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National Farmers' Federation

2030 roadmap | 2022 Annual report card

Measuring our progress towards $100 billion

Each year, the National Farmers’ Federation releases its Report Card – summarising progress by industry and governments towards the aspirations of our 2030 Roadmap.

READ THE REPORT CARD

Introduction

The past year has once again been defined by astounding volatility: in our climate, geopolitics, and markets.

Farmers have experienced extraordinary rainfall in many parts of the country, gifting us a promising season only to face the heartbreak of damaging rain and floods.

2022 saw a new party form government in Canberra for only the eighth time since the Second World War, bringing with it profound policy changes for the farm sector.

Globally, conflict in Ukraine has sent markets into turmoil, with prices of both inputs and commodities spiralling. This has caused an alarming jump in the number of people here and abroad now facing acute hunger.

All the while, the long shadow of COVID has continued to plague supply chains – causing business disruptions and fuelling rampant inflation.

Through all of this uncertainty, farmers have done what they do best, with another strong financial result forecast for the sector.

What’s more critical now than ever, is that farmers are supported through this volatility with policies that address our most pressing challenges: issues like labour shortages; biosecurity; and transport infrastructure, to name a few.

At the National Farmers’ Federation, we remain committed to our target of becoming Australia’s next $100 billion industry. That aspiration remains very much within reach, and we thank everyone in government and industry for their continued commitment to that vision.

fiona-simson

Fiona Simson

President

National Farmers’ Federation

2022 at a glance

*Note the following ABARES data do not yet reflect the full impact of flood events

forecast farm output
$ 1 bn
VALUE OF EXPORTS
$ 1 bn
winter crop
1 mt

Explore by Pillar

Select a pillar to jump to Report Card findings, or simply scroll down.

value-chain
Customers and the Value Chain
sustainability
Growing Sustainably
innovation
Unlocking Innovation
community
People & Communities
capital
Capital & Risk Management
value-chain

Pillar 1: Customers & the Value Chain

Roadmap Aspiration

1.1 The agricultural value chain has deep engagement with its customers, based on trust and transparency.

2030 Metric

Agriculture is ranked Australia’s most trusted industry.

2022 Outcomes
  • NFF’s annual community perceptions research identified a small dip in sentiment towards agriculture – in line with other industries’ decline from mid-pandemic highs. However, the industry continues to be highly regarded by Australians.
  • The cross-RDC Community Trust in Rural Industries Project helped provide research foundations and frameworks for ongoing community trust work by the sector.
  • NFF along with other industry bodies continues to expand its community perceptions work.
On Track
Roadmap Aspiration

1.2 Our value chain provides a competitive connection to global markets and delivers clear market signals to guide paddock-to-plate investment.

2030 Metric

Australia’s freight cost per tonne-kilometre is competitive with major agricultural exporting nations.

2022 Outcomes
  • The government announced significant changes to infrastructure funding in the October 2022 budget – resulting in less overall regional spending than previously budgeted.
  • Major flooding has damaged road and rail infrastructure on Australia’s East Coast, with the full extent of the damage likely to take years to repair.
  • NFF released the Regional Development Precincts Framework as a model for collaboration and joint investment between all three tiers of government. The Regional Australia Institute also released its Regionalisation Ambition 2032.
  • The Commonwealth has committed $1.0 billion for the Growing Regions Program and Regional Precincts and Partnerships Program to support community and place-based investment in rural and regional Australia, through both a competitive grants program and collaborative partnerships program.
needs attention
Roadmap Aspiration

1.3 Australia has world-leading market access, and the capacity to maximise the economic benefits.

2030 Metric

A 50% reduction in agriculture exports experiencing non-tariff barriers each year. An average tariff faced by agricultural exports of 5%.

