Grains Research and Development

Corporation

Annual Operational Plan 2015–16

The Grains Research and Development Corporation is a corporate Commonwealth entity established to plan and invest in research, development and extension (RD&E) for the Australian grains industry.

Its primary objective is to drive the discovery, development and delivery of world-class innovation to enhance the productivity, profitability and sustainability of Australian grain growers and benefit the industry and the wider community.

Its primary business activity is the allocation and management of investment in grains RD&E.

GRDC VISION

A profitable and sustainable Australian grains industry, valued by the wider community.

GRDC MISSION

Create value by driving the discovery, development and delivery of world-class innovation in the Australian grains industry.

GRDC VALUES

We are committed and passionate about the Australian grains industry.

We value creativity and innovation.

We build strong relationships and partnerships based on mutual trust and respect.

We act ethically and with integrity.

We are transparent and accountable to our stakeholders.

ContentsExecutive summary.........................................................................................................................................2

The GRDC....................................................................................................................................................2

Investment strategy......................................................................................................................................2

Annual operational plan................................................................................................................................4

Performance.................................................................................................................................................4

Income and expenditure...............................................................................................................................4

1 The GRDC....................................................................................................................................................5Purpose........................................................................................................................................................5

Legislation....................................................................................................................................................5

Relationships................................................................................................................................................5

Funding........................................................................................................................................................7

Planning and reporting.................................................................................................................................7

Structure.......................................................................................................................................................7

2 Investment approach................................................................................................................................10Business environment................................................................................................................................10

Strategy......................................................................................................................................................11

Priorities......................................................................................................................................................12

Process.......................................................................................................................................................14

Communication and extension...................................................................................................................15

Evaluation...................................................................................................................................................16

3 Goals and performance measures..........................................................................................................17Investment themes.....................................................................................................................................17

Theme 1—Meeting market requirements...............................................................................................17

Theme 2—Improving crop yield.............................................................................................................21

Theme 3—Protecting your crop.............................................................................................................24

Theme 4—Advancing profitable farming systems..................................................................................28

Theme 5—Improving your farm resource base......................................................................................31

Theme 6—Building skills and capacity...................................................................................................35

Cross-theme investments.......................................................................................................................38

Enabling business functions.......................................................................................................................38

4 Estimated income and expenditure........................................................................................................41Income........................................................................................................................................................41

Expenditure................................................................................................................................................42

Reserves....................................................................................................................................................43

Payments to Grain Producers Australia.....................................................................................................43

Expenditure to meet Australian Government research priorities................................................................43

Executive summaryThe GRDCThe Grains Research and Development Corporation (GRDC) is a corporate Commonwealth entity established to invest in research and development and related activities to benefit the Australian grains industry and the wider Australian community. Because effective delivery is critical to achieving the benefits of R&D outcomes, the GRDC invests in research, development and extension (RD&E) activities.

The GRDC’s primary objective is to drive the discovery, development and delivery of world-class innovation to enhance the productivity, profitability and sustainability of Australian grain growers and benefit the industry and the wider community.

The GRDC is principally funded by an industry levy and Australian Government contributions. Its investment portfolio covers 25 leviable crops, spanning temperate and tropical cereals, coarse grains, pulses and oilseeds.

A board of directors governs the GRDC, while the corporation’s business activities are led by the Senior Leadership Group. Regional and national advisory panels—comprising grain growers, agribusiness practitioners, scientists and the GRDC’s executive managers—advise the GRDC Board on RD&E priorities, and provide an effective interface with stakeholders.

The GRDC’s investment activities are managed across three operational business groups: Research Programs, Commercial, and Regional Grower Services. The operational business groups are supported by the enabling functions of the Corporate Services business group and the Communications unit.

Part 1 of this document provides more information on the GRDC’s role, funding, structure and way of doing business.

Investment strategyThe GRDC’s Strategic R&D Plan 2012–17 provides a template to ensure that the GRDC invests in RD&E in a sustainable manner, balancing long-term and short-term, high-risk and low-risk, and strategic and adaptive research needs, over the five years from July 2012 to June 2017.

The five-year strategy is informed by consultation with grain growers, representatives of government and research partners, and other relevant stakeholders. It embraces the principles, strategies and implementation plan set out in the Grains Industry National Research, Development and Extension Strategy, and integrates them with the identified priorities of Australian grain growers and the Australian Government.

The GRDC achieves its strategic outcomes for RD&E through a coherent structure of investment themes and corporate strategies that are directly related to stakeholder priorities, as shown in Figure 1. During 2015–16, this performance framework will be refreshed to reflect the Science and Research Priorities announced by the Australian Government in May 2015.

Part 2 of this document provides more information on the Strategic R&D Plan 2012–17, industry and government priorities, and the GRDC’s approach to RD&E investment.

Figure 1: Performance frameworkGovernment and industry objectives

Australian Government objectives Industry objectives

PrimaryIndustriesResearchandDevelopmentAct1989

Strategic Research Priorities

Rural R&D Priorities

GrainsIndustryNational

Research,DevelopmentandExtensionStrategy

Industry priorities

Increased economic, environmental and social benefits to members of primary industries and to the community in general by improving the production, processing, storage, transport or marketing of grain.

Sustainable use and management of natural resources.

More effective use of the resources and skills of the community in general and the scientific community in particular.

Development of scientific and technical capacity.

Development of the adoptive capacity of grain growers.

Improved accountability for expenditure on R&D activities.

Living in a changing environment.

Promoting population health and wellbeing.

Managing our food and water assets.

Securing Australia’s place in a changing world.

Lifting productivity and economic growth.

Productivity and adding value.

Supply chain and markets.

Natural resource management.

Climate variability and climate change.

Biosecurity.

Supporting the Rural R&D Priorities:

Innovation skills.

Technology.

Improved processes to build on existing national collaboration.

Effective relationship models for private–public coexistence.

National research programs, national centres of research capacity and regional networks of applied RD&E under the ‘major-support-link’ framework.

National capability planning for human and physical infrastructure.

Better and ongoing alignment of stakeholder priorities and RD&E resource allocation.

Meeting market requirements.

Improving crop yield.

Protecting your crop.

Advancing profitable farming systems.

Improving your farm resource base.

Building skills and capacity.

GRDC RD&E investment themes

1Meetingmarketrequirements

2Improvingcropyield

3Protectingyourcrop

4Advancingprofitablefarmingsystems

5Improvingyourfarmresourcebase

6Buildingskillsandcapacity

Intermediateoutcomes(5years)

Understanding market opportunities for Australian grain.

Crop and variety selection aligned with market requirements.

Crop production aligned with market requirements.

Grain harvest and storage practices aligned with market requirements.

Genetic yield potential and stability improvement of cereal varieties.

Genetic yield potential and stability improvement of pulse varieties.

Genetic yield potential and stability improvement of oilseed varieties.

Effective, sustainable and efficient management of weeds.

Effective, sustainable and efficient management of vertebrate and invertebrate pests.

Effective, sustainable and efficient management of cereal rusts.

Effective, sustainable and efficient management of cereal (non-rust), pulse and oilseed fungal pathogens.

Effective, sustainable and efficient management of nematodes.

Effective, sustainable and efficient management of viruses and bacteria.

Biosecurity and pesticide stewardship.

Knowing what is important (key business drivers).

Responding strategically (building system benefits and rotations).

Responding tactically (individual crop agronomy).

Understanding and adapting to climate variability.

Improving soil health.

Managing water use on dryland and irrigated grain farms.

Understanding and valuing biodiversity.

Communication of sustainable production methods.

Grains industry leadership and communication.

Capacity building in the extension sector.

Capacity building in the R&D sector.

Capacity building for grain growers.

Aspirationaloutcomes(10+years)

Australian grain growers maintain and increase access to current and future grain markets by aligning on-farm production practices with quality and

Cereal, pulse and oilseed varieties with significant, sustained and stable improvements in water-limited yield potential over current elite

Australian grain growers managing their farms to maximise profit and reduce risk by adopting effective control of weeds, pests and diseases.

Australian grain growers managing farming systems that are able to respond and adapt to changing environmental and market conditions to

Grain growers valued for adopting practices that improve regional habitat, soil, water and atmosphere resources in a changing climate.

A dynamic Australian grains industry with the skills and capacity to continuously innovate.

functionality requirements.

varieties in key agroecological zones and across a range of seasons.

reduce risk and deliver an increase in profitability.

GRDC corporate strategies

Create value Coordinate nationally Deliver regionally Connect globally Engage with growers and industry

GRDC Outcome

Australian grain growers utilising new information and products that enhance the productivity, profitability and sustainability of growers and benefit the grains industry and wider community.

GRDC Vision A profitable and sustainable Australian grains industry, valued by the wider community.

Annual operational planEach year, the GRDC undertakes a thorough process of consultation to identify potential investments that satisfy its strategic RD&E objectives and address the current RD&E priorities of the grains industry in each region. That process, along with a review of the business environment and the progress of ongoing investments, shapes the RD&E investment portfolio for the following year. The result is an annual operational plan that sets out detailed investment priorities and performance measures.

This annual operational plan covers RD&E investment in 2015–16, the fourth year of the implementation of the Strategic R&D Plan 2012–17.

Part 2 of this document includes an overview of key factors likely to influence the business environment of the Australian grains industry in 2015–16. It also provides details of the RD&E priorities of the grains industry and government, and the process through which GRDC investments are designed to address them and deliver benefits to the wider Australian community.

Part 3 specifies the planned investments and performance measures for each investment theme, as well as objectives and performance indicators for the enabling functions and the corporation as a whole.

Performance The GRDC continually monitors its progress against the key performance indicators in the Strategic R&D Plan 2012–17, the portfolio budget statements and the annual operational plan, and evaluates its effectiveness in delivering benefits to the Australian grains industry and the wider community.

Part 1 of this document describes the elements of the GRDC’s approach to reporting its performance to stakeholders, including through the annual report, the growers’ report and other publications. Part 2 describes how the GRDC’s performance is evaluated, while Part 3 sets out performance measures for 2015–16.

Income and expenditureThe GRDC’s total income in 2015–16 is forecast to be $196.6 million, consisting of:

Australian Government contributions of $69.1 million

levy contributions from grain growers of $113.4 million

grants totalling $0.4 million

other income, including interest and royalties, of $13.7 million.

For 2015–16, the GRDC Board has approved an annual operating expenditure of $219.7 million (which is an increase of approximately 3.1 percent compared to the 2014–15 expenditure budget).

The GRDC is estimating an operating loss in 2015–16. This loss will be funded by the GRDC’s accumulated financial reserves.

Part 4 of this document provides details of the estimates of GRDC income and expenditure for 2015–16. The figures are indicative only. Changes in the GRDC’s operating environment may require the corporation to vary the total expenditure or specific allocations to secure its objectives.

1 The GRDCPurposeThe Grains Research and Development Corporation exists to drive the discovery, development and delivery of world-class innovation to enhance the productivity, profitability and sustainability of Australian grain growers and benefit the grains industry and the wider community.

The GRDC invests in research, development and extension and related activities across a portfolio spanning temperate and tropical cereals, coarse grains, pulses and oilseeds. This involves coordinating and funding activities; monitoring, evaluating andreporting on their impact; and facilitating the dissemination, adoption and commercialisation of their results.

The GRDC does not undertake R&D itself. Rather, it partners with organisations that have the necessary capabilities to undertake the specialised work.

The GRDC also contributes to the development of strategic national approaches to grains industry RD&E, to reduce fragmentation and duplication, and to help address industry-wide issues such as biosecurity and climate variability.

While its focus is on delivering benefits to its primary stakeholders—Australian grain growers—the GRDC also generates outcomes from investing in RD&E that benefit other participants in the Australian grains industry value chain, the research community and the wider Australian community.

The GRDC is a corporate Commonwealth entity and resides in the Australian Government’s Agriculture portfolio. The GRDC delivers one outcome towards the portfolio’s goal of achieving more sustainable, profitable and competitive Australian agriculture, food, fisheries and forestry industries:

New information and products that enhance the productivity, competitiveness and environmental sustainability of Australian grain growers and benefit the industry and wider community, through planning, managing and implementing investments in grains research and development.

LegislationThe GRDC was established in 1990, under the then Primary Industries and Energy Research and Development Act 1989. As a result of amendments made in December 2013, that Act is now known as the Primary Industries Research and Development Act 1989.

The Primary Industries Research and Development Act provides for the funding and administration of primary industries R&D to:

increase the economic, environmental and social benefits to members of primary industries and to the community in general by improving the production, processing, storage, transport or marketing of the products of primary industries

achieve sustainable use and management of natural resources

make more effective use of the resources and skills of the community in general and the scientific community in particular

support the development of scientific and technical capacity

develop the adoptive capacity of primary producers

improve accountability for expenditure on R&D activities in relation to primary industries.

The GRDC’s management as a corporate Commonwealth entity is subject to requirements of the Public Governance, Performance and Accountability Act 2013.

RelationshipsThe GRDC works closely with Australian grain growers and the Australian Government, to ensure that their RD&E priorities are effectively addressed through GRDC investments. The GRDC also maintains strong relationships with its other stakeholders, particularly in the R&D and agribusiness sectors.

The GRDC collaborates with other Australian organisations to deliver greater benefits to grain growers. Effective partnerships enable the GRDC to leverage resources and research capability; share market knowledge, technologies and intellectual property; and reduce the risk associated with particular investments.

The GRDC also builds strong relationships with organisations overseas, both to broaden the resources available to the Australian grains industry and to access international RD&E efforts that offer potential benefits, such as food security, for the wider Australian community.

CommunicationThe GRDC continually seeks to enhance communication exchange to and from the corporation, to assist stakeholders to adopt new uses and sources of timely, relevant grains information. The curation and integration of effective information sources for growers is a key priority. Mechanisms that are growing in importance include online integrated information packages, such as GrowNotes, and the GRDC’s social media presence.

New tools add value to existing mechanisms such as the GRDC’s Regional Cropping Solutions networks, which provide essential on-the-ground linkages between growers, farming systems groups, agribusiness and researchers. These networks and their appointed facilitators link growers’ local RD&E needs with the nation’s agricultural researchers in a streamlined, targeted and responsive way, in harmony with the Grains Industry National Research, Development and Extension Strategy, and enable the GRDC, through its regional panels, to proactively respond to regional issues in a timely manner. The Grower Solutions Groups in the Northern Region play a similar role.

Direct communication with growers and their advisers is also facilitated by the GRDC’s advisory panels and managers of grower services in the Northern, Southern and Western regions.

The GRDC also exchanges information and ideas with growers through Grain Producers Australia (GPA), the grains industry’s representative organisation as defined under the Primary Industries Research and Development Act 1989, and a wide range of representative bodies such as farming systems groups and state farmers’ organisations. Representative groups for particular industry sectors also liaise with the GRDC, through the National Agribusiness Reference Group.

The GRDC works closely with its portfolio department, the Department of Agriculture, and interacts with various federal and state government agencies.

Other opportunities to communicate with the GRDC include:

personal contact, through field days, forums, conferences and other activities

stakeholder surveys and market research

GRDC-supported education and training channels, such as grains research updates, conferences and technical workshops

GRDC smartphone and tablet applications

the GRDC website and YouTube channel

GRDC accounts on social media channels such as Twitter, Facebook and LinkedIn.

The GRDC also conducts roadshows to ensure that industry partners and other interested parties are well informed about new developments, initiatives and processes conducted by the corporation.

