Inquiry into growing Australian agriculture to $100 billion by 2030
Deputy Chair’s Report
The Committee worked very well together through this inquiry, with a great deal of goodwill and cooperation. I would like to thank the Chair, Mr Wilson, for the constructive and consultative way in which he led this inquiry. I would also like to thank my committee colleagues on both sides of the aisle for their hard work and dedication over what has been a challenging year.
We all approached this task with the best of intentions and in the right spirit – I have no doubt that we all have the common aim of wishing to see Australian agriculture get to $100b by 2030, but we perhaps have different views on how that might be achieved, hence the Labor members’ production of this dissenting report.
I would like to thank the Secretariat for its hard work, good humour and diligence throughout the inquiry and for its preparation of the draft Committee Report from what was a great deal of evidence. We took evidence from many witnesses and received plenty of big submissions. Sifting through it all to develop a report that encapsulated the key points could have been no easy task, and particularly this year.
Most of all I’d like to thank our witnesses and everyone who put in the effort to make a submission. You have contributed to an important but often unrecognised process of the parliament: reports like this often don’t make the headlines, but they do contribute to national policy development.
As is the nature of these things, the draft Committee Report reflects the priorities of the Government members on the committee. The Labor members on the committee agree with most of the recommendations, as well as the broad thrust of the report, but we have some key areas of disagreement that form the basis of this dissenting report.
In re-reading the transcripts and submissions in preparation for this report I was struck by the fact that the key to achieving our goal of $100b is not necessarily to grow lots more things, but to get better outcomes from what we grow already. For example, one-quarter of everything we grow is wasted and water inefficiency is too high. If we get on top of those, that’s billions. If we maximise the use of technology we could add another $20b to our numbers. Then there’s the value-adding, and that’s all before we even get to the development of exciting new agricultural initiatives: alternative proteins, seaweed, aquaculture, hemp and medicinal cannabis to name a few.
The view should not be formed that because we have prepared a dissenting report that there was a vast chasm between the Government and Labor members, nor that we have wildly different points of view on the direction that agricultural policy should take.
Stakeholders can take a lot of comfort I think from the fact that the Government and Labor members agree on more than we disagree about and that broad policy stability is assured, regardless of which major party forms government.
Of course, it goes without saying that Labor will simply do the job that much better.
Brian Mitchell MP
Deputy Chair
Committee Recommendations
The Labor members support 9 of the 13 recommendations outright, we support 2 with qualification and we oppose 2 outright.
Recommendation 1 is SUPPORTED.
Recommendation 2 is OPPOSED. This recommendation calls for a Productivity Commission review into agricultural export red tape and is, in our view, red tape. It is unnecessary. Given the Government has already committed $328.4 million over four years to reduce red tape in the agricultural export sector it should already know where to start, so it should just get on with the job.
Recommendations 3, 4 and 5 are SUPPORTED.
Recommendation 6 is SUPPORTED WITH QUALIFICATION. We want this recommendation to go much further. Rather than “review the regulations” we call upon the Government to strip away all remaining regulatory barriers that prevent low-THC hemp from assertively competing on the world stage. We note that Australia’s hemp industry is worth $10m annually whereas Canada’s is around $1b. Our farmers are ready. It’s time to back them in and let them get on with it.
Recommendation 7 is SUPPORTED.
Recommendation 8 is SUPPORTED WITH QUALIFICATION. We support maintaining the tradition of family farms but we believe any taxation changes arising from a review must be fair and equitable. We note that family companies and family-controlled corporations face a similar dilemma regarding capital gains tax disincentives to pre-death inheritance, and of course other members of the community may well ask that if farmers are able to hand property to children pre-death without taxation why shouldn’t they be able to. So, we are alive to the issues this recommendation seeks to resolve and support looking into it, but we note it may not be easy.
Recommendation 9 is OPPOSED. We are of the view this adds yet another layer of red tape to an already complex set of visa and workplace arrangements. We instead recommend that the Agriculture Minister liaise constructively on workplace and labour supply issues with his state and territory counterparts as part of the AgMin process. The issues regarding agricultural labour supply are complex and long-standing and the Minister and his counterparts should find a way to work through them in the interests of the sector as a whole.
