Australian Natural Resources Atlas

Natural Resource Topics

Agriculture - Grains Industry - Southern Region

Southern Region

Benchmarking Rural Industries' Practices and Productivity Performance and Review of Industries' Capacity to Change

Where is grain produced in the Southern Region?

The grains industry's Southern region includes the following agroecological zones (AEZ):

These cover an area of 4,757,081 hectares.

Map of regions

How much grain does the Southern Region produce?

Grain production statistics for this region for 1999 are:

Grain group Production (t) Average yield (t/ha) Gross value ($m)
Field grains 8,067,646 2.12 1,245.8
Oilseeds 561,661 1.12 200.8
Grain legumes 515,365 1.54 82.7
Rice 1,205,430 9.32 300.7

In the 10 years to 1998, grain production in this region increased by 2.8 million tonnes. The graphs below show the trend in area, production and average yield for this region for the four grain groups.

Field Grains Oilseeds Grain Legumes Rice

As an example, the average annual increase in productivity and farm performance of wheat for this region is illustrated in the table below.

Region/AEZ Productivity a (%) Wheat Yield a (%) Rate of Return b(%) Farm Cash Income b ($) Grain Area b (ha) % of Australian Grain Crop
NSW Central 4.7 1.9 5.3 104,034 465 12.1
NSW/Vic Slopes 3.0 2.1 3.5 68,244 313 7.1
Vic High Rainfall/Tas Grain Areas 2.7 4.7 0.5 41,346 128 0.6
SA/VIC Bordertown-Wimmera 2.7 1.5 3.3 72,481 351 7.3
SA/VIC Mallee 3.0 1.1 4.6 77,540 728 8.5
SA Midnorth-Lower York, Eyre 3.2 1.4 4.7 93,264 457 9.1
SOUTHERN REGION 3.3 1.4 4.1 81,236 445 44.5

a - average annual growth 1978-79 to 1998-99
b - four year average to 1998-99

Gross margins for the production of grain in this region vary considerably depending on crop and location.

In 1999, gross margins for wheat production varied from $144.40/ha for ASW in the Mallee AEZ to $330.64/ha for ASW irrigated in the same zone. For barley production, gross margins varied from $141.09/ha for feed barley in the SA Lower, Mid and Upper North AEZ to $263.65/ha for malting barley in the SA Mid and South East AEZ. Other coarse grains recorded gross margins of between $67.02/ha for oats, short fallow in the NSW Central AEZ and $258.83/ha for triticale in the SA Mid and Upper South East AEZ.

Oilseed production gross margins range from $83.00/ha for safflower in the Mallee AEZ to $499.00/ha for canola in the Wimmera AEZ.

Pulse gross margins, however, varied from -$17.07/ha for lupins, short fallow in the NSW Southern AEZ to $231.40/ha for chickpeas, short fallow in the eastern portion of the NSW Central AEZ.

What land and water resources are invested in grain production in the Southern Region?

The Southern region experiences a temperate climate, where yields depend upon reliable spring rainfall.

Enterprises in this region are smaller in size when compared to the other regions with diverse production patterns and opportunities. This region has a large and diverse domestic market, and the shift in intensive livestock production has increased the demand for feed grains in this region.

In 1999, the Southern region included:

Grain production is distributed according to sub-regions as presented in the following table.

Region/AEZ Field Grain area ('000 ha) Oilseed area ('000 ha) Grain legume area ('000 ha) Rice area ('000 ha) %of Aust grain area
Southern Region 6,818.1 330.3 754.9 129.3 43.1
NSW central 1,077.0 42.7 17.2 na 6.1*
NSW/Vic slopes 1,241.8 137.1 61.5 na 7.8*
Vic high rainfall/Tas grain areas 161.2 11.5 8.2 na 0.1
SA/Vic Bordertown-Wimmera 751.4 95.3 278.7 na 6.1
SA/Vic mallee 2,208.5 20.1 215.1 - 13.2
SA midnorth-Lower Yorke 1,378.2 23.6 174.2 - 8.5

* based on ABARE dada, 2000

What are the key characteristics of grain producers and farms in the Southern Region and how do they compare with industry averages?

Key characteristics of grain producers and farms in this region include:

Key characteristic Industry Average Region Average
Age of owner/manager 50 years 51 years
Owner/manager education and skill
- Completed university/tertiary or trade 15% 11%
- Completed 5-6 years high school 35% 36%
- Completed 1-4 years high school 48% 50%
- Primary or no schooling 3% 3%
Family members working on farm 86 hr/wk 85 hr/wk
Owner manager work on farm 51 hr/wk 50 hr/wk
Number of dependent children 1 1
Farm cash income ($) 93,514 88,667
Total farm debt - June 30 234,708 183,639
Farm business profit ($) 20,209 17,030
Total off farm income ($) 17,016 18,909
Owner work off farm 3 hr/wk 3 hr/wk
Total farm area - June 30 1,570 ha 1,242 ha
Farm ownership/tenure
Freehold 77% 68%
Long term crown lease 15% 24%
Employment of non-family labour 26 hr/wk 22 hr/wk
Landcare membership 42% 40%
Length of group involvement 6 years 6 years

What environmental challenges face the grains industry in the Southern Region?

