Mahatma Gandhi said that "an ounce of patience is worth more than a tonne of preaching". If that is the case, Australian farmers are sitting on a goldmine waiting for certainty on the way forward under net zero agriculture. But exactly how long can we continue to wait?
The Australian Dairy Sustainability Framework has committed our industry to doing its bit to reduce GHG emissions by 2030. At last month's Australian Dairy Conference, we heard from a UK dairy farmer on what net zero agriculture might look like in practice. Lying in wait for Australian farmers could be enforced regulations on lowered stocking rates, reductions on fertiliser usage and lowering the percentage of arable land per property, all supported by a seemingly endless stream of compliance. This is to the chagrin of many Australian dairy farmers who have finally seen farmgate profits lift, with the total value of payments made to farmers by dairy companies rising by 24 per cent to $6.1 billion in 2022/23.
The genuine concern for Australia is that the Europeans have the carrot (or stick depending on your economic outlook) of EU farm subsidies for farms that meet the regulations set by Brussels, which on average is 19pc of farm incomes. Alternatively, we have one of the lowest levels of farm subsidies in the OECD, at around 3pc, which is a key reason why Australian agriculture has been able to remain competitive in turbulent global markets.
For the record, I am not against action on GHG emissions. I am pragmatic enough to see that we may not be able to afford the time to argue among ourselves on industry action measures if, for example, supermarkets pull the rug out from agriculture by demanding net zero emissions by an arbitrary date before stocking our produce. So, for me the key question remaining unanswered is without the stick of farm subsidies, what will drive the rate of change on Australian dairy farms to reduce naturally occurring enteric methane emissions and accept replications of the arduous compliance regimes seen overseas?
Will it be the historical bull-at-a-gate demands of supermarket duopolies or the clumsy hand of government? I am not sure which is the worst-case scenario. Are consumers prepared to pay extra for produce that enables farmers to meet industry obligations under global agreements? I guess we remain following Ghandi's lead on patience waiting for clarity, still the political preaching remains deafening.
