Cross-RDC Impact Assessment and Performance Reporting .Cross-RDC Impact Assessment and Performance

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Page 1 of 53

Cross-RDC Impact Assessment and Performance Reporting Update

Stage 1: Cross-RDC Impact Assessment for the Period

1 July 2009 to 30 June 2015

FINAL REPORT

October 2016

Prepared For

The Council of Rural Research and Development Corporations

Submitted By

Agtrans Research

AgEconPlus

EconSearch

Date

19th October 2016

Page 2 of 53

Acknowledgments

Agtrans Research and Consulting, in association with AgEconPlus Consulting and EconSearch,

would like to thank Tim Lester, for facilitating contact with the Rural Research and Development

Corporations, and the Evaluation Working Group, for their valuable guidance and feedback

throughout the Cross-RDC Impact Assessment process. The members of the Evaluation Working

Group of the Council were:

Tim Lester, Council of Rural Research and Development Corporations

Patrick Hone, Fisheries Research and Development Corporation

Leigh Clement, Sugar Research Australia Limited

Michael OShea, Sugar Research Australia Limited

Terry Longhurst, Meat and Livestock Australia

Chris Lafferty, Forest and Wood Products Australia

Dave Alden, Rural Industries Research and Development Corporation

Alison Anderson, Horticulture Innovation Australia Limited

Murray Jenkins, Dairy Australia

Mark Rowley, Wine Australia

In addition, a number of other RDC personnel attended workshops held with the Working Group and

made valuable contributions; their inputs are gratefully acknowledged.

Glossary of Economic Terms

Cost-benefit analysis: A conceptual framework for the economic evaluation of projects and programs in the public sector. It differs from a financial appraisal or evaluation in that it considers all gains (benefits) and losses (costs), regardless of to whom they accrue.

Benefit-cost ratio: The ratio of the present value of investment benefits to the present value of investment costs.

Discounting: The process of relating the costs and benefits of an investment to a base year using a stated discount rate.

Internal rate of return: The discount rate at which an investment has a net present value of zero, i.e. where present value of benefits = present value of costs.

Investment criteria: Measures of the economic worth of an investment such as Net Present Value, Benefit-Cost Ratio, and Internal Rate of Return.

Modified internal rate of return:

The internal rate of return of an investment that is modified so that the cash inflows from an investment are re-invested at the rate of the cost of capital (the re-investment rate).

Net present value: The discounted value of the benefits of an investment less the discounted value of the costs, i.e. present value of benefits - present value of costs.

Present value of benefits: The discounted value of benefits.

Present value of costs: The discounted value of investment costs.

Page 3 of 53

Acronyms and Abbreviations

ABS Australian Bureau of Statistics

AECL Australian Egg Corporation Limited

Agtrans Agtrans Research and Consulting Pty Ltd

AMPC Australian Meat Processor Corporation

APL Australian Pork Limited

AWI Australian Wool Innovation

BCR Benefit-Cost Ratio

BSES Bureau of Sugar Experiment Stations

CBA Cost Benefit Analysis

CRDC Cotton Research and Development Corporation

CRRDC Council of Rural Research and Development Corporations

DAWR Department of Agriculture and Water Resources

FRDC Fisheries Research and Development Corporation

FWPA Forest and Wood Products Australia

GDP Gross Domestic Product

GRDC Grains Research and Development Corporation

GWRDC Grape and Wine Research and Development Corporation

Hort. Innovation Horticulture Innovation Australia Limited

IRR Internal Rate of Return

MIRR Modified Internal Rate of Return

MLA Meat and Livestock Australia

NPV Net Present Value

PIRD Act Primary Industries Research and Development Act

PVB Present Value of Benefits

PVC Present Value of Costs

R&D Research and Development

RD&E Research, Development and Extension

RDC Research and Development Corporation

RIRDC Rural Industries Research and Development Corporation

SRA Sugar Research Australia

SRDC Sugar Research and Development Corporation

USB Universal Serial Bus (digital storage device)

WTP Willingness to Pay

Page 4 of 53

Contents

Acknowledgments ................................................................................................................................... 2

Glossary of Economic Terms .................................................................................................................. 2

Acronyms and Abbreviations .................................................................................................................. 3

List of Tables ........................................................................................................................................... 5

Executive Summary ................................................................................................................................ 6

1. Introduction ...................................................................................................................................... 8

2. Context and Background ................................................................................................................. 9

2.1 The Rural Research and Development Corporations ............................................................. 9

2.2 The Council of Rural Research and Development Corporations .......................................... 10

2.3 The Purpose of Cross-RDC Impact Assessment .................................................................. 10

2.4 Summary of Methods and Findings from the 2008 and 2010 CRRDC Cross-RDC Impact Assessment Reports ......................................................................................................................... 10

2.5 Evaluation Post-2010 ............................................................................................................ 12

3. The Current Assessment ............................................................................................................... 13

3.1 Engaging Individual RDCs in the Cross-RDC Evaluation Process ....................................... 13

3.2 Description of the Stage 1 Template ..................................................................................... 13

4. List of evaluations .......................................................................................................................... 15

4.1 The Population ...................................................................................................................... 15

4.2 Exclusions ............................................................................................................................. 16

5. Impact Assessment Results (2010-2015) ...................................................................................... 18

5.1 Economic Evaluation Results ...................................................................................................... 18

5.2 Qualitative Description of Environmental and Social Impacts ..................................................... 21

6. Public benefits ................................................................................................................................ 22

7. Alignment with CRRDC Communication Themes ......................................................................... 23

8. Issues Identified and Implications for Future Cross-RDC Impact Assessment ............................. 28

9. Conclusion ..................................................................................................................................... 31

Reference List ....................................................................................................................................... 32

Appendices ........................................................................................................................................... 33

Appendix 1: List of all 15 Current RDCs with Web Page Links ......................................................... 33

Appendix 2: Complete List of the 288 Project Cluster Evaluations Submitted and Recorded .......... 34

Appendix 3: Summary Results of Sensitivity Analyses ..................................................................... 41

Appendix 4: Subjective Assessment of Alignment of Each Project Cluster to the Six CRRDC

Communication Themes (Total 288 Project Clusters) ...................................................................... 43

Page 5 of 53

List of Tables

Table 1: Total Number of Project Cluster Evaluations Submitted ........................................................ 15

Table 2: Number of Project Clusters Excluded from the Final Population by Assessment Criterion ... 16

Table 3: Number of Project Cluster Evaluations Included in the Hard Cut Population by Year ........... 17

Table 4: Aggregate Results by Year