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Victorian Grains industry. The Drivers of Productivity Gain. Improved farming practices and technologies. GM ? Robotics? Systems Mgt.? ???????. No TilI. Farms and value of production Grains 2011 (Neil Barr, Carole Hollier).
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The Drivers of Productivity Gain Improved farming practices and technologies GM ? Robotics? Systems Mgt.? ??????? No TilI
Farms and value of productionGrains 2011 (Neil Barr, Carole Hollier) Only a fifth of farms have an EVAO of greater than $500,00. These farms produce over half of the value of grains. ABARES research suggests large farms drive productivity and have capacity to uptake latest research and innovation.
Family income broadacre farms from farm and non-farm sources$25k-$100k EVAO: 1990-2007 ٥ Unlikely to be generating sufficient income to invest, build risk reserves or support family without off-farm income. ٥Family income sustained by off-farm income. Source: ABARE
Family income broadacre farms from farm and non-farm sources$100k-$200k EVAO: 1990-2007 ٥Farm income makes a significant contribution to family income. ٥Non-farm income is a significant secondary income source. Source: ABARE
Family income broadacre farms from farm and non-farm sources$200k-$400k EVAO: 1990-2007 ٥In ‘normal’ seasons these farms have generated a healthy farm family income with only limited supplementation from off-farm sources. ٥The current run of dry seasons has cut severely into this income. Source: ABARE
Family income broadacre farms from farm and non-farm sources$400k+ EVAO: 1990-2007 ٥Generate a volatile, but sustained high cash surplus. ٥Impact of dry seasons is there, but less severe than in other segments. ٥Suggests there is the capacity of many of these businesses to adapt to changing climate. ٥Income is variable, but capacity exists to build resilience to cope with income variation. Source: ABARE
Characteristics of top and average Grains – average area operated (ha) Source: ABARES
Characteristics of top and average Grains – water use efficiency ($/100 mm rainfall/ha)) Source: ABARES
Farming for some is very profitable with acceptable risk levels
Market Segmentation - Victorian Grains Industry • 5500 grain producers in Victoria • 2500 with productivity intentions • FSV Grains in contact with 1500 • 80% with productivity intentions • 800 with EVAO $500k + • FSV in contact with approx75% direct
Advisory Sector • Approximately 300 advisers in Victoria • Mix of retail and fee for service • Need to understand each firms business model to tailor advice packages for their needs • Important to contextualise research • Build their capability and increase accessibility of research • Work with all key businesses
Grower Groups • 6 main grower groups • Each operate very differently and have different capability and capacity • Highlight opportunities for DEPI R&D that can be demonstrated in paddock to members • Build capability of staff often through successful joint funding bids/collaboration
Capability Capacity Understand capability and capacity to meet expected milestones, contracts, and stakeholder expectations • Understand both staff capabilities and capacity to deliver what is needed • Identify if there is a gap or mismatch • Also identify what future capabilities might be needed to grasp emerging opportunities
Innovation and Opportunities Keys to Innovation and productivity Opportunities maybe worth pursuing Education Access to Labour Land use intensity Farm Size Off Farm Income Adviser and Contractor use and availability Farmer Health and Well Being • Consumer technology • Scouting through Drones • Robotics • Big Data ie monitoring every seed and plant • Agricultural engineering (Machinery) • Extracting better value from capital tied up in land ownership