Agricultural Development PolicyResearch Program Strategy

Global context/trendsAgricultural development operates in both the micro and macro dimensions. Supportive policy initiatives are a central component linking the two dimensions, ensuring that micro-scale initiatives targeting farmers and communities are not separated from the macro-scale of national and international policy. At the national level agricultural reform, land use policy, regulation and environmental-management regimes can all facilitate or hinder smallholder farmers’ attempts to take advantage of the productivity gains emerging from research for development.

The changing global trade environment created by the World Trade Organization (WTO) and associated impacts on national policy settings add another policy dimension. Smallholder farmers can be left behind as national policy settings are adjusted to WTO accession and a rules-based global trading environment. Understanding these interactions and catering to the needs of smallholder farmers as well as others engaged in agriculture aids economic growth and development.

What’s the solution?The increasing globalisation of trade and associated rules-based approaches impact on domestic markets can change policy settings beyond this scope. Domestic market and trade-regulatory developments can also impact on, or exacerbate, the volatility of food pricing. This is evidenced by some protectionist responses to rising global food prices since 2007. The reactionary import and export restricting policies, along with ongoing fertiliser or water subsidies, can also place pressure on associated land use and environmental management. This has the potential to impact on smallholder farmers.

The Director-General of the Laos National Agriculture and Forestry Research Institute (NAFRI), Dr Bounthong Bouahom, discusses developing improved farming and marketing systems in the rainfed regions of Southern Lao PDR with John Lacy during a visit to Australia. (photo: Doug Gray)

Research themesThe Agricultural Development Program supports both stand-alone projects and multidiscipline-based projects across the Australian Centre for International Agricultural Research (ACIAR) research programs. Policy components operate in several biophysical program areas, including Agribusiness, Forestry, Fisheries and Livestock Production Systems. Some of these projects are referenced in the list on the following page.

A key component of both types of projects is understanding how policies can influence adoption and further the outcomes of technical research. This understanding helps enhance the impacts emerging from ACIAR’s programs. Institutional and policy settings are essential to influencing productivity and sustainability.

Research themes Priority research areas

Macro policy settings Macroeconomic management and economic governance. Public expenditure providing basic institutional and

infrastructure capacities.

Dual policy settings linking macro and micro scales

Environmental management. Trade restrictions.

Micro policy settings Property rights. Taxation regimes, subsidies.

Members of the Pakistani citrus industry meet with Graham Lohmeyer, Farm Manager of Sevenfields citrus farm, Sunraysia Australia, during a visit in April 2012. (photo: Deb O'Callaghan, ABC Rural)

CountriesFollowing is a list of some of the countries the Agricultural Development Policy Program operates, including examples of projects the program is involved in.

Country Project examples

India Capturing the potential for greenhouse gas offsets in Indian agriculture (ADP/2010/008)

An extension of research on Indian agricultural markets and competition issues (ADP/2011/121)

Accelerating growth through globalisation of Indian agriculture (ADP/1994/026)

Agricultural trade liberalisation and domestic market reforms in Indian agriculture (ADP/2002/089)

China Scoping study on western China desertification (ADP/2007/090) Improving the efficiency of land use change policy in China

(ADP/2007/055) Achieving food security in China – implications of WTO accession

(ADP/1998/128) Chinese grain market policy with special emphasis on the domestic

grain trade (ADP/1997/021)

Indonesia Markets for high-value commodities in Indonesia: Promoting competitiveness and inclusiveness (ADP/2005/066)

Improving milk supply, competitiveness and livelihoods in smallholder dairy chains in Indonesia (AGB/2011/010)

Policy analysis of linkages between Indonesia's agricultural production, trade and environment (ADP/1994/049)

Lao People’s Democratic Republic (PDR)

Effective implementation of payments for environmental services in Lao PDRR (FST/2011/003)

Pacific island countries Accelerating economic development through engagement and development of local industry institutions in Pacific island countries (ADP/2010/024)

Assessment of price support schemes for tree crop export industries in Papua New Guinea and policy recommendations on future assistance (ADP/1999/008)

Vietnam Assessing farmer responses to climate change – adjustment policy options in China and Vietnam (ADP/2010/070)

Pakistan Enabling agricultural policies for benefiting smallholders in dairy, citrus and mango industries of Pakistan (ADP-2010-091)

Delivery on corporate goalsACIAR goal, to improve: Contributions of projects in the Agricultural Development Policy

program (examples)

food and nutrition security Plausible futures for economic development and structural adjustment: impacts and policy implications.

productivity and resilience of crop, livestock, forestry and

fisheries systems

Assessing farmer responses to climate change.

smallholder and community livelihoods

Markets for high-value commodities: promoting competiveness and inclusiveness.

Effective implementation of payments for environmental services.

sustainable interactions between agricultural and

ecosystem services

Capturing the potential for greenhouse gas offsets.

Future focusThe program is moving to examining policy settings and changes around domestic market and trade regulatory developments. These are examined within the context of food-price volatility and risk. A second set of domestic policy issues, around the development and testing of land-use-policy options that address environmental challenges and incentives are also being considered. At the farm level the impacts of a changing climate require adjustments in policy options, to manage the impacts of increased variability on farm. Projects are supplemented by smaller, supportive activities and merge or complement larger discipline-based projects in key research themes.

Research Program staff

Program ManagerDr M Ejaz QureshiPhone: +61 2 6217 0547Email: ejaz.qureshi@aciar.gov.au

Program Support OfficerKaty KimballPhone: +61 2 6217 0517Email: katy.kimball@aciar.gov.au