GRAINS RESEARCH AND DEVELOPMENT CORPORATION …€¦ · GM, Genetic and enabling technologies: Nicole Jensen GM, Applied R&D: Vacant GM, Operations: Martin Priest About GRDC OUR PURPOSE:

GRAINS RESEARCH AND DEVELOPMENT CORPORATION

ANNUAL OPERATIONAL PLAN 2019–20

Responsible Minister:Senator the Hon. Bridget McKenzie Minister for Agriculture

Enabling legislation:Primary Industries Research and Development Act 1989

Representative organisations:GrainGrowersGrain Producers Australia

GRDC Board:Chair: John WoodsDeputy Chair: Roseanne HealyManaging Director: Steve JefferiesSix Non-executive Directors:

GRDC Management:Managing Director: Steve JefferiesDeputy CEO: Steve ThomasGM, Grower Extension and Communications: Lucy BroadGM, Genetic and enabling technologies: Nicole JensenGM, Applied R&D: VacantGM, Operations: Martin Priest

About GRDC OUR PURPOSE:To invest in research, development and extension to create enduring profitability for Australian grain growers.

The Grains Research and Development Corporation (GRDC) is a corporate Commonwealth entity established in 1991 to plan and invest in research, development and extension (RD&E) for the Australian grains industry.

Grains are significant contributor to the Australian economy, with exports of grain generating $10.7B average revenue over the past five years. The GRDC portfolio invests in 25 grains from cereals, to oilseeds to pulses. All grains combined had a Gross Value of Production in 2017–18 of $14.2B.

The GRDC invests in the order of $190 million annually in RD&E projects to deliver new and improved varieties, farming practices, technologies, and capability to the Australian grains industry.

The GRDC is led by its Board of Directors and managed through the office of the Managing Director and Executive Management Team. Regional Panels and National Panel provide guidance and input to the investment portfolio.

Introduction 1Our Investment process 2Strategy development 3

Balanced research portfolio 4Commercialisation 4Grains Innovation Investment Trust – GrainInnovate 5

Performance framework 62019–20 Investment portfolio 7

Focus on profit 8

Key Investment Targets for 2019–20 9Core frameworks 16

Data management and analytics 16Biosecurity 17Grower communication and extension 17Capacity and ability 18

2019–20 Budget forecast 192019–20 allocation to R&D Portfolio 20Appendix A – RD&E investment estimates 2019–20 across Commonwealth Government priorities 21

Contents

Introduction Our strategic approach to investing in research, development and extension activities in set out in the GRDC 2018-2023 Research, Development and Extension Plan. 2019–20 marks the second year of implementing the new plan. This plan builds on the successes of earlier five-year strategic plans and changes the focus to one of enduring profitability for Australian grain growers.

The plan sets out ambitious targets to achieve – our aim is to invest in research, development and extension activities that support an increase in the Rates of Return for growers to 6 per cent by 2023.

The investments to achieve improved Rates of Return will be made in the areas identified by our strategic objectives:

• To improve yield and yield stability• Maintain and Improve price • Optimise input costs• Reduce post-farm gate costs• Manage risk to maximise profit and

minimise losses

This Annual Operational Plan articulates how GRDC will develop strategies for its 30 Key Investment Targets (KITs) identified in the 2018-2023 Research and Development Plan. The KITs support the achievement of Objectives outlined in the five year plan within a Performance Framework (page 8 of this plan). The 2019–20 AOP provides details of an initial seven KITs, with an additional eight KITs to be developed through the 2019–20 financial year. All KITs will be published on the GRDC website as they are finalised. A further 15 KITs will be developed through the life of the 2018-2023 RD&E Plan.

GRDC ANNUAL OPERATIONAL PLAN 2019–201 InTRODUCTIOn

Our Investment processIn response to the changing dynamics in the grains research and extension landscape the GRDC has implemented new investment management processes. This includes the adoption of a continuous investment cycle and online IT systems to improve the way that research and extension providers apply to partner with the GRDC and manage RD&E investments.

This system features an ongoing call for investment partners, replacing the traditional annual External Investment Plan and is targeted at simplifying the application and reporting process for our research partners. Calls for investment partners are advertised on the GRDC website on an ongoing basis and updates can be monitored through alert subscriptions for investment areas of interest.

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Figure 1. Strategic Investment Model

GRDC ANNUAL OPERATIONAL PLAN 2019–202 OUR InvESTMEnT PROCESS

Strategy developmentAs foreshadowed in the 2018-2023 RD&E Plan, GRDC will progressively develop and publish strategies for each of the Key Investment Targets. GRDC will take an agile approach to KIT strategies that allows for adjustment and refinement as research challenges and issues arise over the next five years. The figure below describes the approach that guides the KIT strategy development and investment decisions.

Development of an outcome that is specific, measurable, attributable, realistic and time-bound and describes practice change at the farm level.

Capture assumptions underpinning likely and expected impact to allow economic assessment.

OUTCOME

The outcome describes the desired impact of the strategy aligned to a specific Objective (Yield, Price or Cost) and must deliver on Purpose.

