Tablelands Farming Systems Business Plan€¦ · Web viewPO Box 791Goulburn NSW 2580 p. 02 4845...

Tablelands Farming Systems Business Planinnovate adapt prosper

PO Box 791Goulburn NSW 2580

p. 02 4845 1123m. 0417 490 329

[email protected]

www.tablelandsfarmingsystems.com.au

Table of ContentsI. Tablelands’ regional profile..................................................2

Value of agricultural productionII. Farming in our region..........................................................3III. The path to prosperity..........................................................4IV. Strategic Priorities...............................................................6V. Tablelands Farming Systems................................................8VI. Strategic Plan: 2016-18........................................................8VII. Our business.........................................................................8VIII. Description of business........................................................8IX. Vision....................................................................................9X. Mission Statement................................................................9

ObjectivesOur value propositionOur organisation structure and governanceOur reachOur membersOur sponsorsTFS deliverablesManagementFinancial Management

XI. Marketing...........................................................................16

Tablelands’ regional profileAgriculture is a significant contributor to the economic wealth, environmental sustainability and social fabric of the tablelands region of NSW. Tablelands Farming Systems’ representative area falls within the ‘Capital region’ of NSW, as defined by ABARES. The Capital region is located in the south-east of the state from the southern tablelands, east around the ACT, to the far south coast (Map 1).

The region comprises the thirteen local government areas of Bega Valley, Bombala, Boorowa, Cooma-Monaro, Eurobodalla, Goulburn Mulwaree, Harden, Palerang, Queanbeyan, Snowy River, Upper Lachlan Shire, Yass Valley and Young, and small parts of Shoalhaven, Tumut Shire and Wingecarribee. The region covers a total area of around 51 900 square kilometres or 7 per cent of New South Wales and is home to approximately 207 800 people (ABS 2011).

Agricultural land in the Capital region occupies 32 460 square kilometres, or 63 per cent of the region. Areas classified as conservation and natural environments (nature conservation, protected areas and minimal use) occupy 13 570 square kilometres, or 26 per cent of the region. The most common land use by area is grazing modified pastures, which occupies 23 820 square kilometres or 46 per cent of the Capital Region.

Map 1 Broad agricultural land use of the Capital region, New South Wales

Source: Catchment scale land use of Australia – update March 2014 (ABARES, 2014)

TABLELANDS FARMING SYSTEMS BUSINESS PLAN: 2016 - 20182

Tablelands Farming Systems represents approximate one third of the total area of the Capital region, taking in the north east region of Map 1. The area is characterized by rolling undulating hills, scattered woody areas and extensively cleared grazing lands. The local areas include Boorowa, Upper Lachlan and Yass Valley, Palerang, Goulburn Mulwaree and Queanbeyan local government areas. The value of agriculture is around $131 million, the major enterprises being sheep, beef, cropping and horticulture. A threat for agriculture in the Tablelands include increased subdivision pressure increasing land values.

Value of agricultural productionIn 2012–13, the gross value of agricultural production (GVAP) in the Capital region was $782 million, which was 6 per cent of the total gross value of agricultural production in New South Wales ($12.1 billion).

The Capital region has a diverse agricultural sector. The most important commodities in the Capital region (Figure 2) based on the gross value of agricultural production were wool ($158 million), followed by cattle and calves ($146 million) and sheep and lambs ($88 million). These commodities together contributed 57 per cent of the total value of agricultural production in the region. Of the other commodities wheat accounted for 8 per cent ($55 million); milk 8 per cent ($52 million); canola 6 per cent ($41 million); and pigs 4 per cent ($27 million). This enterprise comparison is largely representative of the TFS membership, where the majority of members are involved in livestock production.


Figure 1 Value of agricultural production, Capital region, New South Wales, 2012–13

0 50 100 150 200

Other

Nurseries, cut flowers and turf

Hay

Vegetables

Fruit and nuts (excluding grapes)

Poultry

Eggs

Pigs

Canola

Milk

Wheat

Sheep and lambs

Cattle and calves

Wool

$m

Source: Australian Bureau of Statistics, cat. no. 7503.0, Value of agricultural commodities produced, Australia

Farming in our regionAgriculture is an increasingly complex industry with landowners requiring access to sophisticated research, development and extension (RD&E) to maximise production in a sustainable system. It is estimated that farmers need to increase their productivity by 2% every year just to remain viable.

