DISCUSSION PAPER Agricultural Language, Literacy and

D I S C U S S I O N PA P E R

Agricultural Language, Literacy and Numeracy in Tasmania

M AY 2 0 2 0

Acknowledgement

Inspire AG acknowledges the farmers,

agribusiness managers and other people who

generously gave time to this study. They did face-

to-face interviews and shared their thoughts and

experiences about literacy.

Thank you for the courage to be vulnerable and to

have a difficult discussion with such honesty.

Most importantly, thank you for trusting us with

your personal stories, which help make this a

richer, more productive conversation.

Disclaimer

Inspire AG was the project manager for the

Agricultural Language, Literacy and Numeracy

in Tasmania project. We wrote this discussion

paper after listening to the views of key people in

the Tasmanian agri-sector, in interviews, casual

conversations and by email.

Inspire AG takes no responsibility for whether

information in the report is accurate, reliable or up

to date. Circumstances may have changed since

we consulted with people in the industry.

Prepared for:

26TEN

Sue Costello

Manager

Level 3, 91 Murray Street, Hobart, TAS 7001

E: [email protected]

W: www.26ten.tas.gov.au

Prepared by:

Inspire AG

Sally Murfet

Chief Inspiration Officer

PO Box 9, Sorell, TAS 7172

E: [email protected]

W: www.inspire-ag.com.au

3DISCUSSION PAPER: Agricultural Language, Literacy and Numeracy in Tasmania October 2019

Contents

Foreword 4

Executive Summary 6

Setting the scene 8

Definitions 8

Introduction 8

Workforce composition 10

Past perceptions of agriculture 10

Education levels 10

Findings 10

Global trends 11

Effects of low literacy 11

An insight into literacy overseas 11

Industry growth ambitions 12

The truth: behind closed doors 12

Reducing the stigma 12

Successful literacy activities 13

Possible solutions 13

Embed messages about literacy in other topics 13

Promote 26TEN grants 13

Showcase what’s possible with case studies 14

Appoint industry facilitator 14

Where to now? 14

Why are these recommendations important? 16

Recommendations 16

Industry growth targets 17

Employment 17

Age profile 17

Farm manager age 17

Appendix 1: Industry context 17

Education level 18

Appendix 2: External environmental factors 19

Methodology 21

Appendix 3: Consultation approach 21

Senior agribusiness professional 22

Registered training organisation employee 22

Agri-extension professionals 22

Industry organisation CEO 22

Appendix 4: Summary of interviews 22

Rural Business Tasmania 23

Houston’s Farm 23

Industry peak body 24

Agricultural consultant 24

Corporate agri-finance professionals 24

Independent agri-finance professional 24

Reid Fruits 25

Farm overseer 25

Young farmer 25

4

Literacy and numeracy skills are part of a person’s human capital. They help people take part in family life,

community events and jobs. Studies show that almost 50 per cent of Tasmanians find reading and writing

difficult. In agriculture, it may be more than 50 per cent. Tasmania’s agricultural industries employ 14,500

people.

Low levels of literacy and numeracy are barriers to employment. This may get worse in future as agriculture

meets the significant opportunities and challenges that lie ahead. From family farms to corporate

businesses, agriculture will increasingly need to use new technologies. Agriculture will also need to meet

the growing public demand for environmental protection, animal welfare and safe, highly nutritious foods.

A good education will provide the way to a better life, increased employment opportunities and better pay.

All school leavers should be equipped with literacy and numeracy skills to manage everyday social and work

life. However, as we know, this is not always the case, and too many individuals slip through the net.

26TEN is a State Government program that helps people, businesses and community groups improve

literacy and numeracy skills. This discussion paper is the first attempt to work out the extent of the literacy

and numeracy problem in Tasmanian agriculture and to suggest some strategies and actions to help.

From my own farming experience, I know the first problem is to identify people who need help, then to

provide that help in a sensitive and constructive way.

I commend 26TEN and Inspire AG for the work done in preparing this paper.

Mr Richard Warner

Industry advocate and former farmer

Foreword


6

The sad irony is that some of the individuals this

discussion paper is aiming to support may struggle

to read it.

In the Agricultural Language, Literacy and

Numeracy in Tasmania Project, we sought to consult

with experts in Tasmanian agriculture. Our aims

were to:

� Raise awareness of the effect that poor reading,

writing and comprehension skills have on the

productivity and profitability of the sector and its

people;

� Understand the sector’s readiness for change;

and

� Work out if there is an appetite for establishing a

collaborative industry network that would work

together to improve literacy skills.

The findings of our discussions were surprising and

confronting.

The experts we spoke with thought that literacy

was important. Nevertheless, many said they

felt uncomfortable starting a conversation with

someone they suspect has low literacy. One person

remarked ,“I am not even sure it’s my business to

say anything.” It was alarming to learn that there is

still a significant stigma attached to low literacy in

the sector. It was even more surprising to hear the

depth of discomfort that some people experienced

speaking about the topic.

This project was designed as an ‘appreciative

enquiry’, that is, Inspire AG used semi-structured

interviews to talk with industry experts. However,

we experienced difficulties in making appointments

and some experts cancelled their interviews. We

cancelled our planned workshops because of the

low number of responses; instead we discussed the

interview results in more one-on-one conversations,

either face-to-face or by email. We believe there

were a number of reasons for the difficulties we

met, and the main one was the stigma surrounding

low literacy.

The people who took part in the project were

genuinely shocked to learn that nearly 50 per cent

of Tasmanians struggle with literacy. Despite being

aware that low literacy and numeracy is a significant

problem affecting productivity and performance

in their business or organisation, they were still

surprised at the extent of it. The Tasmanian sector

employs 14,500 people (including fishing and

forestry). Therefore, that more than 7,000 people

potentially had difficulty with reading, writing or

comprehension concerned our respondents. Many

highlighted literacy as one of the most important

enablers for successful farming enterprises, now

and in the future.