STAKEHOLDER INVOLVEMENT ACTIONS

Dependent on the KIT but at a minimum usually includes grower and researcher input. GRDC Panel input important.

Utilises a modified Program Logic approach to determine if the GAP between current and desired states exists because of a lack of:• Motivation• Ability (skill &/or capacity)• Knowledge• Technology

GAP ANALYSIS

Assess the GAP between the desired outcome and current situation.

Dependent on the KIT but at a minimum usually includes grower and researcher input. Panel input important.

Determine the tangible deliverable required to address identified GAPs – Could be reports, varieties, chemistry, workshops etc. but must be tangible.

OUTPUTS

Describe the deliverables required to address GAPs and deliver an outcome.

Mostly developed internally based on the GAP analysis but with input from consultants where required.

Researchers generally not involved to manage any real or perceived conflicts of interest.

Calls for expression of interest are developed internally based on the outputs being sought.

Investments are tailored to deliver defined outputs but managed in an Agile manner with our research partners.

INVESTMENTS

Individual investments developed that deliver one or many outputs. Groups of investments are managed together and are adjusted as new information becomes available (Agile management).

Projects are developed in collaboration with preferred partners to agree approaches and milestones.

PROGRAM LOGIC STEP

Figure 2: GRDC investment management – program logic model

GRDC ANNUAL OPERATIONAL PLAN 2019–203 STRATEGy DEvElOPMEnT

Balanced research portfolioThe planning and delivery of a portfolio that delivers a balanced mix of investments is a key function of the GRDC. To achieve this GRDC considers the following elements in deciding investments.

Transformational and incremental impactInvestment in RD&E can have a different quantum of impact (either directly or indirectly) on each profit driver, ranging from incremental improvements of 1% to 2% to transformational changes of 10% to 20%.

Incremental profit improvements are important in maintaining grower competitiveness in current international markets. RD&E investment to support incremental improvements generally delivers on-farm changes in the short to medium term (up to eight years), and is characterised as having lower technical, commercial and/or adoption risk.

Transformational change underpins the innovation required to remain competitive in the long term and potentially provides opportunities for Australian growers to establish dominant positions in some markets. RD&E to support transformational change is generally high risk and requires longer time periods for delivery.

In keeping with the focus on an investment culture, the GRDC will shape the R&D investment portfolio to balance the need for continual incremental improvements in profit with the desire for larger transformational changes. Following consultation with growers and researchers, a target for investment in transformational RD&E of at least 50% has been established. Adjustments to the investment portfolio to transfer the focus to higher levels of integrated transformational approaches will take some time to implement, given current investments with out-year

commitments. However, it is expected that the target level of transformational investments should be met by the end of the second year of this plan at the latest.

GeographyThe GRDC’s focus is on maximising the impact of RD&E investment on the profitability of the growers that contribute the majority of funds, rather than on the locations where the funds are invested. While investment on a regional and local basis is a critical component of any program seeking to influence grower attitude, motivation or ability to adopt new innovations, the location where the RD&E to support the development of innovation is performed will be determined only by the capability and capacity that is required. Therefore, for the provision of strategic and applied research at least, the GRDC will continue to identify the most suitable providers based on merit regardless of location. This includes investment with international entities where appropriate.

CommercialisationThe GRDC seeks to commercialise intellectual property when Australian grain growers can capture the maximum value from GRDC investment in RD&E. Our collaboration with Bayer CropScience is an example of how the GRDC can leverage advantage for Australian growers through a commercial partnership. The cost of discovering and delivering a new herbicide to market typically exceeds $250 million, far beyond the GRDC’s resources. Instead, by investing $9 million a year over five years with Bayer CropScience, Australia’s most problematic weeds become part of Bayer’s research. Any new compounds used in other countries, such as the US, Canada, or in Europe, earn the GRDC a royalty that will be invested back into research in Australia for the benefit of Australian growers.

The GRDC also protects the interests of Australian growers by securing intellectual property (IP) through patents, Plant Breeder’s Rights or other legal arrangements. This also attracts co-investment from commercial partners bringing new ideas and or expertise to our industry. Protected IP can then be licensed to industry. Examples include: ultra-low gluten barley technology licensed to The Healthy Grain company and German brewer Radeberger; harvest weed seed- management technology licensed to de Bruin Engineering; endophyte technologies with Grasslanz Pty Ltd, the Omega3 canola program, a co-investment between CSIRO, Nuseed Pty Ltd and GRDC to develop canola that expresses long chain omega 3 fatty acids; and the oat breeding program, a co-investment by SARDI, DPIRD, Uncle Toby’s and GRDC to develop new oat varieties.

The GRDC has also been instrumental in establishing the end-point royalty system, providing a ‘value capture’ mechanism for commercial plant breeding, allowing the transition of canola, wheat, barley and lupin breeding from the public to the private sector. This has attracted further commercial investment in plant breeding, including investment from international parties that would otherwise not be interested in investing in Australia.

