State of the Environment Report 2007
The agriculture sector in this report is defined as the management, protection and use of land for broadacre crop production, livestock and intensive industries. It focuses specifically on agriculture practices within the South West part of the State, an area of about 25 million hectares (or 15% of the State).
The Wheatbelt, situated in the State's South West, supports broadacre, rain-fed crop and stock farming across a variety of soil and landscape types. Common crops include wheat and other grains, oil seeds and pulse crops. Livestock industries are more commonly found in the higher rainfall areas, primarily involving cattle and sheep husbandry for meat and wool production. Intensive agricultural industries including horticulture, dairying, piggeries and feedlots are scattered throughout the State, but mostly closer to Perth and regional centres. Alternative agricultural activities are increasing in popularity and include silviculture (trees), viticulture (table and wine grapes) and hobby farms. The sector significantly overlaps with other natural resource sectors, particularly pastoralism, fisheries, wood production and water supply. these are addressed in separate chapters as they have different environmental impacts from agriculture.
Agriculture plays a major role in the economy of WA, representing the largest renewable resource sector. In 2005-06 the gross value of agricultural production was estimated to be $5.7 billion, with the value of agricultural exports being $4.3 billion (including production from pastoral areas). This represents 9% of the value of the State's total exports and approximately 16% of national agricultural exports, second only to the mining sector (Department of Agriculture and Food, 2006a). Fifty per cent of Australia's wheat exports come from WA. The agriculture sector also has direct flow-on effects to other sectors of the economy, with the WA agri-food industry contributing more than $10 billion to the State's economy in 2003-04. Agriculture also supports approximately 17% of WA's workforce (Australian Farm Institute, 2005).
The State Sustainability Strategy outlines a vision for our natural resources by ensuring that they are '... conserved, protected, managed and used sustainably for the common good' (Government of Western Australia, 2003a, p. 108). The WA agriculture sector has proposed a sustainable vision of '... ensuring profitable agricultural systems that conserve our environment whilst contributing to the economic and social wellbeing of rural Western Australia' (Government of Western Australia, 2003a, p. 115). The objectives for sustainable agriculture reflect these vision statements:
Farming for the Future is a Department of Agriculture and Food initiative that is developing farm sustainability practice standards to assist industry meet demands to demonstrate sustainable practice. A self assessment tool based on current recommended practices has been made available to farmers. The Department is now working with industries and representatives of the supply chain to further refine this, and related tools, to meet their particular needs. An annual telephone survey conducted by the department asked the question: 'Have you used a Quality Assurance, Environmental Management System or Code of Practice to guide your management decisions?' In 2006, just over one-third (35%) of farmers undertook a formal assessment, which was marginally higher than the 31% in 2005 (Department of Agriculture and Food, 2006b). Surveys indicate that the farmer participation rate was nearly double for farms in high rainfall areas compared to those in lower rainfall areas. Further refinement of the question is needed to reflect more clearly the intent of this indicator.
This indicator includes natural resource management plans and biosecurity plans incorporating risk assessment, targets, asset prioritisation and processes for evaluation and monitoring. Regional natural resource management groups have accredited regional strategies based on continuous improvement. Investment plans focus investment on achieving resource condition targets in the regional strategies. Targets will be refined and validated as part of the continuous improvement process. The plans offer a long-term approach to investment in resource protection and the development of agreed targets, and will assist the integration of effort across the sector.
Techniques such as life cycle assessment take a whole-of-lifecycle view of a product or industry to help identify processes that are resource inefficient or where environmental impacts are likely to occur. To date, the grains, dairy and piggery industries have undertaken life cycle assessment. However, this would need to be applied to a broader range of industries and redone regularly to reveal trends and identify where process improvement is needed throughout the supply chain. The approach will require some development and will be refined as research needs are identified and new or improved technologies emerge for different stages of the industry cycle.
The agriculture sector has a major role in natural resource management and a responsibility to ensure continuous improvement and adaptive management. Recent research has shown that the most important influences on the adoption of sustainable farming practices in Australia include participation in natural resource management programs, managerial skills and economic factors such as farm profitability, farm size, off-farm income and level of farm equity (Nelson et al., 2004).