The main environmental challenges facing the grains industry in this region are dryland salinity, weeds resulting in degradation and wind erosion.

The proportion of farms reporting significant degradation in various forms is demonstrated in the chart below, which shows that the grain farmers of this region see dryland and irrigation salinity as most significant in this region.

Proportion of farms with a significant degredation problem

What is the grains industry doing to meet these environmental challenges in the Southern Region and across Australia?

Research and development

The main body involved in research and development in the grains industry is the Grains Research & Development Corporation (GRDC). The GRDC is responsible for overseeing research and development, delivering improvements in production, sustainability and profitability across the Australian grains industry.

For more information on GRDC research and development, see the national grains industry page or visit the GRDC website via the link provided in the further information section below.

Until recently, research it on the wider natural resource management issues have traditionally been the responsibility of the state agencies and CSIRO. In the past, this research has concentrated on land management issues and more recently, moved into land and water use assessment and water management issues. In addition, applied research into areas affecting production and environmental values have been undertaken.

Practice Adoption

The grains research industry surveys carried out for GRDC between 1994 and 1998 by TQA Research P/L, provide an indication of the trend in application of research findings by the industry. The chart below shows the trend in the percentage of Southern region growers indicating that they have changed farming practices in the last 2 years and 5 years as a direct result of research findings.

The adoption of management practices by growers in the southern region has been surveyed by ABARE (2000). The proportion of growers adopting the practices surveyed are shown in the chart below. Numbers in bold indicate national average.

Management practice adoption and applicability

A positive change in the likelihood of adoption of best practices by grain growers has been identified in the quantitative benchmark studies undertaken for GRDC (Quint, 1994 and Watson and Quint, 1998). This is evidenced by the upward trend in grower movement through the study?s ranking system. This upward trend is illustrated in the chart below.

Best practice adoption comparison (1994-97)

Grower adoption of certain preventative programs has also been assessed in the quantitative benchmark studies. 1998 these measures this region are:>

Codes of Practice

The grains industry does not currently have a specific industry code of practice, however, some guidance is provided to farmers through codes of practice for general agriculture such as that developed by the State Farmer?s Federation bodies or through the TOPCROP program.

The industry?s main source of advice on recommended management practice has historically been developed through state agency and CSIRO research and extended to growers via state agencies and agribusiness support.

TOPCROP is a farmer focused information network based on monitoring and target setting for crops, pastures and finances. The aim of setting these targets is to increase profitability and sustainability. TOPCROP is a partnership between growers, industry and government that assists with:

Industry strategic planning

The Grains 2000 Project, initiated by the Grains Council of Australia in 1989, identified a number of issues critical to the longer-term profitability and financial sustainability of the Australian grains industry. Strategic Planning Units (SPUs) were established to address these critical issues as they relate to specific grains and deal primarily with improving/expanding domestic and export markets, improving links and arrangements with various institutions and improving industry profitability.

For more information on industry strategic planning, see the national grains industry page or visit the GCA website via the link provided in the further information section below.

How is the Southern Region of the grains industry working with other agricultural industries to overcome some of the challenges faced by this region?

Grain produced in the southern region typically forms part of mixed farming systems and or mixed farming regions. The NSW and Victorian grain production areas are predominantly located within the Murray Darling Basin. These areas have a diversity or agricultural systems - irrigated and non irrigated, intensive and extensive supporting horticultural, grazing and some cotton production. The South Australian grain production areas are mainly linked with grazing systems.

Historic natural resource management issues that have the potential to impact on regional environmental values and grain production include:

The resolution of these issues requires on going research and development. The grains industry in the southern region has involved itself in the planning processes presently proceeding on natural resource management issues such as:

An analysis of adoption rates for management practices surveyed indicates that higher adoption of recommended practices is needed to reverse degradation levels.

How do these factors affect the future prospects of the industry?

The grains industry in the southern region is geographically spread across the southern Murray-Darling catchment and the coastal areas of South Australia. Production levels for all sectors are generally trending up over time. Irrigated rice is a diversification of production capacity for the grains industry in this region.

The general intensive nature of agriculture with many of the districts within the southern region results in natural resource management issues such as dryland and irrigation salinity that aredifficult to manage. The less intensive districts face environmental issues such as weed infestation and wind erosion.

Technology and research will need continual development if the insideous nature of salinity, woody weeds and wind erosion are to be checked. Cross industry environmental effects such as:

occur in the intensively developed areas. The continued high proportion of growers implementing improved management practices (>70%) suggests a capacity for the region?s grain producers to progressively implement change. A majority of growers (around 50%) are designated as ?middle? grower adopters and subsequently require ongoing programs to maintain change behaviour.

Further information

Link to Map maker to make a map using this information.

Link to data available for download on "A spatially consistent sub-set of agricultural statistics (AgStats) data 1982/93 to 1996/97"

"Benchmarking environmental challenges and agricultural practice - an overview" report. Summary

Before you download

Most publications are downloadable as PDF files. Adobe Acrobat Reader  is required to view PDF files.

If you are unable to access a publication, please contact us to organise a suitable alternative format.

Key

   Links to an another web site
   Opens a pop-up window