Recommendations 10, 11, 12 and 13 are SUPPORTED.
Comment regarding the Chair’s Foreword
The Chair’s comment about ‘irrational opposition’ to GM is unnecessarily inflammatory and dismissive of those with concerns about the widespread adoption of GM technology. Tasmania for example maintains a moratorium on GM food and food products because it provides the island state with a distinct competitive advantage with customers who want to access food that is not genetically modified, and who have demonstrated they are prepared to pay a premium price for that access. Customers who wish to access GM-free food should be able to do so without being labelled “irrational”.
The absence in the Chair’s Foreword of any mention of climate change is in our opinion an error that fails to recognise the gravity of the threat that climate change poses to Australian agriculture. A number of well-credentialled witnesses, including the NFF, CSIRO, TFGA, MLA and FCA amongst others expressed the view that climate change represents either the single most significant, or is one of the most significant, threats to Australian agriculture being able to meet its goal of $100 billion of farm gate value by 2030. The Chair’s fleeting reference to “climate variability” does not do the matter justice.
Comment regarding the Committee Report
The Labor members support the broad thrust of the report and commend the secretariat on pulling it together.
Our chief concern is the disregard paid to the threat that climate change poses to Australian agriculture (Climate Change Mitigation and Adaption is a small section, buried on page 168 of the draft report), and the total absence of any recommendations on how agriculture might respond to climate change, despite the strength of evidence provided to the Committee on its importance.
Climate change was not granted its own chapter, the term did not feature in the title of the chapter in which it is covered (Land, Environment and Water), and it was not mentioned in the chapter’s introduction. This apparent reluctance to acknowledge the importance of climate change to the future of Australian agriculture flies in the face of evidence provided to the Committee, and detailed in the bowels of the report, which included:
Climate change being described by the Tasmanian Farmers and Graziers Association as “possibly the biggest hurdle to reaching the target” (of $100b by 2030)’
CSIRO noting “the increasing frequency and severity of extended dry spells, associated with increased unpredictability of unseasonable heatwaves and frosts, will impose a noticeable handbrake on growth in farm-gate output, particularly in southern Australia”
The Australian Society of Plant Scientists reporting the World Bank projecting that Australian agriculture will drop 2.7 per cent in yield by 2050 due to the impacts of climate change
Farmers for Climate Action noted research by the Australian Farm Institute which had determined beef production in Qld and the NT decline by 19 per cent by 2030 and 33 per cent by 2050; up to 70 per cent of wine-growing regions could be unsuitable for grapes by 2050; cotton yields could decrease 17 per cent by 2050; milk production could decline between 10 and 40 per cent, milk protein could decline and there would be increased risk of udder infection
Australian Wool Innovation noting “climate change is exacerbating [droughts’] effect on agricultural production
Labor Members’ Recommendations
In addition to supporting 11 of the 13 Committee Recommendations (albeit 2 with qualifications), the Labor Members submit further recommendations for consideration, which have been informed by submissions and evidence to the inquiry.
In addition to supporting 11 of the 13 Committee Recommendations (albeit 2 with qualifications), the Labor Members submit further recommendations for consideration, which have been informed by submissions and evidence to the inquiry.
CHAPTER 2 – GROWTH OPPORTUNITIES
RECOMMENDATION 14 - that the Government commit to the establishment of a Forestry Hub for the Northern Territory, allowing Indigenous and private land-owners to capitalise on the opportunity provided by forestry investment and to enable the NT to contribute to the 1 billion trees goal.
RECOMMENDATION 15 - that the Carbon Credits (Carbon Farming Initiative) Act 2011 be amended to ensure forestry in Northern Australia can utilise carbon credits, irrespective of rainfall.
CHAPTER 3 – EXPANDING INTERNATIONAL TRADE
RECOMMENDATION 16 - that the Pre-Shipment Inspection (OPI) program be reinstated.
RECOMMENDATION 17 – that the $2.2 million stripped from the Livestock Global Assurance Program be reinstated, bringing the LGAP back to $8.3m in funding.
