A NATIONAL IRRIGATION RD&E PROGRAM FOR TASMANIA

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1 A NATIONAL IRRIGATION RD&E PROGRAM FOR TASMANIA NATIONAL SIGNIFICANCE The world will have nine billion people by Sustainably producing the food and fibre needs of these new consumers and markets is a global challenge. Australia can help meet this challenge by responsibly developing our natural resources to support high value and sustainable agricultural industries. The development of irrigation in Tasmania provides one of the best opportunities across Australia to develop agriculture into the future. The Australian government, Tasmanian government and private investors have invested $310 million in irrigation infrastructure across Tasmania 1. Tasmanian farmers have committed an additional $265 million in on-farm irrigation infrastructure such as dams, pipes and water application systems such as pivot irrigators. More than 150 GL of additional irrigation water will be available for irrigators when all planned schemes are brought into operation. Tasmania s irrigation expansion sits alongside the Ord River and the proposed Gilbert and Flinders schemes as the most significant national investments in intensive agriculture since development along the Murray and Darling rivers. A critical difference is that Tasmania s expansion of irrigation builds on existing high value temperate agriculture close to population centres with a ready workforce. Multiple small catchments mean that each scheme can be sustainably governed in cooperation with landowners.

2 THE CONTRIBUTION OF RD&E The Tasmanian government has committed to increasing the value of agricultural production across the State from $1 billion per year to $10 billion by The West Report in 2009 suggested that increases of this magnitude were technically feasible with best use of available technologies. Past studies have shown that this is unlikely to be achieved by simply adding more water to current agricultural activities. If 80 per cent of the $10 billion target is to be achieved via irrigated agriculture, the value generated from irrigation water has to be increased from $3 500 to $ per ML. 2 The essential additional factor for achieving this increase is innovation driven by Research, Development & Extension (RD&E). Concentrated and sustained collaboration between business, government and the R&D sector will be required to generate new business opportunities, create enabling technologies, and foster the innovation needed to implement them profitably and sustainably. RD&E enables innovation by creating knowledge and the networking opportunities necessary to share, adapt and apply it to new business opportunities. It can create new high-value products and technologies that reduce production costs, increase profitability and ensure sustainability. It can provide the skills and knowledge necessary to make risky investments with confidence. WHAT IS BEING PROPOSED? Tasmania s irrigation RD&E program is a partnership between Tasmanian business, government and the RD&E sector. The partnership is managed by the Tasmanian Institute of Agriculture (TIA) at the University of Tasmania (UTAS) as part of the Tasmanian government s AgriVision 2050 initiative. The program will be delivered by public and private sector RD&E providers through well-established collaborative relationships. Close linkages between the public and private sectors will ensure ongoing anticipation of industry knowledge needs, and a clear pathway to impact for RD&E funding providers. RD&E priorities for this program are being shaped by its partners. Through consultation and foresighting, TIA has received a strong mandate from end-users in the agri-food sector to pursue cooperative RD&E partnerships that: Enable more productive, profitable and viable farms and rural communities Attract investment in agricultural industries across value chains including production, processing, manufacturing and exporting Sustain productivity through better management of natural resources Establish commercial and innovation networks that enhance productivity, profitability and sustainability More information about the emerging industry led priorities for this RD&E program is available on TIA s website. 2

3 THE SCIENCE AGENDA A science agenda is being designed with partner organisations to meet this industry demand for knowledge, and anticipate unforeseen knowledge needs into the future. The program will focus on assisting expanding industries to anticipate and proactively manage surprises involved in investing in irrigation infrastructure. The program will also focus on increasing and sustaining profitability as irrigation expands onto less fertile land further from water sources. This RD&E program will give effect to the relevant aspects of the Water Use in Agriculture RD&E Strategy prepared for the Primary Industries Ministerial Standing Committee as part of the National Primary Industries Research, Development & Extension (RD&E) Framework. For each research area, partnerships will be formed with research institutions across Australia and around the world to transfer learning from the management of similar issues in other irrigation areas. Through these partnerships, TIA will focus on enabling more productive, profitable and viable farms and rural communities. TIA will organise the RD&E capability of the program to meet this objective around the following themes: Soils & drainage the development of technologies and management practices that provide farmers with innovative options for managing soil fertility and water logging Agronomy and varieties - the development, testing and commercialisation of innovative varieties and agronomic practices into profitable and sustainable farming systems Precisions agriculture - the development of easy-to-use mapping and control technologies, enabling farmers to adopt variable rate irrigation to better manage soil, agronomic and environmental conditions Whole-farm systems modelling - the development with farmers of agro-ecological and economic models that foreshadow the results of changes in enterprise mix on productivity and profitability Value chains and food processing - the development of innovative market opportunities through innovation in food processing and marketing Extension and education - facilitating the adoption of innovative farming practices by developing knowledge products and training programs and commercialising these through public and private sector extension networks. Benefits of irrigation RD&E Now Goal Benefits Wheat 4 t/ha 12t/ha Produce 500kt of feed grain for dairy $125 million increase in grain production Displace 140kt of imports Pasture 7-8 t/ha t/ha Double the productivity of Midland pastures Dual purpose high yielding cereals Low High +$2 000 /ha gross margin Poppies ha ha $125M to $150 million increase in production Vegetables in the south east 500 ha 1000 ha $4.2 million (at $8 500 per ha) Variable rate irrigation Low High 100% increase in water use efficiency Management of waterlogging Low High 30-50% increase in crop and pasture yields Risk to water quality High Low 30% reduction in nitrate leaching Salinity Widespread Occasional 30% reduction in salt affected soil Soil carbon and structure Economics of irrigation Low High Maintain or increase soil carbon on 70% of irrigated soil 3