There is limited localised RD&E services and promotion of best practice sustainable land management for farmers in this region. This situation has been brought about by:

redirection/refocusing of government investment in on-ground industry and environmental extension at the state and national level

service provision has been unable to keep pace with the changing information and technological needs of farmers

seasonal fluctuations create uncertainty and are changing perceptions around best practice

customers, markets and welfare concerns are driving change in production systems, and

a lack of capacity, resources and investment to adapt and adopt large scale research and development results to local scenarios.


Having survived the ‘one in a hundred year drought’, we know farmers are resilient. However, challenge around seasonal variability, market fluctuations and increasing input costs have now shifted the goal posts to a place where farmers need to be innovative, progressive and take risks to remain sustainable and competitive.

With this brings enormous opportunity and the future of the industry looks bright. Farmers are pushing the boundaries more than ever on how they do business. With this comes more efficient farm management systems that are sustainable and robust. Creating a shift on how service and knowledge providers can be best placed to respond to farmers’ needs in a timely, localized and practical way.

The path to prosperityFour cornerstones provide the foundations for farming in the tablelands region, although they would generally resonate with all farmers (Figure 1). A resilient and productive farm management system combined with effective business, marketing, production and resource use is needed to grow quality agricultural produce that is competitive, demanded and valued by customers around the world. To achieve a resilient and productive farm management system, now more than ever farmers need to be innovative, adaptive and responsive to change.

Fig.1 The four cornerstones driving successful and sustainable farm businesses


Farm managementSystem

resilientproductive

PRODUCTION

innovativeadaptive

RESOURCESsustainable responsible

BUSINESSresilient

partnerships

MARKETquality

responsive

SustainablConnect

ProfitablePartnersh

Table 1. Tablelands Farming vision elements

Elements Description

Industry cornerstones

Production System Farm production has the resilience to adapt to change and improve productivity

Markets Farm produce is demanded and valued by the market for its quality

Profitable Tablelands farmers are profitable and focus on the market and cost-effective production systems

Sustainable High levels of environmental stewardship underpin the sustainability of resource use in the tablelands

Community Tablelands farmers have a strong voice to advocate interests with government, community and the market

Partnerships Strong and effective linkages with agriculture service providers, the market, government and other farmers and groups

Connected Share a vision combined with excellent communication supports a connected and successful region

Strategic PrioritiesFarming in the tablelands region is a mature industry and the strategic challenges and opportunities it faces are well known. There is a plethora of new and existing ideas, capabilities and actions that have or can be deployed. However, structural change in the way research, development and extension is managed at the state and national level, combined with the constant need for farmers to build more efficient businesses, has driven a structural change in the way farmers access, interact and adopt new ideas, innovations and knowledge.

There are four themes where considerable potential gains may lie to frame the industry’s strategic priorities (Table 2). For each theme the strategy outlines what outcomes (changes) the industry should pursue over the next five years and the priorities to achieve them. The outcomes and priorities outlined will require action by farmers, industry services organisations and government.

Table 2. Tablelands farming strategic priorities


Theme Outcome (change) sought PrioritiesProduction System

Resilient production system

Cost-effective production Consistent access to high

quality information on industry best practice

1. Increased adoption of technologies and best practices

2. On-going targeted R&D to provide a pipeline of innovations

3. Increased productivity through better decision making.

Markets Stronger industry-led marketing

Greater partnerships along the supply chain

More control over market prices

Better market signals to producers

1. Investigate opportunities for collaborative marketing arrangements

2. Better understand the supply chain and access to those players in it

3. Better able to influence the price for farm produce

4. Farmers are more responsive to consumer tastes and preferences

Business resilience

Better able to withstand market fluctuations

Farmers are more prepared for adverse seasonal conditions

Farm structures and business planning are in place to manage change to a farm system (social, environmental, economic)

1. Business structures are in place to make good decisions in good seasons to prepare for low seasons

2. Farmers have access to greater knowledge of seasonal forecasts and a plan that enables them to act quickly

3. Flexible business structures that take into account all stages of the life cycle (business and personal). Undertake Business Planning.