RECOMMENDATION 18 – that the Government provide to stakeholders clear details on when and how it intends to expend $328.4 million over four years cutting unnecessary red tape in order to facilitate more agricultural exports, and how it intends to measure the success of any such program.
RECOMMENDATION 19 – that the Government report to the parliament its progress on implementing national traceability and labelling systems across agricultural products and value chains.
RECOMMENDATION 20 – that the Government report to the parliament its progress on advancing a national mandatory standard for animal welfare.
CHAPTER 4 – RESEARCH AND INNOVATION
RECOMMENDATION 21 – that the Government develop and implement a national, coordinated policy on packaging, food waste and recycling.
RECOMMENDATION 22 – that the Government introduce a national food security strategy, which includes the funding of research and development to drive better utilisation of on-farm food loss streams and the exploration of tax incentives that recognise food donations across the value chain.
RECOMMENDATION 23 – that the Government urgently improve telecommunications to the Tiwi Islands, particularly Melville Island, to allow Tiwi islanders to maximise their agricultural output.
RECOMMENDATION 24 – that the Government implement in full the Regional Telecommunications Review recommendations, including a long-term commitment to a telecommunications fund for infrastructure investment in regional Australia.
RECOMMENDATION 25 – that the Government develop an Institute for Forest Products Innovation, located in regional Tasmania.
RECOMMENDATION 26 – that the Government coordinate the establishment of “Brand Australia” for Australian agricultural products.
RECOMMENDATION 27 – that the Government enable research into the expansion of off-grid on-farm renewable energy projects, including barriers to implementation, such as network policies that act as a cost disincentive.
CHAPTER 5 – EMERGING GROWTH OPPORTUNITIES
RECOMMENDATION 28 – that the Government enable research into the water efficiencies that can be gained from protected cropping, and that analyses be conducted to measure these efficiencies (and any other benefits) against extra costs, such as infrastructure and power, so that a conclusion can be drawn on the overall economic benefit of protected cropping to growers and investors.
RECOMMENDATION 29 – that the Government conduct research with the aim of implementing a comprehensive national carbon storage strategy. Research should include examination of incentives and barriers and propose recommendations that will enable wider adoption of carbon storage by land owners, particularly farmers and foresters.
RECOMMENDATION 30 – that the Government prepare a discussion paper on the development of an Australian alternative proteins industry. The paper should include examining the potential for high-tech processing facilities and associated employment opportunities, and what barriers may exist to the industry’s development. It is noted that with demand for proteins expected to increase by 20 per cent, the development of alternative proteins should be regarded as complementary to and not a replacement of animal-derived proteins.
RECOMMENDATION 31 – that the Government conduct research into the costs and benefits of extending taxation deductions to farmers who adopt greenhouse gas reduction measures, such as providing emission-reducing feed to livestock, in order to reduce the production of methane.
RECOMMENDATION 32 – that the Department of Agriculture, Water and Environment work with Indigenous owners in Northern Australia to realise development opportunities.
CHAPTER 6 – FINANCE AND INVESTMENT
RECOMMENDATION 33 – that the Government discuss with the superannuation industry the creation of an agriculture-centred investment product that is “set and forget” (ie, long-term), with an incentive to offset the lack of flexibility being low or no fees.
CHAPTER 7 – EDUCATION AND WORKFORCE
COMMENT - Australian agriculture faces an immediate labour shortfall of more than 101,000 full-time equivalent workers. The sector suffers from an image problem of being low-wage and insecure. If Australian workers can be confident that a future in Australian agriculture offers good wages and conditions and secure employment we are confident many Australians will welcome the opportunity to work in this exciting sector. Furthermore, we note the comments of witnesses that improving regional liveability is key to attracting workers. Rebuilding our regions in terms of infrastructure and services is critical – in short, the decades-long drive to squeeze efficiencies by centralising and automating government services and ripping them out of the regions must stop.
RECOMMENDATION 34 – that the Government examine the pros and cons of offering a HECS debt-reduction scheme for students who work in agriculture for at least 60 days at year during their study.