Since the 1998 State of the Environment report (Government of Western Australia, 1998a), there has been a substantial increase in participation in management systems that identify and manage the environmental impacts of the farm business and improve production efficiencies. Such approaches - including environmental management systems, various industry codes of practice and relevant quality assurance systems - include tools such as best management practices (Table TS1.1), the development of property management plans, hazard analysis and critical control points. While there are no long-term measures of the rate of involvement, recent surveys show that 35% of farmers in the surveyed sample participated in a systematic assessment of their management practices (Department of Agriculture and Food, 2006b).
![Table TS1.1: Per cent of farmers adopting best practice, 2002–06. [Data source: Department of Agriculture and Food, 2006b.]](/site/files/images/Table-TS1.1_Large.jpg)
Profitability can be a key indicator of agricultural sustainability. It highlights the likelihood of a business remaining viable and its capacity to spend surplus income on natural resource conservation and management. In the last three years the WA broadacre and grains industries were more profitable than their eastern states counterparts and in a better position to adopt best management practices (Table TS1.2)
Profit-at-full-equity represents the economic return to land, capital and management after the value of labour provided by managers has been deducted (eds Hajkowicz & Young, 2002). It provides an indicator of capacity of businesses to adapt to variable weather conditions, environmental pressures and market conditions. Farms in the South West have a wide spread of profit-at-full-equity (Figure TS1.1). The extensive areas of low profit represent pastoral areas of the southern rangelands. Excluding rangelands, it is estimated that 80% of profit-at-full-equity came from less than 3% of agricultural land (eds Hajkowicz & Young, 2002; National Land and Water Resources Audit, 2002). This significant inequity in profitability suggests some structural problems that may warrant intervention through public policy.
![Figure TS1.1: Profit-at-full-equity, a five-year average for 1992–96. [Data source: CSIRO [ver.1997]; Analysis: CSIRO; Presentation: EPA.]](/site/files/images/Figure-TS1.1_Large.jpg)
Not only can diseases, weeds and pests damage native environments, they can lead to a decline in agricultural production and affect trade in international markets (see 'Introduced animals' and 'Weeds'). Western Australia has one of the world's most pest and disease-free agricultural production environments (Agriculture Protection Board of Western Australia, 2004). As well as preventing new animal pests, diseases and weeds from arriving, biosecurity involves getting rid of, and controlling, those that are already here. The sharp decrease in the number of animal diseases identified on WA farms is in part due to the reduction in the list of notifiable diseases. The decrease in the interceptions of significant pests, diseases and weeds is a positive result for the State (Table TS1.3). Biosecurity plans have been developed to protect agricultural industries. These include Grainguard, Hortguard (i.e. horticulture), Stockguard (i.e. livestock) and Beeguard.
Protection mechanisms such as covenanting programs are used by farmers to voluntarily protect and manage native vegetation on their property. Covenants are available through the National Trust of Australia, Soil and Land Conservation Council and Department of Environment and Conservation programs. Covenants restrict clearing and grazing of native vegetation and may help establish management arrangements. Fencing may be required to ensure livestock do not intrude into a covenanted area. Nearly 200 000 ha of native vegetation (affecting 2700 landholders) has been protected since 1988 through these three programs (Table TS1.4).
It is generally recognised that many forms of agriculture are not sustainable. Over the long term this will require major changes for some agricultural landscapes. In the short to medium term, sustainable use of natural resources can be achieved by improvements in eco-efficiency, that is, the production of goods that use less energy and fewer raw materials, leading to less waste, less pollution and reduced cost. Technological innovation informed by life cycle assessment will be a key to this.
Life cycle assessment is an emerging technique for assessing the eco-efficiency of agricultural industries. It examines the efficiency of production processes that help to transform raw agricultural materials into finished product, and the associated production of waste. Life cycle assessments can focus on specific areas of inefficiency or environmental degradation on the production line. Policy measures, including targeted research, can be implemented to rectify these problems.