Partnerships Famers have a voice to impact how others perceive the industry and they can contribute or influence policy that impacts them

Next generation farmers are supported to be successful in the industry

Strong linkages with people and businesses supply chain – vertically and horizontally from the business

1. There is a consistent voice on issues and farmers are involved in their own advocacy.

2. Young farmers have mentors and are supported

3. Opportunities to develop a greater understanding of the supply chain and those that are in it. There is greater advocacy done on behalf of farmers by the people in the supply chain.


Tablelands Farming SystemsStrategic Plan: 2016-18

Our business

“Tablelands Farming Systems is focused on the future of farming. Our goal is productive, profitable and sustainable farmers in the tablelands

region of New South Wales.

Tablelands Farming Systems (TFS) aims to be recognized around the region and beyond as a credible independent and innovatizve farming systems organization. We are committed to delivering innovative solutions for our members and supporting them to implement improvements on their farms and in their farm businesses.

“TFS is a vehicle for change and driving adoption of new agronomic technologies and farming practices. Outputs focus on helping farmers make decisions, develop

risk management strategies, increase profits and operate sustainable farming operations”.

Tom McGuiness, Chair of Tablelands Farming Systems

Description of businessTFS was founded in 2013 as a grower-owned organisation and has quickly established itself as a credible provider of effective, targeted, timely and localised agricultural extension programs. TFS employs a diverse range of extension methods to communicate agronomic, environmental, climatic, social and economic messages to farming, community, scientific and agribusiness audiences.

TFS bridges the research, development and extension gap by delivering targeted, practical projects to drive an increase in the number of farmers in the tablelands’ region adopting best practice and innovative and sustainable farm practices. Importantly, TFS also gives landowners a voice to influence the types of RD&E they need to respond to threats and enhance their overall farm business and land management.


The farming systems model is proving to be hugely successful right around Australia; particularly because of role the groups play in directly addressing farmers’ needs in a timely and practical way. TFS’ overall success is inextricably linked to the level of engagement of the TFS Board and members to shape the types of research, development and extension activities that are undertaken.

Vision

Improved prosperity of farmers in the tablelands region through grower-driven innovation

Mission StatementTo be a credible, independent and innovative organisation that is responsive to the knowledge and information needs of members in the tablelands region and supports growers to be more prosperous through the adoption of new agronomic technologies and farm management practices.

ObjectivesTablelands Farming Systems’ objectives are:

1. Improved management systems – promote economic and environmentally sustainable agriculture through information exchange, extension and demonstrating industry best practice

2. Innovative research – coordinate, communicate and disseminate sound science and economic-based research, development and extension programs, focused on building the productive capacity of farms and the overall management of the region’s natural resource base

3. Adaptive farmers – be responsive to grower needs and support them to adapt to changing economic, environmental and market conditions

4. Information exchange – create opportunities for the regular exchange of information between growers, grower groups, agribusiness and researchers

5. Enhanced capacity – build the capacity and skills of growers to achieve their potential and support the next generation farmer.

Our value propositionThere are many players in the agricultural service sector, including ag consultants, rural suppliers, government agencies (LLS and DPI), livestock and commercial agents, banks, Natural Resource Management groups and rural training organisations. Rather than seeing these groups as competitors, a strategy for TFS


continues to be around exploring how we can work together with them to deliver better outcomes for farmers in the tablelands region.

However, TFS does offer unique benefits for members and those involved with the group that other players in the service sector do not. We believe these unique attributes are driving the prevalence of the farming systems model around the country.

