best
'Green Loan' commercial bank practice farms
products which reward
sustainable farming practices.

2.2.1
Develop a trajectory approach
for each commodity to work Plans in place for all major
By 2050 the towards carbon neutrality whilst commodities by 2025
carbon market 2.2 maintaining productivity and
could provide Australian agriculture profitability. Australian
income of $40 has cemented a agriculture is
billion to the land competitive New tools and support for carbon trending towards
sector (with advantage and neutral outcomes carbon neutrality
particular productivity gains by 2.2.2 by 2030.
opportunities for embracing a carbon Enhanced public investment in Individual farm carbon footprints
agriculture). neutral approach. research that delivers on-farm are assessed, and solutions
(CSIRO) carbon abatement and identified
productivity outcomes.
Substantial abatement in ruminant
animals’ methane production

19 2030 Roadmap
Insight Aspiration Actions Impacts Metric

Water delivery enhances iconic


2.3.1 environmental sites.
Implement water reform policy
that is sustainable, productive Water access allows sustainable
2.3 and profitable. agricultural intensification and
Smart water policy expansion.
has improved the A 20% increase in
National water use health of our 2.3.2 water use
is expected to waterways, made our Develop evidence-based Transparent and comprehensive efficiency for
double by 2050. farms more environmental, community and water markets operate. irrigated
(CSIRO) productive, and made production targets. agriculture by
our regional 2030.
communities more 2.3.3 Increased water infrastructure for
resilient. Advocate for infrastructure productive and profitable
projects that ensure productive agriculture.
water capture and use,
particularly in Northern Alignment with National Water
Australia. Initiative principles

2.4.1
Implement an evidence-based Biodiversity Strategy implemented
and cross-sectoral Biodiversity by 2025
Strategy.
Land used for
farming in Australia
has declined from
2.4 Protect agricultural land and water
We have stemmed assets
500 million
the loss of productive
2.4.2
hectares (65 per Adopt land use strategies that
farm land, improved Well-resourced science to inform Maintain
cent of the balance the needs of competing planning decisions
the health of our Australia's total
country’s industries, while limiting any
landscapes, and farmed area at
landmass) in 1973 impacts on agricultural land and
brokered lasting co- Global food and fibre needs 2018 levels.
to 406 million water resources.
hectares (53 per existence recognised in land use
cent total arrangements with prioritisation
landmass) in 2015. other landholders.
(AgriFutures) Native Title uncertainties resolved
2.4.3
Partner with indigenous Agreed principles for co-existence
landholders on a sustainable
Native Title regime.
Cooperation on land use planning

2.5.1 Fewer Australians facing food


2.5 Support the introduction of a
Australia has halved insecurity
National Food Security Strategy.
Up to 25 per cent food waste, and
significantly reduced
of all vegetables 2.5.2 Waste diverted to new income
produced don’t the number of Halve food waste
Fund R&D into better utilisation streams
leave the farm. Australians facing by 2030.
of on-farm food loss streams.
(National Food food insecurity -
Waste Strategy) thanks in part to a
proactive partnership 2.5.3
with the agricultural Explore tax incentives that fairly Increased tax incentives for
value chain. recognise food donations across charitable donations
the value chain.

Australian Agriculture’s Plan for a $100 Billion Industry 20


Pillar 3:
Unlocking Innovation

It’s 2030. Australia is a world


leader in cutting edge science and
technology that improves the
quality of our products and
reduces their cost of production.
Our longstanding network of
Research and Development
Corporations are setting a new
standard for collaboration and
return on investment.
Meanwhile, digital technology
powered by next generation
wireless networks has
transformed the way we farm,
unlocking significant on-farm
revenue and savings.
All the while, our customers
remain informed and supportive
of the way technology is being
used.