Recent examples of life cycle assessments include:
1. The Western Australian grains industry found the following areas for improvement in the pre-farm and farming stages of bread production: global warming, human toxicity, terrestrial ecotoxicity and eutrophication (Narayanaswamy et al., 2002).
2. The Australian dairy industry found the following areas for improvement in the production of milk on farm: water use, eutrophication and greenhouse gas emissions (Nicol, 2005).
Efficiency of resource use can also be determined from the amount of production per unit area of farm land. Land use and production efficiencies vary across agricultural industries. For example, wheat yields in WA are improving by 20-50 kg/ha per year, depending on the location. On average, this has resulted in a doubling of yields over the last 20 years, a doubling of water-use efficiency and a three- to four-fold increase in the proportion of the crop qualifying for premium payments related to quality. This improved crop production was due to plant genetics, adaptation to environment and crop management, and has helped farmers remain profitable in the face of relentlessly declining terms of trade (increased costs with reduced returns).
Total factor productivity growth represents increases in outputs relative to resource inputs. The State's agricultural sector growth is estimated to be 4.2% per annum, which is among the highest in Australia. Within WA, the wheat-sheep zone has the highest total factor productivity growth of 6.6% per annum: sheep (4.1%), beef (3.5%), mixed sheep-beef (4.7%) and mixed crop-livestock (3%) (Islam, 2000). Given that crop yields are still improving despite recent low rainfall years, it is believed that the growth in yield is due to improved technologies and better use of rainfall. A significant component of doubling wheat yields per hectare, often in the face of declining rainfalls, has been improved water use efficiency through reduced losses of rainfall to soil evaporation and drainage (Anderson et al., 2005).
While increased water scarcity within the agricultural sector will motivate farmers to improve their irrigation practices and reduce their water consumption per output unit, agriculture is among the highest water users in the State, consuming an estimated 40% of supplied water (see 'Water supply'). There is a wide range of returns on water use within the agriculture sector. The Department of Agriculture (2004a) estimated that returns per unit of water used varied from highs of around $13 000/ML and $9 300/ML for potatoes and apples respectively, to a low of $600/ML or less for flood-irrigated dairy or beef production. From 1990 to 2000, an increase in the use of more efficient irrigation methods occurred. For example, drip or micro spray use went from 18% to 38%, and there was a corresponding decrease in less efficient methods including furrow or flood irrigation (which decreased from 48% to 35%), and spray/sprinkler methods, which decreased slightly (Australian Bureau of Statistics, 1991 & 2001).
Water resource allocation and management policies that facilitate a shift in water use towards activities with the highest economic returns is predicted to result in investment in water management and more efficient systems that will support improved sustainability outcomes. Western Australia uses less energy per dollar product than the Australian average, probably due to the comparatively low use of irrigation (Figure TS1.2). The State efficiency is not as high as for Australia generally, but usage is decreasing more rapidly (Department of Agriculture, 2005a).
![Figure TS1.2: Comparison of energy use in Western Australia and Australia for the agricultural sector. [Data source: Department of Agriculture (2005a).]](/site/files/images/Figure-TS1.2_Large.jpg)
In contrast, efficiency of fertiliser use in WA (Figure TS1.3) decreased from 1990 to 2003 for wheat and barley (Department of Agriculture, 2005a). The reason for this requires further analysis. It may reflect a significant shift from sheep to grain production that has opened up areas for grain growing where farmers typically do not achieve the efficiency levels of 'traditional' cropping areas (i.e. those with high rainfall and fertile soils). The trend to increased use of nitrogen fertiliser is also likely to be a factor.
![Figure TS1.3: Fertiliser (NPK) use efficiency for wheat and grain farms in Western Australia, 1990–2003. [Data source: Department of Agriculture.]](/site/files/images/Figure-TS1.3_Large.jpg)
Public awareness of environmental issues has meant that farm practices are increasingly influenced by environmental quality and landscape amenity concerns. Many of the key issues affecting land and water resources associated with agriculture (e.g. salinisation, nutrient run-off causing eutrophication, soil acidification, waterlogging, loss of soil health) are discussed elsewhere in this report. Other land degradation issues include water repellence of some soils, waterlogging, soil erosion and deterioration in remnant vegetation.