In some cases, GRDC IP has been used to form a start-up company in which GRDC participates as a non-controlling shareholder. Examples include Australian Grain Technologies Pty Ltd and InterGrain Pty Ltd. Both were formed from co-owned public breeding programs and have increased total investment in wheat breeding.

GRDC ANNUAL OPERATIONAL PLAN 2019–204 2019–20 InvESTMEnT PORTFOlIODEvElOPMEnT OF ThESE 15 KITS TO BE COMPlETED By 30 JUnE 2020

Grains Innovation Investment Trust – GrainInnovateThe GrainInnovate fund has been set up through a partnership between GRDC and Artesian, a venture capital firm that has the capability for end to end management of innovation to marketable commodities. The fund will be managed by Artesian. This $50m fund will invest in start-ups to help drive future profitability and sustainability for Australia grain growers. GRDC has allocated approximately $5m in the 2019–20 financial year for projects in GrainInnovate.

The fund may invest on start-ups that are developing software, hardware or new business models applicable to grain growers. Area of interest include:

• Genetic tools and technologies• Crop and environmental sensing• Grain storage logistics• Renewable technologies• Task automation• Crop protection technologies• Water and nutrient use efficiency• Crop management logistics

Stages of fundingSeed stage - the fund will invest $25,000 – $100,000 in start-ups that meet the funds mandate and investment criteria and:

• participate in, or are referred by, partner accelerators, incubators and university programs

• are referred by industry / corporate partners or other VC firms

Angel stage - the fund will invest $100,000 – $500,000 in start-ups that meet the funds mandate and investment criteria and:

• were previously invested in, by the Fund, at seed stage• are referred by partner angel groups, accelerators,

incubators and university programs• are referred by industry / corporate partners or other

venture capital firmsSeries A - the fund will invest $500,000 – $5 million in start-ups that meet the funds mandate and investment criteria and:

• were previously invested in by the Fund, at seed and/or angel stage

• are referred by industry / corporate partners or other VC firms

Growth stage - As a portfolio start-up moves into its growth stage, the Fund will work with its partners including the GRDC, industry bodies corporates, venture capital firms and other investors to facilitate further investment, distribution and partnership opportunities.

GRDC AnnUAl OPERATIOnAl PlAn 2019–205 2019–20 InvESTMEnT PORTFOlIODEvElOPMEnT OF ThESE 15 KITS TO BE COMPlETED By 30 JUnE 2020

Performance framework

ORGAnISATIOnAl EFFECTIvEnESS – GOAlS

Deliver transformational impact on grain grower profitability

Be valued by growers

Ensure GRDC can deliver in the long term

Ensure GRDC has people with the capability and motivation to deliver on purpose in a safe environment

Become an attractive investment partner

Capitalise on GRDC’s influence in the Australian grains industry contribution to the national recovery of the regional communities it supports

KEy PERFORMAnCE InDICATORS

A minimum of 6% average farm business Rates of Return by 2023.

Minimum yield increases equivalent to 1 per cent per annum for cereals.2 per cent per annum for pulses.1.5 per cent per annum for oilseeds.

By 2023 a minimum 20 per cent closure of the gap between potential yield and actual yield.

Identification of potential new products that attract premium prices.Identification of opportunities for product differentiation.Defence of current market access programs.

in fertiliser costs below the five-year trend (2018-2023) equivalent to $84.30/ha or a ratio of input to crop revenue of 0.164.Maintain increases in fertiliser costs below the five-year trend (2018-2023) equivalent to $84.30/ha or a ratio of input to crop revenue of 0.164.

OUR PURPOSETo invest in research, development and extension to create enduring profitability for Australian grain growers

WhAT WE DOPlan, manage and implement investments to underpin profitability in the Australian grains industry

OUR OBJECTIvESImprove yield and yield stability / Maintain and improve prices / Optimise input costs

Refer to page 7 for details.

KEy InvESTMEnT TARGETS (2019–20 priorities)

EnABlInG FRAMEWORKS

Data management and analytics*Biosecurity*Grower communication and adoption*Capacity and ability*

COllABORATIOn

Leveraged research, industry and government partners

ORGAnISATIOnAl KPIS

Grower satisfaction with GRDC as an investor in grains researchGrowers comfortable with paying levy

*Further information and definitions of these frameworks can be found in pages 16-18

GRDC ANNUAL OPERATIONAL PLAN 2019–206 PERFORMAnCE FRAMEWORK

2019–20 Investment portfolio Development of these 15 KITs to be completed by 30 June 2020

Objective and key performance indicators

Key investment targets

1 Improve yield and yield stability

Minimum yield increases equivalent to 1% per annum for cereals, 2% per annum for pulses and 1.5% per annum for oilseeds, achieved while identifying and investing in technology for transformational improvement in yield potential and yield stability.

Minimum 20% closure of the gap between potential and achieved yield over five years.

1.1 Minimise the impact of high temperature at flowering and grain fill on grain yield and stability.

1.2 Minimise the impact of spring radiation frost on grain yield and stability.

1.3 Change fundamental plant architecture, physiology and/or biochemistry to maximise water-limited yield potential in wheat, barley, canola and sorghum.

