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More to farming than productivity

One of the most concerted publicity drives to highlight inadequate government funding for agricultural research in Australia has been in play this year.

Dr John Mullen an adjunct professor at CSU provides the typical arguments: “Agricultural productivity and public investment in agricultural research and development has slowed down in Australia and in some other developed countries. …This is a real worry when we have to contend with the growing effects of climate change as well as three billion more people to feed in the next 30 years. … research I have done with colleagues at ABARE suggests that some of the slow down can only be explained by a stagnation in government investment in R&D in recent decades. The lag between research and increases in agricultural production is up to 35 years, which is why it has taken so long for us to see evidence of this decline in R&D funding through falling productivity.”

Given lower productivity may result from several factors, such as a decrease in agricultural extension, increased farmer age, drought, concentration on off-farm income, there is too much emphasis on the role R&D plays.

In contrast to this productivity imperative, are comments from many leading-edge farmers across virtually all sectors, that maximum productivity is not their principal objective. Their family business success is based on productivity moderation in balance with family life, environmental stewardship, product acceptance amongst consumers and off-farm investments.

What these farmers’ attitudes reflect and what agricultural research too often ignores, is that productivity reaches a value cross-over point with costs, risk aversion, market access, social responsibility, and consumer QA expectations. The evidence for this is increasingly common: certified organic food’s increasing market share; branded beef and lamb with food quality and environmental credentials; branded eggs, chicken, pork and Merino wool with animal welfare credentials; branded freedom foods; and containerized traceable grain.

The 1970–90s era of 2-3 per cent per annum agricultural commodity productivity increase has gone and is unlikely to return. Food output per unit of input will increase but it will be achieved more by: building healthier agricultural resources; developing better co-operation between farmers and the supply chain; recognising the value of food and fibre farmers produce; integrating conservation with farming rather than separating the two; and adoption of smart genetics, technology and monitoring that enables optimisation of inputs, while providing accountability and traceability. Given privately funded research has taken over from the public sector in many disciplines particularly plant breeding, it would seem governments have a responsibility to become more active in ensuring research outcomes are independently evaluated and when appropriate extended to farmers.

Examples of these issues can be found in the September edition of Australian Farm Journal.

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Productivity is not the answer, it's profitability. You don't get one with the other. The smart farmers realise this. I could grow more on my farm but why would I? It costs more to increase output and it costs more than the return. There is also more risk and history has shown over the last 40 years, that increasing production has no effect on profitability. Farmers are poorer now than in the 1960s. Until we get paid more for what we produce production will not increase. R and D is not the answer, it's Government intervention, costs and policy that needs to change. Our costs are too high and we have too many unfair Govt imposts on production that our competitors don't have. I have said before we are mining our land and infrastructure to keep our heads above water and this will continue till we get a fair go. I cannot afford to maintain the infrastructure on my farm, let alone replace it. Millions of people will starve in the future and you can blame the Governments of today for this. If they valued our contribution and food they would be trying to help us not put us out of business.
Posted by Scott, 9/09/2010 1:40:28 PM
A bit like driving a car - there is a maximum speed and an optimum cruising speed. Over a long distance you will often get to your destination quicker by driving at a steady speed rather than trying to drive fast burning of fuel and stopping to refuel.
Posted by Qlander, 9/09/2010 5:18:18 PM
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