Pests, weeds and diseases regularly threaten the productivity of agricultural systems. As global trade has increased, so has the risk of introduction of exotic pests and diseases. Agricultural industries are continually challenged by exotic disease and pest threats (e.g. anthracnose in lupins, apple scab, Queensland fruit fly and skeleton weed in broadacre crops). Exotic vermin (e.g. foxes, rabbits and wild cats) and weeds (e.g. bridal creeper) once established greatly threaten native wildlife and natural habitats. Surveillance and control of pests and diseases will have ramifications not only for farm businesses but also for natural environments.
Climate change is likely to pose a long-term challenge for the agricultural sector through a reduction in growing season rainfall, on-farm water availability, animal health, and extreme weather conditions. It could also affect soil stability, human health and the risks from insect pests and weeds (see 'Climate change'). Rising wheat yields over the past 30 years in the South West (despite reduced rainfall in the growing season) illustrates the importance of farming technology changes and suggests that improvements in farming systems and technology have been able to cope with the climate trends to date. Whether this will continue in the future remains uncertain and will be a challenge for adaptation and planning for the future of the industry.
Irrigation water use will come under increasing pressure from competing uses such as public water supply and industrial use. Agricultural industries will also be under scrutiny in regards to the efficiency of water use, water allocations, receipt of cross-subsidised water supplies and impacts on water quality through salinisation and nutrient export.
A pressure on sustainable agriculture is the depopulation of rural areas and subsequent reduction of services in rural towns. Rural employment is decreasing with increased mechanisation, comparatively lower wages for rural workforces and the low diversity of job opportunities. Rural communities are also becoming a declining political force.
Some of the economic pressures on sustainable agriculture are the declining terms of trade, the declining importance of agriculture in the nation's economy, the weakening relationships between farm and food prices, the deregulation of markets and the spread of quality assurance schemes requiring farmers to rapidly learn new skills.
Research, development and extension: Research, development and extension in agriculture are vital to the sector's performance. Current activities include developing standards and better management practices; developing more sustainable land management systems; productive use and rehabilitation of saline lands; climate science and adaptation; recycled organics; and exploring new opportunities such as bio-energy production and carbon sequestration through revegetation (e.g. trees, saltland pasture) to offset agricultural greenhouse gas emissions. Much of this work involves collaborative programs across a range of research organisations and government departments. For example, the Future Farm Industries Cooperative Research Centre is at the forefront of research, development and extension with programs covering the fundamentals of plant-based solutions to salinity.
Integrated planning: Regional natural resource management groups have developed regional plans in partnership with Commonwealth, State and local governments and regional communities in order to gain accreditation through the National Action Plan for Salinity and Water Quality (Council of Australian Governments, 2000) and the Natural Heritage Trust. These programs and processes have built on the previous Landcare movement. The regional natural resource management strategies involve resource risk assessments, identification of priority assets, setting targets for natural resource management indicators, and establishing local/farm-level practices to help meet desired outcomes at regional and State levels. Integrated land use planning is being used in a number of areas to manage potential threats to agriculture and to identify and promote new land use opportunities aligned with land suitability or improvements to existing agricultural practices. These developments indicate a positive move towards strategic and integrated planning for investment of public and private funds for sustainable use of agricultural land.
Economic instruments: Investigations are being undertaken of economic incentives and innovative instruments as drivers of land use change towards more sustainable use of agricultural land. They include biodiversity offsets, integrated ecosystem services trading, tax incentives and environmental stewardship rebates as well as land purchase.
Education and training: Substantial work is underway in education and training programs by the Department of Agriculture and Food, regional natural resource management groups, research organisations, private grower groups and programs such as FarmBis.
Industry management programs: Trials are being conducted in WA as part of the Environmental Management Systems National Pilot Program. These projects are now being built upon by a number of broader industry environmental management systems pathways projects. Most agricultural industries and their supporting service industries have established or are establishing codes of practice which promote quality assurance (including best practice farm management and production of safe food and fibre products). Innovative producer groups like the Mingenew-Irwin Group, Blackwood Basin Group and the Fitzgerald Biosphere Group are integrating sustainability principles into production through the environmental equivalent of quality assurance programs. Many agricultural industries are introducing programs to ensure sustainable production for the future, for example, the national Dairying for Tomorrow program with Western Dairy, Horticulture for Tomorrow, and Grain and Graze.