1.4 Improve the potential and actual grain yields of high-value pulses, oilseeds (other than canola) and oats in profitable farming systems.

1.5 Reduce the gap between actual and potential grain yield through more informed and timely decision-making on:• planting time• crop/variety choice• weed management• pest and disease control• crop nutrition.

1.6 Reduce the impacts of water repellence, compaction, hard-pans and other barriers to the capture and storage of water in soils.

1.7 Reduce the impacts of soil salinity and sodicity on plant water uptake to improve grain yield and stability.

2 Maintain and improve price

Identification of potential new products and investments where a supportive business case can be established.

Support for and enhancement of current products through identification of opportunities for differentiation and maintenance of current market access programs.

2.1 Expand the area of high-value crops to boost average prices and profitability of farming systems, specifically:• pulses• oats for food or industrial uses• linseed for industrial uses• sorghum for food• soybeans for food and/or animal feed.

2.2 Maintain and/or improve the price of Australian grain through differentiation based on:• functionality• food safety and traceability• sustainability of production

Objective and key performance indicators

Key investment targets

• reduced downgrading • new and/or enhanced grain classification processes• optimal management of biosecurity issues.

3 Optimise input costs

Maintenance of chemicals costs below the forecast trend for 2018–23, equivalent to $85.50/ha or a ratio of input costs:crop revenue of 0.166.

Maintenance of fertiliser costs below the forecast trend for 2018–23, equivalent to $84.30/ha or a ratio of input costs:crop revenue of 0.164.

3.1 Develop and implement management options to minimise the cost of effectively and sustainably managing weeds.

3.2 Generate more informed, accurate and timely input for decision-making (e.g. sensor/monitoring technology or decision support models).

Develop and implement management options to minimise the cost of effectively and sustainably managing diseases.

Develop and implement management options to minimise the cost of effectively and sustainably managing vertebrate and invertebrate pests.

3.3 Develop and implement management options to minimise the cost of effectively and sustainably managing diseases.

4 Reduce post-farm-gate costs

Timely RD&E-based submissions to government to support policy decision-making.Timely addressing of technical barriers to trade issues.

4.1 Support research to advise policy and investment decisions that lead to reduced post-farm-gate costs.

5 Manage risk to maximise profit and minimise losses

The number of growers undertaking business trainingEstablishment of a behavioural economics initiative to research grower decision-making.

5.1 Improve the accuracy of short-range and medium-range weather forecasting.

5.2 Understand grain grower decision-making and the drivers for adoption of new technology.

Purpose: To invest in research, development and extension to create enduring profitability for Australian grain growersKey performance indicator: Minimum 6.0% rate of return by 2023

GRDC ANNUAL OPERATIONAL PLAN 2019–207 2019–20 InvESTMEnT PORTFOlIO DEvElOPMEnT OF ThESE 15 KITS TO BE COMPlETED By 30 JUnE 2020

Focus on profitThe 2018-23 RD&E Plan is part of a 10 to 20-year strategy to deliver on the GRDC’s purpose: Investing in research, development and extension to create enduring profitability for Australian grain growers. The key drivers of grain grower profitability are yield, price, costs (on farm and post farm gate) and risk. The relationships between these drivers can be expressed as: Profit = [Yield x Price – Costs] x Risk. This Annual Operational Plan for 2019–20 focusses on delivery of research against the primary Key Investment Targets identified in the table 1 below.

Table 1: 2019–20 Priority Key Investment Targets (KITs)

KIT number

KIT title KIT impact statement

Improve yield and yield stability

1.2 Minimise the impact of spring radiation frost (SRF) on grain yield and stability.

Growers in frost-prone regions managing their farm businesses to minimise the impact of frost on yield to optimise profit.

1.4 Improve the potential and actual grain yield of high-value pulses, oilseeds (other than canola) and oats in profitable farming systems.

Australian grain growers in current production areas have access to higher yielding, high value crop varieties.

1.5 Reduce the gap between actual and potential grain yield through more informed and timely decision-making on: planting time/crop/variety choice/weed management/pest and disease control and crop nutrition.

Growers are implementing management practices that reduce the yield^ gap nationally with limited increase in business cost#, resulting in increase grain enterprise profit*

âccelerated rate of gain in bridging the yield gap across a ‘typical’ crop sequence for a given environment, considerate of trends. #production cost ($/T production) based on five-year moving average. *with acceptable production risk.

Maintain and improve price

2.1 Expand the area of high-value crops to boost average prices and profitability of farming systems.

Australian grain growers in non-traditional production areas have access to new, high value and profitable crop varieties.

2.2 Maintain and/or improve the price of Australian grain through differentiation

Australian grain growers with improved profitability through access to differentiated markets for their crops.

Optimise input costs

3.1 Develop and implement management options to minimise the cost of effectively and sustainably managing weeds.

Reduce the cost of effectively and sustainably managing weeds through integrated management from the current cost in 2019.