Significant challenges face agriculture and its

workforce because of an increased demand for the

food and fibre needed to feed and clothe a growing

population. To increase productivity, the industry

relies on advances in science and technology. This

creates an operating environment that is always

changing (see Appendix 2) and will add to the

complexity of the challenge the industry faces.

As well as holding interviews, Inspire AG looked

at factors that may influence farming methods.

We identified five major trends that may affect

agriculture over the next 10-15 years. The trends

may also have a bearing on the design of literacy and

numeracy programs. They are:

1. Population growth

2. A changing environment

3. Increased wealth among consumers

4. Advances in science and technology

5. Changing buyer behaviour

During our consultation, we heard that farm roles

traditionally did not require strong reading skills.

However, as farming is becoming more technical,

and the five trends continue to evolve, the industry’s

labour force will need better reading, writing and

comprehension skills. They will need to be able to

access, understand, analyse and evaluate data to be

Executive Summary


productive contributors in the workplace. Farmers

and agri-professionals who understood these

trends are already working to adapt their approach

to human resource management. They understood

the implications of these changes for recruiting and

managing their workforces.

We heard that low literacy is a substantial and

awkward concern for the industry. The experts

spoke about the following problems, which affected

the performance of their business and the wellbeing

of individuals:

� Unsatisfactory completion of workplace

documents or forms;

� Difficulties in presenting or understanding

written communication;

� The effects of incorrect calculations, such as the

ratio of chemicals;

� Difficulties in managing relationships through

poor verbal communication skills;

� The stress individuals experience trying to hide

their low literacy at work;

� The importance of a safe culture for individuals

to self-identify difficulties with literacy; and

� A poor understanding of how to identify,

approach and support those with literacy issues.

It is well understood that adult literacy and

numeracy skills contribute to wellbeing in many

ways. The skills are fundamental to ensuring people

can fully take part in education, work or day-to-day

life. Conversely, the lack of opportunity to develop

these skills can lead to doors closing. This can affect

not only a person’s education, but also their overall

wellbeing. As we noted above, the experts stressed

that farming systems and practices are constantly

changing. Therefore, agri-industry employers now

require higher-level skills than ever before.

Although we heard that low literacy is a substantial

and awkward concern, we did not hear a clear, single

solution for lifting literacy levels that 26TEN isn’t

already doing. Based on what we heard, Inspire AG

feels there is an opportunity for agri-employers to

collaborate more. We suggest there needs to be a

strategy to improve literacy in agriculture. Inspire

AG believes there has never been a better or more

important time for the industry to focus on literacy,

as it is discussing how to grow farmgate values.

Importantly, our small study showed that employers

will need help addressing the literacy needs of the

workforce.

Inspire AG makes six recommendations for 26TEN.

Pursuing these recommendations will build on the

energy and awareness gained from this project. The

first recommendation is that 26TEN helps establish

an industry advisory group to coordinate ways to

improve literacy in the agri-sector. Second is to

create industry case studies to show the return on

investment that can result from boosting workplace

literacy levels. The other recommendations involve

customising, promoting and distributing 26TEN’s

literacy and numeracy resources, materials and

funding.

The findings of this report are relevant to the entire

supply chain of the Tasmanian agri-sector. They are

relevant to individual workers, business owners,

industry bodies and government. They will also be

useful for education and training providers, and for

businesses that offer products or services to the

industry.

Implementing the recommendations would

encourage the Tasmanian agri-sector to build on

current momentum and the investment 26TEN

has already made. It would increase the industry’s

awareness of the wellbeing and financial benefits

of strengthening literacy for businesses and

for individuals. Most of all, it could be helpful in

reducing the stigma of literacy currently prevalent

in the industry.

8

Setting the sceneThe 26TEN Tasmania: Tasmania’s strategy for literacy and numeracy 2015-2025 is a long-term strategy that

sets a framework for action by the whole state. It is relevant to business, community groups, government,

and education and training providers. It is relevant, in fact, to everyone who wants to live in a state where all

adults have the reading, writing, numeracy and communication skills they need for life. The Strategy seeks

to encourage a genuinely collective effort to build a network of member organisations committed to taking

action.

In developing relationships with new sectors, 26TEN sought to target the agricultural sector, given its

importance to the Tasmanian economy and community. Inspire AG consulted with key experts in the

Tasmanian agricultural sector to increase awareness of adult literacy and build on the aims of the 26TEN

Strategy. These aims are to ensure:

� Everyone knows about adult literacy and numeracy;

� Everyone is supported to improve their skills and to help others; and

� Everyone communicates clearly.

The primary aims of this consultation were to:

� Raise awareness of the effect that poor reading, writing and comprehension skills have on the

productivity and profitability of the sector and its people;

� Understand the sector’s readiness for change; and

� Work out if there is an appetite for establishing a collaborative industry network that would work

together to improve literacy skills.

Inspire AG has written this paper with 26TEN. We believe it is the first paper focused specifically on literacy

and numeracy in the Tasmanian agri-sector. We intend it to stimulate further discussion as well as to

establish basic knowledge for the industry to build on.

The paper summarises the views and issues key agri-sector experts raised about literacy and numeracy

during one-on-one interviews, and it looks at some solutions. We then provide some industry context in

Appendix 1 and describe external environmental factors in Appendix 2. See Appendix 3 for our project

design and Appendix 4 for summaries of the interviews.

Definitions In this paper, we have used the following definitions:

1. Agriculture: is the growing, nurturing, harvesting and sale of food and fibre.

2. Agribusiness: is the business beyond the farm gate (rural merchandisers, breeding, crop production,

distribution, farm machinery and processing etc.).

