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Grains Research and Development Corporation

2016–17 Annual Operational Plan

ABOUT THE GRDC

The Grains Research and Development Corporation (GRDC) is a corporate Commonwealth entity established to plan and invest in research, development and extension (RD&E) for the Australian grains industry.The GRDC’s primary objective is to drive the discovery, development and delivery of world-class innovation to enhance the productivity, profitability and sustainability of Australian grain growers and benefit the industry and the wider community.Its primary business activity is the allocation and management of investment in grains RD&E.

VISIONA profitable and sustainable Australian grains industry, valued by the wider community.

MISSIONCreate value by driving the discovery, development and delivery of world-class innovation in the Australian grains industry.

VALUESWe are committed and passionate about the Australian grains industry.We value creativity and innovation.We build strong relationships and partnerships based on mutual trust and respect.We act ethically and with integrity.We are transparent and accountable to our stakeholders.

Organisation

BoardThe GRDC Board oversees corporate governance, sets strategic direction and monitors the performance of the GRDC and the Managing Director. The directors have combined expertise in business management; commodity production, processing and marketing; economics; finance; management and conservation of natural resources; environmental and ecological matters; R&D

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administration; science and technology; technology transfer; communication; and public administration.

Advisory panelsThe GRDC Board makes decisions with the support of a national advisory panel comprising the Managing Director, the GRDC’s executive managers, and the chairs of three advisory panels that cover the northern, southern and western grain-growing regions of Australia.

The regional panels are made up of grain growers, agribusiness practitioners, scientists and GRDC executive managers, with provision for other industry experts to participate as appropriate. They develop and monitor local and regional investment priorities, working closely with industry bodies, including grower groups. They also make sure that GRDC investments are responding to industry needs and effectively delivering RD&E outputs to growers and advisers.

The GRDC has recently revised its Northern Region boundary so that it now encompasses Queensland and all of New South Wales and has the highest diversity of crop production.

The region has generally high inherent soil fertility, although there is increasing evidence that this has been run down over time. It has relatively high seasonal rainfall and production variability compared to the other two regions.

Both summer and winter crops are important for profit. Yield depends, to a significant degree, on conservation of soil moisture from summer-dominant rainfall. The Northern Region has the highest diversity of crop production, including maize, sorghum and soybeans as well as wheat, barley, winter-growing pulses and oilseeds.

The Northern Region is the largest source of Australia’s premium hard high-protein wheat for export and domestic use. Demand for feed grains from the region’s important livestock industries is a key driver of grain production.

The GRDC has recently revised its Southern Region boundary so that it now encompasses South Australia, Victoria and Tasmania.

It has a diverse suite of soils of generally low fertility and with many subsoil constraints, such as salinity, sodicity and toxic levels of some elements, although there are also some areas with very productive soils. Yield potential depends on seasonal rainfall, especially during the growing season, and there is less dependence on stored soil moisture than in the Northern Region.

Crop production systems are varied and include many mixed farming enterprises with significant livestock and cropping activities.

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The GRDC’s Western Region spans Western Australia’s principal cropping zones where soil fertility is generally low and yields depend on winter and spring rainfall.

Long-term variability in seasonal rainfall and production is lower in the coastal areas than in the Northern and Southern regions.

In many areas, yields are low by world standards; this is compensated for by the large scale and degree of mechanisation of the enterprises.

Wheat, barley, canola and lupins are the dominant crops, and livestock enterprises in mixed farming systems are generally of less importance than in the other regions. The Western Region exports more than 85% of its grain production.

Senior Leadership GroupThe Senior Leadership Group leads the GRDC’s business activities and advises the GRDC Board. It is responsible for implementing strategy, and for managing and evaluating the GRDC and its RD&E investments.

The Senior Leadership Group is composed of the Managing Director and the executive managers of the GRDC’s three operational business groups—Research Programs, Commercial, and Regional Grower Services—and the enabling business functions of Communications and Corporate Services.

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Representative organisationsThe grains industry representative organisations for 2016–17 are Grain Producers Australia and GrainGrowers. Their role is to:

participate in the development and review of the GRDC’s five-year strategic R&D plan consider each year’s GRDC annual report and meet with the Board and Senior Leadership

Group to consider R&D-related activities undertake other R&D-related activities.

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Foreword2016–17 marks the final annual operational plan against the 2012–17 five-year strategic R&D plan. This year the GRDC will invest $198.0 million on research for the grains industry—an increase of approximately 24 percent since the first year that the 2012–17 strategic plan was implemented.

In that time, our operating environment has changed significantly. Grains has grown from an $8.5 billion to a $13.1 billion industry, with continued increasing production forecast over the medium term. Similarly, the GRDC’s role as the major investor in grains innovation continues to expand. This is due in part to increasing budgetary pressure on our traditional research partners, but the GRDC is also expected to play a greater leadership role regionally, nationally and globally. At the same time the private sector is playing an increasingly important role in RD&E, which has put a stronger focus on collaboration.

The future profitability of the Australian grains industry is reliant on continued access to world-leading research. The GRDC is committed to maintaining a research portfolio that is responsive to emerging issues while responsibly investing in future breakthrough technologies. To achieve this, the GRDC must go through transformational change in its investment analysis and process to deliver a flexible and responsive portfolio that maximises value provided to the grains industry. Lately we have sharpened our research focus even further, by boosting our regional capacity through the opening of offices in key grain-growing regions.

We have further refined our research project hierarchy and classifications to ensure that we invest in the most appropriate balance of strategic research, applied research, development and validation, and extension across short-, medium- and long-term horizons.

In 2016–17, we will invest in research to address key cropping constraints across Australia’s grain-growing regions through coordinated and national initiatives that address water productivity, frost and heat.

CSIRO estimates that growers are leaving $6.5 billion worth of water in the ground at the end of the annual crop. Increasing water productivity (the ratio of yield to seasonal water availability) is one of the key ways to close the yield gap. The goal of the GRDC’s Water Productivity Initiative is to reduce the exploitable yield gap by a third through improvements in water use efficiency.

We will invest over $13.0 million in frost-related projects under the National Frost Initiative. This initiative is tackling frost from several angles to deliver growers a combination of genetic and management solutions with tools and information to better predict frost events.

Heat damage is arguably the most common and most limiting production constraint in Australian grain crops and annual average economic losses from heat damage in Australian wheat crops are estimated to be about $1.1 billion. Given that heat stress is a constraint within the Australian agricultural environment, it is essential that growers use cereal, oilseed and pulse varieties and management options that enable them to substantially reduce the impact of heat on grain yield. The National Heat Initiative spans pre-breeding, breeding and agronomy.

As the GRDC continues to deliver against the 2012–17 strategic R&D plan, the ground is being laid to develop the next five-year strategic R&D plan in concert with further refinements to the organisational structure of the GRDC. Leading this next phase in the GRDC’s future will be a new Managing Director, Dr Steve Jefferies. Steve’s extensive commercial experience is well suited to leading the GRDC’s program of transformation and his understanding of our industry and the drivers needed for improvement will see the GRDC continue to focus on and deliver increased benefits to Australia’s grain producers.

Steve Thomas - Acting Managing Director

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Contents1. INTRODUCTION 8Planning and reporting 8

Funding 8

Financial outlook 8

Relationships 8

Communication 10

2. INVESTMENT APPROACH 11Strategy 12

Process 13

Communication and extension 15

Evaluation 15

3. GOALS AND PERFORMANCE MEASURES 17Theme 1—Meeting market requirements 18

Theme 2—Improving crop yield 21

Theme 3—Protecting your crop 26

Theme 4—Advancing profitable farming systems 31

Theme 5—Improving your farm resource base 36

Theme 6—Building skills and capacity 41

Cross-theme investments 45

Enabling business functions 45

4. ESTIMATED INCOME AND EXPENDITURE 49Income 49

Expenditure 50

Reserves 52

Payments to representative organisations 53

Expenditure to meet Australian Government research priorities 53

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1. IntroductionPlanning and reportingThis annual operational plan sets out the GRDC’s goals, performance measures and budget for 2016–17, the fifth and final year of operations under its Strategic R&D Plan 2012–17. In 2016–17, the GRDC will invest $198.0 million in research, development and extension (RD&E) projects that address the priorities and strategies outlined in the GRDC’s five-year strategic R&D plan. The GRDC’s performance in achieving its planned outcomes and targets will be assessed in the 2016–17 Annual Report.

FundingThe GRDC is principally funded by a grower levy and Australian Government contributions.

The levy is based on the net farm gate value of the annual production of 25 crops: wheat; coarse grains—barley, oats, sorghum, maize, triticale, millets/panicums, cereal rye and canary seed; pulses—lupins, field peas, chickpeas, faba beans, vetch, peanuts, mung beans, navy beans, pigeon peas, soybeans, cowpeas and lentils; and oilseeds—canola, sunflower, safflower and linseed.

The levy rate is 0.99 percent of farm gate value, except for maize, which is levied at 0.63 percent of farm gate value.

The Australian Government matches the levy up to a limit of 0.5 percent of the three-year rolling average of the gross value of production of the 25 leviable crops.

Other sources, including interest, royalties and grants, contribute a small proportion of the GRDC’s income.

Financial outlookThe GRDC’s total income in 2016–17 is forecast to be $200.1 million, consisting of:

Australian Government contributions of $68.2 million levy contributions from grain growers of $114.5 million grants totalling $1.2 million other income, including interest and royalties, totalling $16.2 million.

For 2016–17, the GRDC Board has approved an annual operating expenditure of $220.5 million (which is an increase of approximately 0.4 percent compared to the 2015–16 expenditure budget).

The GRDC is estimating an operating loss in 2016–17. This loss will be funded by the GRDC’s accumulated financial reserves.

Part 4 of this document provides details of the estimates of GRDC income and expenditure for 2016–17. The figures are indicative only. Changes in the GRDC’s operating environment may require the corporation to vary the total expenditure or specific allocations to secure its objectives.

RelationshipsThe GRDC works closely with Australian grain growers and the Australian Government, to ensure that their RD&E priorities are effectively addressed through GRDC investments. The GRDC also maintains strong relationships with its other stakeholders, particularly in the R&D and agribusiness sectors.

Effective partnerships with other Australian organisations enable the GRDC to leverage resources and research capability; share market knowledge, technologies and intellectual property; and reduce the risk associated with particular investments.

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The GRDC also builds strong relationships with organisations overseas, both to broaden the resources available to the Australian grains industry and to access international RD&E efforts that offer potential benefits, such as food security, for the wider Australian community.

CollaborationCollaboration is at the heart of the GRDC’s approach to adding value to the Australian grains industry. The majority of the GRDC’s investment in RD&E is with partners that co-fund the work and conduct many of the activities. Examples include government agencies; cooperative research centres, universities and other research organisations, including rural R&D corporations; commercial plant breeders and seed companies; agricultural companies and advisers; and grain marketers, exporters and end-users.

Australia’s R&D investment is only a small part of the global effort, so the GRDC collaborates with public and private research organisations overseas to access new technologies and intellectual property that would otherwise be unavailable to Australia. As the largest single Australian investor in broadacre agricultural RD&E, the GRDC is well placed to build links between the Australian research sector and the best research being undertaken around the world. Notable examples include the GRDC’s longstanding strategic alliances with the International Maize and Wheat Improvement Center (CIMMYT), the International Center for Agricultural Research in the Dry Areas (ICARDA) and the International Crop Research Institute for the Semi-Arid Tropics (ICRISAT).

More recently, the GRDC became one of 12 funding partners in the International Wheat Yield Partnership. The initiative will coordinate global investment and research in wheat genetics, genomics, physiology, breeding and agronomy, with an ambitious long-term aim of achieving increased wheat yield.

Commercial partnershipsWhile the GRDC is a major investor in the development of new technologies benefitting Australian growers, most GRDC investments are made with one or more partners. Historically, GRDC investment partners have been public institutions such as state governments, CSIRO and universities. Increasingly, however, investment partners include a mixture of large, medium and small enterprises.