3.2 Generate more informed, accurate and timely input for decision-making (e.g. sensor/monitoring technology or decision support models).

Increased data-driven decision making enables growers to achieve <0.15 Input cost: Crop Revenue ratio.

GRDC ANNUAL OPERATIONAL PLAN 2019–208 2019–20 InvESTMEnT PORTFOlIODEvElOPMEnT OF ThESE 15 KITS TO BE COMPlETED By 30 JUnE 2020

Kit 1.2 Minimise the impact of spring radiation frost (SRF) on grain yield and stability

Key Investment Targets for 2019–20

Growers in frost-prone regions managing their farm businesses to minimise the impact of frost on yield to optimise profit.

SCOPETARGETED IMPACT

SUMMARy

• Growers know what their options to manage frost are

• Growers understand the risks and economic consequences of management decisions

• The innovation pipeline to tackle frost will focus on digital agriculture, agronomic tools and genetics

Improving pre-season planting for frost

Knowledge and tools which support optimal crop choice, placement and sowing in frost-prone cropping regions.

Making informed in-season management decisions

Knowledge and tools to assist growers to optimise type and timings of crop inputs in frost-prone cropping regions.

Implementing effective post-frost responses

Knowledge and tools to assist growers make informed decisions regarding extracting value from frosted crops.

InvESTMEnT hIGhlIGhTS 2019–20

• Innovation Program 2018 – Frost Treatment• Frost Risk Management• Identification of wheat frost tolerance loci using

a combination of genetics, biochemistry and molecular approaches

2019–20 KIT BUDGET AT 1/7/19

$1.418m

GRDC ANNUAL OPERATIONAL PLAN 2019–209 KEy InvESTMEnT TARGETS FOR 2019–20

KEY INVESTMENT TARGETS FOR 2019–20 CONTINUED

KIT 1.4 Improve the potential and actual grain yield of high-value pulses, oilseeds (other than canola) and oats in profitable farming systems

TARGETED IMPACT


Australian grain growers in current production areas have access to reliable, higher yielding, and profitable crop varieties

SUMMARy

• Understanding the market and agronomic requirements of high-value crops

• Developing new tools and resources to support genetic improvement of high-value crops

SCOPE

Capturing high-value crop opportunities

Opportunities that have the potential to underpin the expansion of high-value crops are identified and captured

Identifying constraints to achieving high yield potential

For each high-value crop, the key constraints to improving yield potential and reliability in current production zones are identified and prioritised

Improving yield potential and reliability

For each high-value crop, develop and implement short, medium and long-term RD&E to improve the crop yield, reliability and profitability

• Investigating phenology diversity in germplasm to optimise profitability from April sown oats

• National Oat Breeding Program• Lupin Breeders Toolbox - A Resource for Lupin

Genetic Improvement• Development, characterisation and incorporation of

novel herbicide tolerance traits in pulse crops• Pulse Check program – local extension and

communication for profitable pulses

2019–20 KIT BUDGET AT 1/7/19

$12.673m


KIT 1.5 Reduce the gap between actual and potential grain yield through more informed and timely decision-making on planting time/crop/variety choice/weed management/pest and disease control and crop nutrition

TARGETED IMPACT



Growers are implementing management practices that reduce the yield^ gap nationally with limited increase in business cost#, resulting in improved grain enterprise profit*

SUMMARy

• Yield targets and limiting factors are quantified, widely known and accepted

• Growers have the ability to respond to yield-limiting factors, considerate of farming system and long-term financial impact

• Opportunities to increase the stability of yield across paddocks, farms and season and/or raise the attainable yield ceiling with acceptable business risk are identified

SCOPE

Raising awareness of the opportunity and creating intent

To quantify the size of the yield gap opportunity, identify yield-limiting factors and validate yield targets to shift growers and advisors from awareness to intent to change behaviour or practice

Skills and ability to implement and support good decisions

To compliment and leverage private sector advisory support to help growers to make timely and objective business and management decisions that consider profit, deal with risk and ensure consistent implementation

Integrating through a systems approach to address the gap

To determine the order and type of response to known yield-limiting factors; assist in the integration and refinement of different practices, tools and technologies; and share and validate current best practice to facilitate local adoption, considerate of systems and financial implications at farm scale

Hitting yield targets with greater consistency

To identify and develop new best practice that brings greater consistency in yields across, paddocks, farms and seasons to increase total farm productivity, considerate of risk: reward trade-offs

• Research and Extension programme at SA Crop Technology Centre

• Herbicide behaviour workshops for the Australian Grains Industry

• Optimising sorghum yield through agronomic management

• Increasing profit from N, P and K fertiliser inputs into the evolving cropping sequences in the Western region

• Optimising mungbean yield in the northern region – Mungbean Physiology

• Optimising mungbean yield in the northern region – Mungbean Agronomy

2019–20 KIT BUDGET AT 1/7/2019

$14.516m

âccelerated rate of gain in bridging the yield gap across a ‘typical’ crop sequence for a given environment, considerate of trends. #production cost ($/T production) based on five-year moving average. *with acceptable production risk