21 2030 Roadmap
Roadmap

Our traditional approach of
operating in commodity-based silos
will not serve us well in the digital
era. We need better mechanisms
for cross-industry collaboration.
Talking 2030 Participant


Innovation has always underpinned
our competitive advantage. We
need to ensure our industry’s
culture and structures can keep up
with an accelerating pace of
change.
Talking 2030 Participant

Australian Agriculture’s Plan for a $100 Billion Industry 22


22
Pillar 3: Unlocking Innovation

Insight Aspiration Actions Impacts Metric

Frameworks for beneficial


collaboration

3.1.1 Reduced duplication and


Renew and extend existing improved efficiency
cross-sectoral R&D strategies
(including the Primary Industries Increased private R&D investment
RD&E Framework) to grow the
size and impact of both public Better monitoring and evaluation
and private R&D. frameworks

Australia ranks
3.1 Greater return on public
76th globally for Public and private investment
innovation R&D efforts work Australia
efficiency, and last seamlessly to 3.1.2 Higher innovation efficiency becomes a Top
in the OECD for translate world-class Foster an R&D investment 20 nation for
research research into tools environment that quickly turns Innovation export opportunities innovation
collaboration. and services which research into commercial tools efficiency.
(Global Innovation give Australian and services. Accelerated productivity gains
Index) agriculture a
competitive edge. Strong local grower groups
3.1.3
Invest in the capacity of digital
and human networks to share Easy online information access
and promote new practices and
tools. Improved access to new science

3.1.4 Science based regulation


A fit-for-purpose regulatory
environment that manages risk
without hindering access to safe World class access to technology
technologies.

23 2030 Roadmap
Insight Aspiration Actions Impacts Metric

Public investment to combat


market failure
3.2.1
Internet connectivity with Increased private investment
adequate speeds and data
allowances to every Australian Internet of Things available to all
farm at a reasonable price. farms

Adequate speed, data and price

3.2.2 Improved capability


3.2 Build the industry's capacity to Every Australian
The agricultural value take advantage of connectivity Greater adoption of digital farm has access
AFI predicts full chain is highly and digital farming practices. agriculture to infrastructure
adoption of digital digitised, with the and skills to
agriculture could benefits of new
yield $20.3 billion.
3.2.3 connect to the
technology shared Industry well positioned to take Internet of
Support frameworks for
fairly among advantage of data analytics Things.
seamless exchange of industry
participants.
data across the value chain.

3.2.4 Clear rules for farm data


Ensure farmers have ultimate management
control of their data and the
value derived from it. Fair share of value for farmers

3.2.5
Ensure spectrum rules don't Greater network coverage
unreasonably inhibit on-farm
network extension.

Grow demand and supply for new


3.3.1 energy sources
Back policy reform for the
electricity and transport sectors. Affordable, reliable energy

3.3.2 Reduced greenhouse gas


3.3 Support transition to renewable emissions
Energy (including The agricultural value and decentralised energy
electricity chain has reduced its sources, including piloting off- Reduced transmission losses
grid renewable energy precincts Australia's farm
generation and reliance on fossil
based on Regional Agriculture Supportive market measures for energy sources
transport) accounts fuels, in favour of
Deals (see 1.2.1). off-grid and feed-in energy are 50%
for more than 70% biofuels and renewable by
of Australia's renewable sources of 2030.
greenhouse gas electricity that are 3.3.3 Affordable fossil fuel alternatives
emissions. affordable and Invest in research to
reliable. commercialise new energy crop
varieties and waste to energy New farm income sources
opportunities.

3.3.4 Electric vehicles viable for regional


Champion EV- friendly regional Australians
towns and cities.

Australian Agriculture’s Plan for a $100 Billion Industry 24


Pillar 4:
Capable People, Vibrant Communities

It’s 2030. Agriculture is


recognised as a rewarding and
aspirational career choice for
people of all skill levels and
backgrounds.
We attract and develop people to
match the needs of our sector and
we adapt to the shifting needs of
the future. They are leaders,
critical thinkers, technical
experts, those who work with
their hands and more.
Our reputation for workplace
excellence attracts phenomenal
human talent from Australia and
around the globe.
As a result, regional Australia
continues to offer an enviable
lifestyle with access to essential
and cultural services

