GRDC chair John Woods.

THE Grains Research and Development Corporation has recommended a review to determine the optimum or “right-size” research and development investment to continue to deliver ongoing, cutting-edge, innovative outcomes to Australian growers.

This is the first time in the organisation’s 34-year history that the GRDC Board and executive team have triggered an in-depth review that will assess this critical question.

To help answer this, the review will focus on three key areas:

• GRDC’s financial position;
• The sector’s research and development capacity alongside research, development and extension (RD&E) opportunities; and,
• GRDC reserves and the grains industry levy.

GRDC chair and Goondiwindi grower John Woods said the recommendation came as the organisation and the Australian grains industry continued to be the beneficiaries of productivity growth, strong seasons and commodity prices.

“As an organisation, GRDC is in an extremely favourable financial position: our profit and loss statement and balance sheet reflect those of growers across Australia,” Mr Woods said.

“GRDC’s decision to recommend a review is a proactive move to ensure we have a ‘right-size’ sustainable investment spend in RD&E, an in-depth understanding of research and development capacity and a fair levy that together ensures consistent, ongoing, high-quality and innovative investment for Australian grain growers.”

The recommendation has the support of the grains industry’s representative organisations  GrainGrowers Limited and Grain Producers Australia.

While GRDC has initiated the review, it will be overseen by an industry working group formed with representatives from all three organisations, and expected to deliver recommendations by June 2025.

Mr Woods said GRDC had always taken a financially prudent, long-term view to ensure that RD&E investments were consistent and not impacted by seasonal conditions, and not turned on and off in response to grain yields and prices.

“Like grain growers’ incomes, GRDC’s revenue can vary significantly year to year, depending on the size of the harvest and the prices of our 25 leviable commodities.”

He said GRDC managed these fluctuations by maintaining an appropriate reserve level.

“Since 2019-20 GRDC has benefited from strong industry performance due to positive environmental conditions coinciding with higher prices.

“This has resulted in significant growth in reserves even with the increase in RD&E investments by an additional $60 million per year.

“This extraordinary performance was without question enabled by growers, whose willingness to embrace practice changes and adopt innovative technologies from research partners, service industry, breeders and others illustrates how valuable RD&E is to the productivity and profitability of their farming businesses.”

Mr Woods said the review would not change GRDC’s mandate to invest in RD&E for the enduring profitability of Australian grain growers, or alter the investment scope as defined by Federal Government legislation.

“This review will be focused on essentially assessing and determining the right-size RD&E investment needed into the future to ensure GRDC continues to deliver effective, highly impactful outcomes that drive practice change on-farm, support the adoption of new technology and genuinely improve growers’ bottom lines.

“This is a complex process that requires a united industry approach.

Mr Woods said GRDC was committed to working closely with GPA and GrainGrowers and ensuring through the working group that grain growers are well informed through the review process.

“While work has started, the industry working group will need time to analyse data and utilise external expertise to inform their considerations, and ultimately recommendations.”

However, Mr Woods said growers and the broader grains industry could be assured that the review would not distract the organisation from continuing to manage and invest in critical new and ongoing RD&E investments.

Source: GRDC