3. Literacy: refers collectively to language, literacy and numeracy.

4. Experts: are the agri-industry people we consulted during this project.

Introduction


10

The agricultural industry in Tasmania has

historically swept literacy and numeracy issues

‘under the carpet’. Because major changes

have occurred to the way we farm, how we

communicate and the technology we use, this is

now a serious problem.

The industry people we talked to were well aware

of the benefits of having strong literacy and

numeracy skills. However, we were concerned and

confronted to observe the level of stigma about low

literacy levels that still exist in the industry today.

Our experts thought that improving adult literacy

and numeracy in a lasting way was a complex and

long-term challenge for the industry. They also

thought that stigma was the biggest barrier to

achieving this.

Workforce composition Australian Bureau of Statistics (ABS) data shows

that 2,426 farmers collectively employ 14,500

people across the agriculture, fishing and forestry

sectors in Tasmania. This is about 6 per cent of the

state’s workforce (see Appendix 1).

The ageing workforce of the Tasmanian agri-

sector was a topic weighing heavily on the minds

of industry experts. The average age of those

in a management position in the sector is 57,

which is more than a decade older than any other

professionals across the Australian economy (see

Appendix 1).

Past perceptions of agricultureA central theme in our conversations was the

school experience of people now in the 50+ age

group, particularly those who were early school

leavers.

Most people we spoke to said that those who

are 50+ might be reluctant to talk about literacy

issues because of their experiences. The experts

consistently expressed two views about traditional

industry perceptions:

1. Agriculture was an appropriate industry to

steer non-academic children to “because you

don’t need to read or write to be a farmer”; and

2. The school farm was better for students who

did not do well in the classroom.

Industry experts acknowledge that the current

operating environment has greatly changed. For

example, early farming methods relied on work

ethic to improve productivity, whereas today’s

farmers depend on science and technology to

achieve these gains. Continued progress in these

areas will mean the sector is likely to evolve at a

faster pace. This has the potential to be a barrier

to improving literacy skills for the Tasmanian

industry.

Education levelsThe opinion of agri-sector experts about past

industry perceptions may be consistent with data

from the Australian Bureau of Statistics (ABS)

2016 census. The census data shows the national

agricultural workforce has lower levels of formal

education than the general Australian workforce.

Fifty-five per cent of Australia’s agricultural

workforce has no recognised qualifications,

which is 22 per cent higher than other sectors in

Australia (see Appendix 1, Table 2).

The experts recognised the Tasmanian

Government’s investment in literacy in primary

and secondary education as essential for the

future of the industry. However, they questioned

if enough was being done to help the people aged

50+ in the workforce.

Findings


Global trends Without exception, we heard about the rapid pace

of change in the sector and how it is affecting

production and people. Most of the experts were

clear that the agri-industry is already experiencing

changes in line with the five megatrends that the

Industry Research and Development Corporation

(RIRDC, now AgriFutures) and CSIRO predicted

in 2015 (see Appendix 2). It is expected these

megatrends will affect the way food and fibre is

produced over the next 10-15 years.

A snapshot of the five megatrends are:

1. A hungrier world: the global population is

predicted to reach 9.7 billion by 2050.

2. A bumpier ride: globalisation and climate change

will produce a riskier operating environment.

3. A wealthier world: a new middle-class is likely

to increase consumption of quality proteins and

niche produce.

4. Transformative technologies: advances in

digital technology, genetic science and synthetics

will change the way food and fibre are produced

and transported.

5. Choosy customers: more disposable income will

mean that consumers will make buying decisions

based on health, provenance, sustainability and

ethics, rather than price alone.

These trends will not only change current farming

methods; they will transform the skill sets required

by the sector’s workforce. Therefore it will become

increasingly important to have the appropriate

human resource practices in place to attract, retain

and develop talent. A sizable corporate farming

business commented that it is already trying

to recruit people with these competencies and

characteristics. Also, the business is reshaping the

way it leads, manages and develops its workforce.

The industry is also experiencing a structural change

as larger businesses acquire smaller ‘mum and dad’

farming businesses to achieve scale. Traditionally,

farmers have relied heavily on family labour to run

their farms. This may have helped hide people’s low

literacy levels. Experts said that because the larger

companies have formal processes, poor literacy may

be coming to light more readily.

Effects of low literacy It was common to hear from agri-professionals

(such as rural financiers, agribusiness managers)

about the effects of low literacy on business

viability. Typical examples we heard were:

� Crops were destroyed because a farm worker

was unable to calculate the ratios of chemicals

needed.

� Marriages or the family unit broke down because

of poor communication skills.

� Financial losses resulted from poor business

decisions.

� Business owners were unable to truly

understand the content of loan or insurance

documents they signed.

� Businesses became unviable because of poor

financial literacy.

In one case, an agri-financier described a situation

where poor financial literacy skills eventually meant

that a business was no longer viable enough to

hand over to the next generation. The family’s only

option was to sell properties they had held for three

generations.

An insight into literacy overseasThe views of agri-professionals were backed up by

Nuffield scholar, Claire Booth (nee Osborn). Claire

is a farmer and solicitor who, with her husband,

Brendan, runs Booth Agriculture based at Geurie,

NSW. In 2017, Claire travelled to nine countries

and consulted 70 farmers to understand two critical

areas relating to the transfer of farming businesses:

1. The outcomes for farming families who focused

on transferring knowledge between the

generations, rather than the current model of

transferring wealth and decision-making roles;

and

2. The role that financial and business literacy

played in helping farmers enter, expand and scale

their enterprise, through to retirement.

The report noted that financial literacy is involved

in the growth and evolution of family farms. In

particular, successful succession relies heavily

on financial expertise. A concerning finding from

12

the study tour was that the key male in a farming

business typically could not read or write. Similar to

our Tasmanian findings, the Nuffield study found that

the wife of a farming partnership was often highly

qualified and took care of business administration.

The report also noted the most common verbal

phrases used by men who found reading and writing

difficult were: “I am allergic to the office,” “I forgot my

glasses,” or “my wife reads all the emails.”