25 2030 Roadmap
Roadmap

Every year the skill level we demand
of our employees grows. We no
longer need ‘farm hands’, we need
‘farm brains’ – and training and
qualifications to match.
Talking 2030 Participant


Our industry has so much to offer a
generation that wants a meaningful
career, work-life balance, housing
security and a healthy lifestyle – we just
need to tell that story!
Talking 2030 Participant

Australian Agriculture’s Plan for a $100 Billion Industry 26


26
Pillar 4: Capable People, Vibrant Communities

Insight Aspiration Actions Impacts Metric

4.1.1
Publicise the compelling Agriculture is a career of choice
rationale for a career in
agriculture.

4.1 4.1.2
The job market for Apply an agriculture lens to All Australians are exposed to
There is a clear Double the
graduates of school and tertiary education agriculture
career pathway to number of tertiary
tertiary agriculture attract workers and curricula.
and vocational
qualifications is develop their skills, Pool of qualified, skilled labour
4.1.3 agriculture
five times larger with tailored streams Establish a nationally consistent, graduates by
than the supply of for new entrants Greater clarity skilled on-farm
'trade-equivalent' job brand for 2030.
graduates. (ACDA) through to seasoned roles
skilled farm workers.
professionals.
4.1.4 Continued opportunities for
Grow professional development, development
leadership and mentoring
opportunities for employees and A strong pool of industry leaders
business owners.

4.2.1
Establish an 'Ag Gap Year' Introduce agriculture at key
program to get young Australians career decision point
to try their hand at agriculture.

Australian 4.2 4.2.2 Reduced unemployment in


agriculture faces We have robust and Create pathways for unemployed regional communities
an immediate sustainable Australians to find on-farm work. Increase the
labour shortfall in mechanisms to available work
excess of 101,000 access labour from
4.2.3 force by 25%.
full time equivalent Australia and around Tailored agricultural and regional Streamlined access to global
workers.(AFI) visa pathways to replenish the labour
the world.
domestic labour market.

4.2.4 A positive experience for farm


Proactive steps to stamp out any workers
exploitation of farm workers.

4.3.1
Conduct an annual agricultural Better data to measure our
diversity ‘audit’ to benchmark our progress
diversity and measure
improvement.
Women comprise More diverse industry leadership Achieve gender
41% of the
4.3 4.3.2 Access to a larger pool of
parity in the
agricultural Promote initiatives that facilitate agricultural
A career in Australian workforce talent
workforce, 18% of inclusion of underrepresented workforce, and
management roles, agriculture is an A workforce that better double the
communities in the agriculture
and only 2.3% of accessible aspiration represents the Australian number of women
industry.
CEO positions. for all. community in management
(WGEA) roles.
4.3.3 Reduced disadvantage in
Work with indigenous leaders to indigenous communities
grow opportunities for Aboriginal Attract new labour and skills
and Torres Strait Islander people
in agriculture, including within Better representation of
industry leadership. indigenous agriculture

27 2030 Roadmap
Insight Aspiration Actions Impacts Metric

4.4.1
Ensure every regional economic New economic opportunities for
development plan includes regional communities
agriculture and value chain
industries.

4.4.2
Complement existing regional Integrated economic plan for
plans with the Regional agriculture
The share of
Agriculture Deals approach (see
Australia’s 4.4 1.2.1).
population living in We live in strong A mean score of
capital cities has regional communities 5 for every
almost doubled that are home to: 4.4.3 Physical Capital
since the start of world class education Build leadership capability and High performing regional leaders sub-measure in
the 20th century, and health facilities; regional development ‘literacy’ the Regional
while the share for culture and and practice. Wellbeing
large regional entertainment; and a Survey.
centres has tripled. diverse economy. Great schools in rural and regional
(BITRE 2014) communities.