KIT 2.1 Expand the area of high-value crops to boost average prices and profitability of farming systems

TARGETED IMPACT



Australian grain growers in non-traditional production areas have access to new, high value and profitable crop varieties

SUMMARy

• Identifying the high-value crop opportunities with expansion potential

• Growers in non-traditional production areas with access to improved high-value crop varieties

• Growers in non-traditional production areas with tools and knowledge to optimise integration of high-value crop into farming systems

SCOPE

Capturing high-value crop opportunities

Opportunities that have the potential to underpin the expansion of high-value crops are identified and captured

Identifying potential new production environments

For each high-value crop with the potential for expansion:

• New target production environments identified and characterised

• Key constraints and barriers to expansion identified

Resolving barriers to expansion

For each crop and expansion area, the implementation of short, medium and long-term RD&E to address constraints and facilitate their incorporation into farming systems

• Leveraging generic resources and associated data from Chickpea Feed the Future Innovation Lab in the United States

• High Value Pulses – Raising awareness, optimising yield and expanding the area of lentil, chickpea and faba bean in Western Australia

• Legumes for profitability in the Esperance Port Zone

2019–20 KIT BUDGET AT 1/7/2019

$1.428m


KIT 2.2 Maintain and/or improve the price of Australian grain through differentiation

TARGETED IMPACT


Australian grain growers with improved profitability through access to differentiated markets for their crops

SUMMARy

• Supporting the Australian grains industry to match the quality of Australian crops with end-use markets

• Australian growers with the tools and knowledge to capture opportunities based on crop provenance

• Australian growers with the tools and knowledge to reduce the prevalence and impact of downgrading

SCOPE

Matching quality with end-use markets

Developing the knowledge to inform industry decisions regarding new or enhanced variety classification processes, and the knowledge and tools to enable grain quality to match end-use requirements

Differentiating based on crop provenance

Capturing and developing opportunities for Australian growers to differentiate based on provenance, including the safety, traceability & sustainability of crop products and production systems

Reducing the prevalence and impact of downgrading

Capturing opportunities for Australian growers to reduce the prevalence and price impact of downgrading due to grain quality (excluding nutrition), and/or biotic contamination


• Quantifying the value of pulse grains• Grain Quality Market Insight – Asia• Managing on-farm biosecurity risk through

pre-emptive breeding: the case of rust• Continued investment in the Australian Grain Export

Innovation Centre (AEGIC)

2019–20 KIT BUDGET AT 1/7/19

$3.333m


KIT 3.1 Develop and implement management options to minimise the cost of effectively and sustainably managing weeds

TARGETED IMPACT



Reduce the cost of effectively and sustainably managing weeds through integrated management from the current cost in 2019.

SUMMARy

• Weed populations are in a low static state• Range of diverse management tools are available• Weed management is part of farm management

SCOPE

Understanding the biology, ecology and distribution of crop and weed communities/interactions

Knowledge and interactions of weeds /crop & communities to support optimal management choice

Development of tools and technologies to manage weeds

Tools and technologies to assist growers optimise weed management

Integrating weed management decision-making into farming systems

Interaction of weed management with other practices to optimise long-term farm output

• Development of local strategies to enable the integrated and profitable management of annual ryegrass seed banks in high rainfall zone farming systems of the Southern Region

• Demonstrating and validating the implementation of integrated weed management strategies to control barley grass in the low rainfall zone farming systems

• Stealth Plow: Mechanical control of hard to kill weeds with minimum soil disturbance

• A simple and innovative test for real-time detection of resistance in weeds

• Non-chemical Weed Control System - Integrated Harrington Seed Destructor Accessibility Expansion – Design for Combine Harvesters Class 5 to 8

• Maximising crops and minimising weeds with smart phase farming

2019–20 KIT BUDGET AT 1/7/19

$16.602m


Kit 3.2 Generate more informed, accurate and timely input for decision-making (e.g.sensor/monitoring technology or decision support models)

SCOPE InvESTMEnT hIGhlIGhTS 2019–20


TARGETED IMPACT

Increased data-driven decision making enables growers to achieve <0.15 Input cost: Crop Revenue ratio.

SUMMARy

• Growers know what data to collect, how to collect it and how to use it to inform decision making on-farm.

• Growers can accurately predict the effects of seasonal decisions on their business bottom line and overarching farming system.

• Industry has access to the tools and knowledge required to support growers to make data-driven decisions.

Capturing the data that matters

Understand what data is needed for good decision-making and help provide the tools, technologies and methods to cost effectively capture that data.

Understanding relationships

Data in ‘analysis-ready’ formats is used to understand current constraints to production and forecast likely outcomes of associated input decisions.

Optimising decisions

Knowledge and tools enabling growers to identify the optimal decisions throughout a cropping cycle based on their particular circumstance.