Industry growth ambitionsThe State Government has set a target of achieving

10 fold growth in farmgate value, to $10 billion

by 2050 (see Appendix 2). At a national level, the

National Farmers Federation (NFF) and Agribusiness

Australia signed a memorandum of understanding

in 2018 to work together to increase the Australian

farmgate value to $100 billion by 2030.

The immediate challenges for Tasmanian farmers

are:

� The ability to find appropriately skilled labour;

� Increasing use of technology; and

� The rapid pace of change in the technology being

used.

These challenges, combined with RIRDC and

CSIRO’s megatrends, further highlight the critical

role that strong literacy skills will have in helping the

sector to achieve such strong growth. The timing of

this consultation could therefore be favourable.

Experts said how important a “literate industry is for

the state to achieve a $10 billion industry by 2050”.

A comment made by an independent financial

consultant at an agricultural show while discussing

the value of robust literacy skills for farm businesses

captured the essence of this sentiment:

Given the current dry conditions on the East Coast of Tasmania, the ability to appropriately analyse the cost of supplementary feed versus holding on to stock is imperative for making informed and effective decisions. This brings to the forefront the importance of understanding finances to avoid band-aid and potentially devastating financial solutions in tough times.

The truth: behind closed doorsAwareness of Tasmania’s adult literacy statistics

among our experts was regrettably low. Many

knew that a high percentage of the population

was not functionally literate, but only one expert’s

estimate came close – most guessed around 35 per

cent. They were genuinely shocked to learn that

almost half of the working-age population were not

sufficiently literate to be effective in the workplace.

The General Manager of a large agribusiness was

genuinely alarmed. He was embarrassed to think

that, with 330 full-time equivalents, half of his

employees could have low literacy. Meanwhile, he

only knew of one such employee from his 30+ year

management career.

In the safety and privacy of the one-on-one

conversations, it was distressing to understand

the level of stigma that currently exists, from two

perspectives:

1. The number of industry experts who themselves

had difficulties with literacy – for some, it

was the first time they had ever disclosed or

acknowledged this; and

2. The lack of willingness of high-profile industry

experts to publicly recognise the level of low

literacy in the sector because they fear further

damaging the industry’s reputation.

Reducing the stigma Reducing the stigma surrounding low literacy in the

industry is key to addressing the problem. However,

the experts felt interest ‘silos’ and individual

agendas hampered collaboration. They thought the

literacy difficulties in the agri-sector were multi-

dimensional and complex, and that a single approach

would not provide a solution. However, they were

unable to provide clear suggestions. One expert

thought that a “long-view is required with buy-in

from policymakers, employers, employees and

stakeholders across the value chain.”

Nevertheless, they considered it essential to “find

a way to talk about it, without actually talking about

it.” In their view, the stigma around low literacy

would limit attendance at an event based on literacy

as a standalone topic.


Successful literacy activitiesIt was evident there are pockets of excellence in addressing low literacy. Three successful initiatives taken

by agri-employers or organisations were:

1. Houston’s Farm: in 2015-16 Houston’s Farm delivered a literacy program aimed at making business

documentation and written safety instructions easier to understand. With a 26TEN employer grant,

Houston’s rewrote standard operating procedures (SOPs) in plain English. It also looked at ways to

incorporate more pictures into written SOPs.

2. Reid Fruits: during peak periods, Reid Fruits employs more than 1,050 people. To meet labour

requirements, the business relies on workers whose first language is not English. This caused significant

problems with induction. To ensure safety instructions were understood, Reid Fruits created a video

with SOPs and had the voice over translated into multiple languages. It now also visually presents safety

instructions at all its worksites.

3. Rural Business Tasmania: initiated a program to upskill their frontline personnel and to survey their

clients to identify literacy and numeracy challenges. Its ultimate aim is to provide numeracy training to

farmers on Tasmania’s north-west coast.

Of these three examples, Rural Business Tasmania was the only organisation that was currently receiving

26TEN’s employer grants. Houston’s Farm has done so and plans to again, but needs more staff to scope

and submit an application.

These success stories are the exception. Other attempts to improve literacy in the agri-sector are not

reaching smaller farms and agri-businesses.

14

Possible solutions

Embed messages about literacy in other topics

One suggestion was to embed literacy into topics that are currently occupying the minds of farmers, such as:

� work health and safety

� business performance

� the future of work

� skills and labour shortages

� quality assurance processes.

Promote 26TEN grants

Houston’s Farm said it could not recommend 26TEN’s employer grant and literacy support programs

highly enough. Literacy programs have had a meaningful impact on the business, and Houston’s also thinks

employees have been happier at work because of the programs. The General Manager of Human Resources

at Houston’s Farm said:

One individual has been able to progress in his career at Houston’s Farm to be a senior leader in our business; others have been able to understand our standard operating procedures, which has increased their performance.

Literacy programs at Houston’s Farm have also had a positive effect on the personal lives of its employees. It

is common to hear stories about how parents can now read a book to their children.

Showcase what’s possible with case studies

The experts we consulted were in favour of using case studies like Houston’s Farm to demonstrate the value

of improving literacy. Real-world examples can be effective, and it is useful to highlight the potential return

on investment. However, they cautioned against selecting ‘industry champions’ that were large corporates.

Smaller farming businesses may view them as ‘tall poppies’ and think similar results can only be obtained

with a massive training budget.

Appoint industry facilitator

Overall, the industry welcomes the 26TEN employer grants program. The experts strongly felt that having

an industry facilitator would increase the uptake of the grants. They thought that a facilitator would help

agri-industry employers and communities to:

� discover possible approaches to help improve literacy in their workforce;

� understand the aims of 26TEN’s employer grants; and

� scope and submit an application.