The recent five-year agreement with Bayer CropScience to discover and develop innovative weed management solutions is a tangible result of the GRDC’s ability to develop large-scale commercial partnerships. The major aim is to provide growers with new technologies to manage herbicide-resistant weeds and support the sustainability of modern crop production systems.

Investment partnerships with the private and public sectors are both desirable and necessary, as they can bring together complementary skills, supply market knowledge and access to proprietary technologies, and reduce the risk to the GRDC in the funding of new technologies through the provision of independent financial resources.

While the most usual path to market for commercial research products arising from GRDC investment will be through licensing to suitable partners, investments in joint ventures and companies to deliver the products are also considered, based on the merits of business cases that demonstrate delivery of the best outcome for growers and the wider grains industry.

The changing R&D investment environment will see the GRDC’s engagement with private sector investment and commercial activities increase in 2016–17, especially in relation to genetics, engineering and crop protection technologies. The GRDC will also continue to seek access to research and new technology for product development to assist the Australian grains industry as opportunities and needs arise.

CommunicationThe GRDC continually seeks to enhance communication exchange to and from the corporation, to assist stakeholders to adopt new uses and sources of timely, relevant grains information. The

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curation and integration of effective information sources for growers is a key priority. Mechanisms that are growing in importance include online integrated information packages, such as GrowNotes, and the GRDC’s social media presence.

New tools add value to existing mechanisms such as the GRDC’s Regional Cropping Solutions networks, which provide essential on-the-ground linkages between growers, farming systems groups, agribusiness and researchers. These networks and their appointed facilitators link growers’ local RD&E needs with the nation’s agricultural researchers in a streamlined, targeted and responsive way, and enable the GRDC, through its regional panels, to proactively respond to regional issues in a timely manner. The Grower Solutions Groups in the Northern Region play a similar role.

Direct communication with growers and their advisers is also facilitated by the GRDC’s advisory panels and managers of grower services in the Northern, Southern and Western regions.

The GRDC also exchanges information and ideas with growers through Grain Producers Australia and GrainGrowers, the grains industry’s representative organisations as defined under the Primary Industries Research and Development Act 1989, and a wide range of representative bodies such as farming systems groups and state farmers’ organisations. Representative groups for particular industry sectors also liaise with the GRDC, through the National Agribusiness Reference Group.

The GRDC works closely with its portfolio department, the Department of Agriculture and Water Resources, and interacts with various federal and state government agencies.

Other opportunities to communicate with the GRDC include:

personal contact, through field days, forums, conferences and other activities stakeholder surveys and market research GRDC-supported education and training channels, such as grains research updates,

conferences and technical workshops GRDC smartphone and tablet applications the GRDC website and YouTube channel GRDC accounts on social media channels such as Twitter, Facebook and LinkedIn.

The GRDC also conducts roadshows to ensure that industry partners and other interested parties are well informed about new developments, initiatives and processes conducted by the corporation.

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2. Investment approachFigure 1: Strategic framework and planned outcomes for RD&E investments

GOVERNMENT AND INDUSTRY OBJECTIVES

AUSTRALIAN GOVERNMENT OBJECTIVES INDUSTRY OBJECTIVES

Primary Industries Research and Development Act 1989

Science and Research Priorities

Rural Research, Development and Extension Priorities

Grains Industry National Research, Development and Extension Strategy 2014

Industry priorities

Increased economic, environmental and social benefits to members of primary industries and to the community in general by improving the production, processing, storage, transport or marketing of grain.Sustainable use and management of natural resources.More effective use of the resources and skills of the community in general and the scientific community in particular.Development of scientific and technical capacity.Development of the adoptive capacity of grain growers.Improved accountability for expenditure on R&D activities.

Food.Soil and water.Transport.Cybersecurity.Energy.Resources.Advanced manufacturing.Environmental change.Health.

Advanced technology.Biosecurity.Soil, water and managing natural resources.Adoption of R&D.

Better varieties—to lift productivity and value.Improved practices—to enhance productivity and sustainability.Supply chain innovation and market competitiveness.Building farm business and industry capability.

Meeting market requirements.Improving crop yield.Protecting your crop.Advancing profitable farming systems.Improving your farm resource base.Building skills and capacity.

GRDC RD&E INVESTMENT THEMES

1. Meeting market requirements

2. Improving crop yield

3. Protecting your crop 4. Advancing profitable farming systems

5. Improving your farm resource base

6. Building skills and capacity

Intermediate outcomes(5 years)

Understanding market opportunities for Australian grain. Crop and variety selection aligned with market requirements. Crop production aligned with market requirements. Grain harvest and storage practices

Genetic yield potential and stability improvement of cereal varieties. Genetic yield potential and stability improvement of pulse varieties. Genetic yield potential and stability improvement of oilseed varieties.

Effective, sustainable and efficient management of weeds. Effective, sustainable and efficient management of vertebrate and invertebrate pests. Effective, sustainable and efficient management of cereal rusts. Effective, sustainable and efficient management of cereal (non-rust), pulse and oilseed fungal pathogens. Effective, sustainable and efficient management of nematodes. Effective, sustainable and efficient management of

Knowing what is important (key business drivers). Planning strategically (building system benefits and rotations). Responding tactically (individual crop agronomy).

Understanding and adapting to climate variability. Improving soil health. Managing water use on dryland and irrigated grain farms. Understanding and valuing biodiversity. Communication of sustainable production

Grains industry leadership and communication. Capacity building in the extension sector. Capacity building in the R&D sector. Capacity building for grain growers.

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aligned with market requirements.

viruses and bacteria. Biosecurity and pesticide stewardship.

methods.

Aspirational outcomes(10+ years)

Australian grain growers maintain and increase access to current and future grain markets by aligning on-farm production practices with quality and functionality requirements.

Cereal, pulse and oilseed varieties with significant, sustained and stable improvements in water-limited yield potential over current elite varieties in key agroecological zones and across a range of seasons.

Australian grain growers managing their farms to maximise profit and reduce risk by adopting effective control of weeds, pests and diseases.

Australian grain growers managing farming systems that are able to respond and adapt to changing environmental and market conditions to reduce risk and deliver an increase in profitability.

Grain growers valued for adopting practices that improve regional habitat, soil, water and atmosphere resources in a changing climate.

A dynamic Australian grains industry with the skills and capacity to continuously innovate.

GRDC CORPORATE STRATEGIES

Create value Coordinate nationally Deliver regionally Connect globally Engage with growersand industry

GRDC OUTCOME

Australian grain growers utilising new information and products that enhance the productivity, profitability and sustainability of growers and benefit the grains industry and wider community.

GRDC VISION A profitable and sustainable Australian grains industry, valued by the wider community.

StrategyThis annual operational plan addresses outcomes identified in the GRDC’s Strategic R&D Plan 2012–17. The strategic plan provides a template to ensure that the GRDC invests in RD&E in a sustainable manner, balancing long-term and short-term, high-risk and low-risk, and strategic and adaptive research needs, over a five-year period. In 2016–17, the GRDC will develop a new five-year plan to commence on 1 July 2017.

The Strategic R&D Plan 2012–17 is informed by consultation with grain growers, research partners and other stakeholders. It embraces the principles, strategies and implementation plan set out in the Grains Industry National Research, Development and Extension Strategy, and takes into account cross-sectoral national research strategies in areas such as climate change; water use in agriculture; soils; and biosecurity.

In particular, the strategy addresses the identified priorities of Australian grain growers and the Australian Government.

The core priorities identified in consultation with growers are embodied in the GRDC’s six strategic themes for RD&E investment. The Australian Government’s priorities have evolved since the plan was published, and are now expressed in the Science and Research Priorities announced in May 2015 and the Rural RD&E Priorities announced in July 2015.

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Figure 1 illustrates how the priorities of key stakeholders flow through a coherent structure of investment and corporate strategies that enables the GRDC to achieve tangible outcomes for the Australian grains industry.

ProcessThe GRDC’s process for making and assessing RD&E investments for 2016–17 comprises six key steps, as outlined in Figure 2 and described in the following sections.

The RD&E investment process for future years, based on a continuous investment cycle, will be detailed in the 2017–18 Annual Operational Plan.

Figure 2: Investment process

GPA = Grain Producers Australia, RCS = Regional Cropping Solutions

Step 1—Identification of prioritiesThroughout the year, the GRDC improves its understanding of grains industry RD&E priorities for the year ahead. Potential issues are identified through:

interaction with growers, advisers and other industry participants, through Regional Cropping Solutions network activities such as grower updates, adviser updates, forums and field days

consultation with the GRDC regional panels, representative organisations, researchers, state farming organisations and the national and regional agribusiness reference groups

evidence from project reviews, project progress reports and survey results identification of gaps in the investment strategies underlying each of the GRDC’s six themes consideration of the Australian Government’s Science and Research Priorities and Rural RD&E

Priorities.

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All priorities are looked at as potential areas for investment in future investment cycles. Initial suggested high-level resource allocation for the year ahead of the current financial year is reported to the representative organisations, in the form of a draft stakeholder report. Final resource allocations at the theme level are recommended to the GRDC Board in April of the following calendar year.

Step 2—Investment Planning WeekIn July/August, GRDC managers and regional panel members meet to discuss issues and investment areas that address gaps in investment strategies and the priorities identified through engagement with stakeholders.

GRDC managers then develop ‘mini prospectus’ proposals for new RD&E projects and existing projects that are due to be reviewed for further investment. The mini prospectus outlines the project’s aims, deliverables and approximate budgets. Each proposal is categorised as a national investment or a regional investment.

The proposals are ranked by GRDC managers, taking into account the relevant five-year strategic R&D plan. The GRDC’s National Panel makes recommendations for resource allocation to frame a high-level budget. Based on procurement recommendations made during Investment Planning Week, the annual external investment plan (for the next financial year) is formulated.

Step 3—Call for tendersThe external investment plan is released in August. Investment proposals identified as suitable for competitive tender are published in the plan in accordance with the Commonwealth Procurement Rules. Tenders are evaluated against specific selection criteria to determine the preferred provider(s).

The GRDC usually invests in partnership with the organisations that will deliver the RD&E. This means that most project investment is a combination of GRDC funding and research provider investment.

Step 4—ContractingThe contracting of projects for the next financial year begins after the Board gives preliminary approval to theme allocations in September.

Step 5—Status, progress and gap review meetingIn March, GRDC managers and regional panel members meet to review and formalise the investments for the forthcoming financial year. During this meeting:

Progress on the status and development of new investments agreed to during Investment Planning Week is reviewed.

The resources being contributed to each project by the research partner(s) are assessed. Progress in the contracting of projects is reviewed. Actual investment that will occur in the next financial year is refined in line with the high-level

budget. Investments and refinements to budget are reflected in the drafts of the annual operational plan

and stakeholder report. Strategic gaps are assessed, along with priorities for investment identified through engagement

with stakeholders, to scope potential investments for later financial years.

Step 6—Assessment of reportsAlso in March, annual progress reports on continuing investments are received and assessed by GRDC managers, in terms of both the project’s status against contract milestones and the quality of the report. The assessment process identifies issues for GRDC managers to follow up.

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Payments are made to research partners for projects that have good quality progress reports and are on track to meet milestones and achieve contract outputs.

Final reports are assessed for quality of reporting and achievement of contract milestones and outputs at the end of each project (this usually occurs in September).

Communication and extensionTo realise the greatest benefit from its RD&E investments, the GRDC undertakes a range of activities to raise awareness of grains industry R&D and extend the results of GRDC-supported projects to grain growers, industry and the wider community.

Recognising that across industry there are different needs and preferences for receiving information, the GRDC uses a range of products and channels, including media; publications; the GRDC website and YouTube channel; and direct electronic distribution.

Building on the awareness generated by its communication activities, the GRDC supports the adoption of improved techniques and technology through a multifaceted approach to extension. Science writers are engaged to develop material that translates complex technical information into forms that can be applied on farm, and the GRDC invests in events, field trials, training, decision-making tools and new technologies to connect growers and advisers to the outcomes of R&D.

