INDUSTRY NEWS
regional focus The National Farmers Federation says the time is now for regionalisation
Above: NFF is calling for greater investment in regional areas, such as Albury, saying that now was the time to give regional Australia a major boost Inset: The NFF’s Regionalisation Agenda report calls for greater investment in rural cities
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he National Farmers Federation (NFF) says Australia “must not squander” a unique opportunity to push for better long-term regionalisation of the nation. In a recent report, NFF says that a “one in 100-year” opportunity for regional Australia to create new opportunities and a better lifestyle is “too precious to waste”. NFF’s Regionalisation Agenda report was released in February and described the influence of the COVID-19 pandemic on people’s working habits, plus a time of political bipartisanship towards prioritising the regions, as a unique opportunity to redefine Australia’s future. The Federation calls for investment in regional infrastructure, a prioritised list of ‘shovel ready’ regional development projects, an independent assessment framework for these projects and a reduction of discount rates in government cost-benefit analyses. The NFF has also reiterated its previously-made call for the
capital need AgriFutures Australia says a major agricultural capital increase is needed
Above: AgriFutures Australia managing director John Harvey
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report has claimed capital investment in Australia’s agriculture sector needs to increase from $1.2 billion to $8.7 billion annually, or a 2030 farm gate output target will not be met until 2054. Australian agriculture’s 2030 farm gate output target will not be met until almost 25 years later unless a seven-fold increase in capital investment occurs, a report has warned. AgriFutures Australia commissioned the report, which said the National Farmers’ Federation’s (NFF’s) farm gate output target of $100 billion per year by 2030 for the agriculture, fisheries and forestry industries would fall well short without additional capital investment. Currently, there is $1.2 billion invested by the private sector and government annually, which would need to increase to $8.7 billion each year until 2030 – otherwise the farm gate output in that year would be only $84 billion rather than the desired $100 billion. Australia’s current annual farm gate output is valued at $63 billion. NFF chief executive Tony Mahar described the report as a wakeup call for industry, following last year’s release of NFF’s 2030 roadmap. “Agriculture’s capital drought was identified in the NFF’s 2030 roadmap as a major handbrake on the sector’s prosperity,” he says. “If changes are not made to make investment in agriculture
creation of 20 place-based development precincts, such as the federal government’s three regional deals in the Albury-Wodonga, Barkly and Hinkler regions. NFF chief executive Tony Mahar says that remote working during the COVID-19 pandemic had changed the way Australians viewed where they needed to live and now was the time to give regional Australia a major boost. “Large regional cities should be places where teachers, nurses, tradies, lawyers and investment bankers live side-by-side and they should be well equipped to retain their best and brightest with education and job opportunities,” he explains. “[The report] charts a vision for regional Australia where regional economic activity and jobs are designed to thrive in the unique economic and geographical conditions of that region. “To make regionalisation happen, we need to throw the same level of resources for place-based development of regional centres as we do for places like Western Sydney. “Regional Australia should be the host of a world leading export industry in food and fibre manufacturing. The fact we are not is a missed opportunity. “We need federal, state and local governments to work hand in glove with industry on well-defined regional priorities.” Organisations such as the Business Council of Australia, Australian Food and Grocery Council, Regional Australia Institute and Australian Forest Products Association have all supported the Regionalisation Agenda’s aims. “If we are to realise our full potential as a nation, we must realise the full potential of our regions,” says Business Council of Australia CEO Jennifer Westacott. “By investing in our regions and creating more accessible, attractive and productive places to live, work and visit, we can ensure regional Australia becomes a magnet for business and jobs.” This comes as another report from AgriFutures Australia has warned the NFF’s target of $100 billion farm gate output by 2030 will not be met without a major increase in capital investment.
more attractive and fit-for-purpose, farmers will be hamstrung in their ability to grow.” The report said there was no single issue holding back investment, but highlighted several barriers and provided a roadmap towards making investment more desirable. These barriers included a lack of access to quality and timely benchmarking data for investors, needing to demonstrate an “attractive risk adjusted rate of return that is also sufficiently different to other asset classes already in portfolios” and better explanation of the Foreign Investor Review Board process to potential investors. Foreign investment was highlighted in the industry roadmap, along with exploring alternative farm ownership models and equity partnerships, plus environmental financing. Natural Capital Economics director and report author Jim Binney said some of the onus needed to be on the agriculture industry to make opportunities available to investors, and was also confident that implementation of the roadmap’s recommendations would bring tangible benefits. “This should see farmers’ options for sources of investment capital broadening from the current reliance on loans and their own equity to also include investment from other sources,” he says. “The best way to attract more capital investment into the sector is to have bankable projects. Like all businesses, farmers should always be seeking new opportunities.” AgriFutures Australia managing director John Harvey says further capital investment in the agriculture sector would enable farmers to make full use of the technology and innovations available. “We know agriculture offers investors, like superannuation funds, an attractive ‘point of difference’ to add to their portfolios to create a more diverse and balanced investment profile,” Harvey says. “From purchasing machinery, to expanding production, to adopting new farming practices and innovating – access to capital is critical. “The use of precision agriculture technologies, sensor-based applications and Internet of Things (IoT) are fundamental to fuelling sector growth. All these innovations require capital.”
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11/03/2021 5:11:02 PM