RECOMMENDATION 35 – that the Department of Agriculture, Water and Environment employ workforce development officers in each state and/or major agricultural sector in order to map and meet workforce demands.
RECOMMENDATION 36 – that Government and manufacturers agree to improve the safety of high-risk farm equipment.
RECOMMENDATION 37 – that the Government assess current regional mental health strategies to determine their level of success, and commit to either their continuance or, if necessary, their adaptation.
CHAPTER 8 – BIOSECURITY AND INFRASTRUCTURE
COMMENT – Biosecurity was nominated as a key concern by many witnesses. The Government’s renewed focus on biosecurity is noted and welcomed, but we are concerned the approach remains piecemeal with too many gaps, particularly at our points of entry.
RECOMMENDATION 38 – that the Government create a national biosecurity emergency response team capable of being deployed in a targeted manner to specific outbreaks.
RECOMMENDATION 39 – that the Government ensure all biosecurity officers under federal authority be permanently employed, professionally trained direct employees of their respective departments and/or agencies, and not be sub-contractors nor employees of contractors, and that the Government strongly encourage the states and territories to follow its lead.
RECOMMENDATION 40 – that given the evidence of significant capacity constraints on existing services, notably the Spirit of Tasmania ferries, that the Government asks the Tasmanian government to consider commissioning a business case for the deployment of a freight-only ferry service across Bass Strait.
RECOMMENDATION 41 – that the Government explore the development of Regional Agriculture Deals to provide a multi-government framework for physical infrastructure investment and regional development policy. The RADs should champion the provision of urban-equivalent infrastructure in the regions, notably schools and child care, telecommunications, health services and aged care, roads, and government and commercial services.
RECOMMENDATION 42 – that the Government explore the establishment of food manufacturing precincts in key growing regions, with access to export facilities.
CHAPTER 9 – LAND, WATER AND ENVIRONMENT
RECOMMENDATION 43 – that the Government develop and adopt a national strategy on climate change and agriculture. The strategy should consider the impacts, threats and opportunities, as well as the measures that need to be taken to adapt Australian agriculture to a changing climate.
RECOMMENDATION 44 – that the Government adequately resource and implement the National Climate Change and Agriculture Work Program, noting that no additional resourcing nor clearly communicated implementation timeframe has been announced. The program must be supported by strong research, a transition to renewable energy and implementing the increased storage and sequestration of carbon on farms and in forests and plantations.
RECOMMENDATION 45 – that the Government ensure honey bees are provided access to state and national forests.
RECOMMENDATION 46 – that the Government ensure forest plantation owners who preserve trees for koala habitat are financially compensated for as long as their assets remain unavailable for harvest.
RECOMMENDATION 47 – that the Government commission research to determine the level of threat posed by capital and regional cities’ housing and commercial sub-divisions and developments on arable land, and that recommendations be submitted to address the threat.
RECOMMENDATION 48 – that the Government commission research to determine the potential for utilising soil – at scale - for water storage, to either complement or replace surface storage options.
RECOMMENDATION 49 – that the Government establish (and back) an Environmental Stewardship Fund (ecosystem service), aimed at seeding a marketplace for private sector investment. The ESF will offer both investment in a conservation tax instrument and remuneration for positive environmental contributions. An ESF will provide an alternative income stream for farmers who provide the community benefit of environmental stewardship.
RECOMMENDATION 50 – that the Government develop a National Water Strategy (noting this project has been determined by Infrastructure Australia to be a “high priority”), with a key aim being to increase water use efficiency by 20 per cent by 2030.
RECOMMENDATION 51 – that the Government implement a National Biodiversity Strategy, with the aim of adopting land use strategies that balance competing needs. Key to the strategy will be the protection of agricultural land and water assets, well-resourced science to inform planning decisions and global food and fibre needs recognised in land use prioritisation.
ENDS
This Dissenting Report was produced by the Labor Members of the House of Representatives Standing Committee on Agriculture and Water Resources: Mr Brian Mitchell MP (Deputy Chair); Mrs Fiona Phillips; Mr Luke Gosling OAM MP