CollaborationCollaboration is at the heart of the GRDC’s approach to adding value to the Australian grains industry. The majority of the GRDC’s investment in RD&E is with partners that co-fund the work and conduct many of the activities. Examples include government agencies; cooperative research centres, universities and other research organisations, including rural R&D corporations; commercial plant breeders and seed companies; agricultural companies and advisers; and grain marketers, exporters and end-users.

Australia’s R&D investment is only a small part of the global effort, so the GRDC collaborates with public and private research organisations overseas to access new technologies and intellectual property that would otherwise be unavailable to Australia. As the largest single Australian investor in broadacre agricultural RD&E, the GRDC is well placed to build links between the Australian research sector and the best research being undertaken around the world. Notable examples include the GRDC’s longstanding strategic alliances with the International Maize and Wheat Improvement Center (CIMMYT), the International Center for Agricultural Research in the Dry Areas (ICARDA) and the International Crop Research Institute for the Semi-Arid Tropics (ICRISAT).

Commercial partnerships While the GRDC is a major investor in the development of new technologies benefitting Australian growers, most GRDC investments are made with one or more partners. Historically, GRDC investment partners have been public institutions such as state governments, CSIRO and universities. Increasingly, however, investment partners include a mixture of large, medium and small enterprises.

Investment partnerships with the private and public sectors are both desirable and necessary, as they can bring together complementary skills, supply market knowledge and access to proprietary technologies, and reduce the risk to the GRDC in the funding of new technologies through the provision of independent financial resources.

While the most usual path to market for commercial research products arising from GRDC investment will be through licensing to suitable partners, investments in joint ventures and companies to deliver the products are also considered, based on the merits of

business cases that demonstrate delivery of the best outcome for growers and the wider grains industry.

The changing R&D investment environment will see the GRDC’s engagement with private sector investment and commercial activities increase in 2015–16, especially in relation to genetics, engineering and crop protection technologies. The GRDC will also continue to seek access to research and new technology for product development to assist the Australian grains industry as opportunities and needs arise.

FundingThe GRDC is principally funded by a grower levy and Australian Government contributions.

The levy is based on the net farm gate value of the annual production of 25 crops: wheat; coarse grains—barley, oats, sorghum, maize, triticale, millets/panicums, cereal rye and canary seed; pulses—lupins, field peas, chickpeas, faba beans, vetch, peanuts, mung beans, navy beans, pigeon peas, soybean, cowpeas and lentils; and oilseeds—canola, sunflower, safflower and linseed.

The Australian Government matches the levy up to a limit of 0.5 percent of the three-year rolling average of the gross value of production of the 25 leviable crops.

Other sources, including interest, royalties and grants, contribute a small proportion of the GRDC’s income.

Planning and reportingThe Primary Industries Research and Development Act sets out the legislative framework for the operation of the GRDC. The GRDC also has accountability obligations under the Public Governance, Performance and Accountability Act and the annual Finance Minister’s Orders for Financial Reporting.

Table 1 summarises the key elements of the GRDC’s annual planning and reporting framework. Except for the procurement and investment plans, which contain commercially sensitive information, these documents are publicly available through the GRDC website.

This document is the fourth of five annual operational plans to implement the GRDC’s Strategic R&D Plan 2012–17, and is published in response to:

section 25 of the Primary Industries Research and Development Act, which requires the annual operational plan to

describe how the activities planned for the year will satisfy the objectives and strategies outlined in the strategic R&D plan

provide an estimate of the total amounts likely to be spent in respect of each broad grouping of R&D activities

advice from the Department of Agriculture that the outcomes, outputs and performance measures contained in the annual operational plan are consistent with the GRDC’s input to the Agriculture Portfolio Budget Statements.

The GRDC’s annual report for 2015–16 will report in detail on the GRDC’s performance in achieving the objectives of this annual operational plan.

StructureThe GRDC’s organisational structure is designed to most effectively apply the organisation’s resources to achieve its operational and strategic outcomes. The strengths of the GRDC’s highly committed staff are enhanced by the depth of experience of its directors and the diverse knowledge and skills of its advisory panel members. All aspects of the GRDC’s performance and accountability are underpinned by robust corporate governance policies and practices.

Figure 2 sets out the organisational structure of the GRDC as at 1 July 2015.

Table 1: Elements of the planning and reporting frameworkElement PurposeAnnual operational plan Specifies the annual budget, resources and research priorities that give effect to the strategic R&D

plan during a given financial year.

Annual procurement plan Makes procurement information publicly available through the Australian Government’s AusTender website.

Annual report Provides information on RD&E activities and their performance in relation to the goals set in the annual operational plan and portfolio budget statements for a given financial year.

Growers’ report Provides performance information to growers on research, development and extension activities for a given financial year.

Investment plan Informs potential research partners about some of the GRDC’s new investment priorities for the next financial year and invites interested parties to submit research proposals.

Portfolio budget statements As part of the Australian Government budget process, summarise the planned outputs, outcomes, performance information and financial statements for a given financial year.

Stakeholder report Provides information that assists Grain Producers Australia to determine whether it needs to discuss the GRDC levy rate with the Minister.

Strategic R&D plan Sets out the GRDC’s high-level goals, strategies and performance measures for a five-year period, developed in consultation with stakeholders and approved by the Minister.

Figure 2: Organisational structure

Board The GRDC’s board of directors, headed by the Chair, oversees corporate governance, sets strategic direction and monitors the performance of the GRDC and the Managing Director.

The GRDC Board has combined expertise in business management; commodity production, processing and marketing; finance; management and conservation of natural resources; environmental and ecological matters; R&D administration; science and technology; technology transfer; communication; and public administration.

Advisory panelsA network of advisory panels helps to ensure that the GRDC’s investments are directed towards the interests of all its stakeholders and aligned with at least one of its six investment themes. The network comprises four panels: one aligned to each of the three grain-growing regions, and an overarching National Panel.

The GRDC Board makes decisions with the support of the National Panel, which in turn is informed by the knowledge and experience of the three regional panels and the GRDC executive.

Regional panelsThe three regional advisory panels, covering the northern, southern and western grain-growing regions of Australia, are composed

of grain growers, agribusiness representatives, researchers and the GRDC’s executive managers, with provision for other industry experts to participate as appropriate. Panel members (other than GRDC executive managers) are contracted to carry out their roles and are not employees of the GRDC.

The regional panels develop and monitor local and regional investment priorities, identify investments that respond to the national priorities of grain growers and the Australian Government, and make recommendations to the National Panel. They work closely with industry bodies in their regions, including Grower Solutions Groups and Regional Cropping Solutions networks, to learn of emerging issues and discuss priorities for future RD&E investment. They also make sure that GRDC investments are responding to local and regional needs, and that RD&E outputs are being delivered in the most effective manner to promote rapid adoption.

The regional panel members’ in-depth understanding of local needs and priorities, complemented by their knowledge of the GRDC’s investment portfolio, makes them an integral part of ensuring that GRDC investments deliver benefits regionally and locally.

National PanelThe National Panel comprises the three regional panel chairs, the GRDC’s Managing Director and the GRDC’s executive managers.

The National Panel:

considers national RD&E priorities across the GRDC’s investment portfolio, takes advice from regional panels, staff and external experts, and advances recommendations on investments to the Board

assists the Board to maintain links with grain growers, the Australian Government, state and territory governments and research partners

plays a significant role in assessing future regional requirements in RD&E capacity, and in ensuring that they are met.

Senior Leadership GroupThe Senior Leadership Group leads the GRDC’s business activities and advises the GRDC Board. It is responsible for implementing strategy, and for managing and evaluating the GRDC and its investments in RD&E.

The Senior Leadership Group is composed of the Managing Director and the executive managers of the operational business groups and enabling business functions.

Business groupsThe GRDC’s three operational business groups—Research Programs, Commercial, and Regional Grower Services—oversee and manage investments to achieve the outcomes determined under the GRDC’s Strategic R&D Plan 2012–17. They are supported by the enabling functions of the Corporate Services business group and the Communications unit.

2 Investment approachBusiness environmentTo ensure that its strategies remain relevant, the GRDC continually monitors and reviews changes in its business environment. Table 2 lists the main factors expected to influence the business environment in 2015–16, and some of their implications for the grains industry and the GRDC.

Table 2: Factors expected to influence the GRDC’s business environmentFactors Implications for the GRDCGovernance arrangements under the Primary Industries Research and Development Act 1989

For the first time, the GRDC is required to comply with a Commonwealth funding agreement. This agreement sets out the terms and conditions under which money paid to the GRDC may be spent by the GRDC.

Governance arrangements under the Public Governance, Performance and Accountability Act 2013 (PGPA Act)

Rules under the PGPA Act continue to be developed and issued by the Minister for Finance, in areas such as use and management of public resources; governance and risk management; and performance and reporting.

Implementation of the Grains Industry National Research, Development and Extension Strategy

As a leader in the implementation of the Grains Industry National Research, Development and Extension Strategy, the GRDC may be required to provide increased resources for coordination and investment to secure future RD&E capacity for the national grains R&D sector.

Significant changes within the global grain market, including an increase in overseas demand for Australian grain and global food security issues

GRDC-supported RD&E will underpin the ability of the Australian grains industry to respond to rising demand for food, particularly in Asia, by increasing the production of grain that meets the quality and functionality requirements of target markets.

The need to adapt to the requirements of private sector collaboration on ownership of intellectual property

The GRDC will need to strengthen its internal capacity to manage intellectual property, including patents and licences, so it can continue to engage with the private sector to bring new technologies to the Australian grains industry and ensure that the industry remains competitive internationally.

Volatility in grain prices and market requirements

Volatility in grain prices and market requirements is affecting growers’ profitability and the GRDC’s ability to forecast revenue and plan investment. This will influence the GRDC’s strategies to secure a stable levy rate, as well as its efforts to support growers in effective business and risk management strategies.

Significant changes within the global grain market, including an increase in overseas demand for Australian grain and global food security issues

GRDC-supported RD&E will underpin the ability of the Australian grains industry to respond to rising global food demand, particularly in Asia, by increasing the production of grain that meets the quality and functionality requirements of target markets.

Volatility in grain production Volatility in grain production due to seasonal conditions will add uncertainty to grower profitability and GRDC revenue forecasts.

Volatility in the currency exchange rate

Currency exchange rate volatility will continue to make it difficult for growers to make planting decisions with confidence.

Reduced farm profitability Reduced farm profitability may undermine growers’ confidence in the ability of rural RD&E to deliver desired outcomes, in terms of increased farm profitability and sustainability, and may limit growers’ financial capacity to adopt the results of RD&E.

Climate variability, affecting on-farm decisions and requiring an increase in innovative tools to forecast and manage risks

Climate variability is a major threat to the Australian grains industry as it makes production levels more volatile and increases production risk. It will continue to be a major factor influencing revenue streams for growers and the GRDC.

Pressure on productivity growth rates

A long-term decline in the rate of total factor productivity growth makes it essential for rural RD&E to increase farm profitability and sustainability by addressing the efficiency of inputs used relative to outputs achieved.

StrategyThe GRDC’s Strategic R&D Plan 2012–17 provides a template to ensure that the GRDC invests in RD&E in a sustainable manner, balancing long-term and short-term, high-risk and low-risk, and strategic and adaptive research needs, over the five years from July 2012 to June 2017.

This plan embraces the principles, strategies and implementation plan set out in the Grains Industry National Research, Development and Extension Strategy, and integrates them with the identified priorities of Australian grain growers and the

Australian Government.

The Grains Industry National Research, Development and Extension Strategy is one of more than 20 industry sector and cross-sectoral strategies devised under the National Primary Industries RD&E Framework to improve the efficiency and effectiveness of RD&E capability by strengthening collaboration and coordination between the Australian Government, state governments, research institutions and industry. The GRDC’s Strategic R&D Plan 2012–17 also takes into account cross-sectoral national research strategies in areas with relevance to the grains industry—for example, climate change; water use in agriculture; soils; and plant biosecurity.

The five-year strategy is also informed by consultation with grain growers and representatives of governments, research partners and other relevant stakeholders.

The investment strategy is underpinned by a strategic approach running through all levels of the GRDC’s operations. The approach is based on five key corporate strategies, supported by the overall operational strategy and enabling strategies, as shown in Figure 3.

Figure 3: Strategic approach

Priorities

Grains industry prioritiesThe GRDC identified the strategic RD&E priorities of the grains industry during the development of the Strategic R&D Plan 2012–17, through:

a range of consultation meetings with Grain Producers Australia (GPA), agribusiness reference groups, grower groups, grower representative organisations and individual grain growers

activities and discussions with organisations representing the interests of particular industry sectors, such as Wheat Quality Australia, Pulse Australia and the Australian Oilseeds Federation, as well as traders and marketers in general.

The GRDC continually reviews the RD&E priorities of Australian grain growers and the wider industry, through:

interaction with growers, advisers and other industry participants, through Regional Cropping Solutions network activities as well as grower updates, adviser updates, forums and field days

consultation with the GRDC regional panels, GPA, researchers, state farming organisations and the National Agribusiness Reference Group

analysis of project reviews, project progress reports and survey results.

In addition, RD&E priorities for the grains industry supply chain post–farm gate are identified through the activities of, and GRDC discussions with, traders, marketers and organisations representing particular crop sectors. Scientific opportunities to address grains industry issues post–farm gate are also identified, through interaction with researchers and RD&E providers.

The GRDC adopted the industry’s key RD&E priorities as its themes for investment in the Strategic R&D Plan 2012–17. Table 3 shows the key industry priorities and objectives.

Table 3: Grains industry prioritiesRD&E priority ObjectiveMeeting market requirements Understanding market opportunities for Australian grain.

Crop and variety selection aligned with market requirements.

Crop production aligned with market requirements.

Grain harvest and storage practices aligned with market requirements.

Improving crop yield Genetic yield potential and stability improvement of:

cereal varieties

pulse varieties

oilseed varieties.Protecting your crop Effective, sustainable and efficient management of:

weeds

vertebrate and invertebrate pests

cereal rusts

cereal (non-rust), pulse and oilseed fungal pathogens

nematodes

viruses and bacteria.

Biosecurity and pesticide stewardship.Advancing profitable farming systems

Knowing what is important (key business drivers).

Planning strategically (building system benefits and rotations).

Responding tactically (individual crop agronomy).

Improving your farm resource base Understanding and adapting to climate variability.

Improving soil health.

Managing water use on dryland and irrigated grain farms.

Understanding and valuing biodiversity.

Communication of sustainable production methods.

Building skills and capacity Grains industry leadership and communication.

Capacity building in the extension sector and the R&D sector.

Capacity building for growers.

Australian Government prioritiesThe Strategic R&D Plan 2012 -17 incorporates the Australian Government’s key objectives for RD&E as expressed in the National Research Priorities (2002), the Rural R&D Priorities (2007), and the National Innovation Priorities (2009).

In 2013, the National Research Priorities were superseded by the Strategic Research Priorities, which are reflected in the aims and expenditure allocations of this annual operational plan.

From May 2015, the Strategic Research Priorities were replaced by the national Science and Research Priorities, which provide direction for research in nine key areas: food; soil and water; transport; cybersecurity; energy; resources; advanced manufacturing; environmental change; and health. The new priorities will inform the GRDC’s decision making in 2015–16, and will be embedded in the GRDC’s next annual operational plan.