Industry biosecurity management plans: Hortguard and Grainguard are examples of industry management plans which address roles and responsibilities, risk assessment and processes for joint decision-making and cost sharing based on public versus private good. They focus on prevention through border protection, preparedness by the agriculture sector, and response to incursions of exotic pests, weeds and disease.
Agricultural industries and farming communities have a responsibility to ensure that natural resources are maintained or improved for future generations and that associated impacts are not transferred to the wider catchment. Unsustainable agricultural practices may result in loss or decline in native vegetation, reduced biodiversity, introduction and invasion of weed and feral species, altered water regimes, salinisation, soil erosion, acidification, sedimentation, eutrophication and contamination of waterways and wetlands.
Unsustainable agricultural land use also results in reduced production and decreased economic profitability. It may render the land unsuitable for other potential uses that could be better suited to the land including tourism, silviculture, aquaculture, water supply catchments, conservation and potentially carbon trading. Market access for some industries required to meet triple bottom line accountability and performance standards may also be affected.
Unsustainable agricultural practices may result in a net migration of people away from farms that become less profitable or degraded. A decreasing population base will generally result in reduced local development opportunities and business interest, a fall in employment and a gradual loss of community services that support the agricultural sector.
9.1 Develop a Climate Change Adaptation Strategy for agriculture in WA in a partnership between the relevant government and non-government organisations. This would include alternative farming systems that enable adaptation to climate change and promote sustainable industries and technologies that are profitable as well as environmentally beneficial, such as bio-fuels or carbon sequestration.
9.2 Establish strategic land use analysis and planning capacity to advise land managers and industry about the sustainability of current and alternative land uses.
9.3 Develop economic incentive packages and market-based schemes to drive land use changes where necessary.
9.4 Accelerate adoption of schemes such as 'Farming for the Future', quality assurance, environmental management systems and life cycle assessment. Incentive programs and innovative extension and environmental education methods need to be developed to ensure a critical mass of adoption of these initiatives and to encourage the establishment of new behaviour norms for the agriculture sector.
The pig industry provides a very good example of an industry that has incorporated triple bottom line sustainability principles into its operations. It has achieved this through modifying various production processes and the continued enhancement of Codes of Practice to address environmental issues associated with pig production including odour, nutrient enrichment of ground and surface waters, and erosion and land degradation associated with poorly run operations. For example, the industry increased the efficiency of pig diets by altering the proportions of phosphorus and nitrogen in pig food. Straw-based housing systems were introduced for grower/finisher pigs that retained waste in the straw instead of transferring it to traditional large effluent ponds. This reduced the risk of nutrient pollution in local groundwater and streams. Water use efficiency was also improved, with water now only being used for drinking and not for cleaning and washing down pig pens. Changes were also made industry-wide, including uptake of a quality assurance program and the development of environmental codes of practice. As a result, the industry has reduced its environmental impacts and improved export opportunities.
The Mingenew-Irwin Group began investigating the applicability of environmental management systems to broadscale agriculture in 2000, and in 2003 developed an environmental management systems workbook and best management practice guidelines. They then started work on a new research project to look into the widespread adoption of environmental management systems, ensuring practical application and benefit testing, as part of a national environmental management systems pilot program (funded by the Natural Heritage Trust). The group continues to train local producers and support them in developing individual business environmental management systems through workshops and individual support.
The environmental management systems approach is based on the principles of the internationally recognised code ISO 14001, and also includes some of the techniques from quality assurance code SQF 1000. These deal with major environmental factors such as chemical usage, salinity, erosion, groundwater contamination, eutrophication of waterways and the introduction of genetically modified crops.
Some of the benefits are improved environmental and whole-of-business management by farmers, which leads to overall improvements in land management. It is seen as a proactive approach to environmental management and provides benefits by:
