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First of all, I'd like to acknowledge the
traditional owners of the land upon which we meet,
the Ngunnawal people, and pay my respects to their
elders, both past and present.
I'd also like to acknowledge the many
industry representatives who have journeyed here
today for an exciting time over Outlook 2012.
And also the fellow parliamentarians that have
also braved to come to Outlook 2012,
and conference delegates who make up so much of the
discussion and interest for the conference today.
And of course, the guests as well.
But good morning and thank you for the fantastic
opportunity to be with you today and talk to you
about a range of matters that I'll shortly go to.
This is my second Outlook Conference as Agriculture Minister.
It certainly is a marquee event on the annual calendar.
The Outlook Conference is about our future
directions as an industry but it's an opportunity to
consider some of the important issues across
sectors and share ideas with experts who are
knowledgeable about a range of issues that we
will discuss during the Outlook Conference,
both from nationally, internationally as well.
This morning I wanted to take the opportunity of
discussing the Gillard government's agenda in
agriculture with you.
It's an agenda I'm excited about.
What it does is, it talks about the far-reaching,
and one that I'm working with many of you here today.
The staples of that government agenda include,
and these are just parts of that staple,
protecting our agricultural sector from pests and
diseases through a strong biosecurity system,
building a clean energy future while providing a
carbon farming initiative and a $1.7 billion land
sector package, developing Australia's first national
food plan that will provide a framework for
future government policy right through from the
paddock to the plate.
In addition, I wanted to share the optimism of the
National Farmers Federation President, Jock Lorry.
Mr. Lorry stated this year by saying and I quote,
"There has never been a better time for a farmer."
It is within this frame that I wanted to take the
opportunity to discuss the possibilities for,
right across 2012, and how we as a government are
working to position this sector looking forward,
so reaching out into not only the short term,
the mid term, but the long term.
The steps we will take now can help secure a strong
long-term future for the jobs,
families, and communities that are so vital for
regional remote Australia, across that area,
who are in truth the lifeblood of our agricultural sector.
If I can then just set some scenes.
Before I go to that obviously I just wanted to
mention one thing while I'm talking about the
positive outlook in the farming sector,
I just want to take a brief moment to mention of
course that we are experiencing episodic
flooding across parts of Southern Australia,
and of course really take the opportunity of also
just sympathising with some of the many people
who have lost positions and of course there has
been a range of challenges in that sector.
But across-- across Australia,
more broadly, if we look across the landscape
ABARES has forecast total summer crop production to
rise by 18% in 2011-12 to 5.4 million tonnes.
In addition, the forecast from ABARES' latest farm
survey is for strong farm financial performance in
all our major agricultural industries this financial year.
For the first time in more than 30 years the ABARES
survey data shows both strong average farm
business profits and positive rates of return
for broadacre farms in all states and all broadacre industries.
It's good news to be a farmer across Australia.
Western Australia for example is projected to
have the largest increase in average farm cash
income this year, around 20%,
largely because of the positive rebound in winter
grain crop production.
That also means that farm cash incomes in a number
of eastern states are projected to be between
20% to 70% higher than the average over the last 10 years.
A particular mention should go to sheep farmers
where ABARES projecting their average cash income
for 2011-12 to be the highest since 1989 just
before the collapse of the Old Reserve Price Scheme.
And you will hear detailed analysis of the farm
survey results along with forecasts for our main
agricultural commodities from ABARES experts
presenting throughout this conference.
However, it is always clear at the outset that
seasonal conditions so far in 2012 should help set
our agricultural sector on track for another strong year.
But a strong year is one thing.
Securing a bright and sustainable long-term
future is a separate aim.
That's why we're looking for the future ahead,
towards the ways we can make our agricultural
sector more productive and position it for the future.
Our farmers produce, and we know this,
high-quality food and fibre,
and it remains the most competitive and envied in
the world.
The Gillard government is continuing to invest in
research and development across Australia.
The Productivity Commission estimated that
the total Australian government funding for
rural R&D is around the $700 million each year.
And by the end of this financial year the Labor
Government's four budgets will have contributed over
$830 million in matching funding to the Rural Research &
Development Corporations.
The investment though, if we talk about numbers,
belies a lot of the work that the RDCs do.
This investment helps drive innovation,
increases productivity, and cultivates the farm
practices for tomorrow.
Productivity growth for broadacre farm sector has
averaged 1.2% a year since 1977-78 with particular
strong growth in the cropping and beef industries.