Table 4 details the key government priorities that underpin the GRDC’s RD&E investments for 2015–16.

Table 4: Australian Government research prioritiesStrategic Research PrioritiesChallenge Priority

Living in a changing environment

1.1 Identify vulnerabilities and boundaries to the adaptability of changing natural and human systems.

1.2 Manage risk and capture opportunities for sustainable natural and human systems.

1.3 Enable societal transformation to enhance sustainability and wellbeing.

Promoting population health and wellbeing

2.1 Optimise effective delivery of health care and related systems and services.

2.2 Maximise social and economic participation in society.

2.3 Improve the health and wellbeing of Aboriginal and Torres Strait Islander people.

Managing our food and water assets

3.1 Optimise food and fibre production using our land and marine resources.

3.2 Develop knowledge of the changing distribution, connectivity, transformation and sustainable use of water in the Australian landscape.

3.3 Maximise the effectiveness of the production value chain from primary to processed food.

Securing Australia’s place in a changing world

4.1 Improve cybersecurity for all Australians.

4.2 Manage the flow of goods, information, money and people across our national and international boundaries.

4.3 Understand political, cultural, economic and technological change, particularly in our region.

Lifting productivity and economic growth

5.1 Identify the means by which Australia can lift productivity and economic growth.

5.2 Maximise Australia’s competitive advantage in critical sectors.

5.3 Deliver skills for the new economy.

Rural R&D PrioritiesPriority Goal

Productivity and adding value

Improve the productivity and profitability of existing industries and support the development of viable new industries.

Supply chain and markets

Better understand and respond to domestic and international market and consumer requirements and improve the flow of such information through the supply chain, including to consumers.

Natural resource management

Support effective management of Australia’s natural resources to ensure primary industries are both economically and environmentally sustainable.

Climate variability and climate change

Build resilience to climate variability and adapt to and mitigate the effects of climate change.

Biosecurity Protect Australia’s community, primary industries and environment from biosecurity threats.

Supporting the Rural R&D Priorities

Innovation skills Improve the skills to undertake research and apply its findings.

Technology Promote the development of new and existing technology.

Process Figure 4 provides an overview of the GRDC’s investment process. The following sections describe the six key steps in the process.

Figure 4: Overview of the investment process

GPA = Grain Producers Australia, RCS = Regional Cropping Solutions

Step 1—Identification of prioritiesThroughout the year, the GRDC improves its understanding of grains industry RD&E priorities for the year ahead. Potential issues are identified through:

interaction with growers, advisers and other industry participants, through Regional Cropping Solutions network activities such as grower updates, adviser updates, forums and field days

consultation with the GRDC regional panels, GPA, researchers, state farming organisations and the national and regional agribusiness reference groups

evidence from project reviews, project progress reports and survey results

identification of gaps in the investment strategies underlying each of the GRDC’s six themes

consideration of the Australian Government’s Strategic Research Priorities and Rural R&D Priorities.

All priorities are looked at as potential areas for investment in future investment cycles. Initial suggested high-level resource allocation for the year ahead of the current financial year is reported to GPA, in the form of a draft stakeholder report. Final resource allocations at the theme level are recommended to the GRDC Board in April of the following calendar year.

Step 2—Investment Planning WeekIn July/August, GRDC managers and regional panel members meet to discuss issues and investment areas that address gaps in investment strategies and the priorities identified through engagement with stakeholders.

GRDC managers then develop ‘mini prospectus’ proposals for new RD&E projects and existing projects that are due to be reviewed for further investment. The mini prospectus outlines the project’s aims, deliverables and approximate budgets. Each proposal is categorised as a national investment or a regional investment.

The proposals are ranked by GRDC managers, taking into account the relevant five-year strategic R&D plan. The GRDC’s National Panel makes recommendations for resource allocation to frame a high-level budget. Based on procurement recommendations made during Investment Planning Week, the annual external investment plan (for the next financial year) is formulated.

Step 3—Call for tendersThe external investment plan is released in August. Investment proposals identified as suitable for competitive tender are published in the plan in accordance with the Commonwealth Procurement Rules. Tenders are evaluated against specific selection criteria to determine the preferred provider(s).

The GRDC usually invests in partnership with the organisations that will deliver the RD&E. This means that most project investment is a combination of GRDC funding and research provider investment.

Step 4—Contracting The contracting of projects for the next financial year begins after the Board gives preliminary approval to theme allocations in September.

Step 5—Status, progress and gap review meetingIn March, GRDC managers and regional panel members meet to review and formalise the investments for the forthcoming financial year. During this meeting:

Progress on the status and development of new investments agreed to during Investment Planning Week is reviewed.

The resources being contributed to each project by the research partner(s) are assessed.

Progress in the contracting of projects is reviewed.

Actual investment that will occur in the next financial year is refined in line with the high-level budget.

Investments and refinements to budget are reflected in the drafts of the annual operational plan and stakeholder report.

Strategic gaps are assessed, along with priorities for investment identified through engagement with stakeholders, to scope potential investments for later financial years.

Step 6—Assessment of reportsAlso in March, annual progress reports on continuing investments are received and assessed by GRDC managers, in terms of both the project’s status against contract milestones and the quality of the report. The assessment process identifies issues for GRDC

managers to follow up.

Payments are made to research partners for projects that have good quality progress reports and are on track to meet milestones and achieve contract outputs.

Final reports are assessed for quality of reporting and achievement of contract milestones and outputs at the end of each project (this usually occurs in September).

Communication and extensionTo realise the greatest benefit from its RD&E investments, the GRDC undertakes a range of activities to raise awareness of grains industry R&D and extend the results of GRDC-supported projects to grain growers, industry and the wider community.

Recognising that across industry there are different needs and preferences for receiving information, the GRDC uses a range of products and channels, including media; publications; the GRDC website and YouTube channel; and direct electronic distribution.

Building on the awareness generated by its communication activities, the GRDC supports the adoption of improved techniques and technology through a multifaceted approach to extension. Science writers are engaged to develop material that translates complex technical information into forms that can be applied on farm, and the GRDC invests in events, field trials, training, decision-making tools and new technologies to connect growers and advisers to the outcomes of R&D.

EvaluationThroughout the life of the Strategic R&D Plan 2012–17, the GRDC will measure, evaluate and report on the progress being made in achieving the aspirational and intermediate outcomes of each of the six investment themes. The GRDC also continually assesses the performance of its RD&E programs and projects, including their impact on the Australian grains industry and the wider community, and regularly reports to stakeholders.

Strategic performance measuresThe GRDC has developed a ‘monitoring, evaluation, reporting and improvement’ plan for each investment theme. Each plan includes a set of key evaluation questions that, when tested, will enable the Board and GRDC stakeholders to assess the progress made in relation to the theme. For each question, the plan identifies performance indicators and sources of data that will underpin the evaluation.

Results of the ongoing performance measurement will be used to alter the investment mix where required, and to make improvements in the management of RD&E investments in order to achieve the outcomes as effectively and efficiently as possible.

The annual operational plan also sets out indicators that will be used to measure the GRDC’s performance in delivering the outcomes of its investment themes and meeting its organisational objectives. Progress toward achieving those performance measures and targets is recorded through formal reporting arrangements, such as the annual report and the growers’ report, as described in Table 1.

Impact assessmentsEach year, the GRDC undertakes impact assessments that focus on ongoing programs within the themes developed for the five-year plan, as well as evaluations of completed projects.

The impact assessment methodology uses a triple-bottom-line framework and is consistent with the Guidelines for Evaluation released in May 2007 by the Council of Rural Research and Development Corporation Chairs. The guidelines have been endorsed by the Productivity Commission, the Australian Bureau of Agricultural and Resource Economics and Sciences, and the departments of Agriculture, Finance and the Treasury.

Stakeholder surveysThe GRDC’s stakeholder surveys are designed to evaluate attitudes towards the GRDC and its performance as a research partner and investor in grains RD&E activities.

A grower survey is conducted each year to help the GRDC to assess and improve its performance, particularly in terms of ensuring that research outcomes are being communicated effectively to growers. The survey obtains detailed feedback from 1,200 growers across Australia, covering the GRDC’s three production regions and key agroecological zones.

A research partner survey is conducted periodically to provide the GRDC with an evaluation of research providers’ perspectives on their relationships with the GRDC, determining key areas of strength and weakness and identifying areas of potential improvement. A total of 300 interviews with researchers, supervisors and administrators are conducted across Australia, using Computer Assisted Telephone Interviews. A series of 18 in-depth interviews are also conducted with senior people within the research sector to facilitate a high level of discussion on partnership issues and ensure that the information collected highlights areas which

respondents consider to be significant.

3 Goals and performance measures Investment themesThe outcomes of the RD&E investment themes established in the Strategic R&D Plan 2012–17 are delivered by the GRDC’s three operational business groups—Research Programs, Commercial, and Regional Grower Services—supported by the enabling business functions of the Corporate Services business group and the Communications unit.

The GRDC has determined the scope, outcomes and targets for each of the six investment themes in 2015–16. Where possible, performance metrics to track the progress of the desired practice changes for each theme have been quantified.

This section includes highlights of the RD&E investments for each theme. A full list of RD&E investments will be published in the GRDC’s annual report for 2015–16.

Theme 1—Meeting market requirementsThis theme describes the framework for the GRDC’s investments in grain quality and functionality to help growers maintain and expand access to markets.

Australia’s domestic and international customers seek a consistent supply of grain that is both:

a quality product that is compliant with statutory and customer-specific requirements

a functional product that performs reliably for the desired end use.

To deliver highest value to growers, the GRDC must understand the requirements and the dynamics of current domestic and export markets for feed and food grains, and those of likely future markets.

Through the ‘Meeting market requirements’ theme, the GRDC interacts closely with participants in the Australian grains value chain to better understand market requirements, particularly for quality and functionality, to enable growers to maintain or increase access to current markets and secure access to new higher valued markets.

Outcomes, budget and performance measuresTable 5 shows the 2015–16 investment budget, targets for each major practice change and the key performance metrics for Theme 1—Meeting market requirements, in the context of its intermediate and aspirational outcomes. Table 6 details the corresponding key performance indicators and targets in the Agriculture Portfolio Budget Statements 2015–16.

Table 5: Overview of Theme 1—Meeting market requirements

Theme 1—Meeting market requirementsAspirational outcome (10+ years) Australian grain growers maintain and increase access to

current and future grain markets by aligning on-farm production practices with quality and functionality requirements.

Intermediate outcomes (5 years)

Understanding market opportunities for Australian grain Acquisition and interpretation of information about market requirements, trends and opportunities, in order for the GRDC to make informed RD&E investment decisions and to assist grower decisions.

Crop and variety selection aligned with market requirements Growers use market information to select crop, variety and cropping sequence that addresses their profit and risk.

Crop production aligned with market requirements Growers use information on appropriate in-crop management to maximise the potential of delivering grain that meets the quality and functionality requirements of the intended customer.

Grain harvest and storage practices aligned with market requirements

Growers adopt harvest and storage practices to maximise their potential to deliver grain that meets the quality and functionality requirements of the target market.

Investment budget for 2015–16 $12.4 million

Understanding market opportunities for Australian grainPractice changes and key metrics TargetsThe GRDC establishes relationships with the value chain and regulatory authorities to access information about market requirements, trends and opportunities.

Australian Export Grains Innovation Centre (AEGIC) joint venture is established and operating appropriately.

AEGIC delivers several market reports, including reports on wheat for Indonesia and barley for China.

The collection of delivery data is expanded to cover all major crop types.

AEGIC in-country training for Austrade officers expands the GRDC’s information-gathering network.

The GRDC makes greater use of information on current and potential future markets to guide investment decisions.

Market prioritisation rankings of quality traits are guiding new investment in wheat pre-breeding.

Crop and variety selection aligned with market requirementsPractice changes and key metrics Targets

A greater proportion of growers and advisers use market information to inform crop and variety selection.

Workshops and presentations from AEGIC inform growers on market movements and demand.

Increased interaction between grains industry participants (growers, pre-breeders, breeders and value chain participants) and regulatory authorities creates awareness of the quality and functionality market access requirements.

Greater GRDC involvement in Barley Australia, the Australian Oilseeds Federation, the Working Party for Stored Grain, and Wheat Quality Australia ensures that growers needs are represented.

Breeders and pre-breeders use market information to deliver varieties that meet the requirements of current and future markets.

Independent wheat variety classification is maintained.

A new framework for the delivery of pre-breeding traits to breeders ensures that the benefits of GRDC investment are realised in new varieties.

Crop production aligned with market requirementsPractice changes and key metrics TargetsA greater proportion of growers and advisers use relevant market information to inform decisions about in-crop management practices.

More targeted information from AEGIC and the Feed Grain Partnership informs growers on specific market targets and needs.

A greater proportion of grain growers adjust pest, weed and disease management practices to meet market requirements.

Investments with the Grains Industry Market Access Forum, focusing on blackleg in canola and weed seeds, ensure that key markets are maintained and growers are aware of the specific requirements of each market in terms of minimum residue levels and specifications.

Grain harvest and storage practices aligned with market requirementsPractice changes and key metrics TargetsA greater proportion of growers use harvesting strategies that maximise the opportunity to meet the requirements of their target market.

A grower survey ascertains the key decision-making processes being used around harvest, and the results drive a GRDC education program.

A greater proportion of growers are aware of the quality and functionality of the grain delivered to their customer or entering contract storage.

90% or more of growers are aware of and interested in the benefits of measuring grain quality.

Grower surveys identify what quality and functionality measurements are being regularly taken and what percentage of growers are taking them, as the basis for the development of a best practice guide.

A greater proportion of growers use storage practices to meet market requirements and provide for the continued effectiveness of pest control measures.

At least 60% of growers storing grain on farm use sealed silos.

A new strategy is developed to ensure that Australia is able to comply with a limit of zero insects in grain for export.

Further evaluation of the costs and benefits of storing grain on farm (including the real costs of labour and risk) is delivered through the Stored Grain website.

New aeration and temperature control devices for stored grain silos are under development.

The GRDC uses market access information to provide growers with the harvest and storage management packages and tools to comply with market requirements.

Table 6: Theme 1 portfolio budget statements measures

Key performance indicator TargetAustralian Export Grains Innovation Centre (AEGIC) joint venture is established and operating appropriately.

Required market information available.

Growers are interested in the benefits of measuring grain quality to meet customer requirements. 90%

Growers storing grain on farm use sealed silos to meet market requirements and provide for the continued effectiveness of pest control measures.

70%

Investment highlightsThis section provides a few examples of major RD&E investments that illustrate the GRDC’s focus on ‘Meeting market requirements’ in 2015–16.

Expanding market opportunities

Wheat

Although Australia has the advantage of proximity to valuable South East Asian wheat markets, Australian producers face increasing competition from suppliers that can provide wheat at lower prices or with preferred functional characteristics.

The GRDC is investing in a project to secure Australia’s share of the markets in Indonesia, Malaysia and the Philippines, which collectively import 26 percent of the total volume of wheat exported from Australia.

The project will focus on the quality and functionality these markets require, and trends in consumption patterns, end products, and milling and food production operations that will affect market preferences in future. It will also measure the relative value that processors in these markets place on grain characteristics and on technical support services that affect purchaser behaviour.

As well as driving future GRDC investment in RD&E to provide differentiated products and services for these valuable markets, the project findings will inform the wheat variety classification process, and provide direction for technical engagement with processors in South East Asia.