Those attributes include: Unique access to industry events and information Responsive to producer issues and interests Everything is largely done on the producers’ behalf in terms of coordinating,

collating and disseminating relevant information Access to a wide network of industry, government, local groups and other

farmers Collaborative approach to farm business and production challenges Advocacy role that does not exist at the local level without some sort of

group structure or go-to point Research, development and extension that is localized down to a targeted

region Ability to influence a significant investment in local research, development

and extension programs A ‘one-stop-shop’ where TFS initiatives focus on the whole farm

management system – production, business, environmental and social Focus on cross-sectoral issues (e.g soils, seasonal) as well as industry

specific issues Most involvement in events and information dissemination opportunities are

free for members. Members get to choose how involved they want to be but even a passive member will still get value for money out of their membership.

Our organisation structure and governanceTFS is an incorporated organization managed by a six member Board. The Board is a skills based board with an appropriate representation of farmers as well as production/industry and farm business experts (accountancy, marketing, business, landcare/NRM, conservation and farming). TFS is governed by a constitution and reports annually to the NSW Department of Fair Trading. TFS is audited annually by Boyce Accounting.

TFS has an Executive Committee comprising the Chair, Vice Chair, Treasurer and Executive Officer. The Executive Officer is employed to manage the day to day


running of the group and to be a conduit between our members and the Board. The Executive Officer is also the groups nominated Public Officer.

The TFS Board meets quarterly to review its existing programs and to provide strategic insight into future TFS programs. On occasion, working groups have been appointed by the Board to manage TFS projects. These working groups are overseen by a Board member or the Executive Officer and activities under these working groups report quarterly to the Board as part of their general meeting process.

Governance arrangements are in place to manage the financial oversight of the organization, including all budgeting, reporting and procurement. The Executive team are regularly charged with implementing and oversighting detailed program income and expenditure.

Our reachTablelands Farming Systems’ members cover more than 57,000 hectares of the tablelands region—extending from Bigga and Reids Flat in the north-west to Collector and Breadalbane in the south and includes the major agricultural centres of Goulburn, Bungonia, Crookwell, Laggan, Taralga, Tarago, Braidwood, Yass and Gunning. A map showing member locations is at Map 2.

TFS also reaches the wider tablelands farming community (potentially 2831 farmers and 1,551,118 hectares in the slopes and tablelands LLS areas) through workshops, training and information dissemination.

The soils, climate, topography and land use vary significantly across the region, with high, medium and low rainfall production zones and a range of farming enterprises. Although the predominant farm enterprises focus on livestock and mixed farming production.

Our membersOur membership comprises 55 businesses involved in agriculture in the tablelands region—representing over 60 farming, advisory, research and other agribusiness organisations. Membership is targeted at progressive farming operations across all enterprises including wool, beef, meat sheep, cropping and livestock. Small area farmers and producers of niche enterprises are also encouraged to be involved with the group. Despite this, the predominant enterprise of our membership is livestock production with members collectively farming more than 240,000 sheep and 11,000 cattle.


Currently there is only one type of membership package available, noting that various sponsor packages also include full membership benefits. TFS targets all types of producers engaged in the management of a progressive farm business. The one membership fee covers all partners within the one organization.

Our aim is to increase the number of, and geographical spread of, members. A strategy that has brought significant benefit to the organization is our engagement with non-members at TFS initiatives. This has helped build the profile of the organization and increased our reach within the region. While TFS is focused on delivering benefits to members, we also see that we can have a role in lifting the overall profitability and sustainability of farmers across the region. Particularly where this does not have a detrimental impact on our paying members.

Our sponsorsCorporate sponsorship is an integral funding source for TFS with various packages available. Sponsorship is targeted at local agribusiness—banks, produce suppliers and livestock/wool agents for example. Our organization aims to continue to service our existing sponsors by offering quality access to our member base and delivering positive outcomes in return for sponsor investment.

In addition, we would also like to grow our sponsorship contribution through encouraging new sponsors. In particular, we would beneficial from attracting a Platinum sponsor while also working to increase the number of smaller contributions from associated organizations.

In addition to funding support from sponsors, TFS also relies on sponsor partnerships to deliver targeted extension programs for members. These have proven to be mutually beneficial arrangements as we have been able to capitalize on the expertise, knowledge and resources of partner organisations, which benefits our members, while providing partner organizations with access to a large progressive group of farmers. This is an approach we aim to continue to develop, particularly with corporate partners and state and federal agricultural service departments.