• Future Farm Phase 2: Improving farmer confidence in targeted N management through automated sensing and decision support

• Using soil and plant testing data to better inform nutrient management and optimise fertiliser investments for grain growers in the southern region

• Assessment of N and water co-limitations by remote sensing as a tool to improve wheat and canola profitability and manage risk

• Regional soil testing guidelines for the northern grains region

• A platform to interpret soil attributes to support profitable farming systems

2019–20 KIT BUDGET AT 1/7/19

$3.524m


Core frameworksFour core frameworks that underpin all RD&E investments: data management and analytics, biosecurity, grower communication and adoption, and capacity and skills.

Data management and analyticsStrategic Elements Guiding principles

Capture valuable data

• GRDC invests in the creation of valuable data sets, and these are an asset• GRDC identifies and secures data, information and knowledge that has value in delivering

on GRDC’s Purpose• A system of indexing and reputable data repositories will be GRDC’s main approach for

persistence of data• National Infrastructure has a key role in capturing and persisting valuable data.

Make data accessible and actively share data and learnings

• Our data assets are accessible within legal and commercial constraints• Data, information and knowledge that is generated through GRDC investment is created and

managed with the knowledge that it will be shared and re-used• We have appropriate access and sharing approaches for data we own, co-own, do not own.

Invest in analytics to create innovative insights and value

• Extract additional value from our existing investment portfolio through the application of known, best practice analytics (includes automation)

• Pursue the creation of additional value through the application of new and novel analytics• Shift from descriptive to predictive analytics, which will lead to improved decision-making and

technology adoption• Use national, international and commercial infrastructure.

Measure investment impact

• Measuring impact is critical to determining Return on Investment for Australian grain growers• Data will be managed with the intent of measuring investment impact• Impact assessment will be used to define future investment in RD&E

Ensure we have a workforce that has the necessary data and analytics skills and capacity

• The majority of the grains RD&E workforce must be equipped with a baseline set of skills in relation to data and analytics

• Create and support specialist capability and capacity in data analytics for grains RD&E• The GRDC Capacity and Ability Core Framework provides GRDC’s strategy for skills and

capacity building within the industry

Apply governance for effective data usage

• GRDC has a pivotal role in implementing data standards throughout our investment portfolio to ensure safe, consistent and effective use of data and analytics across projects and systems

• Investment decisions factor in data related risks and opportunities, including ethical, privacy, scientific and commercial considerations

• Requests for access to GRDC managed data are considered fairly, consistently and transparently

GRDC ANNUAL OPERATIONAL PLAN 2019–2016 CORE FRAMEWORKS

Grower communication and extensionStrategic elements Guiding Principles

Improve GRDC’s understanding of grain grower needs, drivers and decision-making processes so as to facilitate effective adoption of R&D outcomes through C&E activities.

• C&E priorities and resourcing will align with GRDC’s 2018-2023 RD&E Plan - Key Investment Target Strategies and the investments that arise from these

strategies will inform prioritisation of C&E activities - Opportunities for C&E activities will be considered throughout the investment

process from planning through to outcome delivery - An agile approach to R&D portfolio management will be adopted where C&E

activities could arise at any time throughout the active management of each investment and the entire investment portfolio

• As much as possible and where appropriate, RD&E investment design and implementation will involve participatory principles

• Actively raising awareness of RD&E outcomes through communication activities will continue to be important. However, an increasing focus will be placed on ensuring adoption through effective extension, optimising the impact of R&D outcomes on the profitability of Australian grain growers

• The Australian extension landscape will continue to change and evolve. As the extension landscape evolves GRDC will need to complement, leverage and strengthen extension pathways, while also exploring new extension models that better fit the new landscape

• GRDC’s approach to C&E, the channels for delivery and key messages will all need to be strategically matched to grain grower needs, as well as the needs of key influencers of grain grower decision making

• The grain grower value proposition of GRDC’s investments will need to be clearly articulated and in doing so will need to consider both non-financial drivers and where appropriate, profitability

• Acknowledgement and third-party attribution of GRDC’s investment in R&D outcomes will be maximised at every opportunity

• GRDC will value and nurture its research partner relationships and find ways to better encourage two-way engagement

Enable stakeholders to understand and engage with GRDC’s investment process.

Ensure timely C&E activities align with the GRDC RD&E Plan and regional grower priorities.

Continually evaluate and revise GRDC communication channels based on impact and value

Leverage and further strengthen existing extension channels.

Maximise key stakeholder and community support and recognition for GRDC’s contribution to growers’ enduring profitability and the Australian economy.

GRDC AnnUAl OPERATIOnAl PlAn 2019–2017 CORE FRAMEWORKS

Capacity and ability

Growers and industry

The Australian grains industry requires grain grower leaders who can contribute innovative ideas, facilitate industry discussion on the RD&E portfolio, and be role models for the adoption of innovation into profitable farming systems and business models. The GRDC will continue to contribute to enhancing the leadership competencies of Australian grain growers in these critical areas.

Grower health, mental and physical, will remain a priority across all agricultural industries, and the GRDC will continue to contribute to cross-industry initiatives that target healthy and safe grain grower communities.