Oats

While oats play a valuable role as an important break crop in Australian cropping systems, their economic returns are relatively low. This may be about to change, as significant new opportunities for oats are emerging in major Asian markets.

China’s oat industries are rapidly expanding in response to demand for non-traditional oat-based foods, such as juice, rice and non-fried instant noodles, and other oat-based products, such as cosmetics and detergents. Oat milk has the fastest growing share of the beverage sector in Taiwan, while rolled oats occupy more than 30 percent of the rapidly expanding market for breakfast food in India.

The GRDC is supporting research to understand the functional and quality requirements of the products that are driving demand, and to evaluate the suitability of current Australian oat varieties to meet them. The results will be provided to growers, to assist them to choose varieties for high-value end uses; and to processors, to encourage demand for Australian oats.

The project will also conduct a comprehensive cost–benefit analysis of traits and develop a set of priorities and screening tools to help Australian breeders develop new varieties to meet current and future market requirements.

Feed grains

The GRDC is investing in a project to explore the potential of cereal varieties tailored for use as feed grain—with high yields and high metabolisable energy content—to increase profits and reduce risk in high-rainfall cropping systems.

Drawing on high-yielding germplasm from Europe, the project will develop and commercialise high-energy, ‘hyperyielding’ wheat and barley varieties suited to Australian conditions. This will include working with parties along the grains industry value chain to ensure that end point royalty collection for feed grain varieties successfully rewards investment in their development.

Based in Tasmania, where feed grain is needed to supply the expanding dairy industry and cereal yields currently fall well short of potential, the project will also work with growers, to explore ways to improve yield through a combination of feed grain variety selection and more effective agronomy.

The project aims to increase average yields in Tasmania from 3.3 tonnes per hectare (barley) or 4.4 tonnes per hectare (wheat) to 7 tonnes per hectare by 2020.The knowledge gained will also be used to develop variety-specific management recommendations for all high-rainfall regions.

Canola

By focusing on quantity—yield and oil content—Australian breeding programs have significantly enhanced canola as a

commercially attractive oilseed crop. A new focus on quality—of oil and meal—could further improve returns to canola growers.

For example, adjusting fatty acid profiles would add value to canola oil for particular end uses such as frying or baking. Tocopherol content could be increased for use as vitamin E in dietary supplements and cosmetics. Improving digestibility and protein levels could greatly expand opportunities for canola meal in animal feed markets.

GRDC-supported research has identified relevant traits for canola quality and nutrition. The GRDC is now investing in a project to determine the effects of gene–environment interaction on the expression of those traits, and develop near-infrared calibrations to enable breeders to quickly screen for them.

As a result of the project, Australian canola breeders will have the information required to generate canola germplasm with improved quality traits, and end users will have a better appreciation of the value and potential uses of canola.

Pulses

The biggest market for Australian pulses is India, where both population and purchasing power are increasing but pulse production is stagnant. Australia has the potential to increase its returns in that market by producing pulses with attributes that are highly sought after by Indian processors and consumers. An improved understanding of consumer preferences for pulses may also create opportunities to expand domestic consumption.

Recent GRDC-supported research in this area investigated market requirements for the cooking and sensory attributes of chickpeas. The findings include valuable new information about the complexities of consumer chickpea knowledge, attitudes and preferences in India and Australia. Most importantly, they confirm that Indian processors and consumers are prepared to pay more for chickpeas that have the particular qualities that are important to them.

Data from the project will assist the grains industry to promote Australian chickpeas and other pulses more effectively, and achieve higher prices, in both export and domestic markets.

Eliminating grain defects

Defects that cause grain to be downgraded at receival represent a significant cost to Australian grain growers and the wider grains industry.

In particular, late maturity alpha-amylase (LMA), which causes wheat to be downgraded to feed, both affects the profitability of current production and severely constrains variety improvement. Wheat-breeding programs lose up to 90 percent of late-stage lines because the presence of genetic combinations that can cause LMA does not become apparent until late in the breeding process.

Barley grain defects, particularly kernel staining, pre-harvest sprouting and black point, have also caused a large amount of Australian grain to be discounted or downgraded in recent years. Returns for Australian chickpea growers have been affected by seed markings, which make desi varieties unattractive to consumers, and pre-harvest weathering, which reduces yield and quality in kabuli varieties.

The GRDC has a range of investments in pre-breeding research to investigate the genetic basis of defects, and interactions between genes, plant behaviour and environment, to improve understanding of the factors that influence defect expression, resistance or tolerance.

The results will include data and screening tools that assist breeders to develop improved varieties to reduce the incidence of defects in future, and advice to assist growers to choose varieties and agronomic practices to minimise the risk of defects affecting their crops.

Theme 2—Improving crop yieldThis theme describes the genetic approaches and associated tools and technologies that can be applied to produce varieties with increased water-limited yield potential (WLYP).

The WLYP of a variety is the maximum yield attainable when the variety is grown under average, rain-fed conditions without the limiting impacts of nutrient deficiency, soil toxicity, weed competition, insect damage and disease.

Although the actual yield that is captured on farm depends on a grower’s ability to manage the biotic and abiotic factors that contribute to yield losses (and the cost limitations of management practices), WLYP is genetically determined.

Plant breeders aim to continually improve the WLYP of crops through new varieties. However, for many crops, continued improvements in genetic yield potential and stability are becoming harder to realise.

The ‘Improving crop yield’ theme focuses on the delivery of new crop varieties with demonstrable improvements in genetic yield potential and yield stability. Given the wide range of farming environments and crop choice, targets will be crop specific and region specific.

Outcomes, budget and performance measuresTable 7 shows the 2015–16 investment budget, targets for each major practice change and key performance metrics for Theme 2—Improving crop yield, in the context of its intermediate and aspirational outcomes. Table 8 details the corresponding key

performance indicators and targets in the Agriculture Portfolio Budget Statements 2015–16.

Table 7: Overview of Theme 2—Improving crop yield

Theme 2—Improving crop yieldAspirational outcome (10+ years) Cereal, pulse and oilseed varieties with significant, sustained

and stable improvements in water-limited yield potential over current elite varieties in key agroecological zones and across a range of seasons.

Intermediate outcomes (5 years)

Genetic yield potential and stability improvement of cereal varieties Growers access and increase production of adapted cereal varieties with a significant yield potential and stability increase over current elite varieties.

Genetic yield potential and stability improvement of pulse varieties Growers access and increase production of adapted pulse varieties with a significant yield potential and stability increase over current elite varieties.

Genetic yield potential and stability improvement of oilseed varieties Growers access and increase production of adapted oilseed varieties which continue to meet target oil levels with a significant yield potential and stability increase over current elite varieties.

Investment budget for 2015–16 $33.7 million

Genetic yield potential and stability improvement of cereal varietiesGenetic yield potential and stability improvement of pulse varieties

Genetic yield potential and stability improvement of oilseed varietiesPractice changes and key metrics TargetsBreeders and industry pre-breeders increase their level of collaborating to identify and prioritise traits, tools and germplasm requirements to support target gains in yield potential and stability.

New cereal varieties have minimum yield increases equivalent to 1% per annum as measured in National Variety Trials (NVT).

New pulse varieties have minimum yield increases equivalent to 2% per annum as measured in NVT.

New oilseed varieties have minimum yield increases equivalent to 1.5% per annum as measured in NVT.

Strong collaborations between international researchers and Australian breeders are prioritising traits as part of the next phase of the CIMMYT–Australia–ICARDA Germplasm Evaluation (CAIGE) program.

Arrangements for breeder participation in the National Brassica Germplasm Improvement Program facilitate efficient transfer of information and outputs to breeders.

Practice changes and key metrics TargetsIncreased number of pre-breeders develop priority traits in breeder-defined genetic backgrounds, and ready-to-implement selection tools to drive rapid adoption by breeding programs.

Pre-breeding targets are identified for genetic sources of transpiration efficiency, photosynthetic efficiency, heat tolerance and salinity tolerance in wheat.

Genetic diversity in wild barley is exploited by importing a wild barley mapping population and screening it for drought tolerance, disease resistance and other agronomic traits. Genetic and phenotypic information is delivered to Australian barley breeders so that genetic diversity can be incorporated into adapted varieties.

New yield, phenology, vigour and drought tolerance traits and molecular markers are developed and provided to the narrow-leafed lupin breeding program, to increase breeding efficiency.

Pre-breeding research provides selection tools to accelerate

the development of varieties of pulses—including vetch, soybean, mungbean and peanuts—with improved yield, quality traits, agronomic traits, disease resistance and adaptation to regional growing conditions.

Increased number of breeders and pre-breeders use accurate data analysis methods to interpret yield potential, stability and environmental data that inform selection for target production environments.

All CAIGE projects utilise Statistics for the Australian Grains Industry to design and analyse experiments and trials, to increase efficiency and ensure consistent and reliable data and results.

Growers and their advisers have greater access to and make greater use of accurate, regionally relevant yield potential and stability data to choose an improved variety.

The GRDC Grower Survey shows continued increases in the proportion of growers who say that:

New varieties currently available meet the expectations of at least 60% of growers.

40% of growers and their advisers use the NVT online data or attend an NVT field day, and of these 90% consider that the information obtained helped them in deciding which varieties to plant.

new varieties met their expectations well or very well

NVT information helped them to choose varieties to adopt.

Table 8: Theme 2 portfolio budget statements measures

Key performance indicator TargetNew cereal, pulse and oilseed varieties have minimum increases in genetic yield potential per annum as measured in National Variety Trials (NVT).

Cereals 1%

Pulses 2%

Oilseeds 1.5%

New varieties currently available meet the expectations of growers. 60%

Growers and advisers use NVT data in selection of varieties to plant. 35% access data, of which 90% consider helpful.

Investment highlightsThis section provides a few examples of major RD&E investments that illustrate the GRDC’s focus on ‘Improving crop yield’ in 2015–16.

National Variety Trials

National Variety Trials (NVT) is a national program of comparative crop variety testing. NVT delivers trial results from over 300 locations across Australia to provide growers, agronomists and consultants with independent and accurate information about how winter cereal, canola and selected pulse crop varieties perform in their regions.

NVT aims to accelerate the adoption of new superior varieties from both private and public breeding programs and help growers to select varieties best suited to their farming systems.

Since its inception, in 2005, NVT has continually improved its operations and enhanced access to its data, particularly through the NVT Online website. This has contributed to a high level of success: the latest GRDC Grower Survey shows that in 2014 four out of 10 growers found that NVT information helped them to select varieties, while three out of four paid advisers referred to NVT information.

The GRDC’s current investment in NVT includes a review of existing activities and policies to identify ways to further improve the program’s operations. Opportunities to optimise the cost-effectiveness of field trials are a particular focus.

The review will also consider:

the feasibility of a more collaborative approach to commercial variety evaluation for wheat, barley and canola

a ‘dry sowing’ policy that balances the risks of trial loss with the benefits of timely program completion

the process and policies for nominating elite cultivars into the program

the feasibility of reducing data upload times

the requirements and responsibilities of the NVT advisory committee.

At the same time, NVT will continue to deliver data that enhances growers’ ability to select varieties and predict crop performance, through a range of communication products and services.

New, improved peanut varieties

The area currently planted to peanuts in Australia is about 15,000 hectares, and produces 30,000 tonnes to 40,000 tonnes each year. Peanut production is expanding, from the traditional growing areas of Queensland (such as Burnett and the Atherton Tablelands) to coastal, southern and central Queensland, and the Northern Territory. In coastal areas, peanuts are being adopted as a beneficial rotation crop in sugarcane farming systems.

The development of new, improved varieties will underpin the further expansion of Australian peanut production and assist growers to achieve higher yields and profits. To achieve this, the GRDC has an ongoing partnership with the Queensland Government and the Peanut Company of Australia, Australia’s largest processor of peanuts, in the Australian Peanut Genetic Improvement Program.

The program draws on locally adapted peanut cultivars and new germplasm from overseas, including from India and the United States, to develop breeding populations and potential new varieties with:

enhanced resistances to foliar and soil-borne diseases (including leaf spot, Cylindrocladium black rot and rust), to

increase yield and reduce production risk

higher kernel content and blanchability, to reduce processing costs

improved food traits, to increase access to niche health food markets.

The aim is to develop adapted and marketable varieties of peanut that will achieve higher yields, better disease control, and improved end-use qualities, resulting in higher profitability for growers and processors.

Increased nitrogen use efficiency in wheat

Yield and protein content are the two main characteristics that determine the value of a wheat crop at receival. However, a nitrogen dilution effect causes current wheat varieties to use nitrogen less efficiently, resulting in a lower protein content, in higher yielding environments.

The GRDC is investing in a project to better understand the mechanisms of nitrogen use efficiency (NUE) and potentially address the nitrogen dilution effect, by investigating the mechanism and genetic basis of NUE in a new wheat variety, LongReach Spitfire.

While Spitfire does experience the nitrogen dilution effect, it consistently displays higher NUE than other varieties, across a number of environments. In practical terms, this means that the harvested grain maintains a higher protein content even at high yields. The advantage can be as high as 1.5 percent greater total protein, which has significant economic value.

The project will:

examine whether the NUE advantage in Spitfire derives from greater nitrogen uptake or more efficient transfer of nitrogen to the grain, and whether this has implications for grain quality

investigate the genetic controls and heritability of the trait

develop genotyping tools to assist breeders to select for improved NUE in future wheat varieties.

Temperature tools for understanding frost

In response to the devastating effects that frost events can have on yields, even in well advanced crops, the GRDC supports a range of projects to reduce frost risk through improved plant genetics and innovative crop management practices. For these approaches to be effective, researchers and growers need better information on the environments in which they are tested and implemented.

The GRDC is investing in a project that aims to provide accurate, user-friendly, spatial temperature measurement and forecasting/modelling tools that will enable researchers and growers to effectively monitor and quantify frost conditions in their environments.

In genetic research, despite considerable progress in the development of frost phenotyping methods, there is still unexplained within-plot variation in frost experiments. While plant characteristics that may be contributing to this variation are being measured, it is also possible that temperature differences within the plot are the primary cause.

If appropriate data were available, spatial temperature could be incorporated as a meaningful variable in the analysis of frost-related experiments. The project will evaluate whether available methods of measuring spatial temperature can provide data with sufficient resolution and accuracy, commencing with satellite imagery and on-ground high density temperature sensor arrays.

When applying frost management approaches to farming systems, growers and agronomists currently do not have reliable information regarding temperature variability within crops, or how frost contributes to yield loss relative to other production constraints.

The project will evaluate whether paddock temperature maps can be combined with maps of factors that are currently measured in precision agriculture (such as yield, nutrition, soil type and elevation) to:

quantify the relative importance of temperature to yield

determine whether temperature maps can be used as a broad predictive tool for yield.

The project will also investigate the opportunity to provide effective forecasting tools for frost by improving the frost-predictive capacity of existing long-range weather models such as the Bureau of Meteorology’s POAMA (Predictive Ocean Atmosphere Model for Australia).

Theme 3—Protecting your cropThis theme aims to develop cost-effective control options that prevent pests, weeds and diseases from causing crop yield and quality losses, and increase growers’ profit.

Existing control measures for pests, weeds and diseases require ongoing review in light of:

potential and actual incursions of exotic pests

changes in regulation of pesticide use and access

the need to

reduce the cost and increase the speed of delivery of resistant and tolerant varieties

manage herbicide and pesticide resistance

provide ongoing stewardship of gene technology and pesticide products to support long-term access.