EvaluationThroughout the life of the Strategic R&D Plan 2012–17, the GRDC will measure, evaluate and report on the progress being made in achieving the aspirational and intermediate outcomes of each of the six investment themes. The GRDC also continually assesses the performance of its RD&E programs and projects, including their impact on the Australian grains industry and the wider community, and regularly reports to stakeholders.

Strategic performance measuresThe GRDC has developed a ‘monitoring, evaluation, reporting and improvement’ plan for each investment theme. Each plan includes a set of key evaluation questions that, when tested, enable the Board and GRDC stakeholders to assess the progress made in relation to the theme. For each question, the plan identifies performance indicators and sources of data that underpin the evaluation.

Results of the ongoing performance measurement are used to alter the investment mix where required, and to make improvements in the management of RD&E investments in order to achieve the outcomes as effectively and efficiently as possible.

The annual operational plan also sets out indicators that are used to measure the GRDC’s performance in delivering the outcomes of its investment themes and meeting its organisational objectives. Progress towards achieving those performance measures and targets is recorded through formal reporting arrangements, such as the annual report and the growers’ report.

Impact assessmentsEach year, the GRDC undertakes impact assessments that focus on ongoing programs within the themes developed for the five-year plan, as well as evaluations of completed projects.

The impact assessment methodology uses a triple-bottom-line framework and is consistent with the Impact Assessment Guidelines released in 2014 by the Council of Rural Research and Development Corporations.

Stakeholder surveysThe GRDC’s stakeholder surveys are designed to evaluate attitudes towards the GRDC and its performance as a research partner and investor in grains RD&E activities.

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A grower survey is conducted each year to help the GRDC to assess and improve its performance, particularly in terms of ensuring that research outcomes are being communicated effectively to growers. The survey obtains detailed feedback from 1,200 growers across Australia, covering the GRDC’s three production regions and key agroecological zones.

A research partner survey is conducted periodically to provide the GRDC with an evaluation of research providers’ perspectives on their relationships with the GRDC, determining key areas of strength and weakness and identifying areas of potential improvement. A total of 300 interviews with researchers, supervisors and administrators are conducted across Australia, using Computer Assisted Telephone Interviews. A series of 18 in-depth interviews are also conducted with senior people within the research sector to facilitate a high level of discussion on partnership issues and ensure that the information collected highlights areas which respondents consider to be significant.

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3. Goals and performance measures

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Theme 1 Meeting market requirementsThis theme describes the framework for the GRDC’s investments in grain quality and functionality to help growers maintain and expand access to markets.

Australia’s domestic and international customers seek a consistent supply of grain that is both:

a quality product that is compliant with statutory and customer-specific requirements a functional product that performs reliably for the desired end use.

To deliver highest value to growers, the GRDC must understand the requirements and the dynamics of current domestic and export markets for feed and food grains, and those of likely future markets.

Through the ‘Meeting market requirements’ theme, the GRDC interacts closely with participants in the Australian grains value chain to better understand market requirements, particularly for quality and functionality, to enable growers to maintain or increase access to current markets and secure access to new higher valued markets.

Aspirational outcome (10+ years)Australian grain growers maintain and increase access to current and future grain markets by aligning on-farm production practices with quality and functionality requirements.

Intermediate outcomes (5 years)Understanding market opportunities for Australian grain—Acquisition and interpretation of information about market requirements, trends and opportunities, in order for the GRDC to make informed RD&E investment decisions and to assist grower decisions.

Crop and variety selection aligned with market requirements—Growers use market information to select crop, variety and cropping sequence that addresses their profit and risk.

Crop production aligned with market requirements—Growers use information on appropriate in-crop management to maximise the potential of delivering grain that meets the quality and functionality requirements of the intended customer.

Grain harvest and storage practices aligned with market requirements—Growers adopt harvest and storage practices to maximise their potential to deliver grain that meets the quality and functionality requirements of the target market.

2016–17 budget$8.7 million

Performance targetsTable 1 shows the 2016–17 targets for each major practice change for Theme 1—Meeting market requirements.

Table 1: Theme 1 intermediate outcomes, practice changes and performance targets for 2016–17

PRACTICE CHANGES AND KEY METRICS TARGETS

Understanding market opportunities for Australian grain.

The GRDC establishes relationships with the value chain and regulatory authorities to access information about market requirements, trends and opportunities.

A GRDC-supported project provides strategic oversight and coordination of grain protection chemicals.

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Australian Export Grains Innovation Centre joint venture is established and operating appropriately.

The GRDC makes greater use of information on current and potential future markets to guide investment decisions.

The Grains Industry Market Access Forum (GIMAF) works with industry and government to provide foundational documents on use of chemicals and contamination of grain with weed seeds and diseases, to facilitate ongoing and new market access.

Crop and variety selection aligned with market requirements.

A greater proportion of growers and advisers use market information to inform crop and variety selection.

Through GIMAF, the National Working Party on Grain Protection, and the GRDC’s Minor Use Program and Pathways to Registration Project, growers are made aware of access requirements for major markets.

Increased interaction between grains industry participants (growers, pre-breeders, breeders and value chain participants) and regulatory authorities creates awareness of the quality and functionality market access requirements.

The GRDC provides information on crop quality and market access requirements to key industry stakeholders.

Breeders and pre-breeders use market information to deliver varieties that meet the requirements of current and future markets. Independent wheat variety classification is maintained.

GRDC-supported projects provide market information to breeders and pre-breeders through a combination of workshops, field days and research updates which supports the delivery of varieties to meet current and future market requirements.

Crop production aligned with market requirements.

A greater proportion of growers and advisers use relevant market information to inform decisions about in-crop management practices.

GRDC-supported projects provide growers with agronomy and farming systems management packages that assist them to achieve grain quality requirements of target markets.

A greater proportion of grain growers adjust pest, weed and disease management practices to meet market requirements.

Growers use information contained in GRDC-supported products to manage weeds, pests and diseases to ensure that grain meets market requirements.

Grain harvest and storage practices aligned with market requirements.

A greater proportion of growers use harvesting strategies that maximise the opportunity to meet the requirements of their target market.

Growers are aware of harvesting strategies to maximise grain quality.

A greater proportion of growers are aware of the quality and functionality of the grain delivered to their customer or entering contract storage. 90% or more of growers are aware of and interested in the benefits of measuring grain quality.1

Through a combination of workshops, social media and publications, growers are made aware of opportunities to increase grain quality and functionality.

A greater proportion of growers use storage practices to meet market requirements and provide for the continued effectiveness of pest control measures. At least 70% of growers storing grain on farm use sealed silos.1

GRDC-supported projects provide information to growers on controlling pests of stored grain.

The GRDC uses market access information to provide growers with the harvest and storage management packages and tools to comply with market requirements.

GRDC-supported projects develop and communicate harvest strategies and on-farm grain storage techniques to comply with market requirements.

1 This key metric is a program performance measure in the Agriculture and Water Portfolio Budget Statements 2016–17. This may vary from the key metric published in the 2012–2017 Strategic R&D Plan.

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Investment highlightsThis section provides a few examples of major RD&E investments that illustrate the GRDC’s focus on ‘Meeting market requirements’ in 2016–17.

Expanding market options for sorghumSorghum is well adapted to a wide range of conditions and situations and is currently a major component of cropping in the Northern Region. However, the value derived from sorghum is limited by the perception that it is usable only for feed, and even as such it is valued less than winter cereals or maize because its starch is less readily digestible.

To achieve better benefits from the grains industry’s investment in improved sorghum genetics and agronomy, the GRDC is supporting research to identify opportunities in food and beverage markets to achieve higher returns for sorghum.

Providing strategic oversight and coordination of grain protection chemicalsThe ability to use grain protectants and fumigants is of utmost importance to the grains industry, as grain must be free of live insects to meet market demands and regulatory requirements. Because of its climate, Australia is particularly reliant on chemicals for use in the storage of grain, and needs to ensure that the international processes for the registration of such chemicals are extremely efficient.

Identified maximum residue limits (MRLs) allow for the presence of specified levels of post-harvest chemical residue in grain for trade. If no MRL exists for a particular grain–chemical combination, no residue is permissible. The loss of MRLs for grain protectants and fumigants used to manage stored-grain insects would have very serious implications for on-farm storage and international trading.

The GRDC is investing in strategic oversight to ensure that the Australian grains industry complies with international registration requirements for grain storage protectants and fumigants.

Facilitating grains industry market accessThe Grains Industry Market Access Forum works with industry and government to identify and prioritise market access issues important to the grains industry, and to strategically manage and resolve those issues through communication and relationship management. This includes implementing an agreed work plan with the Department of Agriculture and Water Resources to manage priority market access issues on an ongoing basis or as they arise.

The GRDC provides advice to GIMAF. In 2016–17, this will include advice on current best management practices for insects, weeds and diseases; the distribution of biotic threats; and projects on establishing MRLs for agricultural chemicals.

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Theme 2 Improving crop yieldThis theme describes the genetic approaches and associated tools and technologies that can be applied to produce varieties with increased water-limited yield potential (WLYP).

The WLYP of a variety is the maximum yield attainable when the variety is grown under average, rain-fed conditions without the limiting impacts of nutrient deficiency, soil toxicity, weed competition, insect damage and disease.

Although the actual yield that is captured on farm depends on a grower’s ability to manage the biotic and abiotic factors that contribute to yield losses (and the cost limitations of management practices), WLYP is genetically determined.

Plant breeders aim to continually improve the WLYP of crops through new varieties. However, for many crops, continued improvements in genetic yield potential and stability are becoming harder to realise.

The ‘Improving crop yield’ theme focuses on the delivery of new crop varieties with demonstrable improvements in genetic yield potential and yield stability. Given the wide range of farming environments and crop choice, targets will be crop specific and region specific.

Aspirational outcome (10+ years)Cereal, pulse and oilseed varieties with significant, sustained and stable improvements in water- limited yield potential over current elite varieties in key agroecological zones and across a range of seasons.

Intermediate outcomes (5 years)Genetic yield potential and stability improvement of cereal varieties—Growers access and increase production of adapted cereal varieties with a significant yield potential and stability increase over current elite varieties.

Genetic yield potential and stability improvement of pulse varieties—Growers access and increase production of adapted pulse varieties with a significant yield potential and stability increase over current elite varieties.

Genetic yield potential and stability improvement of oilseed varieties—Growers access and increase production of adapted oilseed varieties which continue to meet target oil levels with a significant yield potential and stability increase over current elite varieties.


Performance targetsTable 2 shows the 2016–17 targets for each major practice change for Theme 2—Improving crop yield.



Genetic yield potential and stability improvement of cereal varieties.

Genetic yield potential and stability improvement of pulse varieties.

Genetic yield potential and stability improvement of oilseed varieties.

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Breeders and industry pre-breeders increase their level of collaborating to identify and prioritise traits, tools and germplasm requirements to support target gains in yield potential and stability. New cereal varieties have minimum yield increases equivalent to 1% per annum as measured in National Variety Trials (NVT).1

New pulse varieties have minimum yield increases equivalent to 2% per annum as measured in NVT.1

New oilseed varieties have minimum yield increases equivalent to 1.5% per annum as measured in NVT.1

Strong interactions between researchers and breeders are defining germplasm requirements and breeding tools within the: Crown Rot Initiative National Barley Foliar Pathogen Variety Improvement Program Pulse Molecular Marker Program National Brassica Germplasm Improvement Program.

Increased number of pre-breeders develop priority traits in breeder-defined genetic backgrounds, and ready-to-implement selection tools to drive rapid adoption by breeding programs.

Pre-breeding research provides germplasm and selection tools to accelerate the development of improved varieties of pulses with increased yield, disease resistance and herbicide tolerance. A cost-effective diagnostic screening method is developed to assist barley-breeding programs to eliminate the undesirable blue aleurone trait from breeding lines with acid soil tolerance. Pre-breeding targets are identified for genetic sources of heat tolerance and resistance to crown rot in barley. Genetic diversity in wheat is exploited by importing selected lines from international germplasm collections and screening them for increased reproductive frost tolerance. Genetic diversity in chickpeas is exploited by importing wild Cicer lines from Turkey and screening them for increased cold tolerance, improved nematode resistance and superior adaptation traits.