The Gillard government is committed to supporting
this growth and cementing Australia's reputation as
a highly capable high-quality producer at both
the domestic and the international level.
Internationally Australia's agricultural
trade represents real potential growth over the
short, medium, and longer term.
Our trade with Asia particularly will be a key
focus in coming years and the government recognises
the opportunities that lie ahead as part of the Asian Century.
A number of the sessions at Outlook reflect the
theme in the Australian government's White Paper on
Australia in the Asian Century,
particularly the outlook for food production
globally and the patterns of trade that are forecast
for the future.
As well as discussing those themes here I
encourage you to make a submission to the White
Paper to make your voices heard.
Driving our agricultural sector's productivity and
growth in an international market is a priority for
the Gillard government, a priority that shines
through in the significant reforms that we are
implementing onshore to boost opportunities offshore.
And central to these reforms is the need to
protect our world class biosecurity standing and
keep our biosecurity system strong.
The government's reforms on the way we manage our
biosecurity operations will improve the outcomes
for the Australian people, our environment,
and our agricultural industries.
And a key--a key element of this is a risk-return
framework which means identifying and
prioritising the greatest biosecurity risks and
allocating resources to militate against them.
And a strong science-based biosecurity system is
vital to protect our agricultural sector from
pests and disease.
By focussing our resources and inspection efforts
where they are needed most,
we will reduce risks to Australia's agriculture
and the environment.
And this has already been put into practice at the
Australian border.
Biosecurity officers are actively targeting and
intercepting high-risk items that pose a
significant threat to Australian agricultural
interests at airports, mail centres,
and ports.
And by using more focussed information the government
is improving the effectiveness and the
efficiency of DAFF biosecurity and the
protection it provides.
Internationally, the government is reforming
our export certification arrangements to improve
our market access and reduce costs to export industries.
The Export Certification Reform Implementation
Program delivers more efficient export
certification and inspection services.
And already we've started, already new arrangements
have been introduced in collaboration with
exporters for red meats, seafood and dairy.
These arrangements will mean more flexible export arrangements.
And one of the things I think we all can agree on
is how we can reduce and drive down red tape.
The reforms which stand to reduce the costs of
government services delivered by approximately
$30 million per annum.
It does reflect our undertakings to support
better IT systems, more efficient certification at
the point of export and of course,
less direct government involvement.
It's about putting the underpinning,
building blocks, that will support our exporters and
not putting drag in their way.
The reform will assist Australian exporters to
retain our reputation as clean and wholesome
suppliers of food in the global market,
place and support expanded market access for
Australia's $35 billion agricultural export industry.
Turning to one of the areas which is very dear to me.
It's about the Carbon Farming Initiative.
Why?
Because it's about how Australians can project a
clean environment way out into the global market.
Internationally and domestically agriculture
in Australia is headed towards a period of real opportunity.
But this bright outlook stands challenged of
course by climate change and the future uncertainty
it presents to our agriculture production
into the future.
One of the best ways our nation's farmers and
landholders can manage this risk is to take
advantage of the Carbon Farming Initiative.
The CFI for those people that want to talk in
acronyms, carbon farming provides a game changer
for agriculture.
By getting involved the sector can actively help
to restore carbon in the landscape,
make our agriculture industries more
sustainable, and protect our natural resources.
At the same time, the CFI gives Australian farmers
and land managers the chance to earn extra
income on-farm from those actions that they take to
reduce carbon emissions.
And the government's move to reduce emissions and
encourage carbon abatement and secure a clean energy
future will put our farmers on the front foot
and help to protect our nation from the impacts of
climate change.
The CFI, therefore, is a win-win for farmers and
Australian agriculture.
Under the CFI farmers and land managers can generate
carbon credits and sell their carbon credits into
carbon markets.
Farmers and landholders can already use approved
methodologies such as capturing and destroying
methane generated by piggeries to offset carbon emissions.
And the offsets generated from activities outlined
in this and other methodologies can be
traded for carbon credits which farmers and
landholders can then sell to generate income.
The CFI is opening up new revenue streams for
farmers and at the same time is helping them to
deal with the impacts of a climate change and
building resilience into the land sector by that win-win.
It provides income and also manages some of the
risks inherent with climate change.
Managing the impacts of climate change is an
important step in protecting our
agricultural industries and it's one way this
Gillard government is helping to secure our food
and fibre production for the longer term.