The ‘Protecting your crop’ theme develops the cultural, chemical and genetic options available to manage key pests, weeds and diseases in each region. Management options need to take into account cost-effectiveness, resilience of control strategies and flexibility to fit different farming systems.

Outcomes, budget and performance measuresTable 9 shows the 2015–16 investment budget, targets for each major practice change and key performance metrics for Theme 3—Protecting your crop, in the context of its intermediate and aspirational outcomes. Table 10 details the corresponding key performance indicators and targets in the Agriculture Portfolio Budget Statements 2015–16.

Table 9: Overview of Theme 3—Protecting your crop

Theme 3—Protecting your cropAspirational outcome (10+ years) Australian grain growers managing their farms to maximise

profit and reduce risk by adopting effective, sustainable and efficient control of weeds, pests and diseases.

Intermediate outcomes (5 years)

Effective, sustainable and efficient management of weeds Growers use a combination of new genetic, biological, cultural and chemical weed management tools to reduce crop losses and minimise control costs.

Effective, sustainable and efficient management of vertebrate and invertebrate pests

Growers use a combination of new genetic, biological, cultural and chemical tools to reduce crop losses and minimise control costs of vertebrate and invertebrate pests.

Effective, sustainable and efficient management of cereal rusts

Growers use a combination of new genetic, cultural and fungicide management tools to reduce crop losses and minimise control costs of cereal rusts.

Effective, sustainable and efficient management of cereal (non-rust), pulse and oilseed fungal pathogens

Growers use a combination of new genetic, cultural and fungicide management tools to control cereal (non-rust), pulse and oilseed root and foliar fungal diseases.

Effective, sustainable and efficient management of nematodes New genetic, biological and cultural management tools for the control of nematodes are delivered.

Effective, sustainable and efficient management of viruses and bacteria

Growers use a combination of new genetic and cultural management tools for the control of viruses and bacteria.

Biosecurity and pesticide stewardship Effective biosecurity and science-based support is available for pesticide and genetic technology stewardship.

Investment budget for 2015–16 $51.0 million

Effective, sustainable and efficient management of weeds

Effective, sustainable and efficient management of vertebrate and invertebrate pests

Effective, sustainable and efficient management of cereal rusts

Effective, sustainable and efficient management of cereal (non-rust), pulse and oilseed fungal pathogens

Effective, sustainable and efficient management of nematodes

Effective, sustainable and efficient management of viruses and bacteria

Practice changes and key metrics TargetsA greater proportion of growers and their advisers monitor crops for pests, weeds and diseases.

New weed incursions (including herbicide-resistant populations) are identified early and managed as contained populations.

Uptake of non-herbicide tactics is increased by 50% in the Northern and Southern regions.

Breeders and pre-breeders use available genetic diversity for resistance and tolerance breeding.

Centre for Crop and Disease Management programs are fully operational, providing markers and germplasm to breeders and identifying changes in rust susceptibility to

fungicides.

Growers and their advisers cost-effectively manage pests, weeds and diseases.

Growers and advisers know the costs of weeds in their cropping systems and enact appropriate management tactics to manage weeds and, in particular, herbicide resistance.

Training in disease management, integrated weed management and integrated pest management leads to greater adoption of diversified management tactics.

A greater proportion of growers and their advisers use practices to increase pesticide longevity and reduce the risk of resistance.

More than 70% of growers are aware of integrated weed, pest or disease management practices, and 50% use some form of integrated management methods on their farm.

High-throughput tests are developed for assessing fungicide resistance in foliar pathogens.

Growers are utilising a range of tactics and advice to implement stewardship that increases pesticide longevity.

Biosecurity and pesticide stewardshipPractice changes and key metrics TargetsA greater proportion of growers and their advisers use surveillance and biosecurity measures to manage and prepare for incursion and containment of exotic plant pests, plants and diseases.

At least 50% of growers undertake on-farm practices to maintain or improve their biosecurity.

New surveillance tools are developed, for local and regional deployment, to improve detection of exotic and established pathogens.

Breeders and pre-breeders use available genetic diversity to deliver varieties resistant to high-risk biosecurity threats.

Economic returns of pre-breeding as a pre-emptive tool to manage potential biosecurity incursions are assessed.

A greater proportion of growers and their advisers manage stewardship of pesticides and varieties to prolong pesticide effectiveness and ensure safety to health and the environment.

90% of growers undertake activities to delay the onset of or manage herbicide resistance in weed populations.

Stewardship of pesticides is underpinned by base documents on minimum legal requirements.

Growers have additional tools for managing their spraying operations.

Table 10: Theme 3 portfolio budget statements measures Key performance indicator Target

Growers and advisers are aware of and use integrated weed, pest or disease management practices.

70% aware, 50% use

Growers undertake on-farm practices to maintain or improve their biosecurity. 40%

Investment highlightsThis section provides a few examples of major RD&E investments that illustrate the GRDC’s focus on ‘Protecting your crop’ in 2015–16.

Weeds

The GRDC invests in a wide range of RD&E to help grain growers manage weeds in their farming systems.

Supported by GRDC investment, a major study is being undertaken to understand the importance of weeds to Australian grain growers, across a range of regions, crops and weed types. It will be the first study to consider the distribution and economic impact of weeds in all Australian seasons and cropping systems.

The project will examine the interactions between weed management challenges and growers’ use of herbicides and crop management practices, such as no-till and stubble retention. It will also consider the relative importance of summer and fallow weed management and the impact of herbicide resistance.

The results will include analysis of the costs and benefits of weed management approaches, and identified priorities to inform R&D investment decisions across the grains industry value chain. The findings will flow into new GRDC investments in projects to assist growers and advisers to enhance their weed management approaches.

The GRDC’s focus on weed management includes longstanding support for the Australian Herbicide Resistance Initiative. The initiative’s wide-ranging research program extends from agronomic techniques for the management of crop weeds through to fundamental research into the molecular and genetic factors that determine the evolution of herbicide resistance.

Specific areas of research currently supported by the GRDC include:

greater knowledge of herbicide resistance evolution, leading to on-farm practice change to prolong the effective life of herbicides

in-depth knowledge of herbicide resistance mechanisms, to provide growers with herbicide implementation tactics to delay the onset of herbicide resistance

surveillance and biosecurity strategies to limit the spread of weeds

improved knowledge and technology for mechanical weed control through targeted tillage, strategic tillage and harvest weed seed control

the benefits of combining agronomic tactics—such as row spacing, seeding rate, row orientation, nutrient placement, time of sowing and time of harvest, and crop sequencing—to control weeds in particular environments

changes in the distribution and habit of weeds, and their relation to management practices.

The GRDC also invests in national and regional awareness-raising and extension activities to ensure that growers and advisers can benefit from innovative weeds R&D in applying their own integrated weed management strategies.

Root-lesion nematodes

Root-lesion nematodes (RLN) significantly reduce yield in crops across the Australian wheat belt. Cultivating varieties with low resistance to RLN not only leads to lower yields but also exacerbates future damage, by allowing populations to increase. The GRDC is investing in a range of projects to optimise resistance to RLN through variety selection and crop management.

In a recent survey of 795 fields in the Northern Region, 73 percent were found to contain either of the common RLN species Pratylenchus thornei or P. neglectus; in 26 percent of fields, both species were present. In this region, the GRDC is supporting research to:

develop germplasm that combines resistance and tolerance to P. thornei and P. neglectus in backgrounds adapted to the region

provide phenotypic data to inform the development of molecular markers for RLN tolerance and resistance

map the distribution of RLN, and provide information on distribution and best management practices for growers and advisers.

In the Southern Region, the cereal cyst nematode Heterodera avanae is the most damaging nematode species. In recent field trials, H. avanae caused losses of up to 0.9 tonnes per hectare in leading wheat varieties. In this region, the GRDC has invested in research to:

map the incidence of H. avanae, P. thornei and P. neglectus

identify available sources of resistance and any requirements for new sources

provide wheat and barley breeders with information on the requirements for new varieties with resistance or tolerance

make recommendations to growers on the use of resistant varieties

assess current varieties for their tolerance to H. avanae and Pratylenchus species.

In the Western Region, one or more species of Pratylenchus occur in at least 65 percent of cropping paddocks, and RLN limit productivity over at least 5.3 million hectares. P. teres, which is unique to Western Australia, is found in 22 percent of paddocks and can damage up to 75 percent of individual crops. GRDC-supported research in this region is developing recommendations for the deployment of wheat cultivars with a level of resistance and/or tolerance to RLN that will benefit current and subsequent crop yields, along with data on the losses likely to be suffered by intolerant wheat varieties under RLN infestation, to assist growers in selecting species and varieties to minimise risk.

Another area of GRDC-supported research is examining how soils can naturally suppress RLN, and how management practices may increase suppressiveness. This research has identified several naturally occurring soil organisms involved in the suppression of RLN, and confirmed that no-till and stubble retention practices favour biological processes of suppression. While the research has so far focused on soils in the Northern Region, the results are generally applicable across Australia.

Beet western yellows virus

Beet western yellows virus (BWYV) can cause crop losses of up to 100 percent, as well as reduced grain quality, in canola. The virus is spread by several aphid species, especially green peach aphid, which is widespread across all grain-growing regions and has high levels of resistance to common insecticides.

Green peach aphid was responsible for a severe outbreak of BWYV that caused significant crop losses across south-eastern Australia in 2014.The GRDC has invested in R&D to draw on the lessons of that outbreak to develop recommendations to help canola growers limit future infections.

A DNA assay of at least 50 aphid populations has been conducted to test resistance to organophosphate, carbamate and pyrethroid insecticides, while a smaller number of populations have been tested for resistance to a neocotinoid (imidacloprid) and a sulfoximine (sulfloxaflor). The results will be used to update regional maps of insecticide resistance, and some aphid populations will be monitored to determine the ideal timings for insecticide application.

A survey of affected paddocks has been conducted to examine factors that may have influenced infection levels, such as rainfall and temperature prior to and after sowing, the presence of weeds, and management practices. Canola varieties at an affected NVT site are being tested to see whether potentially useful levels of resistance to BWYV can be identified.

To ensure that this project helps growers to make timely decisions to reduce the risk of BWYV in their current crops, information will be delivered through quick-response communication channels such as eXtensionAUS and social media, as well as popular websites and publications for growers.

Theme 4—Advancing profitable farming systemsThis theme aims to provide growers and their advisers with the tools to design and manage a farming system with the flexibility to adapt and respond; manage risk; and generate profit.

The ‘Advancing profitable farming systems’ theme:

ensures that research results from the other themes are integrated on farm

undertakes production agronomy research for systems development

provides an important conduit for identifying on-farm production constraints and opportunities to inform activities in other themes.

The investment strategies for this theme differ across agroecological zones and farming systems, and are a combination of:

applied farming systems research to overcome major, widespread regional constraints

short-term development and extension activities to improve technologies or practices for a target group of growers in an agroecological zone.

Outcomes, budget and performance measuresTable 11 shows the 2015–16 investment budget, targets for each major practice change and key performance metrics for Theme 4—Advancing profitable farming systems, in the context of its intermediate and aspirational outcomes. Table 12 details the corresponding key performance indicators and targets in the Agriculture Portfolio Budget Statements 2015–16.

Table 11: Overview of Theme 4—Advancing profitable farming systems

Theme 4—Advancing profitable farming systemsAspirational outcome (10+ years) Australian grain growers managing farming systems that are

able to respond and adapt to changing environmental and market conditions to reduce risk and deliver an increase in profitability.

Intermediate outcomes (5 years)

Knowing what is important (key business drivers) Identification and understanding of the opportunities, risks and potential impacts of key farming practices in each agroecological zone is improved.

Responding strategically (building system benefits and rotations)

Growers adopt integrated management of opportunities and constraints to increase profit and minimise risk across seasons (above the five-year rolling average).

Responding tactically (individual crop agronomy) Gross margin generated from the major crops in each agroecological zone is increased.

Investment budget for 2015–16 $38.5 million

Knowing what is important (key business drivers)Practice changes and key metrics TargetsInformation is available in each GRDC agroecological zone about the main opportunities, constraints, and risks to farming systems.

The GRDC receives information at least annually via the regional panels.

A business case assessing the potential to add value to research and management data through the use of georeferencing technology is developed.

A report details a timetable and plan (including budget, methodology and capacity) for the redevelopment of the MIDAS model (Model of Integrated Dryland Agricultural Systems) in the Western Region.

Data is also available in each zone about how whole-farm and farming system decisions affect those opportunities, constraints and risks.

Better methods and tools are developed for comparison and ranking of the impacts of opportunities and risks on farm profit and sustainability, both short and long term.

A greater proportion of growers and their advisers use information and tools to identify and rank constraints and opportunities to increase profit.

70% of growers place a high importance on the use of decision tools to assist them with strategic or tactical decision making.

Responding strategically (building system benefits and rotations)Practice changes and key metrics TargetsA greater proportion of growers and their advisers are aware of the actual and potential impacts of their management on their farming systems across seasons and across the farm, based on regionally validated data as well as their own records.

A survey is conducted to better understand grower and adviser attitudes to the adoption of break crop research outcomes. The survey report analyses the relative importance of attitudes by agroecological zone and recommends strategies, priorities and objectives for future RD&E to address impediments to and opportunities for greater adoption.

Growers implement long-term, strategic plans to take advantage of identified opportunities, manage constraints and reduce risks, while retaining flexibility to respond to unforeseen events.

More than 25% of growers have developed a whole-farm business plan which takes account of strategic opportunities, constraints and risks.

A scoping study is conducted to benchmark the agronomic efficiency of applied nitrogen, phosphorous, potassium and sulphur (in terms of kilogram of increased yield per kilogram of nutrient applied), at the farm, regional, agroecological zone and national levels.

Effective management practices for opportunities, constraints and risks are developed, validated and demonstrated in each agroecological zone.

A scoping study is conducted to describe the relationship between the availability of nutrients (particularly nitrogen) and the status of soil organic matter in soils, and how that relationship differs between agroecological zones, soil types and seasons.

Responding tactically (individual crop agronomy)Practice changes and key metrics TargetsAn increased proportion of growers use crop-specific best management practices to optimise their tactical (within season) agronomy for each individual crop.

A series of ‘fast track’ projects are implemented in each region to address key tactical issues raised at the Regional Cropping Solutions network and grower group level.

Regional Cropping Solutions networks in the Western Region are facilitated and coordinated, to help address local RD&E issues restricting the profitability of grain growers in the region.

Growers use improved strategies to cost-effectively acquire crop inputs.

Table 12: Theme 4 portfolio budget statements measures

Key performance indicator TargetGrowers place a high importance on the use of decision tools to assist them with strategic or tactical decision making.

70%

Growers have a whole-farm business plan which takes account of strategic opportunities, constraints and risks.

25%

Investment highlights This section provides a few examples of major RD&E investments that illustrate the GRDC’s focus on ‘Advancing profitable farming systems’ in 2015–16.

Increasing the adoption of broadleaf crops

The essential contribution that broadleaf crops make in improving the profitability and sustainability of farming systems, through reduced chemical inputs and improved weed and pest control, has been well demonstrated. However, concerns about price and reliability continue to limit the adoption of broadleaf crops.

