Warning On Waning Agricultural Research

The Age

Tuesday March 13, 2007

Philip Hopkins, Agribusiness Reporter

FALLING government support for agricultural research is threatening the long-term future of Australian agriculture, according to a report.

In Australia, the public sector is the biggest spender on agricultural research - $730 million a year, says the Australian Farm Institute report Productivity Growth in Australian Agriculture: Trends, Sources, Performance.

"However, the share of research funded by rural R&D corporations (joint government-industry bodies) is now approaching 50 per cent," said John Mullen, who wrote the report.

"Public-sector investment in agricultural research in Australia has shown little growth in real terms in recent decades, prompting concerns about the future rates of agricultural productivity growth."

Dr Mullen said public spending had fallen in research intensity terms - the ratio of public investment in R&D funding to agricultural gross domestic product.

Agricultural research in Australia had been about 5 per cent of GDP between 1978-1986, but had fallen to just over 3 per cent in 2003.

"Intensity grew strongly in the 1950s and 1960s," he said. Australia exceeded the rate in other developed countries (2.6 per cent a year) and was much higher than most developing countries.

Analysis showed that the returns to investment in research and development in Australian agriculture had been 15-40 per cent.

Dr Mullen said there was no evidence that the returns from investment in agricultural research were falling.

"Every effort should be made to preserve the current rate of investment, irrespective of how the ongoing debate about the extent of public funding is resolved," he said.

Dr Mullen said there were long lags between investment in research and on-farm efficiency gains - up to 35 years in some cases.

Given this, "concern about the implications of current levels of investment for future productivity growth are understandable", he said.

Dr Mullen said government research funding had been affected by three factors in recent years. First, more funding for research was being transferred to industry.

Secondly, the traditional integrated research model was breaking down. Public research now set investment priorities and levels, but the work was outsourced to public and private bodies.

"Third, and perhaps of greater long-term significance, is the increasing degree of collaboration between state departments of agriculture and universities."

A spokesman for the National Farmers Federation said the NFF shared the report's concerns. "Without more agricultural R&D, we will be left behind," he said. "Australia's competitive advantage will be whittled away."

© 2007 The Age

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