Farming in the 21 st Century Thursday 19 May 2011

Myth One: Drought is an unlucky and unexpected event. Myth Two: Australian farmers are poor. Myth Three: If I struggle and get one good season, all will be OK. Myth Four: Family farms have no future. Myth Five: Agriculture has no future.

The effects of major drought All States affected except Tasmania Southern and eastern States affected Sheep numbers halved and more than 40 per cent loss of cattle. Most devastating drought in terms of stock losses Loss of 19 million sheep and two million cattle Only parts of Western Australia free from drought Loss of nearly 30 million sheep between 1942 and 1945.

Widespread drought. Also longest drought in arid central Australia: The last two years saw a 40 per cent drop in wheat harvest, a loss of 20 million sheep, and a decrease in farm income of $ million Mainly in eastern Australia Total loss estimated in excess of $3000 million. Most intense drought in terms of vast areas affected Average production by rural industries fell about 10 per cent; $590 million drought relief provided by the Commonwealth Government Economic growth in Australia reduced by about $7 billion. The Australian Government has committed more than $1 billion in assistance to farm families. The effects of major drought (cont’d)

Myth two: Australian Farmers are poor

State New South Wales Victoria South Australia7 586 Tasmania2 415 Western Australia Queensland Northern Territory5 423 Australian Capital Territory1 229 TOTAL99 900

Myth three: If I struggle and get one good season!

One good season? Or Skill Scale, And off farm income

Myth four. Family farms have no future

Ninety-seven % Of farms with a GFI Exceeding $500,000 Are Family Owned ABARE 2006

Myth five: Agriculture has no future.

Myth five: Agriculture has no future around 17 per cent of the work force. 4 per cent of workers employed in the rural industries contribute as much to Australia’s export earnings as the 85 percent of the work force employed in the services sector.

Myth five: Agriculture has no future While agricultural production today contributes only 3.1 per cent of GDP) the farm-dependent economy – the farm services sector, food and fibre processing, and similar industries – account for a massive 12.1 per cent of GDP. agriculture accounts for only about 4 per cent of employment directly, it keeps 1.6 million people in work nationally

Agriculture can perform as the graph below indicates.

YearPopulationRural Population ,000All Million Approximately 1 million million Approximately 1 million ,393,141 ( est 20/07/10) ???? Australia’s population

GPPSCPSC Wine and spirit manufacturing Manufacturing:-$M/No(%)$M/No(%)$M/No(%) Output1, Employment/Jobs Wages and Salaries Agriculture Output Employment Wages38, All Industries Output Employment Wages January 2011 Remplan Economic Data for the Grampians Pyrenees Region (GP region = Ararat, Northern Grampians and Pyrenees Shires) and Pyrenees Shire Council (PSC)

Grampians PyreneesPSC Manufacturing128.25Manufacturing16.94 Health Care and Social Assistance 79.90Agriculture11.40 Public Administration 74.13Public Administration Education and Training 57.82Education and Training 9.56 Retail40.87Health Care and Social Assistance 8.50 The top five ranking industries in terms of wages payments (in $M):-

Industry Name$M Output (gross revenue) JobsWages% Manufacturing125, Agriculture Forestry and Fishing 117, Total457, Wine Spirits and Tobacco 94, Sheep, Grain, Beef and Dairy Cattle 93, MAJOR INDUSRIES OF THE PYRENEES SHIRE JANUARY 2011

The Second and Third S

New Approaches Farmers don't need to own land. Landowners don't have to farm. Agriculture must compete with other industries. Next Gen may get a start away from the family farm Need new ways of doing things.