2022 Outcomes
  • Australia’s biosecurity status has been tested, with an outbreak of Varroa mite and devastating Foot and Mouth and Lumpy Skin diseases spreading through nearby countries. The Commonwealth has continued to allocate further funding to biosecurity, and currently has a long-awaited sustainable funding model in development.
  • Disruptions to agricultural exports to China continue, which is an important market for a range of commodities.
  • The imminent entry into force of free trade agreements, ideally by 2023, will provide new and expanded markets for agricultural products. This includes the Australia-UK Free Trade Agreement and Australia-India ECTA. 
  • The government continues to progress negotiations on the Australia-EU Free Trade Agreement and Australia-India CECA.
  • NFF is developing an Agricultural Sustainability framework, with Commonwealth funding, which will provide better assurance of Australia’s sustainability performance to our markets and now forms part of the NFF’s international engagement.
  • Industry had a strong presence at COP27 in Egypt, with an NFF-led delegation amplifying Australia’s agricultural sustainability credentials and promoting pathways to climate action that do not reduce farm output.
needs attention
sustainability

Pillar 2: Growing Sustainably

Roadmap Aspiration

2.1 Farmers continue to embrace sustainable farming methods as part of a coordinated national framework that drives productivity and profitability, while recognising and rewarding environmental stewardship.

2030 Metric

The net benefit for ecosystem services is equal to 5% of farm revenue.

2022 Outcomes
  •  The Australian Agricultural Sustainability Framework (AASF) has developed 17 key principles to address ESG requirements and will now enter a piloting phase with potential users.
  • The Commonwealth has introduced legislation to support a national voluntary agricultural biodiversity certificate scheme.
  • Announced in the Budget, the Commonwealth will provide $1.1 billion to continue to support the sustainable management of Australia’s natural resources. This funding includes $302.1 to support the transition of the agricultural sector towards sustainable farming and land management practices.
on track
Roadmap Aspiration

2.2 Australian agriculture has cemented a competitive advantage and productivity gains by embracing a carbon neutral approach.

2030 Metric

Australian agriculture is trending towards carbon neutrality by 2030.

2022 Outcomes
  • In the most recent Budget, the Commonwealth announced $8.1 million to support commercialisation of seaweed as a low emissions feed and support projects that lower barriers to market entry.
  • Agriculture has made a significant contribution to emissions reduction since the 1990s. The Australian red meat industry has already decreased annual emissions by 57% through Meat & Livestock Australia’s CN30 target.  
on track
Roadmap Aspiration

2.3 Smart water policy has improved the health of our waterways, made our farms more productive, and made our regional communities more resilient.

2030 Metric

A 20% increase in water use efficiency for irrigated agriculture by 2030.

2022 Outcomes
  • The Labor government has signalled intention to achieve the Murray Darling Basin Plan in full – leaving open the prospect of recommencing damaging water buybacks.
  • The WESA Report released in August highlighted that the bulk of the total $1.775 billion in the WESA remains unspent and the 450 GL target cannot be achieved under the current program settings.
  • A further $200 million will go towards easing or removing constraints to deliver environmental water.
off track
Roadmap Aspiration

2.4 We have stemmed the loss of productive farmland, improved the health of our landscapes, and brokered lasting co-existence arrangements with other landholders.

2030 Metric

Maintain Australia’s total farmed area at 2018 levels.

2022 Outcomes
  • The Commonwealth’s Powering Australia policy will significantly increase the loss of productive farmland to energy infrastructure.
  • The NFF continues to engage with the energy sector to improve outcomes for agricultural landowners, including working with the Energy Charter initiative to support the development of practical guidelines for co-existence between the agricultural sector and energy companies.
needs attention
Roadmap Aspiration

2.5 Australia has halved food waste, and significantly reduced the number of Australians facing food insecurity – thanks in part to a proactive partnership with the agricultural value chain.

2030 Metric

Halve food waste by 2030.

2022 Outcomes
  • Food inflation remains a key issue, with farmers facing the challenges of increasing input costs and insecure supply, labour availability and supply chain disruptions.
  • The Commonwealth announced an inquiry into food security in Australia, and established the Select Committee on Cost of Living.
  • Foodbank’s 2022 Hunger Report found that 21% of Australians are experiencing severe food insecurity – meaning they have reduced or compromised quality, quantity and adequacy of food they have access to due to financial constraints and have experienced mental stress associated with such situations.
  • NFF is engaged with Food Waste CRC to create Sector Action Plans (SAPs) providing a laser-like focus on major food waste ‘hotspots’ in our food system.
on track
innovation

Pillar 3: Innovation

Roadmap Aspiration

3.1 Public and private R&D efforts work seamlessly to translate world-class research into tools and services which give Australian agriculture a competitive edge

2030 Metric

Australia becomes a Top 20 nation for innovation efficiency.