Increased number of breeders and pre-breeders use accurate data analysis methods to interpret yield potential, stability and environmental data that inform selection for target production environments.

Statistics for the Australian Grains Industry outputs are used to design and analyse experiments and trials, to increase efficiency and ensure consistent and reliable data, in many GRDC projects, including the National Frost Initiative, the National Barley Foliar Pathogen Variety Improvement Program and all projects conducted at managed environment facilities. All Australian wheat breeders collaborate with Statistics for the Australian Grains Industry to implement advanced biometric methods within their breeding programs.

Growers and their advisers have greater access to and make greater use of accurate, regionally relevant yield potential and stability data to choose an improved variety. New varieties currently available meet the expectations of at least 60% of growers.1

40% of growers and their advisers use the NVT online data or attend an NVT field day, and of these 90% consider that the information obtained helped them in deciding which varieties to plant.1

The GRDC Grower Survey shows continued increases in the proportions of growers who say that: new varieties met their expectations well or very well NVT information helped them to choose varieties to adopt.

1 This key metric is a program performance measure in the Agriculture and Water Portfolio Budget Statements 2016–17.

Investment highlightsThis section provides a few examples of major RD&E investments that illustrate the GRDC’s focus on ‘Improving crop yield’ in 2016–17.

Crown rot in wheatCrown rot in cereals can affect grain quality and cause severe yield losses—as high as 90 percent in durum wheat and 50 percent in bread wheat. Despite gains in resistance and tolerance and the availability of improved management options, crown rot remains the single biggest limiting factor to

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wheat production in the Northern Region, and an increasingly important issue in the Southern and Western regions.

The development of wheat varieties with effective genetic resistance or tolerance to crown rot has significant potential to reduce yield losses. With GRDC support, the national Crown Rot Initiative has generated much momentum in the development of genetic material with resistance and tolerance. That momentum will be captured in 2016–17 by work to pyramid multiple sources of partial resistance and tolerance into adapted backgrounds and make them available to Australian wheat breeders.

The initiative has also identified challenges to the delivery and adoption of new sources of tolerance and resistance, including limitations on the reliability and efficiency of current phenotyping methods for use in pre-breeding and commercial breeding applications. In 2016–17, work will be undertaken to improve phenotyping strategies and deliver reliable, repeatable and robust phenotyping methods to breeders and pre-breeders. As well as improving the accuracy and efficiency of pre-breeding activities, this will increase the likelihood of improved traits being adopted by commercial breeding programs and eventually released to Australian growers.

Work will also be undertaken to improve molecular strategies for identifying genetic regions for crown rot resistance and tolerance. This will include confirming the validity of quantitative trait loci (QTL) detected in field tests, and determining their effects in multiple genetic backgrounds. The research will also aim to refine the markers for four known resistance QTLs, allowing them to be more efficiently deployed in commercial breeding applications.

Foliar diseases in barleyFungal foliar diseases cause serious losses of yield and grain quality in barley—it is estimated that foliar diseases (excluding rust) cost Australian barley growers around $110 million each year in the 10 years to 2009. With GRDC support, the National Barley Foliar Pathogen Variety Improvement Program aims to improve growers’ options for avoiding such losses through genetic sources of disease resistance.

The program is working to provide barley breeders with new genetic material and knowledge that will assist them to develop varieties that have effective resistance across Australia and across several diseases. This involves identifying the best sources of resistance to different strains of five diseases—net form net blotch, spot form net blotch, scald, powdery mildew and barley yellow dwarf virus—and establishing effective mechanisms for screening for those sources in breeding materials. New sources of resistance will be tested in elite Australian breeding lines.

Additional experiments are being conducted to examine the evolution of new strains of foliar diseases and the role of wild grasses in perpetuating those diseases. This will improve understanding of how long resistances may last and how cropping systems may be managed to prolong the lives of effective resistances. Plant toxins produced by the fungi that cause the diseases are also being investigated.

The development and release of barley varieties with improved resistance to foliar disease will enable growers to reduce their use of fungicide and increase their adoption of stubble retention strategies, creating a cleaner, greener environment, while improving productivity. Better informed monitoring of the development of new strains of disease will assist industry to reduce risk to commercial varieties and assist growers to minimise losses.

Heat tolerance in wheatHeatwaves have been a significant cause of losses in Australian wheat production, particularly in the Northern Region, over several decades. The frequency and the extent of Australian heatwaves are expected to increase as a consequence of ongoing global climate variability.

High-yielding wheat cultivars that have superior tolerance to high temperatures, especially during critical stages of development such as flowering and early grain growth, could help to moderate the

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negative effects of heatwaves, significantly improving yield and profitability during the heatwave years and contributing to the overall sustainability of farming systems.

Since 2012, the GRDC has been supporting a project to identify wheat germplasm with superior tolerance to short periods (one to three days) of temperatures exceeding 35° Celsius. A combination of experimental approaches to impose high temperatures, in the glasshouse and in the field, are used to compare a range of materials thought to possess high-temperature tolerance traits. This includes work at the controlled environment field facility at Narrabri, New South Wales, which provides a unique ability to conduct tests under extremes of high temperature without the unpredictability of natural weather events.

The testing includes benchmarking against commercial wheat varieties widely grown in the Northern Region. Seed set, seed size and seed yield are measured as primary indicators of temperature tolerance, and the most promising materials are also assessed for stability of grain quality.

In 2016–17, the project will evaluate grain functionality in the materials that have displayed the greatest tolerance to high-temperature stress. This will provide an understanding of possible trade-offs between performance and yield in high-temperature tolerant germplasm.

Flowering time in wheatFor a crop to achieve maximum yield with screenings, protein, properties, markings and defects within acceptable limits for receival standards, its flowering time must coincide with optimal environmental conditions. The GRDC is supporting a project to assist wheat breeders to understand and harness the genetic mechanisms that control flowering time, in order to design more efficient breeding strategies for particular grain-growing regions and select flowering behaviours suited to particular practices—long-season wheats for early sowing, for example.

The project uses DNA diagnostic techniques to assay variations in key genes that control flowering behaviour, then uses traditional plant-breeding techniques to introduce different variations into wheat lines from a common parent. This process generates lines that are genetically almost identical (near-isogenic) but have different flowering behaviours. The near-isogenic lines are used to identify the optimal flowering behaviours for specific management strategies and to examine the interactions between flowering and other traits, such as yield.

Ultimately, mutations are triggered in current elite wheat varieties to generate new varieties that have the successful traits of the parent lines along with flowering behaviour adapted to a new purpose, such as a different growing region or a different sowing date.

Since the project commenced, the genes controlling flowering behaviour have been assessed in approximately 1,500 Australian wheat lines and relevant results have been provided to breeders for use in selecting parents for new breeding lines. Approximately 100 near-isogenic lines have been produced, and promising novel mutants of current elite Australian wheats have been isolated. Work in 2016–17 will include trials of an early-flowering version of the popular winter wheat Wedgetail, in regions where the original Wedgetail is typically too slow to flower.

Genetic diversity in chickpeasThe ‘Mediterranean’ climate zones of the Southern and Western regions have strong potential to significantly increase production of chickpeas, Australia’s most valuable pulse export and a profitable legume option for crop rotations. However, those zones also pose adaptive challenges such as terminal drought; low temperatures during flowering and podset; and salinity and low pH (particularly in Western Australia).

Genetic solutions to such challenges could accelerate the spread of chickpeas throughout Mediterranean Australia, but chickpea breeding is constrained by limited genetic and adaptive diversity. The GRDC is funding the development of a collection of diverse wild Cicer lines that are related to and inter-fertile with domestic chickpea breeding material, creating unprecedented opportunities for variety improvement.

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The project aims to strengthen chickpea-breeding efforts and act as a model for the exploitation of wild genetic resources, by:

collecting genetic resources to widen the habitat range and genetic diversity of existing collections

phenotyping traits relevant to adaptation to Mediterranean conditions coordinating phenotyping, genotyping and population development projects in Australia and

Turkey, and linking them with R&D collaborations involving Canada, Ethiopia, India and the United States.

The project is currently focused on collecting wild lines to augment the extremely limited world collections of C. echinospermum and C. reticulatum, which have only 10 and 18 original accessions respectively. The project has surveyed nine C. echinospermum and 38 C. reticulatum populations and collected more than 500 new lines.

The new accessions will be studied for stress, disease and pest tolerance, and lines suitable for use in variety improvement will be made available to breeders. Field and laboratory studies testing for tolerances to nematodes, cold, heat and drought are underway in Turkey, and testing of material imported from Turkey to Australia will begin in 2016.

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Theme 3 Protecting your cropThis theme aims to develop cost-effective control options that prevent pests, weeds and diseases from causing crop yield and quality losses, and increase growers’ profit.

Existing control measures for pests, weeds and diseases require ongoing review in light of:

potential and actual incursions of exotic pests changes in regulation of pesticide use and access the need to reduce the cost and increase the speed of delivery of resistant and tolerant varieties manage herbicide and pesticide resistance provide ongoing stewardship of gene technology and pesticide products to support long-term

access.

The ‘Protecting your crop’ theme develops the cultural, chemical and genetic options available to manage key pests, weeds and diseases in each region. Management options need to take into account cost-effectiveness, resilience of control strategies and flexibility to fit different farming systems.

Aspirational outcome (10+ years)Australian grain growers managing their farms to maximise profit and reduce risk by adopting effective, sustainable and efficient control of weeds, pests and diseases.

Intermediate outcomes (5 years)Effective, sustainable and efficient management of weeds—Growers use a combination of new genetic, biological, cultural and chemical weed management tools to reduce crop losses and minimise control costs.

Effective, sustainable and efficient management of vertebrate and invertebrate pests— Growers use a combination of new genetic, biological, cultural and chemical tools to reduce crop losses and minimise control costs of vertebrate and invertebrate pests.

Effective, sustainable and efficient management of cereal rusts—Growers use a combination of new genetic, cultural and fungicide management tools to reduce crop losses and minimise control costs of cereal rusts.

Effective, sustainable and efficient management of cereal (non-rust), pulse and oilseed fungal pathogens—Growers use a combination of new genetic, cultural and fungicide management tools to control cereal (non-rust), pulse and oilseed root and foliar fungal diseases.

Effective, sustainable and efficient management of nematodes—New genetic, biological and cultural management tools for the control of nematodes are delivered.

Effective, sustainable and efficient management of viruses and bacteria—Growers use a combination of new genetic and cultural management tools for the control of viruses and bacteria.

Biosecurity and pesticide stewardship—Effective biosecurity and science-based support is available for pesticide and genetic technology stewardship.


Performance targetsTable 3 shows the 2016–17 targets for each major practice change for Theme 3—Protecting your crop.

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Effective, sustainable and efficient management of:weedsvertebrate and invertebrate pestscereal rustscereal (non-rust), pulse and oilseed fungal pathogensnematodesviruses and bacteria.

A greater proportion of growers and their advisers monitor crops for pests, weeds and diseases.

Regular monitoring of weeds, insects, snails and slugs and diseases, and targeted monitoring of red-legged earth mite and glyphosate-resistant weeds, are conducted in each region.

Breeders and pre-breeders use available genetic diversity for resistance and tolerance breeding.

New herbicide-tolerant chickpea and field pea varieties are available to growers. Breeders have access to markers to select for greater tolerance to crown rot in barley.

Growers and their advisers cost-effectively manage pests, weeds and diseases.

The adoption of harvest weed seed management has increased by 50% in the Northern and Southern regions. Improved knowledge of the biology and ecology of snails and slugs allows growers to better target management tactics, including chemical, physical and biological control methods.

A greater proportion of growers and their advisers use practices to increase pesticide longevity and reduce the risk of resistance. More than 70% of growers are aware of integrated weed, pest or disease management practices, and 50% use some form of integrated management methods on their farm.1

The GRDC 2016 Grower Survey shows increases in the proportions of growers who say that they have: heard of integrated management practices for weeds, pests or diseases adopted integrated management practices on their farms.