TFS deliverablesTFS operates with two key objectives in mind, each with series of projects to support or deliver on those objectives.

Objective 1: Encourage increased landowner understanding and adoption of best practice management to enhance the sustainability and resilience of their natural resource asset.

This objective targets direct land management issues, such as soil health, pastures, grazing, pests and weeds and farm conservation.

Outputs include:

Soil Club activities – deliver member based soil testing, recording, monitoring and reporting (captured in the existing database) to aid in analysing trends in soil condition and associated landholder management at a regional scale over time.

Additional soil workshops utilising expert knowledge on best practice in soil health and pasture management (eg use of lime and pasture species selection for soil types).

A series of fact sheets per year that target resource management issues, such as carbon sequestration, climate variability, grazing and pasture management and feed budgeting.

Training on decision support tools to increase the precision of soil and land management.

Workshops on weed and pest control that encourage the sharing of ‘tactics’ by farmers around innovative management approaches.

On-farm conservation field days that demonstrate the practical benefits of how conservation management has production benefits for livestock, cropping and other enterprises. Contribute to the development of best practice guidelines for farmers on conservation management.

Objective 2: Support farmers to improve their farm business management leading to increased quality of their natural resource base.

The objective will enhance the management of farm businesses, through upskilling farmers, quantifying options and better investment in farm inputs, which will result in better overall management outcomes and ultimately lead to an increase in the quality of the natural resource base.

Outputs include:


Farmer Forums which provide a mechanism for shared learning and the opportunity for farmers to discuss and collaborate on common challenges and experiences (2 forums a year, held on property and the topics are chosen by the host farmer and may involve expert participate in discussions).

Initiatives focused on better planning for seasonal and climate variability, including grazing management options and feed budgeting.

Farm business and landscape resilience training initiatives to support farmers to plan for and be better prepared for internal and external shocks to the business (outside of just drought preparedness).

Group benchmarking of farm businesses to identify better land use and management practices and options (32 farmers from TFS and Monaro Farmers participating). Group level analysis is to be presented at a public seminar, followed by participant results workshops (producer-funded).

The education, capacity building and training projects under each objective will be delivered or supported by workshops, field days and trial visits, farm walks, reports, newsletters, video links, web-based tools, seminars/ conferences and networking functions. The breadth of delivery options is key to maximising the impact of the projects and facilitating greater participation of different types of landowners.

Management

Project delivery experienceTFS has been operating for 16 months and has already delivered a large number of successful projects for the benefit of its members and the broader southern tablelands’ farming community.

TFS has received extremely positive feedback on the quality, format and engagement from members, LLS and sponsors. After just 16 months of project delivery, 95% of members and all sponsors have renewed their membership, indicating that they were very satisfied with TFS outputs.

Contract management In 2014-15, TFS received funding from the South East LLS to employ a part-time project officer and to deliver a range of projects for members and the broader region. All project outcomes (budgeting and reporting) were completed in accordance with the contract. In addition, TFS manages three funding contracts – Meat and Livestock Australia and two sponsor contracts.

TFS partnerships


TFS has a Memorandum of Understanding with Monaro Farming Systems, to share resources, data and knowledge. The two organisations often work closely to deliver projects, cross-promote project outcomes and support each other’s initiatives. TFS has also developed a partnership with the Holbrook Landcare Group on initiatives such as the Soil Club. Over time, TFS is committed to strengthen its networks with these and other farming systems groups to identify ways to work together.

TFS has also developed a strong partnership with the South East LLS in coordinating projects and events, general advice and research collaboration, as an avenue for the LLS to promote events and information, and as a feedback link to LLS on priority issues and common challenges. Skye Ward, TFS Board member, was also invited to be part of the LLS Roundtable in March 2015, and provided input to the future strategic direction of LLS’s extension and advisory services.

Over the past 12 months, examples of joint activities between the two organisations include a Bull Management Workshop, fertilizer trial field walks and Soil Club activities. TFS members have also been introduced to LLS biosecurity and veterinary personnel and the LLS attend all TFS events when available.