Having an industry facilitator initially visit them in the privacy of their workplace was crucial because of

the ongoing stigma around literacy. Furthermore, it was critical that an industry facilitator understood the

Tasmanian agriculture sector.


Where to now?Despite 26TEN running a significant advertising campaign, it was surprising to discover that experts

remembered little about the TV and radio ads. Their knowledge of 26TEN’s role and the information

resources it makes available was minimal. As a result of this consultation, some individuals now have a

greater appreciation for 26TEN’s mission and vision. Despite that, there is still much more to do.

16

To achieve successful results similar to that of Houston’s Farm, Reid Fruits and Rural Business Tasmania

(further described in Appendix 4) and to continue to build on the momentum gained from this consultation,

Inspire AG makes the following recommendations for 26TEN:

1. Publicly release this paper and continue to work with the Tasmanian agri-sector to establish an industry

advisory group to design and coordinate literacy activities that build awareness and literacy.

2. Collaborate with industry stakeholders to build case studies that promote the return on investment and

productivity gains that can be achieved by improving literacy.

3. Redesign some of 26TEN’s tools and resources to incorporate rural photos and farm case studies that

promote literacy interventions for individuals and businesses.

4. Sponsor or support agricultural events where the message about literacy could be delivered without

naming up the topic, i.e. embedding it into contemporary business topics.

5. Increase awareness in the industry of 26TEN’s employer grants by distributing the information more

broadly.

6. Establish an industry facilitator to help businesses apply for 26TEN’s employer grants and to help

distribute information and resources about literacy.

Why are these recommendations important?Inspire AG considers that implementing these recommendations would have a profound impact on the

perception of literacy in the Tasmanian agri-sector. Implementing them with the appropriate investment and

support has the potential to:

� Build the sector’s willingness to collaborate in building awareness of the financial benefits of improved

literacy.

� Improve employers’ understanding of the funding, information and resources available through 26TEN.

� Increase the ability of employers to identify and provide the appropriate support to empower individuals

to develop their literacy.

� Impact the way that agri-employers manage and develop their workforce through business systems and

processes that are easy to understand.

� Improve efficiency and productivity of agri-workforces by reducing errors resulting from low literacy.

� Decrease safety incidents by supporting employers to develop a variety of ways to present SOPs and

safety instructions.

� Improve the employee experience by supporting the development of healthy workplace relationships

that are productive and profitable.

Most importantly, the adoption of the above recommendations will help to reduce the stigma around

literacy in the Tasmanian agri-sector forever.

Recommendations


Industry growth targetsNationally, agricultural sustainability and global competitiveness was a focus of the August 2018

Memorandum of Understanding (MoU) between two agricultural peak bodies, the National Farmers

Federation and Agribusiness Australia. According to FarmOnline (2018), one of the MoU’s targets was to

collaborate to increase the value of the sector to $100 billion by 2030. A $36 billion increase over the next

11 years is ambitious. Industry access to the skills and labour required will be essential.

In Tasmania, the State Government has an ambitious target of achieving 10 fold growth at the farmgate to

$10 billion by 2050. According to the Tasmanian Agri-Food ScoreCard, the total gross value of agriculture in

2017-18 was $1.47 billion. That was 1 per cent down on the year before, after year-on-year growth of 2 per

cent during the previous 10 years. During the next 30 years, the sector will need to achieve growth at 5-6

per cent compounding year-on-year to meet the targets.

EmploymentAccording to the August 2019 Labour Force Survey from the Australian Bureau of Statistics (ABS), 248,700

people are employed in Tasmania. There are 2,426 famers in Tasmania (ABS, 2016-17) who collectively

employ 14,500 people, or six per cent of the state’s workforce.

Age profileThe Australian Social Trends report (2012) further highlights that almost a quarter (23 per cent) of farmers

were aged 65 years or over in 2011. In contrast, only 3 per cent of the workforce in other occupations

is aged 65 and over. ABS data further shows that between 1981 and 2011, the median age of farmers

increased by nine years, compared to six years for workers in other industries. During the same period,

farmers aged 55+ increased from 26 per cent to 47 per cent; and farmers aged under 35 fell from 28 per

cent to just 13 per cent.

Farm manager age The average age of an Australian farm manager is 57 (Table 1). By comparison, the average age of employees

nationally was 39.4 years, according to the ABS (2016). This makes Australian farm managers over 17 years

older than any other profession or trade in the Australian economy.

Table 1: Australian farm management average age and average time in industry

Aust. NSW Vic Qld SA WA Tas NT ACT

Average age (years) 57 58 58 57 55 56 56 52 57

Average time

farming (years)37 37 36 38 35 36 35 26 30

Source: Australian Bureau of Statistics, 2016-17

Appendix 1: Industry context

18

Education levelBinks et al. (2018) note that agricultural employees have lower levels of education than other sectors of

the Australian workforce (Table 2). In 2016, 2 per cent of the agricultural workforce held a postgraduate

degree, compared to 7 per cent of the Australian workforce. The 2016 data also tells us that 55 per cent of

the industry’s workforce did not hold any qualifications, which is 22 per cent higher than in other sectors in

Australia.

Table 2: Comparison of completed formal qualifications, 2016

% of agricultural workforce % of Australian workforce

Postgraduate Degree Level 2 7

Graduate Diploma and Graduate Certificate

Level1 3

Bachelor Degree Level 10 22

Advanced Diploma and Diploma Level 9 11

Certificate Level 23 24

No recognised non-school qualification 55 33

Source: ABS Census of Population and Housing


Appendix 2: External environmental factors

Understanding the internal and external environment will be critical for building capability and capacity

in the agricultural sector. In 2015, Rural Industries Research and Development Corporation (RIRDC, now

AgriFutures) and CSIRO identified five megatrends (Figure 1) that will affect the Australian agricultural

sector during the next 10-15 years:

1. A hungrier world: Population growth will drive demand for food and fibre. Experts predict the global

population will increase to about nine billion by 2050, meaning farmers need to increase food production

by 70-100 per cent. To put this estimate into context: in 1950 one farmer in Australia produced enough

food to feed less than 20 people; by 2050 one farmer will need to feed more than 650 people off the

same land area, or less (Australian Year of the Farmer, 2012).