4 WHO BENEFITS? Tasmania s Irrigation RD&E program will directly benefit agricultural industries and the communities that depend on them for their livelihoods. Past studies have shown that innovation following the installation of irrigation infrastructure is unpredictable, and results in economic returns far higher than the benefitcost ratios (between 1.4 and 1.7) predicted by most economic studies. The innovation generated by this RD&E program will enable: Expansion of the dairy industry to meet growing world demand through increased pasture productivity and better utilisation of feed grain. Expansion of the grains industry to meet the growing demand for feed grain in the dairy industry and offset the variable profitability of poppy production. Expansion of intensive horticulture and viticulture (cool climate fruits, vegetables, wines) industries to achieve economies of scale critical to favourable marketing and value chain arrangements. Development of Tasmania s capabilities in high value, specialist plant crops like opium poppies, pyrethrum, essential oils, specialty grains and the production of pasture and vegetable seeds. The University of Tasmania, with its research partners, to establish itself as a centre of excellence in irrigation RD&E attracting research funding that stimulates innovation and regional development. PROGRAM GOVERNANCE The governance of this program will be purpose built, and evolve during its formation to meet the needs of new partners. TIA will provide investors with a low transaction cost investment model that provides clear accountability for funds expended. An advisory group comprising leading irrigators, agribusiness CEOs and policy advisors has been appointed to provide oversight to the program, including the development of appropriate governance arrangements. Advisory Group Members Back row from left: Marcus McShane (TFGA), Allan Barr (Roberts Ruralco), Scott Schilg (NRM North), Richard Gardner (Midlands Water Group). Front row: Chris Thompson (Macquarie Franklin), David Kay (Rabobank), Caroline Brown (DPIPWE). 4

5 PROGRAM FUNDING The Tasmanian government, the Australian government and industry (through the Rural Research and Development Corporations) currently invest around $14 million each year in agricultural RD&E through TIA. Realising the benefits of the investment in irrigation infrastructure will require an additional co-investment in RD&E of $5 to $10 million over four years. The immediate focus of the partnership is the Australian government s commitment to an additional investment of $100 million in agricultural RD&E. Co-investment from this source will be coordinated by the Rural Industries Research & Development Corporation (RIRDC) in cooperation with the Tasmanian government s AgriVision 2050 Initiative. These funds will be invested in: People new staff appointments are required to provide focused expertise, technical skills and provide capability to conduct RD&E Transfer of knowledge through partnerships the program will acquire and adapt knowledge and technology developed in other irrigation areas across Australia and around the world Innovative knowledge solutions to problems unique to farming in Tasmania will be developed and shared Innovative technology development new technologies will be developed enabling businesses to realise the commercial benefits of R&D Application with industry networks will be established enabling irrigators to both guide the direction of RD&E, and benefit from its outcomes Innovative demonstration sites the program will invest in irrigation infrastructure on TIA s research farms that anticipates future technological developments Education & training new tertiary courses will be developed, along with vocational training programs for irrigators and other practitioners in related industries 1 Tasmania Irrigation, An Innovation Strategy for Tasmania: Focus on Food Bowl Concept Tranche Two Irrigation Scheme Funding Submission to Infrastructure Australia. 2 West, J An Innovation Strategy for Tasmania - A New Vision for Economic Development, Conceptual Overview and Options Outline. Australia Innovation Research Centre, University of Tasmania. 5

6 TIA is a joint venture between the University of Tasmania and the Tasmanian Government