Biosecurity and pesticide stewardship.

A greater proportion of growers and their advisers use surveillance and biosecurity measures to manage and prepare for incursion and containment of exotic plant pests, plants and diseases. At least 50% of growers undertake on-farm practices to maintain or improve their biosecurity.1

The GRDC 2016 Grower Survey shows an increase in the proportion of growers or advisers who say that they have used surveillance and biosecurity measures to manage and prepare for incursion and containment of exotic plant pests, plants and diseases.

Breeders and pre-breeders use available genetic diversity to deliver varieties resistant to high-risk biosecurity threats.

Current Australian germplasm is assessed for tolerance to wheat blast.

A greater proportion of growers and their advisers manage stewardship of pesticides and varieties to prolong pesticide effectiveness and ensure safety to health and the environment. 90% of growers undertake activities to delay the onset of or manage herbicide resistance in weed populations.

The GRDC 2016 Grower Survey shows an increase in the proportion of growers who say that they have undertaken activities to delay the onset of or manage herbicide resistance in weed populations.


Investment highlightsThis section provides a few examples of major RD&E investments that illustrate the GRDC’s focus on ‘Protecting your crop’ in 2016–17.

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Diamondback moth in canolaDiamondback moth (DBM) is an occasional but serious pest of canola, in all grain-growing regions, with the ability to rapidly develop insecticide resistance. Outbreaks of DBM have become more frequent and severe in recent years, as a result of milder, dryer winters and increased resistance to the established insecticide options.

To assist growers to reduce DBM-associated costs and losses, the GRDC is supporting a project to facilitate the registration of new DBM insecticides and devise a robust strategy for insecticide resistance management.

In collaboration with the potential registrants, the project will generate field efficacy datasets to facilitate the preparation of Australian Pesticides and Veterinary Medicines Authority registration packages for two new insecticides. An insecticide resistance management strategy, ideally including three or four synthetic insecticides and Bacillus thuringiensis products, will be devised in consultation with stakeholders.

The work will include screening for resistance in strains of the common DBM species Plutella xylostella collected in the field across Australian canola regions. The findings will be used to reassess the risk profiles of specific DBM products. In addition, the project will examine the biology of a recently discovered second species of DBM, P. australiana, and assess any implications it may have for risk mitigation measures.

By the end of 2017, the project will deliver a strategy, tools and information to equip canola growers to control DBM strains that are resistant to current pesticides.

Emerging weeds in the Southern and Western regionsIn the Southern and Western regions, as farming systems, crop management practices and climate conditions are changing, several weed species are emerging as sources of significant costs and yield losses to grain growers. The GRDC is investing in research to better understand the key emerging weed species and provide growers with effective tools for managing them.

Fleabane (Conyza species), feathertop Rhodes grass (Chloris virgata) and windmill grass (Chloris truncata) are increasing in population in the Southern Region, particularly along fence lines and roadsides, while tar vine (Boerhavia species), sowthistle (Sonchus species) and button grass (Dactyloctenium radulans) are increasing in the Western Region. Through surveys, laboratory tests and field studies, the project will investigate the incidence, density, and emergence and dormancy patterns of these species. The results will be used to develop control tactics, including chemical and non-chemical methods.

As well as becoming increasingly common, barley grass (Hordeum species), brome grass (Bromus species), Indian hedge mustard (Sisymbrium orientale) and wild radish (Raphanus raphanistrum) are becoming increasingly resistant to a broad range of herbicide modes of action. New tactics for the control of herbicide-resistant species will be developed through field experiments. Surveys and field work will also be conducted to assess the extent of glyphosate-resistant weeds on roadsides and field margins and the risks that such weeds will move into crop paddocks.

New knowledge and tools for controlling weeds, including cultural, chemical and crop competitiveness approaches, will enable growers to improve profitability and help to slow the spread of weed species and development of herbicide resistance.

White grain disorder in wheatSince it was first recorded in Australia—in Queensland in 1999—white grain disorder has been identified in New South Wales, South Australia, Victoria and Western Australia. It has caused significant costs to wheat growers as a result of yield loss and downgrading or rejection of grain.

Varietal resistance is potentially one of the key management options for white grain disorder. However, the effectiveness of variety improvement has been constrained by the fact that field screening trials do not reliably develop symptoms of the disease, because its expression depends

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on a combination of above average rainfall and high humidity conditions during flowering and grain fill.

The GRDC is supporting a project to develop an efficient and reliable resistance-screening methodology for white grain disorder, based on artificial inoculation under controlled conditions.

The research will compare ways of producing the fungi that cause the disease and ways of using them to inoculate plants, to develop efficient and reliable methods for achieving high levels of infection. Methods of preparing plants for inoculation and rating them for resistance will also be compared, to develop a reliable, high-throughput screening method.

By improving understanding of the factors that affect the expression of white grain disorder, the project will also facilitate the implementation of management practices that reduce disease expression. New approaches and resources made possible by this research are expected to reduce the proportion of grain rejected due to white grain disorder by 90 percent by 2020.

Surveillance and diagnostics of exotic pestsBeing prepared for the threats posed to crops by exotic pests and diseases protects the livelihoods of grain growers and assists the grains industry meet its obligations under the Emergency Plant Pest Response Deed, a binding agreement between Australian governments and plant industry bodies.

Surveillance and diagnostics are the two major activities that support preparedness for exotic plant pest incursions. However, there are few effective, scientifically validated methodologies for determining whether crops are free of pests and pathogens. There are also critical gaps in nationally endorsed diagnostic tests for high-priority pests.

The GRDC is supporting a project to develop better tools for detection and diagnosis, including a range of options for surveillance systems based on sensing and imaging. Current research includes:

video monitoring of snail and slug movement an in-field, fully automated system for spore and insect trapping and reporting drone imaging to assist in phenotyping the incidence of disease in field experiments.

The project is also developing molecular tests for diagnosing exotic viruses in cereals; so far, more than 2,000 cereal plants have been collected and tested. Diagnostic protocols for two soil-borne cereal viruses have been established. Other diagnostic methods under investigation include a field test using LAMP (loop-mediated isothermal amplification) technology, and plant genome sequencing.

The outcomes of the project will improve the effectiveness of Australia’s biosecurity framework as well as the grains industry’s ability to quickly respond to and recover from any incursions of exotic crop pests or pathogens.

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Theme 4 Advancing profitable farming systemsThis theme aims to provide growers and their advisers with the tools to design and manage a farming system with the flexibility to adapt and respond; manage risk; and generate profit.

The ‘Advancing profitable farming systems’ theme:

ensures that research results from the other themes are integrated on farm undertakes production agronomy research for systems development provides an important conduit for identifying on-farm production constraints and opportunities

to inform activities in other themes.

The investment strategies for this theme differ across agroecological zones and farming systems, and are a combination of:

applied farming systems research to overcome major, widespread regional constraints short-term development and extension activities to improve technologies or practices for a

target group of growers in an agroecological zone.

Aspirational outcome (10+ years)Australian grain growers managing farming systems that are able to respond and adapt to changing environmental and market conditions to reduce risk and deliver an increase in profitability.

Intermediate outcomes (5 years)Knowing what is important (key business drivers)—Identification and understanding of the opportunities, risks and potential impacts of key farming practices in each agroecological zone is improved.

Planning strategically (building system benefits and rotations)—Growers adopt integrated management of opportunities and constraints to increase profit and minimise risk across seasons (above the five-year rolling average).

Responding tactically (individual crop agronomy)—Gross margin generated from the major crops in each agroecological zone is increased.


Performance targetsTable 4 shows the 2016–17 targets for each major practice change for Theme 4—Advancing profitable farming systems.

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Knowing what is important (key business drivers).

Information is available in each GRDC agroecological zone about the main opportunities, constraints, and risks to farming systems. The GRDC receives information at least annually via the regional panels.

Growers are able to quantify the gaps between potential and actual yields for wheat at the statistical local area scale and for different decile years.

Data is also available in each zone about how whole-farm and farming system decisions affect those opportunities, constraints and risks.

Soil moisture measurement information, including estimation methods and system design conceptualisation, is conveyed at major regional forums. Published benchmarks allow growers to compare wheat yield to crop nitrogen status, to determine the size of yield gaps and measure the nitrogen status of crops as affected by sowing date, fertilisation and variety.

Better methods and tools are developed for comparison and ranking of the impacts of opportunities and risks on farm profit and sustainability, both short and long term.

Data is available quantifying the nitrogen status of 15 wheat varieties at two National Variety Trials sites in South Australia.

A greater proportion of growers and their advisers use information and tools to identify and rank constraints and opportunities to increase profit. 70% of growers place a high importance on the use of decision tools to assist them with strategic or tactical decision making.1

Key issues and information gaps identified during updates are analysed.

Planning strategically (building system benefits and rotations).

A greater proportion of growers and their advisers are aware of the actual and potential impacts of their management on their farming systems across seasons and across the farm, based on regionally validated data as well as their own records.

The capacity of growers and consultants to characterise soils for plant-available water content and measure soil water availability is increased. Research, development and extension work related to stubble-retained farming systems in south-eastern Australia is collated and analysed.

Growers implement long-term, strategic plans to take advantage of identified opportunities, manage constraints and reduce risks, while retaining flexibility to respond to unforeseen events. More than 25% of growers have developed a whole-farm business plan which takes account of strategic opportunities, constraints and risks.1

Increased numbers of growers are optimising their cropping systems in response to both opportunities and constraints.

Effective management practices for opportunities, constraints and risks are developed, validated and demonstrated in each agroecological zone.

Strategic decisions and practices are tested, validated and demonstrated in each agroecological zone, and captured in regionally relevant publications on best management practice.

Responding tactically (individual crop agronomy).

An increased proportion of growers use crop-specific best management practices to optimise their tactical (within season) agronomy for each individual crop.

Growers have access to regionally relevant publications on best management practice. Technical guidelines for canola growers in all commonly experienced grain-growing environments of Western Australia have been developed and relevant fact sheets have been published.

Growers use improved strategies to cost-effectively acquire crop inputs.

Best practice guidelines and locally relevant variety-specific agronomy packages for wheat and canola in southern irrigated

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cropping systems have been developed and published.


Investment highlightsThis section provides a few examples of major RD&E investments that illustrate the GRDC’s focus on ‘Advancing profitable farming systems’ in the year ahead.

Forecasting and mitigating extreme temperature eventsProduction lost due to extreme temperature events is a major cost to the grains industry across Australia. Frost events currently cost Australian growers around $360 million in yield losses each year, while extreme heat events cost more than $1.5 billion.

Crop management options, such as variety selection and sowing time, can mitigate the effects of extreme temperature. However, it is difficult to factor extreme frost or heat events into crop management strategies—they typically occur at a point in the cropping cycle after key decisions have been made and inputs have been committed.

The GRDC is supporting research to investigate whether the likelihood of frost or heat events can be forecast with sufficient skill at the start of the grain season to assist growers to hedge against possible damage and minimise losses.

The project is assessing the weather conditions that give rise to frost and heat events, and the ability of existing seasonal models to forecast those conditions and events. A cropping model will be used to evaluate the usefulness of seasonal forecasts in shaping cropping decisions that could reduce losses from such events.

The research will provide growers and advisers with a better understanding of the causes of extreme temperature events, as well as detailed information on the skill and utility of frost and heat forecasts and guidelines for their use in cropping decisions.

Using Yield Prophet with POAMA seasonal forecastsYield Prophet is a user-friendly modelling tool that provides targeted guidance for individual farms on critical management decisions such as fertiliser application rates. Using the Agricultural Production Systems sIMulator (APSIM), Yield Prophet draws on local soil information and season-to-date climate data to simulate crop development to the present time. It then estimates the eventual crop yield outcomes for a range of management decisions by running APSIM with a forecast of future climate conditions.

Currently, Yield Prophet implements a simple climate forecasting system that uses the Southern Oscillation Index as the basis for choosing similar years from the past as indicators of the likely finish to the present season. The GRDC is supporting a project to enhance the effectiveness of Yield Prophet’s modelling by incorporating forecasts from the Bureau of Meteorology’s Predictive Ocean Atmosphere Model for Australia (POAMA).

