❓ Mr. Blayney asks about a survey of top grain growers. Mr. Redman responds, highlighting the success of top growers and the government's plan to support the agriculture sector, particularly through the 'Bridging the Yield Gap' program.
AnsweredQoN 54Legislative Assembly
QuestionView source ↗
GRAINS PLAN
54. Mr I.C. BLAYNEY to the Minister for Agriculture and
Food:
At the opening of the 2012 WA Agribusiness Crop Updates
conference this morning, the minister spoke about a recent survey of Western
Australia's top 25 grain growers. Can the minister please outline the
result of the survey and its implications for agriculture in Western Australia?
54. Mr I.C. BLAYNEY to the Minister for Agriculture and
Food:
At the opening of the 2012 WA Agribusiness Crop Updates
conference this morning, the minister spoke about a recent survey of Western
Australia's top 25 grain growers. Can the minister please outline the
result of the survey and its implications for agriculture in Western Australia?
AnswerView source ↗
Thanks, member for Geraldton, for the question. This is very
exciting news.
Several members interjected.
Mr D.T. REDMAN : Of
course, I cannot talk for the member for Warnbro as the shadow Minister for
Agriculture and Food, but it was very pleasing to see him at Crop Updates this
morning.
Mr P. Papalia :
Your speech was longer the first time!
Mr D.T. REDMAN :
Nevertheless, I am sure the member for Warnbro found it riveting; is that
right?
Several members interjected.
Mr D.T. REDMAN : Mr
Speaker, this is very exciting news in the sense that back in 2009, following
this government laying out its plan for agriculture in Western Australia, the
Department of Agriculture and Food, in consultation with industry, put in place
a grains plan. That plan is around how we as a government agency and as a
government will respond to grains, which is obviously the lead sector with
revenue of $5 billion to the economy in Western Australia. Part of that plan is
a program called Bridging the Yield Gap, which is focused on the measures that
the better farmers take in the medium to high-rainfall areas of the state to
get the most out of the rain that falls out of the sky. The department engaged
Planfarm to do an analysis of its top 25 clients in that area. The results are
quite staggering. The analysis shows that the top 25 growers in the mid to
high-rainfall areas over the past six years, compared with the average,
accumulated $1.5 million more in wealth than the average growers. For every
dollar that an average grower earns and invests in farm production, those top
25 growers earn $1.74—almost double the average. The top growers do not
have bigger farms, they do not have better soils, they do not get more rain and
they certainly do not have less debt. That tells us that there is quite a big
gap between the potential for production and profitability out of that area and
the average. We know that the average farmer in Western Australia is a very
good farmer. The focus of those top 25 growers was clearly a profit focus. They
were flexible in their capacity to respond to the opportunities that presented;
they understood the risks in the decisions they made and in the changes they
made to their systems; they were more efficient, in the sense that they spent
16 per cent less to earn $1 of income; they clearly utilised the benefits of
specialists, consultants and so on for the advice they needed; and they had
confidence in their own capacity. I guess that points out, and can give some
direction to the department on, how we as a government might respond to assist
farmers to build profitability into their systems, and this program is the
first step towards that. It is fair to say that there is often a fair amount of
negativity around the perception of farmers in Western Australia and their performance.
This analysis shows that the top performers are indeed doing quite well. I also
highlight that, despite agriculture having many challenges, the survey shows
that with the right advice, management skills and so on, they can indeed
perform.
I also had a chance this morning to meet very briefly with
the United States Department of Agriculture's chief economist who had a
very optimistic outlook for agriculture. Again, that is something that augurs
well for a state that relies very heavily on agriculture and on the export
market. The point is that often agriculture is overshadowed in Western
Australia with the focus on mining. This survey shows some of the good stories
that are coming through; it shows that indeed there is an opportunity to be
very profitable in the sector; and it gives us a focus for where we should
direct some attention in the future. I think it also shows that if we are
indeed going to prosper going forward in agriculture, we need new, young people
coming into the sector and we need to demonstrate to them that it is in fact a
sector that can provide a good career path and that we can help them to make
that choice. I was hoping that there might have been some kids from schools in
the gallery today so that we could highlight that in fact agriculture has a big
place in Western Australia and that it will continue to do so.
exciting news.
Several members interjected.
Mr D.T. REDMAN : Of
course, I cannot talk for the member for Warnbro as the shadow Minister for
Agriculture and Food, but it was very pleasing to see him at Crop Updates this
morning.
Mr P. Papalia :
Your speech was longer the first time!
Mr D.T. REDMAN :
Nevertheless, I am sure the member for Warnbro found it riveting; is that
right?
Several members interjected.
Mr D.T. REDMAN : Mr
Speaker, this is very exciting news in the sense that back in 2009, following
this government laying out its plan for agriculture in Western Australia, the
Department of Agriculture and Food, in consultation with industry, put in place
a grains plan. That plan is around how we as a government agency and as a
government will respond to grains, which is obviously the lead sector with
revenue of $5 billion to the economy in Western Australia. Part of that plan is
a program called Bridging the Yield Gap, which is focused on the measures that
the better farmers take in the medium to high-rainfall areas of the state to
get the most out of the rain that falls out of the sky. The department engaged
Planfarm to do an analysis of its top 25 clients in that area. The results are
quite staggering. The analysis shows that the top 25 growers in the mid to
high-rainfall areas over the past six years, compared with the average,
accumulated $1.5 million more in wealth than the average growers. For every
dollar that an average grower earns and invests in farm production, those top
25 growers earn $1.74—almost double the average. The top growers do not
have bigger farms, they do not have better soils, they do not get more rain and
they certainly do not have less debt. That tells us that there is quite a big
gap between the potential for production and profitability out of that area and
the average. We know that the average farmer in Western Australia is a very
good farmer. The focus of those top 25 growers was clearly a profit focus. They
were flexible in their capacity to respond to the opportunities that presented;
they understood the risks in the decisions they made and in the changes they
made to their systems; they were more efficient, in the sense that they spent
16 per cent less to earn $1 of income; they clearly utilised the benefits of
specialists, consultants and so on for the advice they needed; and they had
confidence in their own capacity. I guess that points out, and can give some
direction to the department on, how we as a government might respond to assist
farmers to build profitability into their systems, and this program is the
first step towards that. It is fair to say that there is often a fair amount of
negativity around the perception of farmers in Western Australia and their performance.
This analysis shows that the top performers are indeed doing quite well. I also
highlight that, despite agriculture having many challenges, the survey shows
that with the right advice, management skills and so on, they can indeed
perform.
I also had a chance this morning to meet very briefly with
the United States Department of Agriculture's chief economist who had a
very optimistic outlook for agriculture. Again, that is something that augurs
well for a state that relies very heavily on agriculture and on the export
market. The point is that often agriculture is overshadowed in Western
Australia with the focus on mining. This survey shows some of the good stories
that are coming through; it shows that indeed there is an opportunity to be
very profitable in the sector; and it gives us a focus for where we should
direct some attention in the future. I think it also shows that if we are
indeed going to prosper going forward in agriculture, we need new, young people
coming into the sector and we need to demonstrate to them that it is in fact a
sector that can provide a good career path and that we can help them to make
that choice. I was hoping that there might have been some kids from schools in
the gallery today so that we could highlight that in fact agriculture has a big
place in Western Australia and that it will continue to do so.
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