2022 Outcomes
  • Australia has maintained and improved its partnership between industry and government to invest in RD&E via the Rural Research and Development Corporations.
  • The growAG platform, released mid-2021, continued to gain traction as a single portal into our R&D system for investors, researchers and industry.
  • 8 Drought Resilience Adoption and Innovation Hubs were established by the Commonwealth, in partnership with established research and innovation groups – helping connect farmers with new technologies and innovation.
  • Agriculture Innovation Australia (AIA) released its inaugural Strategic Plan, detailing how it intends to work with the RDCs and the private sector to attract new investment and solve challenging cross-sector problems. Industry is looking to see tangible progress on these tasks in order to deliver value to the sector. 
on track
Roadmap Aspiration

3.2 The agricultural value chain is highly digitised, with the benefits of new technology shared fairly among participants.

2030 Metric

Every Australian farm has access to infrastructure and skills to connect to the Internet of Things.

2022 Outcomes
  • The Commonwealth has committed approximately $1.3 billion to improve connectivity in regional, rural and remote Australia.
  • This funding includes an additional $6 million to extend the Regional Tech Hub for a further 3 years.
  • The Digital Foundations for Agriculture Strategy was released by the Commonwealth.
  • The NFF has developed Version 2 of the Australian Farm Data Code, and is piloting a certification program – due to launch in 2023.
  • Further funding is needed to underpin data infrastructure and governance systems for sustainability and environmental markets.
needs attention
Roadmap Aspiration

3.3 The agricultural value chain has reduced its reliance on fossil fuels, in favour of biofuels and renewable sources of electricity that are affordable and reliable.

2030 Metric

Australia’s farm energy sources are 50% renewable by 2030.

2022 Outcomes
  • The Government will provide $15 billion to establish the National Reconstruction Fund (NRF), including a commitment of $500 million for agriculture, forestry and fisheries projects.
  • The Government will establish a Powering the Regions Fund (the Fund) from 2022–23, with $1.9 billion allocated from the uncommitted funding from the Emissions Reduction Fund.
on track
community

Pillar 4: People & Communities

Roadmap Aspiration

4.1 There is a clear career pathway to attract workers and develop their skills, with tailored streams for new entrants through to seasoned professionals.

2030 Metric

Double the number of tertiary and vocational agriculture graduates by 2030.

2022 Outcomes
  • The Government has committed to ensuring that agriculture is one of the priority areas in the Australian Government’s fee-free TAFE initiative currently under negotiation with States and Territories. This is expected to mean more fee-free agriculture VET places will be available to students from January 2023.
  • Federal Government has committed to the new ‘industry clusters’ system for managing and providing VET and has indicated ag’ will be at the center of the scheme.
  • The Tripartite Working Group will be considering ways to promote ag’ VET and tertiary studies.
  • The Commonwealth-funded AgCAREERSTART program is entering its second pilot year, placing a further round of gap year participants on farms around the country.
needs attention
Roadmap Aspiration

4.2 We have robust and sustainable mechanisms to access labour from Australia and around the world.

2030 Metric

Increase the available work force by 25%.

2022 Outcomes
  • The new Commonwealth Government has decided to effectively scrap the Australian Agricultural Visa. This was an unwelcomed development as we seek to increase the available workforce, however the Government has committed to recognising the MoU signed with Vietnam.
  • The focus is now to expand and enhance the PALM scheme, which has grown to 29,075 workers in Australia. The Scheme will also grow to include family accompaniment. The Government has committed $67.5 million over 4 years from 2022–23 (and $12.4 million per year ongoing from 2025–26).
  • The Tripartite Working Group will be considering ways to improve the migration system to better serve agriculture.
off track
Roadmap Aspiration

4.3 A career in Australian agriculture is an accessible aspiration for all.

2030 Metric

Achieve gender parity in the agricultural workforce and double the number of women in management roles.