In order to use POAMA forecasts to shape cropping decisions, the model forecasts must be calibrated to remove any long-term bias without altering the skill of the model. The project is developing a method to match long-term forecast behaviour with long-term observations for important variables: rainfall, temperature and radiation. In initial tests, the method gave suitable forecast input for APSIM and Yield Prophet at eight test sites covering the grain-growing areas of southern Australia from west to east.

As well as incorporating the POAMA forecasts into the existing modelling tool, the project is developing simplified versions of Yield Prophet that will be cheaper and easier to use. These advances are expected to encourage growers to engage with Yield Prophet and experience the benefits of APSIM as a decision support tool.

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Benchmarking yield against nitrogen use in wheatDespite the significance of nitrogen inputs to the productivity and profitability of cropping, there is no effective benchmark to assess whether cropping systems are getting the maximum benefit for their investment in nitrogen fertiliser. Currently, yield–nitrogen relationships are the main reference for fertiliser guidelines. However, yield–nitrogen relationships vary with soil, crop and seasonal conditions, and do not fully account for the physiology of the crop.

Research has shown a tight loop between crop biomass and nitrogen content: nitrogen uptake stimulates growth and biomass stimulates nitrogen uptake. Therefore, comparisons of nitrogen status based on yield can be misleading in cases where development of biomass has been affected by factors other than nitrogen, such as sowing date or variety.

This problem can be addressed by developing a ‘nitrogen dilution curve’ for each variety. This curve shows the minimal concentration of nitrogen in shoots that is required to achieve maximum growth at each point as the plant’s biomass increases. A crop’s nitrogen status can be assessed by dividing the actual nitrogen concentration of the crop at a given biomass by the critical nitrogen concentration for that biomass as shown in the curve.

The outcome is the ‘nitrogen nutrition index’. If a crop’s nitrogen nutrition index is 1, its nitrogen concentration is at the critical level and growth is optimal. An index smaller than 1 means that the crop is nitrogen deficient, while an index higher than 1 means that nitrogen is being consumed without contributing to growth.

The GRDC is supporting a project to develop nitrogen dilution curves for current wheat varieties. Trials are being conducted using four varieties under five nitrogen application rates, in rain-fed and irrigated conditions. An additional trial is being conducted to assess how time of sowing may affect crop nitrogen status. Benchmarks to assist growers and advisers to match nitrogen inputs to crop demands will be available by the end of 2017.

The nitrogen nutrition index method removes much of the uncertainty related to soil and seasonal conditions which affects conventional crop diagnostics. New benchmarks will help improve diagnosis and management of fertiliser needs in growers’ cropping systems and National Variety Trials, bringing benefits to farming practices and variety evaluations.

Developing landscape-specific sowing recommendations to increase yieldBecause frost risk depends on geographic factors such as slope, aspect and elevation, farms and fields often have a range of zones which vary in frost risk. By choosing specific sowing dates and cultivars for each zone, a grain grower may be able to maximise total yield potential over the whole farm.

In particular, some colder areas could be sown much earlier to maximise yield potential without being affected by frost risk. However, variation in temperature also affects crop development—plants in colder parts of the landscape develop more slowly. The GRDC is supporting research to test the concept that knowledge of landscape-related geographic variation in temperature can be used to develop landscape-specific recommendations for sowing times that maximise the yields of particular cultivars.

Although data models can capture the yield effects of cropping decisions, the implications of landscape-related temperature variation have not been analysed, as climate stations collecting relevant data are often some distance from the fields where specific cultivar and sowing date information is used. The GRDC-supported project will also assess the capacity to develop landscape-adjusted temperature records that enable data models to produce recommendations for cultivar–sowing date combinations that maximise grain yield and account for frost risk across the landscape.

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Theme 5 Improving your farm resource baseThis theme is focused on protecting and enhancing the farm’s soil, water, habitat and atmospheric resources to maintain production performance under a variable climate and to demonstrate to consumers and the wider community the sustainable nature of Australian grains production.

Australian grain growers operate in a variable climate and will be significantly affected by climate change. In addition, growers will need to react to Australian Government and international policies, programs and market expectations set in response to climate change—for example, in relation to greenhouse gas emissions.

These impacts need to be understood so that the industry can minimise risk and maximise opportunities. The issues of climate variability and change need to be factored into both seasonal and longer term farm business decisions.

Within the context of a changing climate, soil, water, habitat and atmospheric resources need to be improved across the environment in which the industry operates. Soil carbon is declining in many grains catchments, as is soil pH. Although water consumption by agriculture is being reduced and becoming more efficient, water quality in some key catchments requires further management. Native vegetation communities have become highly fragmented, affecting both biodiversity balance and the potential for exploitation as habitat for beneficial organisms.

In addition, as consumers are becoming more interested in how the food they buy is produced, the grains industry needs to be able to communicate its commitment to good stewardship. The ‘Improving your farm resource base’ theme will assist growers, across the industry and as individual producers, to demonstrate that they are using chemicals and fertiliser wisely and caring for the land.

Aspirational outcome (10+ years)Grain growers are valued for adopting practices that improve regional habitat, soil, water and atmosphere resources in a changing climate.

Intermediate outcomes (5 years)Understanding and adapting to climate variability—Farm business plans provide the flexibility to respond to the risks and opportunities of a changing and variable climate.

Improving soil health—Soil health is improved and soil, nutrient and chemical losses are reduced.

Managing water use on dryland and irrigated grain farms—Water-use efficiency, quality and availability are improved on dryland and irrigated grain farms that manage the risk of off-farm impacts, including soil, nutrient and chemical run-off, and dryland and irrigated salinity.

Understanding and valuing biodiversity—Biodiversity is managed on farm for ecosystem services (such as habitat, amenity, pollination and profitability).

Communication of sustainable production methods—Markets and the broader community recognise the environmental credentials of grain farm businesses.

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Performance targetsTable 5 shows the 2016–17 targets for each major practice change for Theme 5—Improving your farm resource base.



Understanding and adapting to climate variability.

Growers integrate weather data with other resource inputs to predict, plan and assess farm performance.

Growers factor into their long-term planning the potential effects of climate change.

Growers use improved seasonal forecasts and tools to manage their farm business in response to climate variability.

A range of farming system options to respond to climate variability and change are developed and tested for each major grain-growing region.

Growers seek information about the possible impacts of long-term climate changes on crop growth patterns and adopt enterprise and crop decisions and agronomic practices required to optimise profit and manage risk. 60% of growers consider the potential effects of climate change on their farm business when making long-term decisions.1

Increased number of growers use seasonal forecasts, local climate data and decision tools to help predict and plan likely crop and farming system performance, and in their tactical (seasonal) decisions.

Growers seek information about potential mitigation strategies to reduce on-farm greenhouse gas emissions, and adopt them where feasible.

Increased number of growers are aware of their farms’ greenhouse gas emissions profiles and are adopting appropriate mitigation strategies.

Researchers incorporate farm-scale data in the improvement of climate and weather modelling.

On-farm weather data is provided to the Bureau of Meteorology, especially in Western Australia.

Improving soil health.

Growers adopt agronomic practices that improve the chemical, physical and biological health of the soil for sustained productivity. 70% or more of growers undertake activities to improve the condition and productive capacity of their soils.1

Increased number of growers regularly measure the health (productive capacity) of their soils and incorporate the information into their land use and cropping decisions.

Growers understand and manage the impact of farming practices on soil health in order to maintain or increase productive potential.

Growers are aware of and are adopting management practices that will maintain and improve their soils’ productive capacity and minimise losses due to erosion. Increased proportion of growers retain crop residues and other forms of ground cover.Growers increase the extent and quality of ground cover to

improve soil health and minimise loss.

Managing water use on dryland and irrigated grain farms.

Growers manage water quantity and quality on farm to improve efficiency of water use.

Increased number of growers regularly measure soil moisture to set target yields and determine optimum levels of crop inputs (including irrigation water).

Growers implement appropriate and efficient practices that minimise adverse impacts on surface and groundwater quality

Increased number of growers assess groundwater levels to avoid the risks of waterlogging and salinity.

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leaving the farm. At least 65% of growers use nutrient budgeting to better match application with anticipated crop needs.1

Increased number of growers test the quality of water used on farm (including for stock or for spraying) and of water leaving the farm.

Understanding and valuing biodiversity.

Growers and their advisers recognise the potential benefits of biodiversity in the landscape to their farming systems.

Growers develop and adopt vegetation management plans for their farms to assist crop production (e.g. through maintaining beneficial insects or using windbreaks), or to access additional sources of farm income (e.g. from agroforestry or carbon farming). Growers use vegetation plans to assist in identifying and conserving areas of native vegetation important for local or regional biodiversity, production benefits, or farm amenity.

Growers understand the likely effects of alternative land use decisions based on sound data, and use this to make assessments of land capability and use.

Growers integrate the management of vegetation with high biodiversity value to meet farm business objectives (e.g. managing frost, providing shelter, accessing emerging carbon markets, managing salinity, applying area-wide integrated pest management or maintaining lifestyle objectives/farm aesthetics).

Communication of sustainable production methods.

Growers recognise themselves as sustainable food producers rather than bulk commodity producers.

Increased number of growers adopt quality assurance, environmental management systems or other stewardship approaches to assist them in meeting market requirements, enhance their recognition as producers of quality products, and meet community expectations of sustainable land use. Growers are aware of and actively participate in catchment management plans and programs.

Growers communicate their responsible use of farm inputs and the natural resource base to the broader community.

Growers understand, calculate and communicate the carbon and water footprint of the products they produce.


Investment highlightsThis section provides a few examples of major RD&E investments that illustrate the GRDC’s focus on ‘Improving your farm resource base’ in 2016–17.

Managing nutrients to improve soil fertility and profitabilityThe efficient use of nutrients, including nitrogen, phosphorus, potassium, sulphur and micronutrients, is a major determinant of a crop’s profitability. The cost and effectiveness of fertiliser inputs—grain growers’ largest single production expense—are major factors in that efficiency, but successful nutrient management also relies on the capacity of soils to supply nutrients and the ability of crop plants to take up nutrients and use them efficiently.

Through the More Profit from Crop Nutrition program, the GRDC has invested in a suite of projects to optimise growers’ return on investment in fertiliser inputs.

The program has been working to:

make enhanced breeding materials available to assist breeders to improve the nutrient use efficiency of particular crops

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understand how to better match nitrogen, phosphorus, potassium and sulphur inputs with crop needs, make better use of micronutrients to enhance yield, and reduce the proportion of nutrients that is lost or locked up in soil and unavailable for plant uptake

develop a lasting resource of data and evidence-based knowledge on nutrient management, as well as practical tools and advice to assist growers to make effective fertiliser and crop management decisions.

While continuing to work on R&D, in 2016–17 the program will focus on delivering previous results to growers and advisers. Guidelines for soil testing and other nutrient management activities will be provided for each of the three GRDC regions, along with a range of extension and training activities tailored for local needs.

Maintaining wheat productivity and quality under elevated carbon dioxideGlobal increases in levels of carbon dioxide in the atmosphere could benefit Australian wheat growers, as elevated levels of carbon dioxide have a ‘fertiliser effect’ that can significantly increase the growth and yields of dryland crops.

However, research at the Australian Grains Free Air Carbon Dioxide Enrichment (AGFACE) facility has shown that elevated carbon dioxide levels also lead to lower protein concentration in wheat, reducing the grain’s nutritional and bread-making qualities and therefore its commercial value. AGFACE research has also found a relationship between elevated carbon dioxide and increased damage from barley yellow dwarf virus and the aphid that hosts it.

The GRDC is supporting a project to investigate the potential to reverse the protein reduction process through selection of genetic traits and nitrogen management strategies that increase grain nitrogen. Three wheat traits—rooting dynamics, nitrogen use efficiency and grain protein enhancement—will be tested under different approaches to the mode, amount and timing of nitrogen application.