While profitable grain growers are a fundamental building block of a healthy grains industry, grain growers need to operate within a functional, effective and innovative grains industry value chain. The GRDC is well placed to facilitate collaboration and cooperation across the grains industry and to assist in leveraging positive, precompetitive outcomes for the value chain. To that end, the GRDC will participate in industry good functions, including beyond the farm gate, where those functions align with the GRDC’s purpose.

Researchers

The GRDC must collaborate with RD&E providers to ensure the ongoing provision of appropriate experience and ability to deliver key outputs and understanding of often complex issues. The GRDC will continue to contribute to broad RD&E capacities and abilities, but will focus on the generation of teams of researchers and support staff in preference to the support of individuals that can be isolated from the team environment central to the development of innovative and influential research groups.

Biosecurity

Australia is fortunate in being an island that is not subject to many of the more damaging pests and diseases of cropping (e.g. Karnal bunt, Sunn pest and Khapra beetle). This provides benefits to Australian growers through the lower requirement for inputs to manage pests and diseases, and the trade advantages of a clean, green image.

GRDC has continued to enhance its biosecurity capabilities, through the appointment of a dedicated specialised Biosecurity team. Commencing in 2019–20 GRDC will invest in R&D that has a focus on anticipating likely biosecurity threats and risks and preparing growers to better respond and manage those threats. GRDC will continue to work closely with PHA Australia, in particular to identify exotic threats, develop contingency plans and engage on Government Biosecurity Committees and Strategies.

CORE FRAMEWORKS18 GRDC AnnUAl OPERATIOnAl PlAn 2019–20

2019–20 Budget forecast

Table 2:

2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

$’000 $’000 $’000 $’000 $’000

REvEnUE

Levies 98,329 128,902 132,602 136,407 140,322

Commonwealth contribution 61,455 70,102 70,457 77,341 82,127

Interest income 6,586 5,222 3,985 3,455 3,219

Royalties 5,000 4,000 5,200 5,300 5,400

Grants income 1,000.00 200 0 0 0

Other revenue 3,242 2,322 2,191 2,266 2,191

Total revenue 175,613 210,748 214,436 224,768 233,259

EXPEnSES

Research Payments 183,000 188,000 188,000 188,000 188,000

Employees 13,639 14,908 15,355 15,816 16,290

Supply of Goods and Services 14,866 17,583 17,175 17,374 17,860

Depreciation & Amortisation 2,491 3,181 3,862 3,911 3,670

Total expenses 213,996 223,671 224,392 225,101 225,819

Surplus/Deficit (38,383) (12,923) (9,956) (333) 7,439

GRDC ANNUAL OPERATIONAL PLAN 2019–2019 2019–20 BUDGET FORECAST

2019–20 allocation to R&D Portfolio Following the completion of the 2018-2023 RD&E Plan, GRDC is working to progressively align the existing research portfolio across the Objectives and Key Investment Targets and Core Frameworks. As at 1 July 2019 approximately 80 per cent of the portfolio has been aligned. The remaining 20 per cent will be completed by 30 June 2020.

These figures represent the amount of expenditure committed for 2019–20 at 1 July 2019. They do not include investments that are currently in the early stages of development or in procurement. The actual expenditure for 2019–20 will be provided in the GRDC Annual Report 2019–20.

Figure 3: Allocation of Objectives to R&D portfolio at 1 July 2019

Improve yield and yield stability

Maintain and improve price

Optimise input costs

Reduce post-farm gate costs

Manage risk to maximise profit and minimise losses

Not yet assessed 1/7/19

$46.2m

$5.8m

$40.4m

$0.460m

$0.458m

$30.2m

37%

2019-20expenditure

at 1/7/19

% ofportfolioat 1/7/19

5%

33%

0.5%

0.5%

24%

Figure 4: Budget allocation to frameworks at 1 July 2019

Biosecurity

Grower Communication and Extension

Capacity and Capability

Data management and analytics

Not yet assessed

15%

of p

ortfo

lio a

t 1/7

/19

Framework

0.21%

3.89% 4.10% 4.81%

12.81%12

9

6

3

0


Appendix A – RD&E investment estimates 2019–20 across Commonwealth Government priorities

Stakeholder priorities Estimated 2019–20 expenditure*

$m % of research portfolio

national Science and Research priorities

Food 42.0 34%

Soil and Water 35.5 28%

Transport - -

Cybersecurity - -

Energy - -

Resources - -

Advanced manufacturing - -

Environmental change 25.3 20%

Health - -

Other^ 22.0 18%

Rural RD&E priorities

Advanced technology 24.3 19%

Biosecurity 30.9 25%

Soil, water and managing natural resources 34.7 28%

Adoption of R&D 24.4 19%

Other^ 11.4 9%

* Estimated expenditure only based on approved and contracted investments as at 30 June 2019. Actual expenditure is published in each annual report.

Ôther includes unallocated research, R&D management and corporate support.


© Grains Research and Development Corporation 2019

This publication is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without written permission from the Grains Research and Development Corporation.

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PO Box 5367 Kingston ACT 2604

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