High speed connectivity


4.4.4
Champion provision of urban- Access to health services
equivalent infrastructure.
Safe roads and communities

Access to retail, financial and


professional services

41 workers were 4.5.1 Safer vehicles and machinery


killed on Australian
4.5
Partner with government and
farms in 2017. (Safe Australian farms have manufacturers to improve the Zero farm
Work Australia) embraced a culture fatalities.
safety of high-risk farm Fewer deaths and accidents
of safety, dramatically
reducing workplace equipment.
Psychological Close the gap
distress is 28.9% injuries and between the
eliminating on-farm Improved productivity
more common psychological
among farmers fatalities. A 4.5.2 wellbeing of
coordinated effort Reduce farmer suicide rates
than other Invest in initiatives that improve farmers and the
members of the has improved the physical health, reduce isolation broader
community. physical and mental and tackle depression and other community.
Improve wellbeing and life
(Journal of Rural health of industry mental health problems.
expectancy
Health) participants.

Australian Agriculture’s Plan for a $100 Billion Industry 28


Pillar 5:
Capital and Risk Management

It’s 2030. Australian farm


businesses have become
increasingly sophisticated in their
approach to governance, risk
management and planning for the
future.
Every farm businesses has a clear
strategy for managing the
inherent risks of farming,
including an expanded role for
insurance, and business models
which share production risks
along the value chain.
Our farm businesses are
investment-ready. The
proliferation of alternative
ownership models has exposed
the industry to new capital pools
from Australia and overseas.
As a result, the industry has begun
making up its capital shortfall.
We’ve done this by attracting new
investors, while also
strengthening our partnership
with providers of debt finance.

29 2030 Roadmap
Roadmap

Our traditional reliance on debt
finance has served us well, but to
fund our growth ambitions we will

The shift has started, with more
businesses adopting benchmarking,
boards, and expert business
need to diversify our funding sources advisors. The impact of this on our
in the coming years. business has been profound.
Talking 2030 Participant Talking 2030 Participant

Australian Agriculture’s Plan for a $100 Billion Industry 30


30
Pillar 5: Capital and Risk Management

Insight Aspiration Actions Impacts Metric

5.1.1 More rigorous business decision-


Champion producer peer review making
boards and benchmarking
groups to inform farm business Improved productivity and returns
decision making.
Rural debt is now 5.1 90% of family
nearly six times Farm businesses
5.1.2 Stronger business leaders farms which have
more than it was have embraced new
Support cross-sectoral capacity 2+ generations
52 years ago with governance models -
building initiatives for financial working in the
banks providing helping them better
literacy, leadership and Better financial literacy business have a
96% of the $69.5 plan for the future,
corporate governance. documented
billion of farm manage risk, and succession plan.
credit. (RBA) increase profit.
Minimise capital withdrawal
5.1.3
Continue to promote proactive Maximise knowledge transfer
succession planning.
Engage a new generation

5.2.1 Higher rate of equity partnerships


Explore and promote alternative
ownership models that Increased capital for growth and
complement traditional debt succession
financing.

5.2.2
Australian
5.2 Enhance the ability for
Investors are lining agricultural businesses to source Access to global investors
agriculture faces a
up to inject capital overseas capital (without Year on year
capital shortfall in
into Australia's compromising our national increase in equity
excess of $159.5
agricultural interests). investment in
billion if we're to
businesses, based on Australian farm
pursue a trajectory
demonstrated returns 5.2.3 Greater transparency businesses.
of aggressive
growth. (ANZ) and a supportive Invest in creation of robust and
policy environment. timely investment performance Focus on performance
data.

5.2.4 Improved liquidity


Understand and address
barriers to institutional Greater institutional investment
investment in farm land as a and subsequent leasing
commercial property asset class. opportunities

31 2030 Roadmap
Insight Aspiration Actions Impacts Metric

5.3.1 Increased productivity


Educate industry about financial
risk management options Reduced risk
(including income and multi-peril
crop insurance, swaps and
futures) and support ideas to
Global competitiveness
5.3 improve their availability and
Innovative tools to affordability.
reduce the inherent 90% of Australia’s
Agriculture is more risks of farming are 5.3.2 Certainty
farmers
volatile than any used by every Promote stability in government employing
other sector of the Australian farm risk management policies such multiple financial
Australian business - supported as: income averaging; Farm tools to manage
economy. by consistent and Management Deposits; taxation; Greater self-reliance risk.
well administered and introduce a comprehensive
government risk national drought policy.
management policies.
Greater price certainty
5.3.3
Explore best practices for Long Shared production risks
Term Agreements which share
risk along the value chain. Opportunities for two-way capital
investment