The GRDC is investing in a project to give growers and advisers the knowledge they need to increase the contribution of broadleaf crops to their farming systems, and to achieve better returns for those crops by meeting market requirements more effectively.

In consultation with industry bodies, the project will develop technical information resources and training materials on production and marketing risks. The materials will be customised for regional conditions and delivered in a range of formats designed to suit growers and advisers who have limited, moderate or high levels of experience in broadleaf cropping.

An existing database on pulses will be combined with new information on the other major broadleaf crops—canola, sunflower and soybean—in a purpose-built ‘e-library’, for easy access.

By increasing industry confidence in the adoption of broadleaf crops, the project will lead to economic and environmental benefits in broadacre farming systems across all three grain-growing regions.

Optimising yield in the high-rainfall zone

Annual grain production in the high-rainfall zone of southern Australia has increased nearly twofold for wheat and nearly tenfold for canola over the past 20 years, and research indicates that yields in this zone could be increased much further.

The GRDC is investing in a project to assist growers in high-rainfall areas of the Southern and Western regions to increase the yields and profitability of wheat and canola, through the introduction of better adapted germplasm and improved crop management.

The project will investigate plant physiological traits that increase yield potential, and examine interactions between genotype, environment and management practices, to identify wheat and canola germplasm that is better adapted to the high-rainfall zone.

The project will also develop tools to help growers and other industry stakeholders understand the risks and opportunities associated with applying inputs such as fertiliser to crops with high yield potential. Best practice guidelines will be developed to assist growers to match inputs more precisely to crop requirements, improving productivity and reducing the costs and off-site impacts of under-utilised inputs.

The combination of higher yielding, more stable varieties and rigorously tested agronomic decision-making frameworks will improve yields and profits, and reduce stress for growers.

Reducing frost risk through farming practices

Although frost is one of the most significant risks to broadacre grain production for Australian growers, the potential for farming practices and products to reduce the impact of frost events is not well understood.

The GRDC is investing in a project to determine the effects of farming practices and products on the frost susceptibility of cereal crops in the Southern and Western regions. The project will develop research protocols, experimental approaches and information on management practices that growers in frost-prone areas can implement to minimise the financial impact of frost.

Recent research indicates that the higher stubble biomass in stubble-retention cropping systems can increase the severity and duration of frost events. However, anecdotal evidence suggests that stubble burning, crop nutrition, grazing, and sowing direction have the potential to reduce the severity and duration of frost events. The effects of such management practices will be assessed in large-scale field trials.

Products which may change a crop’s tolerance of frost, or reduce frost risk by changing the flowering window, will also be evaluated, using phenotyping methods established in research on genetics and frost.

Even modest reductions in frost damage will provide significant economic benefits, and the ability to better manage frost risk will increase the flexibility of crop rotations, leading to more sustainable and profitable farming systems, particularly in low- and medium-production frost-prone environments.

Closing the yield gap in the Northern Region

The gap between average yields and attainable yields in the Northern Region has been measured as between 30 percent and 100 percent. Even a partial closing of the yield gap has potential to substantially improve yields: on many farms, a 15 percent to 20 percent improvement in yield will double farm profit.

The GRDC is investing in the development of tools and strategies to help grain growers achieve full attainable yields. The project will examine both:

agronomic factors, including crop inputs such as fertiliser, and management practices such as crop rotations, machinery use and deep sowing

non-agronomic factors, including capital expenditure, costs of labour, risk management and farm business management skills.

Targets for attainable yields and detailed analyses of water use efficiency benchmarks will be developed for wheat, chickpeas and sorghum, for specific rainfall and climate zones in the Northern Region. The key profit drivers for each of the agroecological zones in the region will also be identified and quantified.

This information will be delivered to growers and advisers through a range of resources and workshops, to assist them to evaluate their options to improve the productivity and profitability of their farming systems.

Measuring and managing soil water

Over the past two decades, increasing seasonal variability in rainfall has highlighted the importance of stored soil water and raised awareness of the risks associated with cropping in environments where soil water is often the main factor limiting yield.

GRDC-supported RD&E has helped growers and advisers to understand and manage the role of soil water in their farming systems, including through:

the APSoil database of APSIM (the Agricultural Production Systems sIMulator), which includes data on the plant available water capacities of more than 900 Australian soils

decision support tools that draw on APSoil, such as SoilMapp and Yield Prophet

technologies that enable growers to monitor soil water in real time

targeted training in soil water management.

The GRDC is supporting a project that builds on this past research by working with growers and advisers to explore farming system options informed by locally relevant soil water and climate information.

In each grain-growing region, researchers will regularly meet with growers and advisers to discuss soil water management issues and develop ‘rules of thumb’ to assist in crop management decision making. Taking into account local priorities, the project will also provide targeted training and advice from industry experts.

The project will also provide specialised training in the techniques necessary to characterise the plant available water content of soils, equipping local experts to collect new data to expand the APSoil database.

Theme 5—Improving your farm resource baseThis theme is focused on protecting and enhancing the farm’s soil, water, habitat and atmospheric resources to maintain production performance under a variable climate and to demonstrate to consumers and the wider community the sustainable nature of Australian grains production.

Australian grain growers operate in a variable climate and will be significantly affected by climate change. In addition, growers will need to react to Australian Government and international policies, programs and market expectations set in response to climate change—for example, in relation to greenhouse gas emissions.

These impacts need to be understood so that the industry can minimise risk and maximise opportunities. The issues of climate variability and change need to be factored into both seasonal and longer term farm business decisions.

Within the context of a changing climate, soil, water, habitat and atmospheric resources need to be improved across the environment in which the industry operates. Soil carbon is declining in many grains catchments, as is soil pH. Although water consumption by agriculture is being reduced and becoming more efficient, water quality in some key catchments requires further management. Native vegetation communities have become highly fragmented, affecting both biodiversity balance and the potential for exploitation as habitat for beneficial organisms.

In addition, as consumers are becoming more interested in how the food they buy is produced, the grains industry needs to be able to communicate its commitment to good stewardship. The ‘Improving your farm resource base’ theme assists growers, across the industry and as individual producers, to demonstrate that they are using chemicals and fertiliser wisely and caring for the land.

Outcomes, budget and performance measuresTable 13 shows the 2015–16 investment budget, targets for each major practice change and key performance metrics for Theme 5—Improving your farm resource base, in the context of its intermediate and aspirational outcomes. Table 14 details the corresponding key performance indicators and targets in the Agriculture Portfolio Budget Statements 2015–16.

Table 13: Overview of Theme 5—Improving your farm resource base

Theme 5—Improving your farm resource baseAspirational outcome (10+ years) Grain growers are valued for adopting practices that improve

regional habitat, soil, water and atmosphere resources in a changing climate.

Intermediate outcomes (5 years)

Understanding and adapting to climate variability Farm business plans provide the flexibility to respond to the risks and opportunities of a changing and variable climate.

Improving soil health Soil health is improved and soil, nutrient and chemical losses are reduced.

Managing water use on dryland and irrigated grain farms Water use efficiency, quality and availability are improved on dryland and irrigated grain farms that manage the risk of off-farm impacts, including soil, nutrient and chemical run-off, and dryland and irrigated salinity.

Understanding and valuing biodiversity Biodiversity is managed on farm for ecosystem services (such as habitat, amenity, pollination and profitability).

Communication of sustainable production methods Markets and the broader community recognise the environmental credentials of grain farm businesses.

Investment budget for 2015–16 $16.0 million

Understanding and adapting to climate variabilityPractice changes and key metrics Targets

Growers integrate weather data with other resource inputs to predict, plan and assess farm performance.

Growers factor into their long-term planning the potential effects of climate change.

Growers use improved seasonal forecasts and tools to manage their farm business in response to climate variability.

A range of farming system options to respond to climate variability and change are developed and tested for each major grain-growing region.

Growers seek information about the possible impacts of long-term climate changes on crop growth patterns and adopt enterprise and crop decisions and agronomic practices required to optimise profit and manage risk.

60% of growers consider the potential effects of climate change on their farm business when making long-term decisions.

Increased number of growers use seasonal forecasts, local climate data and decision tools to help predict and plan likely crop and farming system performance, and in their tactical (seasonal) decisions.

Understanding and adapting to climate variability (continued)Growers seek information about potential mitigation strategies to reduce on-farm greenhouse gas emissions, and adopt them where feasible.

Increased number of growers are aware of their farms’ greenhouse gas emissions profiles and are adopting appropriate mitigation strategies.

Researchers incorporate farm-scale data in the improvement of climate and weather modelling.

On-farm weather data is provided to the Bureau of Meteorology, especially in Western Australia.

Improving soil healthPractice changes and key metrics TargetsGrowers adopt agronomic practices that improve the chemical, physical and biological health of the soil for sustained productivity.

60% or more of growers undertake activities to improve the condition and productive capacity of their soils.

Increased number of growers regularly measure the health (productive capacity) of their soils and incorporate the information into their land use and cropping decisions.

Growers are aware of and are adopting management practices that will maintain and improve their soils’ productive capacity and minimise losses due to erosion.

Growers understand and manage the impact of farming practices on soil health in order to maintain or increase productive potential.

Growers increase the extent and quality of ground cover to improve soil health and minimise loss.

Managing water use on dryland and irrigated grain farmsPractice changes and key metrics TargetsGrowers manage water quantity and quality on farm to improve efficiency of water use.

Increased number of growers regularly measure soil moisture to set target yields and determine optimum levels of crop inputs (including irrigation water).

Growers implement appropriate and efficient practices that minimise adverse impacts on surface and groundwater quality leaving the farm.

At least 65% of growers use nutrient budgeting to better match application with anticipated crop needs.

Increased number of growers assess groundwater levels to avoid the risks of waterlogging and salinity.

Increased number of growers test the quality of water used on farm (including for stock or for spraying) and of water leaving the farm.

Understanding and valuing biodiversityPractice changes and key metrics TargetsGrowers and their advisers recognise the potential benefits of biodiversity in the landscape to their farming systems.

Growers develop and adopt vegetation management plans for their farms to assist crop production (e.g. through maintaining beneficial insects or using windbreaks), or to access additional sources of farm income (e.g. from agroforestry or carbon farming).

Growers use vegetation plans to assist in identifying and conserving areas of native vegetation important for local or regional biodiversity, production benefits, or farm amenity.

Growers understand the likely effects of alternative land use decisions based on sound data, and use this to make assessments of land capability and use.

Growers integrate the management of vegetation with high biodiversity value to meet farm business objectives (e.g. managing frost, providing shelter, accessing emerging carbon markets, managing salinity, applying area-wide integrated pest management or maintaining lifestyle objectives/farm aesthetics).

Communication of sustainable production methodsPractice changes and key metrics Targets

Growers recognise themselves as sustainable food producers rather than bulk commodity producers.

Increased number of growers adopt quality assurance, environmental management systems or other stewardship approaches to assist them in meeting market requirements, enhance their recognition as producers of quality products, and meet community expectations of sustainable land use.

Growers are aware of and actively participate in catchment management plans and programs.

Growers communicate their responsible use of farm inputs and the natural resource base to the broader community.

Growers understand, calculate and communicate the carbon and water footprint of the products they produce.

Table 14: Theme 5 portfolio budget statements measures

Key performance indicator TargetGrowers consider the potential effects of climate change on their farm business when making long-term decisions.

55%

Growers undertake activities to improve the condition and productive capacity of their soils. 70%

Growers use nutrient budgeting to better match application with anticipated crop needs. 60%

Investment highlightsThis section provides a few examples of major RD&E investments that illustrate the GRDC’s focus on ‘Improving your farm resource base’ in 2015–16.

Managing soil constraints

At least two-thirds of the area used for broadacre grain crops in Australia is affected by soil constraints that can significantly restrict crop production and farm profitability.

Australian RD&E, including major GRDC investments, has produced and shared a large amount of knowledge about the occurrence, effects and management of soil constraints. Nevertheless, a lot of what is known about managing soil constraints is not being applied consistently, and growers could achieve immediate benefits from better understanding and skills in this area.

The GRDC is investing in a project to coordinate and expand the exchange of knowledge on soil constraint issues in each agroecological zone. Drawing on surveys of growers and advisers to identify local priorities, the project will develop and deliver extension activities, including demonstration sites, publications and hands-on training.

These activities will equip growers, advisers and grower groups to:

recognise where soil constraints are preventing crops from achieving water-limited yield potential

diagnose which soil constraints are present, and assess their relative impacts

weigh up management options and their likely financial returns

apply management strategies and record the results

share their findings, to promote wider adoption of effective management actions.

The GRDC is also investing in RD&E to build on existing knowledge of management options for soil constraints and investigate new options to help growers improve production and profits.

For example, large areas of sodic, dispersive and highly alkaline soils occur in each grain-growing region, making up around 30 percent of the total cropped area. Such soils severely reduce yields by limiting plant access to moisture and nutrients, and further reduce profitability by restricting planting opportunities and wasting expensive inputs through run-off.

Previous GRDC-supported projects have found significant potential to increase yields, profits and land values through management techniques such as applying gypsum, lime and organic material; using raised beds, strategic tillage and ripping; and matching fertiliser application to yield potential. However, more research is needed to enable growers to compare the costs of amelioration techniques with the likely benefits. Seasonal effects and the longevity of benefits are also not well understood.

The GRDC is investing in a project to explore potential new management options for sodic and dispersive soils, and to predict the responsiveness of particular soil types to a range of potential treatments.

Researchers will work with growers to identify problem soils and establish demonstration sites, and information campaigns will deliver the results to growers and advisers in each region.

Acid subsoils also significantly reduce yields by limiting a crop’s access to moisture and nutrients. Subsoil acidity occurs in many agroecological zones, and is one of the greatest constraints to crop productivity in the Southern and Western regions.

Although surface application of lime is a well-established and easy way to ameliorate soil acidity, surface-applied lime is very slow

to reach the subsoil. Current rates of lime application fall well short of what is required to balance the annual rate of soil acidification.

The GRDC is investing in research to develop alternative, innovative solutions to subsoil acidity. The project will:

investigate a range of novel mechanical and chemical methods to more effectively deliver lime to the subsoil

examine the potential for other inputs, such as organic material and silicates, to ameliorate or prevent acidification

identify genetic traits that improve yields on acidic subsoils in wheat, barley, canola and pulses, and deliver them to breeding programs to speed the development of improved varieties for growers.

Adapting to climate change and variability

Climate change, driven by increases in the concentration of greenhouse gases in the atmosphere, is likely to significantly alter agricultural production in many parts of Australia. As a result of the scale and rate of predicted change, grain producers can expect to have to contend with more frequent climate extremes; environmental degradation; cultural and technological change; and even regulatory change.

Farming systems across much of the Australian cereal belt are exposed to high variability in climate, and many of the options available for adapting to projected changes in climate are extensions of those currently used to manage climate variability. Improvements in crop performance under more variable conditions will benefit growers now and in the future, as will enhanced business management skills to better cope with increased risk and uncertainty.

To support the development of effective responses to climate challenges, the GRDC is investing in a project to collate up-to-date information on:

the changing nature of climate variability and climate risk management

knowledge products that assist in the management of seasonal climatic conditions

ways in which leading growers are maintaining the viability of their farming enterprises under variable and/or extreme climatic conditions

genetic material for cereals, pulses, oilseeds and pastures (suitable for cropping systems) that have superior performance and adaptability in low-rainfall and high-stress environments.