2. A bumpier ride: Globalisation, climate change and environmental change will reshape the risk profile for

agriculture. Deloitte (2014) suggests the traditional farming family is fast being replaced by corporate

agriculture, and it describes agribusiness as a forgotten hero of Australia’s economy. To become the hero

of the economy, capital models will change, with new ‘disruptive’ technologies and peer-to-peer lending.

3. A wealthier world: A new middle-income class will increase food consumption, have diversity in diets

and eat more protein. RIRDC/CSIRO says that, in Asia alone, over one billion people are expected to

move out of poverty as average incomes rise from US$12,000 to US$44,000 per person by 2060. While

the world has become wealthier in the past decade, farm debt has increased by 75 per cent.

4. Transformative technologies: Advances in digital technology, genetic science and synthetics will change

the way food and fibre products are made and transported. The uptake of new technology and scientific

advancement varies. However, the changing nature of farming means these innovations require new skill

sets, a higher level of strategic thinking, and more focus on people management. Disruptive technology,

such as smartphones, drones and driverless tractors, will become common and the industry must learn to

adapt to change.

5. Choosy customers: Information-empowered consumers of the future will have expectations for health,

provenance, sustainability and ethics. Other factors that will have a significant bearing on the industry

will be: consumer attitudes to natural versus technologically enhanced products; growth in food demand;

convenience; and health. These will drive a need for innovation in retail and packaging, such as intelligent

packaging.

Figure 1: Five mega trends impacting on Australian agriculture

HungrierWorld

WealthierWorld

MEGATRENDS

TransformativeTechnologies

BumpierRide

ChoosierCustomers

Source: RIRDC & CSIRO, 2015

20

The RIRDC/CSIRO report also notes that continued productivity gains (including labour productivity) are

required to deal with competitive terms of trade and an ageing labour force in agriculture. Collectively,

the megatrends will mean that the agri-sector workforce will require new skill sets and a higher level

of strategic thinking. Agri-employers will require a greater focus on human capital. In essence, building

capability and capacity in the agri-sector could be the key to safeguarding the supply of skilled, motivated

and engaged talent.

Figure 2 illustrates the sector’s current change from a workforce composition model, represented by a

triangle, towards a diamond structure. Traditionally, agriculture has required a workforce that is heavily

weighted to ‘operators’ (farm labour). However, it is transitioning to a diamond structure, which will see a

greater demand for ‘para-professional’ and ‘manager’ roles.

In the future, these roles will require a different sort of person. The people that fill these roles will still need

to get their hands dirty but will also need to be savvy individuals who are able to lead, manage and develop

people.

Figure 2: Current and future workforce composition

Owners

Managers

Para Professionals

Operators

Owners

Managers

Para Professionals

Operators

Source: Agrifood Skills Australia 2015

Appendix 3: Consultation approach


Methodology The consultation and discussion paper are not the product of an academic research project. An appreciative

enquiry approach was conducted from late November 2018 to late May 2019. It involved a semi-structured

interview with 20 industry experts and approximately 25 ‘casual’ conversations with clients of Inspire AG

and industry stakeholders at agricultural shows, field days and conferences. The main objectives of the face-

to-face conversations were to find and foster common ground, create a dialogue and co-design a shared

vision.

The consultation was with farmers, industry bodies, service providers, training providers and industry

professionals (who we refer to throughout this paper as ‘experts’). The conversations centred around the

following questions:

� What is your understanding of language, literacy and numeracy?

� Do you consider there is a literacy problem in the industry?

� Do you have a clear understanding of the scale of the problem?

� What do you see as the main problems relating to literacy?

� Do you have firsthand experience with literacy issues?

� What kinds of policies, programmes, initiatives or efforts to increase literacy would you like to see

developed for the industry?

The experts were willing participants recruited through Inspire AG and 26TEN’s collective network. We

consulted with them on the understanding their responses would remain anonymous and they would not be

identified in this paper.

Appendix 4: Summary of interviews

22

At the beginning of the consultations, each

participant was assured of confidentiality. Without

this assurance, it might have been more difficult to

obtain such rich intel about literacy in the sector.

Senior agribusiness professional

The General Manager of a major agribusiness was

utterly taken aback by the statistic that almost half

of all Tasmanians had difficulties with literacy. He

was almost embarrassed to consider that with a

workforce of 330 full-time equivalents he would

have more than 150-160 people who had difficulties

with this area of their lives. In his professional

experience, he could only identify one person who

had some challenges with reading and writing,

which had been picked up during his traineeship.

Motivated by this insight, he had plans to table the

topic for discussion at an executive management

meeting scheduled in the following days. The

discussion also led to ways that the company

might be able to identify difficulties with reading

and writing in the application process (through

screening). This would enable training and

development to be tailored to new employees,

aligning with the company’s inclusion and diversity

policy. The General Manager was comfortable about

raising awareness about literacy among his staff. He

was somewhat uncomfortable about initiating the

conversation among his clients, saying “What right

do we have to raise the issue with clients?”

Registered training organisation employee

We talked to a representative from TasTAFE who

had a particular interest in literacy because of his

own lifelong personal challenges. He recognised

that speaking, listening, reading, writing and using

numbers in a variety of practical ways underpin

the workplace skills required nowadays. TasTAFE

has had a long association with literacy programs,

often in partnership with employers to address

the challenges holistically. There are a variety of

ways that TasTAFE can support a student with

literacy problems. When a need for assistance

has been identified before enrolment, there are

elective subjects the student can do to improve

their learning experience. Signs of low literacy

after enrolment usually show up if there is mention

of assessment, either through absenteeism or

throwaway lines like “I don’t need the ticket.”