Australian Agriculture’s Plan for a $100 Billion Industry 32


Structuring Ourselves
for Success
Talking 2030 uncovered clear and consistent views about the way the agriculture
industry is structured. We must act to address the concerns of our constituents in the
coming decade.
The diversity and geographic spread of the farm sector is represented in our industry
structures. The complexity and inefficiency of those structures was a strong and
recurring theme in our consultation for this Roadmap.
Feedback from all corners of industry suggested that overcoming this complexity was
a threshold issue which would determine the success of our Vision.
This feedback was most acute in relation to farmer representative organisations, but
applies broadly across other industry structures.
This does not necessarily spell the need for wholesale structural change, though it is
sensible to continue to review our structures’ fitness-for-purpose over time.
Instead, a staged approach starting with cultural change; improving formalised
collaboration; and moving to consolidation where appropriate is suggested.

Cultural Change
A shared commitment to
break down industry silos
and proactively share
information and ideas

Collaboration
Agile structures to
capitalise on shared
opportunities, plus
formalised sharing of
resources where
appropriate.

Consolidation
Greater impact from
consolidated scale -
maximising resource
efficiency

33 2030 Roadmap
Australian Agriculture’s Plan for a $100 Billion Industry 34
Where to from here?
We have laid down our plan for the future, but now the hard
work truly begins.
Agriculture is already on a journey of growth. If we did nothing
but remain on the current trajectory, farm gate output would
likely exceed $80 billion come 2030.
Such growth is not insignificant, but as is agriculture’s
trademark, this Roadmap proposes that we push the envelope,
challenge boundaries, and welcome disruption.
However, optimism and bold ideas alone won’t get us to $100
billion. The real fuel needed for this journey is teamwork.
We’re calling on Government to play a central role in this
Roadmap, by stepping up with a National Strategy for
Agriculture that commits Federal, state and local governments to
a clear growth agenda.
The NFF will continue to resource the research and advocacy
needed to move this agenda forward.
This Roadmap will be a dynamic guide, able to re-routed and
revised as needed. It will also form the basis of an annual report
card from the NFF – holding us all to account for our progress.
Here at the NFF, we’re excited to get started.
We hope you’ll join us on the journey!

Fiona Simson
President, National Farmers’ Federation

Tony Mahar
Chief Executive, National Farmers’ Federation

35 2030 Roadmap
Roadmap
Australian Agriculture’s Plan for a $100 Billion Industry 36
36
Pillars in Action:
Delivering on 2030

Aspiration 1.1 Aspiration 1.2


Building Trust Regional Agriculture
Deals

Australian agriculture faces a significant challenge Currently, fragmented sources of public and private
regarding community sentiment. Whilst regularly investment have no coordinating strategy at the
included in the top 10 most trusted professions in regional level. By setting clear priorities at the
Australia, our industry is also faced with issues that regional level, and committing governments to
may erode community and consumer trust and policies and investments that complement those
support. priorities, we can better support private sector
investment and growth.
NFF, in conjunction with its members and other key
industry stakeholders, has commenced development Key concepts:
of a national framework for building community trust,
• Regional Agriculture Deals (RADs) are a binding
which will be supported and informed by the
agreement between Federal, state and local
learnings of other institutions, such as the Centre for
governments;
Food Integrity in the United States.
• A RAD will define the agricultural value chain
Key concepts:
priorities for a region, and commit all tiers of
• The development of a body or mechanism that government to policies and investments which
that develops and maintains trust; support those priorities; and,
• An independent framework that supports • Regions will be defined by shared agricultural
unbiased information and ideas; and, production systems and value chains – cutting
across local government areas as needed.
• Acknowledgement that there is genuine benefit in
understanding and addressing community This model builds upon the UK City Deals approach
sentiment. which has recently been adopted in Australia.
Delivery of this national framework will provide a RADs will deliver a more focused and stable policy
suite of tools to build trust and develop genuine environment for private investment, grounded in
engagement between our industry, our customers detailed local consultation.
and our community.