Operating across all agroecological zones, with a particular focus on the low-rainfall zone, the project will undertake a series of targeted reviews around farm business structure and climate risk, identification of genetic traits with resilience to climate extremes, and climate prediction services.

A national survey will be conducted to gauge how growers currently manage climate risk, with an emphasis on growers’ use of seasonal climate forecasting services, and their perceptions of the accuracy, consistency, relevance, value and barriers to use of those services. This will be complemented by modelling based on studies that have examined the economic returns and risks associated with using seasonal climate forecasting tools, to assess potential to expand or improve the range of tools available.

Existing literature and the results of recently completed projects will be reviewed to explore how farm business structures in the low-rainfall zone can be adapted to climate variability and change. This will include an examination of what leading farmers are currently doing to profitably manage climate risk in their businesses.

Another review will identify new or under-utilised genetic material from current and past NVT trials and consider crop traits and associated management regimes that could improve yields under more variable climate conditions.

Historical data for the past 30 years will be consolidated with projections for the next 30 years to develop climate fact sheets—including details of mean and extreme temperature, rainfall, evaporation and solar radiation, at seasonal and annual timescales—for each of the 17 agroecological zones identified by the GRDC.

The results of the project will assist the GRDC to consolidate existing investments in climate-related RD&E and make evidence-based decisions on future investment activities that provide growers with the skills, technologies and tools to profitably manage farm businesses in a variable and changing climate.

Theme 6—Building skills and capacityThis theme is focused on generating leadership, innovation and education in the grains sector.

To compete and succeed internationally, the Australian grains industry needs a highly skilled and motivated workforce, including growers, advisers, researchers and managers. The industry has identified several critical challenges:

the grains industry and farming are becoming increasingly complex, with many types and sources of information that growers need to make decisions

the number of appropriately skilled researchers and advisers being trained to replace the current generation is inadequate—this is compounded by a large number of experienced people reaching retirement age

agricultural careers are not traditionally attractive to potential candidates

the grains industry lacks a whole-of-industry approach to building skills and capacity

growers are time-poor and face succession-planning changes

the uptake of technology often requires substantial technical support.

Through the ‘Building skills and capacity’ theme, the GRDC has identified opportunities to focus its investment to address these challenges.

Outcomes, budget and performance measuresTable 15 shows the 2015–16 investment budget, targets for each major practice change and key performance metrics for Theme 6—Building skills and capacity, in the context of its intermediate and aspirational outcomes. Table 16 details the corresponding key performance indicators and targets in the Agriculture Portfolio Budget Statements 2015–16.

Table 15: Overview of Theme 6—Building skills and capacity

Theme 6—Building skills and capacityAspirational outcome (10+ years) A dynamic Australian grains industry with the skills and

capacity to continuously innovate.

Intermediate outcomes (5 years)

Grains industry leadership and communication The Australian grains industry has the leadership and communication capacity to proactively engage with the broader Australian community.

Capacity building in the extension sector Australia has a skilled agricultural extension sector with access to appropriately skilled people.

Capacity building in the R&D sector Australia has world-class R&D personnel with the appropriate skills to meet current and future needs of the Australian grains industry.

Capacity building for grain growers Growers recognise the benefits to their businesses of acquiring additional skills and knowledge and hence the value of their participation in training and continuous learning.

Investment budget for 2015–16 $8.9 million

Grains industry leadership and communicationPractice changes and key metrics TargetsAn increased number of industry participants are engaged in regional and national leadership roles in the Australian grains industry.

At least three Nuffield scholars are from the grains industry each year.

Leadership positions within the grains industry can be filled with minimal delay by candidates who have the skills, knowledge and experience required.

The grains industry communicates information about potential career opportunities to secondary and tertiary students and their parents and career advisers.

The GRDC invests in projects, targeted at students, that promote careers in the grains industry.

The grains industry publicises how it benefits the wider community. The GRDC publishes articles that promote the role and importance of the grains industry.

Capacity building in the extension sectorPractice changes and key metrics TargetsThe extension sector collates and publishes annually its skills requirements and identifies gaps and potential gaps in discipline areas.

The extension sector regularly communicates its training requirements for skilled personnel, including any gaps in discipline areas.

Increased number of people enrol in targeted agriculture-related disciplines.

The GRDC invests in projects to support students undertaking agriculture-related study.

Increased number of qualified graduates are employed in extension roles.

The grains industry has access to suitably qualified and experienced extension personnel.

Increased number of graduates and other extension staff undertake post-graduate/workplace training.

Increased number of undergraduates successfully complete agriculture-related courses.

Career pathways within the extension sector retain skilled and experienced personnel.

The proportion of people in the extension sector with relevant graduate and post-graduate qualifications is increasing.

Capacity building in the R&D sectorPractice changes and key metrics TargetsThe grains industry has a clear understanding of its skills requirements The GRDC, in collaboration with RD&E providers, regularly

in the short, medium and long terms. communicates its anticipated future requirements for skilled personnel.

The grains industry and RD&E providers are maintaining or increasing the skills and capacity available, in line with the Grains Industry National Research, Development and Extension Strategy.

Training providers address the grains industry research, development and extension (RD&E) skills gaps in innovative and flexible ways.

RD&E providers work with the grains industry to develop improved measures of RD&E performance.

Capacity building for grain growersPractice changes and key metrics TargetsGrowers recognise the additional knowledge and skills they need to fully understand, adapt and adopt the outputs of RD&E and optimise their benefits.

Increased number of growers regularly use the support of skilled advisers to assist with cropping and business decisions.

Growers and their advisers participate in relevant training and skills development and apply the knowledge gained to on-farm decisions and practices.

At least 65% of growers and advisers undertake at least one activity each year to learn more about opportunities to improve farm profit or sustainability.

Growers and advisers attend GRDC-supported training courses to increase their knowledge.

Growers apply skills on farm to increase profitability and sustainability. The GRDC Grower Survey indicates that growers intend to change practices on farm as a result of training and skills development.

Table 16: Theme 6 portfolio budget statements measures Key performance indicator Target

Each year Nuffield scholars include people from the grains industry. At least three.

Growers and advisers undertake at least one activity each year to learn more about opportunities to improve farm profit or sustainability.

75%

Investment highlightsThis section provides a few examples of major RD&E investments that illustrate the GRDC’s focus on ‘Building skills and capacity’ in 2015–16.

Tertiary education strategy

The GRDC invests in a range of activities that create opportunities for tertiary students of science and agriculture to access relevant, current, grains-focused course content and work experience programs. This support helps to make the grains sector a dynamic environment that attracts people with the necessary skills and capability to continuously innovate.

To ensure that its suite of investments in this area is relevant and comprehensive, the GRDC has developed a tertiary education investment strategy for the five years to June 2020.

The strategy outlines the Australian grains industry’s skills and capacity priorities for the future and sets out an investment plan for tertiary education opportunities aligned with those priorities.

To identify gaps and cost-effective approaches to fill them, the strategy draws on a review of current GRDC investments and grains-focused content in existing tertiary education programs, as well as similar initiatives in other agricultural and non-agricultural industries.

The series of tertiary education investments recommended in the strategy will translate to a flow-through of increasingly job-ready and skilled graduate students taking up or continuing careers in the grains industry.

Postgraduate research scholarships

The GRDC funds Grains Industry Research Scholarships to encourage students to undertake postgraduate training in disciplines that contribute to the RD&E priorities of the GRDC and the Australian grains industry.

The three-year scholarships are awarded on the basis of academic excellence, the topic of the proposed research program, and the likelihood of the applicant’s ongoing involvement in the grains industry. To be eligible, an applicant must first secure a base scholarship, such as an Australian Postgraduate Award.

The GRDC will offer 15 Grains Industry Research Scholarships in 2015–16.

Review of information and training needs

GRDC-supported R&D generates large amounts of practical information that can be very valuable to growers and their advisers, immediately and in the longer term. Making sure that the results of its investments reach their audiences effectively is a core part of

the GRDC’s role.

To provide the knowledge, materials and delivery mechanisms that best meet growers’ requirements, the GRDC needs to understand the drivers, attitudes, motivations and other factors that influence growers’ desire to receive, evaluate and use information. The GRDC is investing in a comprehensive review to bring its understanding of these factors up to date, as the basis for a new strategic approach to investment in training and extension.

The review process will involve extensive engagement with growers and their advisers in all grain-growing regions, to seek their advice on all aspects of how they source, notice, evaluate and use information to enhance their knowledge of crop and business-related issues. Results will be collated and analysed to provide a perspective for each agroecological zone.

The issues explored will include:

the drivers for growers wanting quick ‘just in time’ answers or deeper and broader ‘just in case’ knowledge

the role that advisers play in providing information and recommendations to growers

the various elements of the continuum of education, training, extension and communication, and how they fit together in the delivery of information and knowledge

growers’ attitudes to and preferences for a range of knowledge delivery mechanisms

different attitudinal and behavioural segments among grain growers, and their separate needs

the particular needs of younger and less experienced growers.

After the initial broad consultations, the review will draw on grains industry bodies and other rural R&D corporations, as well as focus groups from the grower and adviser communities, to gather the widest possible input on relevant training aims and experiences.

The data and key messages that emerge from the review will underpin a new GRDC strategy for training and extension. The GRDC aims to be the source, strategic driver and coordinator of the delivery of knowledge that continually enhances the skills of growers, and ensures that growers are confident and readily able to deal with challenges and opportunities to achieve sustainable and profitable crop production.

Grains research updates

GRDC grains research updates are an opportunity for growers and advisers to meet face to face with researchers and GRDC subject specialists to discuss the latest results of R&D relevant to crop production. Each update is tailored for the location and season in which it takes place, and complemented by other GRDC-supported activities and sources of information.

For more than a decade, research updates have proven to be an effective and popular mechanism for delivering the outcomes of GRDC-supported research and sharing information in the grain-growing community.

Grains research updates:

provide a dynamic, engaging and interactive learning environment for participants, to maximise adoption of new technologies and practices

showcase R&D outputs of the GRDC and its research partners

feature a wide range of keynote speakers who provide timely, relevant and high-quality information

include targeted adviser update programs catering for both experienced and less-experienced advisers

emphasise practical ‘take-home messages’ focused on supporting the adoption of R&D outputs and delivering benefits to growers.

As well as striving to maintain or increase face-to-face participation in grower and adviser updates, the GRDC provides a diverse range of related activities and products to deliver timely and relevant information to growers and advisers throughout the year.

Cross-theme investmentsSome of the GRDC’s investments contribute to achieving the targets and outcomes of several, or all, of the RD&E investment themes. In 2015–16, these cross-theme investments fall into two categories:

‘Foundational activities’, which covers investments in activities that underpin the delivery of programs that run across multiple themes, such as

developing data sources for evaluating and reporting on the progress of the investment themes

conducting communication campaigns

managing customer relationships and communication channels, including the GRDC’s publications, periodicals,

promotional materials and online content

‘R&D management’, which encompasses investments in the GRDC’s commercial activities as well as other activities such as

conducting stakeholder surveys

providing support for consultative bodies and managing the GRDC’s directorships and memberships of grains industry organisations

performing reviews, impact assessment and portfolio analysis

managing amortisation of shares, emerging issues and unallocated investment funds.

In 2015–16, ‘Foundational activities’ has a budget of $27.2 million, while ‘R&D management’ has a budget of $9.4 million.

Enabling business functionsThe GRDC’s Corporate Services business group works with the three operational business groups to implement the GRDC’s corporate strategies and achieve the planned outcomes of the GRDC’s investment themes.

Figure 5 shows the key enabling activities in the context of the core business processes through which the GRDC implements its RD&E investment strategy and delivers value for grain growers and government. Table 17 provides details of the goals of the enabling activities in 2015–16.

Figure 5: GRDC value chain

Table 17: Objectives and plans for enabling activitiesObjective PlansCorporate strategy

Support the implementation of the Strategic R&D Plan 2012–17.

Ensure that employees understand the GRDC’s strategic direction.

Review the progress of the implementation of the five-year plan.

Monitor the business environment.

Ensure that customer segments (including the general public, where appropriate) are aware of the goals, strategies and achievements of the corporation.

Continue to monitor the portfolio balance and improve the efficiency and effectiveness of selecting and managing projects.

Planning and reporting

Inform stakeholders of the corporation’s goals, strategies and achievements.

Ensure the timely publication of the:

five-year strategic R&D plan

annual operational plan

portfolio budget statements

annual report

growers’ report

stakeholder report.

Business processes and procurement

Conduct effective and efficient procurement and project

Ensure that business processes create greater efficiencies.

management processes. Manage the process for investment planning.

Provide processes that meet the requirements of the Commonwealth Procurement Rules.

Maintain and continuously improve the procurement processes.

Implement a process to ensure that the appropriate level of staff knowledge of procurement is embedded and staff awareness of procurement processes is continuously enhanced.

Corporate communication

Inform all customers/stakeholders of the corporation’s goals, strategies and achievements.

Develop integrated communication campaigns (involving all business units) to deliver specific and timely information to external stakeholders.

Through media monitoring, measure the GRDC’s effectiveness and performance in corporate communication.

Through mainstream media, identify and target information of interest and relevance to the general public.

Increase the effectiveness of internal communication within the GRDC.

Information management systems

Support R&D information access needs and records management as well as the business computing and telecommunication requirements of the organisation.

Update the information systems environment to comply with the Australian Government Protective Security Policy Framework.

Ensure information technology is aligned with all GRDC business processes.

Provide business systems that meet the requirements of the organisation.

Maintain a reliable and secure network for GRDC users that is capable of growth as needed.

Facilitate the procurement of information technology and telecommunications equipment for information and communications management.

Maintain and continuously improve the project management system and the records management system, in accordance with GRDC business processes.

Finance and administration

Manage accounting and treasury functions in accordance with statutory obligations and requirements and the direction of the GRDC Board.

Maintain a monitoring system through the Finance, Risk and Audit Committee and the internal audit program.

Develop, update and implement treasury management systems that enable the GRDC to meet the funding requirements of the annual operational plan.

Develop and maintain the budget and reporting framework to foster financial responsibility at the business unit level.

Improve and upgrade reporting systems and templates to encapsulate best practice.

Human resource management

Deliver best practice human resource management outcomes that ensure a highly motivated workforce focused on achieving organisational objectives.

Develop and deliver a performance management system (recruitment, succession, performance management, retention, diversity, learning and development).

Develop and deliver supporting policies and procedures for the GRDC Enterprise Agreement.

Ensure that GRDC roles are graded to ensure market competitiveness.

Deliver quarterly human resource and work health and safety reporting and annual workforce and training plans.

Risk management

Ensure that strategic, business, fraud, work health and safety, and security risks are identified, assessed and appropriately managed.

Maintain an effective risk management system.

Manage risks at the project, business unit and strategic levels of the corporation.

Monitor and update the risk assessment register and the fraud control action plan, to reflect changes in the operating environment.

Implement a process to ensure that the level of staff knowledge of risk management is enhanced and risk management is embedded in the corporation’s culture.

Maintain a ‘structured’ risk management rating from Comcover.

Ensure that internal audit recommendations are included in business risk and fraud risk assessments and actioned accordingly.

Ensure that business risk and strategic risk are reviewed every six months by the Senior Leadership Group and the Finance, Risk and Audit Committee.

Identify work health and safety hazards and implement mitigations.

Legal services

Protect the GRDC’s legal interests.

Provide legal support to the organisation that is timely and of high quality and builds relationships with stakeholders.