2022 Outcomes
  • The NFF’s Diversity in Ag Leadership Program celebrated its 5th year, with a survey of this growing alumni showing 54% of respondents have gained industry board positions since completing the program (with 74% holding board positions in total).
  • Representation within program partner organisations shows female leadership representation continues to grow – reaching 38.7% this year.
  • The NFF is continuing to work with members on an Indigenous engagement strategy, and the Commonwealth has commenced work within Government to better understand the needs of Indigenous industry stakeholders.
on track
Roadmap Aspiration

4.4 We live in strong regional communities that are home to: world class education and health facilities; culture and entertainment; and a diverse economy.

2030 Metric

A mean score of 5 for every Physical Capital sub-measure in the Regional Wellbeing Survey.

2022 Outcomes
  • The new Commonwealth Government’s October budget reduced overall spending for regional development and infrastructure.
  • The Regional Australia Institute’s Regionalisation Ambition 2032 (released this year) highlights liveability challenges including access to childcare, rental availability, recruitment difficulties, access to public transport and medical services.
needs attention
Roadmap Aspiration

4.5 Australian farms have embraced a culture of safety, dramatically reducing workplace injuries and eliminating on-farm fatalities. A coordinated effort has improved the physical and mental health of industry participants.

2030 Metric

Zero farm fatalities. Close the gap between the psychological wellbeing of farmers and the broader community

2022 Outcomes
  • FarmSafe Australia’s 2022 Safer Farms Report recorded 46 farmer fatalities in 2021 – a reduction of 12 from 2019 and 2020.
  • FarmSafe Australia continued to roll out education and awareness campaigns, including National Farm Safety Week and new on-farm induction resources.
  • Data from the Australian Institute of Health and Welfare continues to show health risk factors for regional Australians exceed those of metropolitan Australians.
needs attention
capital

Pillar 5: Capital & Risk Management

Roadmap Aspiration

5.1 Farm businesses have embraced new governance models -helping them better plan for the future, manage risk, and increase profit.

2030 Metric

90% of family farms have documented business plans, including succession plans.

2022 Outcomes
  • Future Drought Fund programs support farm businesses’ preparedness and resilience. This includes, for example, the Farm Business Resilience Program which provides farmers, including farm managers and employees, with access to learning and development opportunities in strategic business management, farm risk management and decision-making, natural resource management, and personal and social resilience.
  • The Australian Bureau of Agricultural Resource Economics predicts a continued rise in agricultural income with record numbers expected in both production and exports. This is driven by productivity growth alongside better than average seasonal conditions and record demand and prices in international exports, according to the ABA Agribusiness Report 2022.
on track
Roadmap Aspiration

5.2 Investors are lining up to inject capital into Australia’s agricultural businesses, based on demonstrated returns and a supportive policy environment.

2030 Metric

Year on year increase in equity investment in Australian farm businesses.

2022 Outcomes
  • In the 12 months to February 2022, ABA members lent an average $4.2 billion to agribusinesses on a monthly basis, a 29% increase in the average of $3.2 billion lent the previous year.
  • The median price per hectare of Australian farmland increased by 20 per cent in 2021 to $7,087/ha. The national median price has now increased for eight consecutive years. It is expected that demand in the market will push prices higher in 2022.
On track
Roadmap Aspiration

5.3 Innovative tools to reduce the inherent risks of farming are used by every Australian farm business – supported by consistent and well administered government risk management policies.

2030 Metric

90% of Australia’s farmers employing multiple financial tools to manage risk.

2022 Outcomes
  • Future Drought Fund programs provide opportunities for the use of new innovative tools to manage risk on farm.
  • The NFF welcomed the Commonwealth’s introduction of new and tougher penalties that will be imposed on companies that breach competition and consumer laws.
  • NFF collaborated with the Commonwealth on the Better Practice Guide to farm debt mediation, to encourage best practice engagement between farmers and lenders.
  • The Commonwealth has committed to addressing Right to Repair for agricultural machinery, to enable farmers to have their ag machinery repaired at a competitive price using a repairer of their choice.
  • Industry continues to call for broader competition reform to level the playing field for farmers.
needs attention