Barley yellow dwarf virus and its host aphid will also be studied, in glasshouse and field experiments, to better understand the mechanisms by which elevated carbon dioxide contributes to increased severity of pest and disease damage.

By its conclusion at the end of 2016–17, the project aims to provide pre-breeders, breeders and growers with at least three trait options and at least three nitrogen management options to reverse reductions in grain protein, and a starting point for further research on limiting damage from barley yellow dwarf virus, to enable the industry to optimise the potential yield benefits of elevated carbon dioxide.

Maintaining profitable farming systems with retained stubbleAustralian grain growers have the highest rate of adoption of conservation agriculture practices, including stubble retention, in the world. Maintaining higher yields through improved stubble management is necessary for both the profitability of growers and the long-term sustainability of the soil resource that underpins the prosperity of growers and rural communities.

As part of a stubble retention initiative, the GRDC is supporting a collaboration between CSIRO and 10 grower groups in the Southern Region, to fill knowledge gaps in three key areas of successful stubble management:

Nitrogen management. Much existing knowledge of soil nitrogen is based on research using incorporated or burnt stubble residues—less is known about the fate of nitrogen in retained surface residues or standing stubble. The project is using nitrogen-15 isotope tracers to follow the fate of nitrogen, and collaborative field experiments and modelling to develop improved nitrogen management strategies.

Herbicide-resistant weeds. Managing weeds in stubble-retained systems can be costly and challenging. The project is investigating the impacts of various management practices on seed banks for problem weeds, including barley grass, brome grass and ryegrass.

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Emerging pests. Snails, slugs, earwigs, slaters and millipedes are emerging as problem pests in stubble-retained systems. A network of grower experiments has been established to build understanding of the importance and behaviours of insect pests and develop improved pest management strategies.

The initiative will provide growers in the Southern Region with up-to-date, evidence-based guidelines on managing nutrition, weeds and pests to raise and maintain profitability in stubble-retained cropping systems. The initiative is also collating information on such systems, including growers’ experiences of crop rotation, crop establishment, diseases, and harvest and crop residue management.

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Theme 6 Building skills and capacityThis theme is focused on generating leadership, innovation and education in the grains sector.

To compete and succeed internationally, the Australian grains industry needs a highly skilled and motivated workforce, including growers, advisers, researchers and managers. The industry has identified several critical challenges:

the grains industry and farming are becoming increasingly complex, with many types and sources of information that growers need to make decisions

the number of appropriately skilled researchers and advisers being trained to replace the current generation is inadequate—this is compounded by a large number of experienced people reaching retirement age

agricultural careers are not traditionally attractive to potential candidates the grains industry lacks a whole-of-industry approach to building skills and capacity growers are time-poor and face succession-planning challenges the uptake of technology often requires substantial technical support.

Through the ‘Building skills and capacity’ theme, the GRDC has identified opportunities to focus its investment to address these challenges.

Aspirational outcome (10+ years)A dynamic Australian grains industry with the skills and capacity to continuously innovate.

Intermediate outcomes (5 years)Grains industry leadership and communication—The Australian grains industry has the leadership and communication capacity to proactively engage with the broader Australian community.

Capacity building in the extension sector—Australia has a skilled agricultural extension sector with access to appropriately skilled people.

Capacity building in the R&D sector—Australia has world-class R&D personnel with the appropriate skills to meet current and future needs of the Australian grains industry.

Capacity building for grain growers—Growers recognise the benefits to their businesses of acquiring additional skills and knowledge and hence the value of their participation in training and continuous learning.


Performance targetsTable 6 shows the 2016–17 targets for each major practice change for Theme 6—Building skills and capacity.

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Grains industry leadership and communication.

An increased number of industry participants are engaged in regional and national leadership roles in the Australian grains industry. At least three Nuffield scholars are from the grains industry each year.1

Leadership positions within the grains industry can be filled with minimal delay by candidates who have the skills, knowledge and experience required. GRDC-supported leadership courses are fully subscribed, with participants drawn from across Australia’s grain-growing regions.

The grains industry communicates information about potential career opportunities to secondary and tertiary students and their parents and career advisers.

The GRDC is satisfied that this goal is now better serviced by a range of other providers, building on GRDC investments made earlier in the life of the Strategic R&D Plan 2012–17. The GRDC continues to deliver general support through activities across its research, development and extension (RD&E) portfolio but has determined that specific investments are no longer required.

The grains industry publicises how it benefits the wider community.

Stakeholders’ recognition of wider community benefits delivered by the GRDC is improved.

Capacity building in the extension sector.

The extension sector collates and publishes annually its skills requirements and identifies gaps and potential gaps in discipline areas.

The GRDC is satisfied that this goal is now better serviced by a range of other providers, building on GRDC investments made earlier in the life of the Strategic R&D Plan 2012–17. The GRDC continues to deliver general support through activities across its RD&E portfolio but has determined that specific investments are no longer required.

Increased number of people enrol in targeted agriculture-related disciplines.

The GRDC has reassessed the importance of directly investing to boost enrolments in agriculture-related disciplines and determined that indirect support through its engagement of the extension sector in RD&E investments provides sufficient stimulus to achieve this practice change. The GRDC acknowledges the lead role of agribusiness employers in this area.

Increased number of qualified graduates are employed in extension roles.

The grains industry has access to suitably qualified and experienced extension personnel.

Increased number of graduates and other extension staff undertake post-graduate/workplace training.

An increased number of undergraduates successfully complete training and professional development courses focused on GRDC RD&E.

Career pathways within the extension sector retain skilled and experienced personnel.

Opportunities are created for extension sector personnel through the GRDC’s regional and local investments.

Capacity building in the R&D sector.

The grains industry has a clear understanding of its skills requirements in the short, medium and long terms.

The GRDC, in collaboration with RD&E providers, regularly communicates its anticipated future requirements for skilled personnel.

Training providers address the grains industry RD&E skills gaps in innovative and flexible ways.

The grains industry and RD&E providers maintain or increase the skills and capacity available, in line with the Grains Industry National Research, Development and Extension Strategy.

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Capacity building in the R&D sector. (continued)

RD&E providers work with the grains industry to develop improved measures of RD&E performance.

RD&E providers comply with the requirements of the GRDC’s investment process. An increased proportion of GRDC investments are subjected to pre-investment business case analysis and post-investment economic and statistical analysis.

Capacity building for grain growers.

Growers recognise the additional knowledge and skills they need to fully understand, adapt and adopt the outputs of RD&E and optimise their benefits.

An increased number of growers regularly use the support of skilled advisers to assist with cropping and business decisions.

Growers and their advisers participate in relevant training and skills development and apply the knowledge gained to on-farm decisions and practices. At least 75% of growers and advisers undertake at least one activity each year to learn more about opportunities to improve farm profit or sustainability.1

An increased proportion of growers and advisers undertake further education, training and skills development to enable them to make better use of RD&E outputs and increase profitability and/or sustainability.

Growers apply skills on farm to increase profitability and sustainability.

An increased proportion of growers are changing or intend to change practices as a result of participating in GRDC extension and training activities.


Investment highlightsThis section provides a few examples of major RD&E investments that illustrate the GRDC’s focus on ‘Building skills and capacity’ in the year ahead.

eXtensionAUSeXtensionAus provides an interactive online framework for sharing agronomic research outcomes and other information. It is designed to cut across state and regional boundaries and provide current, objective, research-based guidance for any user, at any time, on any device and in any location. The system resources are being developed through a partnership between the GRDC and the Rural Industries Research and Development Corporation.

Using the system resources, the GRDC, in partnership with the state governments of New South Wales and Victoria and the United States-based eXtension Foundation, is supporting the operation of two learning networks in the areas of crop nutrition and field crop diseases. These networks bring together researchers, extension practitioners, agronomists and grain growers from across Australia.

Each network provides a communication hub and peer review services to deliver the latest research-based information to growers and advisers. Participation by a community of practice, including public and private sector specialists and industry organisations, encourages cross-fertilisation of research and innovation.

The eXtensionAus software platform delivers a range of products and services using a mix of custom applications and freely available technologies such as YouTube, Twitter, Google and other social media services. Features include tools to manage the community of practice, educational tools, collaborative publishing tools, a question-and-answer tool that allows people to discuss their specific issues with subject experts, and the ability to post questions and comments about published content.

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In 2016–17, GRDC investment in eXtensionAus will focus on consolidating and expanding the community of practice and increasing engagement with the grains sector. eXtensionAUS will also offer participants opportunities for professional development in the use of electronic communication tools and techniques to promote better interaction and collaboration among Australian and international experts.

Grower and Adviser Development ProgramThe GRDC’s Grower and Adviser Development Program targets Australian grain growers and advisers who seek to arrange and undertake certain professional development activities. The aim is to enable grain-producing businesses to be productive, profitable and sustainable by assisting growers and advisers to gain knowledge, develop new skills, build relationships and acquire information.

In 2016–17, the program will offer funding for applicants who wish to visit a relevant organisation or activity, such as a farming systems group, centre of excellence or GRDC-supported R&D project; and applicants who wish to invite a subject expert to travel to their community to share knowledge and experience.

Herbicide Innovation PartnershipThe Herbicide Innovation Partnership was established in 2015 by the GRDC and Bayer CropScience, with the aim of discovering and developing novel solutions to the challenges of weed management and, in particular, herbicide resistance.

The project has engaged 10 postdoctoral chemists from Australia and New Zealand to work at Bayer CropScience’s laboratory in Frankfurt, Germany. During 2016–17, they will focus on identifying and assessing new chemical molecules with potential to replace existing herbicides to which weeds have developed resistance.

The postdoctoral research program plays a very important role in the Herbicide Innovation Partnership and will help to build the capacity of the participating scientists as well as Bayer CropScience’s weed research capability.

Grains research updates and farm business management updatesIn each grain-growing region, the GRDC will support timely and targeted grains research and farm business updates for growers and their advisers in 2016–17.

GRDC grains research updates deliver a strategic and innovative program of R&D extension to growers and advisers through face-to-face events held in capital cities and regional centres. The events support industry networking and information exchange and provide cutting-edge information, based on GRDC-supported projects, that assists growers and advisers to adopt new farming practices and technologies.

GRDC farm business updates assist growers and advisers to recognise and access the additional knowledge and skills they need to fully understand, adapt and adopt the outputs of RD&E to optimise cropping businesses. Each update is driven by specific business issues that are addressed by guest speakers. Update locations are chosen to maximise access and participation by members of the target audience, and processes to facilitate individual learning, networking and access to key sources of information and knowledge are built into every event.

To extend and reinforce the messages delivered by GRDC updates, tailored communication and extension products, including specialist publications, are also provided.

Cross-theme investmentsSome of the GRDC’s investments contribute to achieving the targets and outcomes of several, or all, of the RD&E investment themes. In 2016–17, these cross-theme investments will fall into two categories:

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‘Foundational activities’, which covers investments in activities that underpin the delivery of programs that run across multiple themes, such as

developing data sources for evaluating and reporting on the progress of the investment themes conducting communication campaigns managing customer relationships and communication channels, including the GRDC’s

publications, periodicals, promotional materials and online content investing in infrastructure to ensure the Australian grains industry has access to the RD&E

infrastructure and capability it needs for the future ‘R&D management’, which encompasses investments in the GRDC’s commercial activities as

well as other activities such as: conducting stakeholder surveys providing support for consultative bodies and managing the GRDC’s directorships and

memberships of grains industry organisations performing reviews, impact assessment and portfolio analysis managing amortisation of shares, emerging issues and unallocated investment funds

For 2016–17, ‘Foundational activities’ has a budget of $25.8 million, while ‘R&D management’ has a budget of $17.5 million.

Enabling business functionsThe GRDC’s Corporate Services and Communications business groups work with the three operational business groups to implement the GRDC’s corporate strategies and achieve the planned outcomes of the GRDC’s investment themes.

Figure 3 shows the key enabling activities in the context of the core business processes through which the GRDC implements its RD&E investment strategy and delivers value for grain growers and government. Table 7 provides details of the goals of the enabling activities in 2016–17.

