Grains Research Development Corporation’s plan to spend $1 billion on ‘world class’ research between 2023-28

Australia’s biggest grains research organisation plans to spend more than $1 billion on “world class” research during the next five years, turbocharged by consecutive bumper harvests and a desire to carry out its “most ambitious” work yet. The Grains Research Development Corporation handed down its five-year plan for 2023-2028 at the Australian Grains Industry Conference in Melbourne on July 26, with the strategic document looking to 2040 to anticipate “substantial changes” ahead. This includes a shake-up to crop mix and demand, the potential game-changing opportunities presented by new technology, the need to address increasing seasonal variability, production risk, and consumer and investor demands. Mr Watt said GRDC’s plan had been informed by extensive consultation with grains industry stakeholders and considered the needs and priorities of those set to benefit from ongoing research, development and investment. “(The plan) is comprehensive and clear in its intent to challenge the status quo and stretch GRDC and the industry over the next five years to maximise the impact of research investments,” he said “This plan will help ensure Australian grain growers and the broader industry is strong, profitable and sustainable now and into the future.” GRDC chair John Woods, who farms at Goondiwindi, said it was GRDC’s “most ambitious” approach to RD&E investment yet. He said it had been developed after hundreds of conversations with growers, advisers, researchers, and industry stakeholders. The nation’s grains industry is now the biggest single sector of Australian agriculture, with the 2021-22 harvest worth more than $28 billion in value. Grain growers pay a levy to GRDC worth 0.99 per cent of the farm-gate value of their grain, with that figure matched by the Federal Government — up to 0.5 per cent of the three-year rolling average of the gross value of crop production. The funds are used to invest in rural research, development and extension projects for the grains industry, with excess levies often kept as reserves to cover poorer production years. “Our new five-year RD&E Plan is critical because it has been informed by growers and industry and it positions how and where GRDC will invest to really deliver for our sector going forward,” Mr Woods said. “We are investing in areas we have never done before and investing in ways we have never done before through industry initiatives such as Grains Australia and the Australian Export Grains Innovation Centre.” Mr Woods pointed to international data that showed Australian farmers had higher total factor productivity than their counterparts in the US, India, Brazil and Canada, where there was much higher public investment in RD&E. “The researchers found Australian wheat total factor productivity grew by an average of 2.75 per cent per year during the 30-year period of GRDC investments,” he said. “In comparison, Argentina — the next-best performing country — experienced average wheat growth of 0.98 per cent per year. “This is why GRDC is important for Australian grain growers, not only are we the major investors in critical RD&E domestically, we are also the front door for overseas investors.” Total farm productivity compares total gross output with total land, labour, capital and material inputs., with a growing TFP indicates total output is growing faster than total inputs. GRDC managing director Nigel Hart said the new plan would build on 30 years of RD&E investments with trusted and new research partners to deliver RD&E that improves the profitability and sustainability of Australian grain growers. “At any time GRDC manages more than 500 RD&E projects ranging in scope from multi-million-dollar national projects with university research partners and other Research Development Corporations, to small projects with farming systems groups designed to deliver against regional needs,” Mr Hart said. “We understand that research is a long game. There is a time-lag between discovery and adoption, so foresight is needed to ensure we have a portfolio of investments that delivers impact for the problems of today and tomorrow.” The plan revolves around four key ideas: harnessing existing potential, reaching new frontiers, growing markets and capturing value, and thriving for future generations. Its five-year investment portfolio includes $250 million more spending on RD&E year-on-year, with a target of $4-plus benefit per research dollar, $750m in partner co-contributions. GRDC expects to net $148 million in grower levies in 2023-23, with the Federal Government tipping in $91m, and other sources of income adding $29m to its budget to total $269m. However, that figure is expected to decline to $250m by 2027-28, despite a forecast increase in grower levies to $150m with the Commonwealth contribution falling to $74m in five years. GRDC’s total expenses will increase from $267.51m in 2023-24 to $280.31m by 2027-28. This includes its plans to invest $230m on RD&E each year until 2027-28, when that will increase by $10m, while its staff wages will increase from $16.46m to $17.66 by 2027-28. Its supplier costs will increase from $267.51m to $280.31m. GRDC is one of Australia’s 15 Rural Research and Development Corporations responsible for planning, investing in and overseeing research, development and extension for 25 leviable grain crops. The organisation is headquartered in Canberra, with offices also in Perth, Adelaide and Toowoomba.