Financial ManagementTFS has four main income streams:

Membership Sponsorship Project funding (untied*) Project funding (tied*)

* Tied investments relate to project funding that is tied to one specific deliverable. Untied project funding is more general funding where agencies are investing in an outcome.

Below is a diagram showing the percentage proportion of income over the past two years as well as forecast revenue to 2018. The diagram shows the reliance of TFS on project funding (tied and untied). Note that while this shows a downward trend for 2017 and 2018, this is due to the graph only taking into account current contracted funding and it is expected that a strong emphasis will be put on increasing project funding and activities over the short to medium term.

Another priority for the organization is to grow member numbers and sponsorship, this will represent steady growth in TFS revenue but is not as significant compared to project funding.


Given the reliance on project funding, TFS is aware of the need to manage the deliverables under these projects. It also emphasizes the need to keep abreast of appropriate funding opportunities as well as have corresponding project concepts developed to act quickly to take advantage of those opportunities.

Figure 3. TFS Revenue Streams 2014 to 2018

2014 2015 2016 2017 2018$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

$80,000.00

$90,000.00

MembershipSponsorshipProject Funding - untiedProject Funding - tied

Membership and sponsor figures in 2017 and 2018 are aspirational figures based on the current growth rate of TFS member and sponsor numbers. The 2014 membership data represents 2013 and 2014 membership fees, hence member numbers have still grown steadily over this time.

TFS Project Funding for 2017 and 2018 is based on actual contracts in place and does not take into account future successful funding opportunities across these two years.

The large spike in untied project funding reflects the timing of the milestone payments on the South East LLS contract which includes a significant payment on signing for the purchase of the soil moisture probes.


Strengths, weaknesses, opportunities and threats


Sten

gths Strong local

farmer baseRelationship with external agenciesMedium term funding certaintyProven capacity for TFS to deliverAccess to industry experts and expertise to share with the group

Wea

knes

ses

Delivering initiatives but noting that it is difficult to get farmers off-farm to attendMedia profileMember ownership of the groupReliance on a limited number of funding sources

Opp

ortu

niti

es New ways to engage members through online opportuntiiesIncreased sponsorship and membershipGreater partnerships with existing and new organisations to deliver programsEngagement of non-TFS members at events

Thre

ats

Reliance on farmers to be engaged to drive TFS agenda and strageic prioritiesLimited funding oportunities for projectsExternal parties "freeloading" on TFS initiativesConsistently delivering on farmer needs in a timely wayHaving to service too many competing priorities (sponsors, project investors)

Risk action and management plan

Risk Likelihood Consequence

Mitigation

Reduction is funding support

Possible Critical Consistently scout for funding opportunities.Have projects ideas formulated to input into proposal quickly.Develop strong relationships with key funding stakeholders

Reduction in the number of members

Unlikely Minor TFS has a strong member base with a large number of producresContinue to provide quality access to relevant, localized information

Inability to engage quality experts

Unlikely Major Spread a wider network of industry and expert engagement

Reduced sponsorship investment

Unlikely Medium Continue to deliver positive access to our member base and service the needs of sponsorsSeek additional sponsorship in non-competing sectors

Profile of organization does not grow

Possible Medium Better utilize the media and encourage members to engage with others about TFS activities

Change of Executive Officer

Unlikely Major Document policies and procedures and the Board to maintain relationships with key partners, stakeholders and members

Change in Board leadership

Likely Medium Continued engagement with the Executive team and with rest of Board on internal and external issues.Ensure succession plan in place for Board positionsEnsure projects and program outcomes are communicated with whole Board

Lack of engagement of members

Possible Critical Continue to engage members in decision making. Understand when, how and what members want to be involved in.Communicate decisions and


strategic direction to the group. Send out annual survey to gauge member interests.

Financial management is compromised

Remote Critical Regular updates with the Treasurer and quarterly reporting on financials to Board.Annual audit process continuesAppropriate financial protocols are in place including policy to manage any financial management issues


Tablelands Farming Systems Business Plan€¦ · Web viewPO Box 791Goulburn NSW 2580 p. 02 4845...

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