37 2030 Roadmap
Aspiration 2.1 Aspiration 2.2
Market-based Instrument Embracing Carbon Neutral
for Biophysical Assets by 2030

Australian farmers currently manage 48% of the In 2015 Australia signed the Paris Agreement,
Australian landmass, with 94% already actively committing to a reduction in “emissions by 26-28 per
undertaking some form of natural resource cent below 2005 levels by 2030, which builds on our
management, highlighting the significant 2020 target of reducing emissions by five per cent
environmental stewardship role that farmers play as below 2000 levels.” Australia is not only bound by
a part of their day-to-day business. They are our commitment to the Paris agreement, but by the
governed in this role by the Environmental Protection growing expectations of our community and
and Biodiversity Conservation (EPBC) Act 1999. customers about our environmental credentials.
Delivery of the EPBC is undertaken via a mix of As a sector that contributes 13 percent to Australia’s
regulation, enforcement and compliance within a greenhouse gas emissions, Australian agriculture
complex framework that often leaves farmers has a role to play in meeting our climate
confused about their responsibilities and feeling they responsibilities and moving towards a 2030 carbon
carry the burden of environmental public good at neutral goal.
their own cost. To ensure greater ongoing
Key concepts:
environmental conservation there is a significant
need to reconsider the tools provided to farmers and • Strong focus on carbon neutral technologies that
land holders, specifically the development of a provide a competitive advantage for existing
market-based instrument for biophysical assets. products;
Key concepts: • Develop new markets, domestic and export, that
benefit from innovative carbon neutral
• Consideration of successful mechanisms in use
technology;
overseas, including the Payment for Ecosystem
Services (PES); • Collaboration across all of industry to make the
greatest gains from the adoption of the latest
• Use of voluntary agreement that provides a
research and development;
stewardship payment in return for agreed
management regime designed to protect high • Enhanced partnerships with private institutions,
conservation value environments; and, government and other industries outside of
agriculture; and,
• A shift towards a partnership arrangement
between the farmer and government, creating • Development of an Agricultural Sustainability
clarity and stability, along with a greater incentive Framework to integrate strategies across the
to protect. whole of agriculture.

Australian Agriculture’s Plan for a $100 Billion Industry 38


Aspiration 3.2 Aspiration 4.1
Managing Farm Data Nationally Consistent, 'Trade-
equivalent' Job Brand for Skilled
Farm Workers

Improved on-farm connectivity and the proliferation Australian agriculture faces an immediate labour
of new digital farming technologies will produce shortfall of more than 101,000 full time equivalent
volumes of data about our farm businesses. As this workers. An option to stem this trend is the
pool of data grows, it will become increasingly development of a nationally consistent, 'trade-
valuable. equivalent' job brand for skilled farm workers.
Our global competitors are already at work on Key concepts:
frameworks that ensure the value of this data is
• Job titles: that are aspirational and can be clearly
maximised, and shared fairly across the value chain.
identified, allowing for branding for promotion;
Key concepts:
• Job descriptions: that clearly articulate the skill
• Building on the solid foundation provided by the requirements, roles and responsibilities required
Precision to Decision project; to undertake the role;
• Establishment of a national agricultural data • Formal training: provided through frameworks
management policy; such as Vocational Education and Training or
universities;
• Leadership by the NFF, to ensure a farmer-first
approach to data management; and, • Programs aimed at a range of potential
employees: from school leavers through to niche
• Rules which clearly articulate industry
groups such as 30-40’s career changers and
expectations of service providers in the digital
FIREs (Financial Independent Retired Early);
agriculture arena.
• Regional development: housing availability,
This approach is similar to that taken by industries in
access to education and training, along with other
the United States and New Zealand, where industry
support mechanisms for agricultural employees
has set clear groundrules to ensure farmers maintain
employed in regional and remote areas; and,
confidence in how their data is managed, and the
value of digital agriculture is maximised. • Cross commodity and industry initiatives that are
nationally consistent: aimed at delivering secure,
full time roles in what can be traditionally
seasonal, short-term contract roles.