Provide high-quality secretarial support to the Board and its subcommittees.

Provide legal seminars and fact sheets on contractual agreements, freedom of information, privacy and other legal topics, for all staff.

Corporate governance

Maintain a robust system of governance.

Ensure compliance with requirements under the Primary Industries Research and Development Act 1989, the Public Governance, Performance and Accountability Act 2013 and ministerial directions.

Ensure that planning and reporting documents (the annual report, annual operational plan and portfolio budget statements) meet statutory requirements and are published and submitted on time.

Manage compliance through appropriate control systems and an ethical business culture.

Conduct analysis of governance arrangements to align with industry expectations.

4 Estimated income and expenditureIncomeThe GRDC’s total income in 2015–16 is forecast to be $196.6 million.

Figure 6 shows the sources of the GRDC’s forecast total income for 2015–16 in percentage terms.

Figure 6: Forecast total income

In dollar terms:

Australian Government contributions are expected to be $69.1 million

levy contributions from grain growers are expected to be $113.4 million

income from grants is estimated to be $0.4 million

other income, which includes interest on investments and royalties, is expected to be $13.7 million.

Figure 7 shows the sources of the GRDC’s forecast levy income for 2015–16, in percentage terms, by leviable crop.

Figure 7:Forecast levy income

The 2015–16 forecast is based on several assumptions, including:

The quantity of grain produced will include 24.4 million tonnes (mt) of wheat, 7.5 mt of barley, 3.3 mt of canola, 1.9 mt of sorghum and 1.1 mt of oats.

The grain prices achieved per tonne will include $339 for wheat (Australian Premium White), $268 for feed barley, $281 for malting barley, $528 for canola, $271 for sorghum and $218 for oats.

Cash:pool ratios will be 185:15 for wheat and 90:10 for barley.

Levy rates will be 0.99 percent of farm gate value for 24 grains and 0.693 percent of farm gate value for maize.

The GRDC considered the following three income scenarios for 2015–16:

Scenario 1 is the baseline case, underlying the above income information. This scenario indicates that liquid reserves at the end of 2015–16 would be $150.0 million, which is just above the upper bound of the target range of the GRDC’s reserves policy.

Scenario 2 projects a pessimistic case. Low crop production volumes are assumed, while prices for the major crops of wheat, barley, sorghum, canola and oats are assumed to stay as in the baseline scenario. Under this scenario, projected income for 2015–16 would be $139.4 million. Liquid reserves at the end of 2015–16 would decrease to $92.9 million, which is at the lower end of the target range. This indicates that the forecast expenditure level is achievable under such a scenario.

Scenario 3 projects an optimistic case. The optimistic scenario assumes crop production levels as in the baseline scenario but prices similar to the record high prices of 2007–08. Under this scenario, projected income for the year would be $219.5 million. Liquid reserves at the end of 2015–16 would increase to $172.9 million, significantly above the upper bound of the target range.

Table 18: Estimates of expenditure2014–15

$m2015–16

$m2015–16

%RD&E investments

1 Meeting market requirements 16.3 12.4 5.7

2 Improving crop yield 39.3 33.7 15.3

3 Protecting your crop 37.7 51.0 23.2

4 Advancing profitable farming systems 33.5 38.5 17.5

5 Improving your farm resource base 13.9 16.0 7.3

6 Building skills and capacity 9.8 8.9 4.1

Foundational activities 8.9 27.2 12.4

R&D managementa 25.1 9.3 4.2

Strategic investmentb 7.5 0.0 0.0

RD&E budget allocation 192.0 197.0 89.7

Management

Employeesc 11.1 11.5 5.2

Suppliersd 10.0 11.2 5.1

Management budget allocation 21.1 22.7 10.3

Total operating expenditure 213.1 219.7 100.0

Total capital budget allocation 6.1 0.0

a R&D management includes as at 1 July 2015 unallocated investment in 2015–16.

b Strategic investment includes the implementation of the Grains Industry National Research, Development and Extension Strategy, emerging issues, contingency planning, project variation, impact assessment, project reviews, share amortisation, monitoring and evaluation. From 2015–16 these are allocated to the relevant theme.

c Employee costs include remuneration of directors and committee members.

d Supplier costs include depreciation, amortisation and levy collection/management expenditure.

ExpenditureThe GRDC Board has approved an annual operating expenditure of $219.7 million in 2015–16, an increase of approximately 3.1 percent in comparison to the 2014–15 expenditure budget.

Table 18 summarises the GRDC’s estimates of expenditure for 2015–16. Of the total forecast R&D expenditure, new investments for 2015–16 amount to $53.4 million, while ongoing commitments amount to $143.6 million.

These figures are indicative only. Changes in the GRDC’s operating environment may require the corporation to vary the total expenditure or specific allocations to secure its financial objectives.

Figure 8 shows the break-up of the operating expenditure budget between management and RD&E expenditure, highlighting the proportions allocated to new and ongoing RD&E investments.

Figure 8: Forecast operating expenditure

Management costs—costs of employees and suppliers—are budgeted at $22.7 million, or 10.3 percent of the total expenditure.

New RD&E investment is budgeted at $53.4 million, or 24.3 percent of the total expenditure.

Ongoing RD&E investment—strategic investment and continuing commitments to existing projects—is budgeted at $143.6 million, or 65.4 percent of the total expenditure.

The RD&E expenditure for 2015–16 includes a component of $241.0 million which relates to long-term (three years or more) contractual commitments. Figure 9 shows the GRDC’s long-term contractual commitments by calendar year as at March 2015.

Figure 9: Break-up of forward contractual commitments by year, as at March 2015

ReservesThe GRDC’s revenue depends on grain production levels, prices and growers’ marketing intentions, all of which can be highly variable. To reduce the impact of fluctuations in these variables on the industry’s annual RD&E effort, and safeguard its ongoing RD&E investment, the GRDC manages financial reserves. The reserves are accumulated in years of high-value production and drawn on in years when revenue is lower. Reserves include R&D share investments that are not commonly traded as well as fixed assets. Easily tradable assets form liquid reserves.

The GRDC aims to maintain the liquid reserves at a level between 40 percent and 70 percent of the following year’s expenditure. Currently, the level slightly exceeds the 70 percent target. The reserves have grown because of increases in income over budget expectations, caused by a sharp increase in grain prices and volume of production being higher than expected.

Careful management of the reserves has placed the GRDC in a strong position to increase RD&E expenditure above the projected income for 2015–16. Therefore, the GRDC is budgeting for an operating deficit of $23.1 million for 2015–16, to be funded from the reserves. The operating loss for 2015–16 was approved in March 2014 by the Minister for Finance.

Payments to Grain Producers Australia Grain Producers Australia (GPA) is the GRDC’s representative organisation under the Primary Industries Research and Development Act 1989.

In accordance with the Guidelines on Funding of Consultation Costs by Primary Industries and Energy Portfolio Statutory Authorities, the GRDC may:

meet GPA’s costs in preparing for and attending formal consultative meetings (including associated travel and accommodation costs) with the GRDC to assess the GRDC’s performance against the industry’s expectations

provide GPA with funding for its costs incurred in preparing for and attending other meetings considered relevant to the role of the representative body, the Australian grains industry R&D strategic direction and agreed projects relevant to the GRDC’s functions.

The GRDC has made an allowance in its planned RD&E investment for 2015–16 to support GPA up to a maximum of $90,000 for GPA to consult with organisations such as the Department of Agriculture, including the Levies Revenue Service, and with other grains industry representative bodies.

GPA’s actual expenditure will be published in the GRDC’s annual report for 2015–16.

Expenditure to meet Australian Government research priorities Table 19 summarises the expected total expenditure allocated against each of the Australian Government’s Strategic Research Priorities and their associated goals for 2015–16, while Table 20 summarises the expected total expenditure allocated against each of the Australian Government’s Rural R&D Priorities for 2015–16. The allocation of funds is shown in both dollar and percentage terms for each investment theme and for the cross-theme investment categories.

During 2015–16, the GRDC’s RD&E investment planning will reflect the Australian Government’s transition to the Science and

Research Priorities announced in May 2015. The annual operational plan for 2016–17 will provide details of expenditure to meet the new priorities.

Table 19: Investments addressing Australian Government Strategic Research Priorities (dollar values and percentages)

Living in a changing

environment

Promoting population health and wellbeing

Managing our food and water assets

Securing Australia’s place in a

changing world

Lifting productivity and

economic growth

Othera

Total

1.1

1.2 1.3

2.1

2.2

2.3

3.1 3.2 3.3 4.1

4.2 4.3

5.1 5.2

5.3

$m $m $m $m $m $m $m $m $m $m $m $m $m $m $m $m $m

1 Meeting market requirements

- - - - - - - - 12.38

- - - - - - - 12.38

2 Improving crop yield

- - - - - - 33.71

- - - - - - - - - 33.71

3 Protecting your crop

- - - - - - 39.35

- - - 11.66

- - - - - 51.01

4 Advancing profitable farming systems

- - - - - - - - - - - - 38.46

- - - 38.46

5 Improving your farm resource base

- 6.23

- - - - 9.65 0.09

- - - - - - - - 15.97

6 Building skills and capacity

- - - - - - - - - - - - - - 8.92

- 8.92

Foundational activities

- - - - - - - - - - - - - - - 27.17 27.17

R&D management

- - - - - - - - - - - - - - - 9.38 9.38

Total - 6.23

- - - - 82.71

0.09

12.38

- 11.66

- 38.46

- 8.92

36.55 197.00

% % % % % % % % % % % % % % % % %

1 Meeting market requirements

- - - - - - - - 6.28

- - - - - - - 6.28

2 Improving crop yield - - - - - - 17.11

- - - - - - - - - 17.11

3 Protecting your crop - - - - - - 19.98

- - - 5.92

- - - - - 25.90

4 Advancing profitable farming systems

- - - - - - - - - - - - 19.52

- - - 19.52

5 Improving your farm resource base

- 3.16

- - - - 4.90 0.05

- - - - - - - - 8.11

6 Building skills and capacity

- - - - - - - - - - - - - - 4.53

- 4.53

Foundational activities - - - - - - - - - - - - - - - 13.79

13.79

R&D management - - - - - - - - - - - - - - - 4.76 4.76

Total - 3.16

- - - - 41.99

0.05

6.28

- 5.92

- 19.52

- 4.53

18.55

100.00

1.1: Identify vulnerabilities and boundaries to the adaptability of changing natural and human systems; 1.2: Manage risk and capture opportunities for sustainable natural and human systems; 1.3: Enable societal transformation to enhance sustainability and wellbeing; 2.1: Optimise effective delivery of health care and related systems and services; 2.2: Maximise social and economic participation in society; 2.3: Improve the health and wellbeing of Aboriginal and Torres Strait Islander people; 3.1: Optimise food and fibre production using our land and marine resources; 3.2: Develop knowledge of the changing distribution, connectivity, transformation and sustainable use of water in the Australian landscape; 3.3: Maximise the effectiveness of the production value chain from primary to processed food; 4.1: Improve cybersecurity for all Australians; 4.2: Manage the flow of goods, information, money and people across our national and international boundaries; 4.3 : Understand political, cultural, economic and technological change, particularly in our region; 5.1: Identify the means by which Australia can lift productivity and economic growth; 5.2: Maximise Australia’s competitive advantage in critical sectors; 5.3: Deliver skills for the new economy.

a Other includes unallocated ‘Foundational activities’ and ‘R&D management’ investments.

Table 20: Investments addressing Australian Government Rural R&D Priorities (dollar values and percentages)

Productivity and

adding value

Supply chain and

markets

Natural resource

management

Climate variabilit

y and climate change

Biosecurity

Innovation skills

Technology

Othera

Total

$m $m $m $m $m $m $m $m $m

Theme 1—Meeting market requirements

5.04 5.94 - 0.06 0.98 0.36 - - 12.38

Theme 2—Improving crop yield

23.68 2.50 2.02 1.63 2.46 1.35 0.04 0.03 33.71

Theme 3—Protecting your crop

18.63 0.08 1.33 - 30.92 0.04 - 0.01 51.01

Theme 4—Advancing profitable farming systems

32.45 - 4.28 0.09 0.92 0.45 - 0.27 38.46

Theme 5—Improving your farm resource base

6.73 0.10 5.76 3.18 0.16 - - 0.04 15.97

Theme 6—Building skills and capacity

1.34 - - - - 7.38 - 0.20 8.92

Foundational activities

13.86 - 0.99 0.29 0.99 10.66 - 0.38 27.17

R&D management 4.09 - - - - 1.60 - 3.69 9.38

Total 105.82 8.62 14.38 5.25 36.43 21.84 0.04 4.62 197.00

% % % % % % % % %

Theme 1—Meeting market requirements

2.56 3.01 - 0.03 0.50 0.18 - - 6.28

Theme 2—Improving crop yield 12.02 1.27 1.02 0.83 1.25 0.68 0.02 0.02 17.11

Theme 3—Protecting your crop 9.46 0.04 0.68 - 15.69 0.02 - 0.01 25.90

Theme 4—Advancing profitable farming systems

16.47 - 2.17 0.04 0.47 0.23 - 0.14 19.52

Theme 5—Improving your farm resource base

3.42 0.05 2.93 1.61 0.08 - - 0.02 8.11

Theme 6—Building skills and capacity

0.68 - - - - 3.75 - 0.10 4.53

Foundational activities 7.04 - 0.50 0.15 0.50 5.41 - 0.19 13.79

R&D management 2.08 - - - - 0.81 - 1.87 4.76

Total 53.73 4.37 7.30 2.66 18.49 11.08 0.02 2.35 100.00

a Other includes unallocated investments.

Key contactsRichard Clark

Chair

02 6166 4500

John Harvey

Managing Director

02 6166 4500

Brondwen MacLean

Executive Manager, Research Programs

02 6166 4500

brondwen.maclean@grdc.com.au

Steve Thomas

Executive Manager, Commercial

02 6166 4500

steve.thomas@grdc.com.au

Stuart Kearns

Executive Manager, Regional Grower Services

02 6166 4500

stuart.kearns@grdc.com.au

Tanya Howitt

Executive Manager, Corporate Services

02 6166 4500

tanya.howitt@grdc.com.au

James Clark

Northern Regional, Panel Chair

0427 545 212

colane@bigpond.com

Keith Pengilley

Southern Regional, Panel Chair

0448 015 539

kgpengilley@bigpond.com

Peter Roberts

Western Regional, Panel Chair

0428 389 060

peterroberts@esat.net.au

Sharon O’Keeffe

Manager Grower Services North

0409 279 328

sharon.okeeffe@grdc.com.au

Andrew Rice

Manager Grower Services South

0427 965 469

andrew.rice@grdc.com.au

Roger States

Manager Grower Services West

0427 565 780

roger.states@grdc.com.au

GRDC contact detailsLocation: Level 4, East Building4 National CircuitBARTON ACT 2600

Post: Grains Research and Development CorporationPO Box 5367KINGSTON ACT 2604

Phone: 02 6166 4500Fax: 02 6166 4599

Email: grdc@grdc.com.auWebsite: www.grdc.com.au

Production notesCompliance editor: Catherine WellsConcepts, text and research: GRDCEditing: WordsWorth WritingDesign and typesetting: Giraffe VCM

© Grains Research and Development Corporation 2015ISSN 1038-670X

This publication is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without permission from the Grains Research and Development Corporation.