Agri-extension professionals

Two industry extension professionals identified that

they have noticed a range of literacy and numeracy

skill deficiencies while working with farmer groups.

The first example comes from a training program

developed for dairy farmers, where several

participants had a challenge with numeracy. To

our experts, a farm manager or assistant manager

expressing interest in the program implied an ability

to undertake some basic equations. However,

some of the participants could not understand

the calculations needed for daily management

decisions, such as working out leaf stage or cow

requirements when developing a feed budget.

The second example comes from a program to

help farmers implement new water management

technologies for better productivity. As well as

reading and writing, the farmers needed the skills

and confidence to manage digital platforms. The

industry professional wasn’t able to be exact, but he

was surprised at the number of intelligent industry

leaders that needed help to work through this

program.

Industry organisation CEO

The Chief Executive Officer of an industry peak

body considered that the initiatives currently

undertaken by 26TEN (and others) were good.

However, he believed they were band-aid solutions

that were “treating the symptoms, not the cause”.


He provided the findings of a survey as an example.

Farmers were asked to rank 15 options for how they

seek information that may lead them to adopt new

practices. They ranked field days and conversations

over the fence with peers in the top five.

The CEO thought that financial literacy was a major

reason why many farmers do not operate their

enterprise as a business. In his experience, they do

not understand the relevant ratios, such as debt to

equity, cost of production and return on investment.

Anecdotally, this CEO voiced that farmers who

struggled with financial skills often relied on market

indicators to measure business success. He gave

an example of a recent conversation with a farmer

who said, “I have been getting $160/head for lambs,

business is good, livestock prices are good.” This

implied, to his way of thinking, a focus on market price

rather than business profit.

Rural Business Tasmania

Since 1986, Rural Business Tasmania Inc. (RBT) has

offered financial counselling and business support

to rural and regional communities suffering financial

hardship. RBT has been concerned about low literacy

and numeracy skills for a long time, particularly in

males 50+ operating farms on the north-west coast.

Counsellors often find that those who have difficulties

reading and writing, procrastinate over filling out forms

or reading something out loud, justifying it with “My

glasses are broken and getting fixed, can you read it?” or

“My wife does the office stuff, can you email it to her?”

In some cases, issues have been identified by “resigned

ambition”, justifying a lack of skills with “You can’t teach

an old dog new tricks.”

The recurring themes led RBT to undertake a project

with funding from 26TEN’s 2017-18 employer grants

program. It upskilled the organisation’s own staff and

surveyed its clients to identify literacy and numeracy

issues. The aim was to pilot a numeracy training

program on farms on the north-west coast.

RBT immensely values 26TEN’s commitment to

improving literacy outcomes in Tasmania. However,

it considers that employer grants could be more

responsive to industry needs. Extra funding rounds

could facilitate appropriate solutions to challenges as

they arise, rather than waiting until the next funding

round.

Houston’s Farm

Houston’s Farm is a corporate vertically integrated

farming operation that has had a long and proud

association with 26TEN. The organisation’s leadership

believes that reading, writing and numeracy play a

critical role in the productivity and safety of their

employees. The last instance where Houston’s Farm

partnered with 26TEN was in 2015-16 to deliver a

‘People Development Project’ with the objective of

making business documentation and written safety

instructions easier to understand. One of the main

outcomes was an increase in knowledge and confidence

among employees who took part in the program.

Houston’s Human Resources (HR) General Manager

says 26TEN’s financial support has resulted in a vast

positive impact to Houston’s business. In particular,

one employee’s story is a source of immense pride for

the organisation. Before taking up the offer for support

with reading and writing, the individual was working on

the processing line. The person has now progressed to

be a senior leader “supervising up to 50 people in the

factory and sending emails and facilitating meetings like

a pro.”

More broadly, ensuring that its workforce has the

appropriate literacy support has meant that others

in the business have been able to fully understand

their standard operating procedures (SOPs), which

has increased their effectiveness and performance.

Speaking about 26TEN’s employer grants, the HR

Manager said, “I couldn’t recommend this program

highly enough.” From a cultural perspective, Houston’s

consider that its employees have been more engaged

and happier at work. Participation in literacy programs

has anecdotally had positive results on an individual’s

home life as well, by giving them the skills and

confidence to read to their children.

Notwithstanding the success of 26TEN’s employer

grant program, there are two main reasons the

organisation has not re-applied:

1. It does not have enough staff to scope suitable

projects; and

2. The timing of the funding cycle is during peak season

periods (i.e. September and April).

Houston’s said that if the funding rounds were during

late summer and winter, it would be better able to apply

for programs and manage the initiative.

24

Industry peak body

The delegate from the organisation told an anecdotal

story of a farmhand who was a loyal, dedicated and

hardworking employee, but was not confident with

words and numbers. The employee was instructed

by the employer to spray an orchard following the

instruction on the chemical label. A few weeks later it

became apparent that the wrong chemical and ratios

were used, which effectively wiped out a third of the

production area.

Despite recognising the importance of literacy, this peak

body is yet to apply for funding through 26TEN. The

organisation considers that it is not its role. It operates

with minimal staff and financial resources, and it is

not sure how or what it could do to make a difference.

Nevertheless, the organisation uses its quarterly

newsletter and social media to promote 26TEN

information and available resources to its members.

Agricultural consultant

A veteran agricultural consultant based in Victoria

(with clients in Tasmania) sees mental health and

literacy issues present with the clients that he works

with regularly. He suggests that, in some cases, the two

may be linked. This consultant has had a 35-plus year

career providing operational, production and people

management advice to farming businesses. He has seen

a large number of successful businesses held back by

literacy issues.

In his experience, farmer financial literacy is often a

significant hurdle, especially in transferring a farm

between generations. It is a common underlying factor

in arguments with lenders and other family members,

mainly where a family member has concealed their

difficulties with literacy.