39 2030 Roadmap
Aspiration 4.2 Aspiration 5.2
Regional Migration and Ag Visas Attracting New Capital

The continued growth required to drive Australian Australian agriculture requires $159.5 billion in new
agriculture towards $100 billion requires a capital to fund its growth ambitions. Traditionally, our
sustainable and stable workforce that ensures farm businesses have relied almost exclusively on
access to both skilled and non-skilled labour. debt financing for capital.
NFF has been advocating for the creation of a visa While debt finance will continue to play an important
specifically tailored to agriculture, which operates role in years to come, we must also position
under the working title of the ‘ag visa’. ourselves to take on new investors – including
through equity investment.
Key concepts:
To do this, we need to make our farm businesses
• Portability: ensuring employees are not tied to one
investment-ready by introducing structures and
employer;
financial management practices that make our farms
• Accreditation: providing a minimum level of work an attractive destination for capital.
place requirements (for example, Occupation
Key concepts:
Health and Safety); and,
• Adoption of alternative ownership models,
• Flexibility: allowing benefits to flow to both
including joint ventures, shared farming
employer and employee.
arrangements, equity partnerships, offtake
NFF recognises the need to balance short term structures, sale and leaseback, and
labour initiatives, such as the ag visa, with regional corporatisation;
and rural community development that provides long
• Better industry-led investment performance
term labour, including the Rural Regional Migration
metrics to standardise the language of farm
Initiative developed by the Regional Australia
business investment; and,
Institute.
• Improved financial literacy, performance
The initiative is aimed at ensuring retention and
measurement and governance capacity.
community cohesion through locally-led migration
strategies that assist workforce needs. Specifically
aimed at low-populated and resource constrained
towns, the strategy considers the services required
to support migrants moving to regional areas.

Australian Agriculture’s Plan for a $100 Billion Industry 40


Contributors and
Acknowledgements
The 2030 Industry Roadmap could not
have been developed without the
invaluable contributions of our Talking
2030 participants, NFF Partners and
expert industry stakeholders. We thank
you for your support and look forward to
continuing this journey with you as the
Roadmap is implemented.

Roadmap Partners

In 2017, Telstra became a strategic partner of the KPMG is the official consulting partner of the NFF.
NFF – providing its endorsement of our vision for a
Throughout this process, the NFF has worked closely
$100 billion farm sector.
with KPMG’s agribusiness experts to capture cutting-
Under this partnership, Telstra has lent its resources edge thinking and ideas.
and expertise to the Roadmap process.
This began with the Discussion Paper authored by
Telstra’s support has enabled us to travel right KPMG, continues with this Roadmap which has been
around Australia, connecting with our stakeholders refined and finalised by KPMG, and will now move
and hearing their views on the future. into a research partnership to build on the ideas
identified in this paper.
Telstra’s commitment extends beyond the release of
this document. Together, we have established a
special fund to further the research and advocacy
needed to bring this Roadmap to life.

Consultation Partners

41 2030 Roadmap
NFF Member Organisations

Australian Agriculture’s Plan for a $100 Billion Industry 42


Australian Agriculture’s Plan for a $100 Billion Industry 43
Australian Agriculture’s Plan for a $100 Billion Industry 44
National Farmers’ Federation
NFF House, 14-16 Brisbane Ave,
Barton ACT 2600
Locked Bag 9, Kingston ACT 2604
P: 02 6269 5666
E reception@nff.org.au

Facebook: National Farmers Federation and Australian Farmers


Twitter: @NationalFarmers and @OzFarmers

Copyright: National Farmers’ Federation 2018

Disclaimer
The information in the 2030 Roadmap does not necessarily reflect that of the NFF. Neither, the NFF, nor its servants and
agents, accept liability, including liability for negligence, arising from the information contained in the 2030 Roadmap.