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Figure 3: GRDC value chain

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Table 7: Objectives and deliverables for enabling activities in 2016–17OBJECTIVE DELIVERABLES

Corporate strategy

Support the implementation of the Strategic R&D Plan 2012–17.

Ensure that employees understand the GRDC’s strategic direction.Review and report the progress of the implementation of the five-year plan to the Board and government.

Planning and reporting

Maintain compliance with statutory planning and reporting requirements.

Ensure the timely publication of the: five-year strategic R&D plan annual operational plan portfolio budget statements annual report stakeholder report.

Corporate communications

Inform all customers/stakeholders of the corporation’s goals, strategies and achievements.

Develop integrated communication campaigns (involving all business units) to deliver specific and timely information to external stakeholders.Through media monitoring, measure the GRDC’s effectiveness and performance in corporate communication.Through mainstream media, identify and target information of interest and relevance to the general public.Increase the effectiveness of internal communication within the GRDC.

Information management systems

Support R&D information access needs and records management as well as the business computing and telecommunication requirements of the organisation.

Comply with the Australian Government Protective Security Policy Framework.Provide business systems that meet the requirements of the organisation.Maintain a reliable and secure network for GRDC users that is capable of growth as needed.Procure information technology and telecommunications equipment for information and communications management.

Finance and administration

Manage accounting and treasury functions in accordance with statutory obligations and requirements and the direction of the GRDC Board.

Maintain internal controls through the Finance, Risk and Audit Committee and the internal audit program.Develop, update and implement treasury management systems that enable the GRDC to meet the funding requirements of the annual operational plan.Develop and maintain the budget and reporting framework to foster financial responsibility at the business unit level.Improve and upgrade reporting systems and templates.

Human resources management

Deliver best practice human resources management outcomes that ensure a highly motivated workforce focused on achieving organisational objectives.

Maintain a performance management system (recruitment, succession, performance management, retention, diversity, learning and development).Negotiate and implement the GRDC Enterprise Agreement.

Risk management

Ensure that strategic, business, fraud, work health and safety, and

Maintain an effective risk management system.Ensure that internal audit recommendations are included in business risk and fraud risk

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OBJECTIVE DELIVERABLES

security risks are identified, assessed and appropriately managed.

assessments and actioned accordingly.Ensure that business risk and strategic risk are reviewed every six months by the Senior Leadership Group and the Finance, Risk and Audit Committee.

Legal services

Protect the GRDC’s legal interests.

Provide legal support to the organisation that is timely and of high quality and builds relationships with stakeholders.Provide high-quality secretariat support to the GRDC Board and its subcommittees.

Corporate governance

Maintain a robust system of governance.

Ensure compliance with requirements under the Primary Industries Research and Development Act 1989, the Public Governance, Performance and Accountability Act 2013, ministerial directions and the funding agreement with the Commonwealth.Manage compliance through appropriate control systems and an ethical business culture.

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4. Estimated income and expenditureIncomeThe GRDC’s total income in 2016–17 is forecast to be $200.1 million.

Figure 4 shows the sources of the GRDC’s forecast total income for 2016–17 in percentage terms.

Figure 4: Forecast total income

In dollar terms:

Australian Government contributions are expected to be $68.2 million levy contributions from grain growers are expected to be $114.5 million income from grants is estimated to be $1.2 million other income, which includes interest on investments and royalties, is expected to be $16.2

million.

Figure 5 shows the sources of the GRDC’s forecast levy income for 2016–17, in percentage terms, by leviable crop.

Figure 5: Forecast levy income

The 2016–17 forecast is based on several assumptions, including:

The quantity of grain produced will include 24.5 million tonnes (mt) of wheat, 8.6 mt of barley, 3.3 mt of canola, 2.0 mt of sorghum and 1.2 mt of oats.

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The grain prices achieved per tonne will include $300 for wheat (Australian Premium White), $257 for feed barley, $294 for malting barley, $589 for canola, $316 for sorghum and $235 for oats.

Cash to pool ratios will be 85:15 for wheat and 90:10 for barley. Levy rates will be 0.99 percent of farm gate value for 24 grains and 0.693 percent of farm gate

value for maize.

The GRDC considered the following three income scenarios for 2016–17:

Scenario 1 is the baseline case, underlying the above income information. This scenario indicates that liquid reserves at the end of 2016–17 would be $134.8 million, which is below the upper bound of the target range of the GRDC’s reserves policy.

Scenario 2 projects a pessimistic case. Low crop production volumes are assumed for this scenario, while prices for the major crops of wheat, barley, sorghum, canola and oats are assumed to stay as in the baseline scenario. Under this scenario, projected income for 2016–17 would be $142.6 million. Liquid reserves at the end of 2016–17 would decrease to $77.2 million, which is just below the lower bound of the target range. This indicates that the forecast expenditure level is achievable under such a scenario, but the GRDC may need to review expenditure levels going forward to maintain financial viability. If liquid reserves are lower than expected as depicted in this scenario, the GRDC has the power to cut funding to bring expenditure back into line with revenue.

Scenario 3 projects an optimistic case. The optimistic scenario assumes crop production levels as in the baseline scenario but prices similar to the record high prices of 2007–08. Under this scenario, projected income for the year would be $230.5 million. Liquid reserves at the end of 2016–17 would increase to $165.1 million, above the upper bound of the target range.

ExpenditureThe GRDC Board has approved annual operating expenditure of $220.5 million in 2016–17, an increase of 0.4 percent in comparison to the 2015–16 expenditure budget.

Table 8 summarises the GRDC’s estimates of expenditure for 2016–17.

These figures are indicative only. Changes in the GRDC’s operating environment may require the corporation to vary the total expenditure or specific allocations to secure its financial objectives.

Figure 6 shows the break-up of the operating expenditure budget between management and RD&E expenditure, highlighting the proportions allocated to new and ongoing RD&E investments.

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Table 8: Estimates of expenditureEXPENDITURE AREA 2015–16

$M2016–17$M

2016–17%

Research, development and extension

Theme 1—Meeting market requirements 12.4 8.7 4.4

Theme 2—Improving crop yield 33.7 38.2 19.3

Theme 3—Protecting your crop 51.0 51.9 26.2

Theme 4—Advancing profitable farming systems 38.5 37.9 19.1

Theme 5—Improving your farm resource base 16.0 10.6 5.3

Theme 6—Building skills and capacity 8.9 7.4 3.8

Foundational activities 27.2 25.8 13.0

R&D management1 9.3 17.5 8.9

RD&E budget allocation 197.0 198.0 89.8

Management

Employees2 11.5 11.5 5.2

Suppliers3 11.2 11.0 5.0

Management budget allocation 22.7 22.5 10.2

Total operating expenditure 219.7 220.5 100.0

Total capital budget allocation 0.0 0.0 0.0

1 R&D management includes as at 1 July 2016 unallocated investment in 2016–17.2 Employee costs include remuneration of directors and committee members.3 Supplier costs include depreciation, amortisation and levy collection/management expenditure.

Figure 6: Forecast operating expenditure

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Management costs—costs of employees and suppliers—are budgeted at $22.5 million, or 10.2 percent of the total expenditure.

New RD&E investment is budgeted at $15.1 million, or 6.8 percent of the total expenditure.

Ongoing RD&E investment—strategic investment and continuing commitments to existing projects—is budgeted at $182.9 million, or 82.9 percent of the total expenditure.

The RD&E expenditure for 2016–17 includes a component of $299.5 million which relates to long-term (three years or more) contractual commitments. Figure 7 shows the GRDC’s long-term contractual commitments by financial year as at April 2016.

Figure 7: Break-up of forward contractual commitments by year, as at April 2016

ReservesThe GRDC’s revenue depends on grain production levels, prices and growers’ marketing intentions, all of which can be highly variable. To reduce the impact of fluctuations in these variables on the industry’s annual RD&E effort, and safeguard its ongoing RD&E investment, the GRDC manages financial reserves. The reserves are accumulated in years of high-value production and drawn on in years when revenue is lower. Reserves include R&D share investments that are not commonly traded as well as fixed assets. Easily tradeable assets form liquid reserves.

The GRDC aims to maintain the liquid reserves at a level between 40 percent and 70 percent of the following year’s expenditure. Currently, the level slightly exceeds the 70 percent target. The reserves have grown because of increases in income over budget expectations, caused by a sharp increase in grain prices and volume of production being higher than expected.

Careful management of the reserves has placed the GRDC in a strong position to increase RD&E expenditure above the projected income for 2016–17. Therefore, the GRDC is budgeting for an operating deficit of $20.4 million for 2016–17, to be funded from the reserves. The operating loss for 2016–17 was approved in March 2016 by the Minister for Finance.

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Payments to representative organisationsGrain Producers Australia and GrainGrowers are the GRDC’s ‘representative organisations’ under the Primary Industries Research and Development Act 1989.

The GRDC makes payments to the representative organisations in accordance with clauses 6.5 and 6.6 of its statutory funding agreement.

The GRDC has made an allowance in its planned RD&E investment for 2016–17 to provide up to a maximum of $90,000 to each representative organisation to support consultation with organisations such as the Department of Agriculture and Water Resources and with other grains industry representative bodies. Actual expenditure will be published in the GRDC’s annual report for 2016–17.

Expenditure to meet Australian Government research prioritiesTable 9 summarises the expected total expenditure allocated against each of the Australian Government’s Science and Research Priorities for 2016–17, while Table 10 summarises the expected total expenditure allocated against each of the Australian Government’s Rural RD&E Priorities. The allocation of funds is shown in both dollar and percentage terms for each investment theme and for the cross-theme investment categories.

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Table 9: Investments addressing Australian Government Science and Research Priorities FOOD$M

SOIL AND WATER$M

TRANSPORT$M

CYBERSECURITY$M

ENERGY$M

RESOURCES$M

ADVANCED MANUFACTURING$M

ENVIRONMENTAL CHANGE$M

HEALTH$M

OTHER$M

TOTAL$M

Meeting market requirements

8.7 - - - - - - - - - 8.7

Improving crop yield

38.2 - - - - - - - - - 38.2

Protecting your crop

51.9 - - - - - - - - - 51.9

Advancing profitable farming systems

- 37.9 - - - - - - - - 37.9

Improving your farm resource base

- 6.5 - - - - - 4.1 - - 10.6

Building skills and capacity

- - - - - - - - - 7.4 7.4

Foundational activities

- - - - - - - - - 25.8 25.8

R&D management - - - - - - - - - 17.5 17.5

Total $m 98.8 44.3 - - - - - 4.1 - 50.8 198.0

Total % 50.0 22.0 - - - - - 2.0 - 26.0 100.0

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Table 10: Investments addressing Australian Government Rural Research, Development and Extension Priorities ADVANCED TECHNOLOGY$M

BIOSECURITY$M

SOIL, WATER AND MANAGING NATURAL RESOURCES$M

ADOPTION OF R&D$M

TOTAL$M

TOTAL%

Meeting market requirements - - - 8.7 8.7 4.4

Improving crop yield 38.2 - - - 38.2 19.3

Protecting your crop 51.9 - - 51.9 26.2

Advancing profitable farming systems

- - - 37.9 37.9 19.1

Improving your farm resource base

- - 10.0 0.6 10.6 5.3

Building skills and capacity - - - 7.4 7.4 3.8

Foundational activities - - - 25.8 25.8 13.0

R&D management - - - 17.5 17.5 8.9

Total $m 38.2 51.9 10.0 97.8 198.0 -

Total % 19.0 26.0 5.0 50.0 100

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GRDC CONTACT DETAILSLocation: Level 4, East Building4 National CircuitBARTON ACT 2600

Post: Grains Research and Development CorporationPO Box 5367KINGSTON ACT 2604

Phone: 02 6166 4500Fax: 02 6166 4599

Email: [email protected]: grdc.com.au

PRODUCTION NOTESConcepts, text and research: GRDCEditing: WordsWorth WritingDesign and typesetting: Giraffe VCM

© Grains Research and Development Corporation 2016

ISSN 1038-670X

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

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