He suggests there are many national programs and

initiatives in the agricultural industry that have the

aspiration of lifting business and financial management

of farmers, including rural financial counselling services,

through improved literacy skills. However, frustrated

at the pace of change in recent years, he has turned

his focus to accounting and financial professionals to

help clients understand what they need to know for

operational or management decisions on-farm, rather

than a set of accounts focused on taxation compliance.

He suggests that accounting for compliance purposes

and even for management purposes are commonly at

odds with the day-to-day needs of a farming business.

He thinks it is worth coming at this challenge from a

different angle.

Corporate agri-finance professionals

Two agri-finance professionals raised concerns about

the level of business literacy among lower-performing

clients. They described financial literacy not only as

budgeting and understanding financial ratios, but also

as understanding loan documentation and the ability

to develop a formal business plan. Both thought that

addressing this issue to ensure enterprise success is

a high priority. One organisation had established a

literacy program, and the other had begun investigating

how it could help clients become better able to build

their business.

Independent agri-finance professional

The concerns of these rural finance professionals were

validated by an independent agri-finance consultant

who told the story of a client who “is a very smart

operator”, who produced a justification of buying

a million-dollar business on the back of a wedding

invitation. The basis of the figures was purchase price,

stock numbers and income. The client claimed, “this

is enough to cover my interest bill.” The consultant

said this client had not needed to borrow money

for more than 20 years and was naive about how to

create a formal business case for a loan application;

and that banks need to look at serviceability, not just

security that a client is able to offer the institution. The

consultant added that following The Royal Commission

into Misconduct in the Banking, Superannuation and

Financial Services Industry, the banking sector has

tightened up lending criteria and is taking an ‘arm’s

length’ approach to supporting clients with a loan

application. Previously, it was not uncommon for

bankers to “roll up their sleeves and work with clients

to create a business plan or to crunch the numbers to

get a deal over the line” and that “a drive around the

farm to justify borrowing money to establish or develop

an enterprise was often all that was required”. Since

the Royal Commission, the consultant has been doing

banking reviews for clients, whereas bankers used to do

this as part of the client relationship.


Reid Fruits

Reid Fruits is Australia’s largest exporter of cherries in

Australia. The business has properties in the Derwent

Valley and Southern Midlands and is now exporting to

more than 20 countries across Europe, Asia, and the

Middle East. Reid Fruits has a large workforce, which

varies depending on seasonal demands. Cherries are

a labour-intensive crop, and during peak periods the

business employs a large number of casual pickers

and packers. In the busiest months, the business can

employ over 1,050 people in addition to their permanent

workforce. Reid Fruits relies very heavily on international

backpackers and students to meet the workforce needs.

The challenges of having a culturally diverse workforce,

where English is often not the first language, initially

becomes obvious for Reid Fruits during site-induction.

Supervisors have often relied on someone within

an ethnic group to help by interpreting or filling out

employment forms. Reid Fruits has now created videos

in different languages to help its casual workforce

understand safety instructions. It uses safety

instruction videos throughout its worksites.

Farm overseer

During a casual conversation (i.e. not specifically part

of this consultation) a farm overseer identified his

reluctance to take part in an adult literacy program

because of negative experiences he had had with formal

education. School was difficult, both personally and

academically, and that painful experience had instilled

in him a sense of failure, disappointment and shame

regarding his inability to read and write effectively.

This was affecting his relationship with his employer.

While his wife knew, he had never told his employer for

fear of losing his job. The property he worked on was

remote from the main farm where the owners lived.

During the day, he would respond to text messages

and seek further instructions or clarification from his

employer by making a phone call, despite having written

instruction via an app. Of an evening, his wife would

type emails while he dictated the content, to report

back to his employers in a longer format if required.

These ‘coping’ practices were starting to wear thin on

his employers. From their perspective, he was lazy and

difficult – his avoidance of timely communication was

not aligned with the ethos of the business.

Through a formal 360-degree review and subsequent

performance management process, the employer is

now aware of the difficulties the employee has with

reading and writing. While the employer is prepared to

help him improve his skills, the employee is not willing. It

was clear from the conversation with the employer that

they valued the employee’s work on the farm; however,

his advancement opportunities were limited unless he

was prepared to do some literacy training.

Although the problem is now out on the table, the

employee still does not have the self-confidence to do

any training or coaching because the thought of being

asked to read out loud or do an impromptu equation

made him anxious. He is also hesitant to seek help from

26TEN because he lives in a small regional town and

might run into a friend or family member on the way to

an appointment and people might ‘discover his shortfalls’.

The disappointing part is that he cannot see the link

between improving his literacy and career advancement.

He is affected personally and professionally. Among

the many effects on his personal life, the main one that

causes him pain is that he structures his working day

so that he isn’t home around his children’s bedtime.

That way, he doesn’t have to face the embarrassment

of not being able to read a story to them before they

go to sleep. Professionally, despite his employers now

knowing about his literacy challenges, the damage to

their relationship is still very evident as a result of their

misunderstandings, broken trust and damaged rapport.

Young farmer

A generational farmer from northern Tasmania has

struggled with dyslexia, to the point where he needed

individual tutoring to make it through high school.

Despite these challenges, the fifth-generation beef

farmer has completed a Bachelor of Business in

Agriculture through hard work, determination and an

incredible passion for the industry. Studying at tertiary

level wasn’t easy, but the main thing that helped was

using a laptop or iPad to type up lecture notes rather

than writing them by hand. The farmer explained that he

found writing notes by hand ‘paralysing’, but predictive

text on the iPad helped. Bringing a business skill set back

to the family farm was important for him; however, this

was only made possible by a learning system that was

considerate and flexible to his individual learning needs.

26


Documents

DISCUSSION PAPER Agricultural Language, Literacy and