National Agriculture & Climate Change Action Plan 2006 - 2009

Foreword

The Natural Resource Management Ministerial Council is pleased to present the National Agriculture and Climate Change Action Plan 2006-2009 (the Action Plan).

Over the past few years the Natural Resource Management Ministerial Council has been involved in work related to better understanding the implications of climate change. The Council of Australian Governments also has recently renewed its focus on climate change policies in anticipation of its increasing impact on the economy. Particularly vulnerable are those sectors, such as agriculture, which are dependent on natural resources. The size and scope of the impacts of climate change are still beyond our grasp but the threat is very real.

This is a time to unite in developing strategic and practical solutions for dealing with the challenges of climate change. The Report by the Agriculture and Food Policy Reference group 'Creating Our Future' released in February 2006 indentified climate as the most important natural resource factor likely to affect the productivity and profitability of the Australian agricultural sector. The National Farmers' Federation has also highlighted climate change as possibly the biggest risk facing Australian farmers over the coming century.

Australian federal, state and territory governments have worked closely in developing this Action Plan. This colloborative and concerted efforts harneseed the knowledge and expertise of Australian farmers, local communities, climate scientists and government through an extensive and inclusive consultation process.

The National Agriculture and Climate Change Action Plan takes into account the particular needs of agriculture. It provides a policy framework that promotes adaptation to climate change and a practical approach to mitigation. The Action Plan also has a strong focus on building knowledge through research and development to provide innovative solutions, tools and framworks that will enable farm businesses to deal with the challenges arising from climate change.

The Natural Resource Management Ministerial Council is proud to endorse the National Agriculture and Climate Change Action Plan which is a strategic future-oriented framework that encourages greater empowerment of the agricultural industry in relation to its business decision making and fosters a culture of innovation and responsiveness in the face of the challenges imposed by climate change.

Overview

Climate change poses challenges for all sectors of the Australian economy but particularly for those sectors dependent on natural resources such as agriculture. The National Agriculture and Climate Change Action Plan 2006-2009 (the Action Plan) is an agreement by Australian governments to develop a coordinated framework for climate change policy in agriculture to contribute to the development of a sustainable, competitive and profitable Australian agricultural sector into the future. It will provide Australian, state and territory governments and research and development (R&D) organisations with a practical tool to develop effective and efficient policies to overcome the challenges imposed by climate change. The objectives, strategies and actions presented in the Action Plan have been endorsed by the Natural Resource Management Ministerial Council. The Action Plan complements the National Biodiversity and Climate Change Action Plan 2004-2007.

The Action Plan identifies four key areas to manage the multiple risks to sustainable agriculture in an environment of climate change:

• adaptation strategies to build resilience into agricultural systems;
  
• mitigation strategies to reduce greenhouse gas emissions;
  
• research and development to enhance the agricultural sector's capacity to respond to climate change; and
  
• awareness and communication to inform decision-making by primary producers and rural communities.

The Action Plan will facilitate an increased awareness of climate change issues among primary producers and rural communities and will provide a strategic framework for primary producers when undertaking business planning and decision making.

Background

There is evidence suggesting significant challenges in global climate have occured over the past century and that this phenomenon will continue throughout the 21st century due to anthropogenic activities as well as natural cycles. The risk of extreme events and abrupt changes in climate patterns is also increasing. It is likely that Australia will face some degree of climate change over the next 30 to 50 years irrespective of global or local efforts to reduce greenhouse emissions.

Agriculture represents a vital part of the Australian economy, and Australia is a significant player in world trade for many commodities. In 2004-2005, there were approximately 360 000 people employed in agriculture and around 120 000 commercial farms in operation. About 60 per cent of the Australian land mass is devoted to agriculture, and it accounts for over 79 per cent of water use.

Australia's National Greenhouse Gas Inventory estimates that on-farm activities (excluding energy use) produce around 18 per cent of overall national emissions, making the agricultural sector the second largest source of greenhouse gases. Methane (CH4) is the dominant agricultural greenhouse gas in Australia.

Ove the past 200 years, Australian agriculture has evolved within one of the world's most variable climates. Australian farmers have developed highly adpative land management systems in response to these varying climate regimes. Long-term climate change could increase this variability beyond the range considered normal and threaten the viability of some agricultural systems. Therefore, establishing a strategic climate change policy framework to better manage the risks likely to be faced by the agricultural sector with a view to developing sustainably and maintaining competitiveness and profitability, is vital.

Objectives of the Action Plan

The objective of the Action Plan is to assist Australian governments in providing primary producers and natural resource managers with a policy framework that embraces research and development and promotes climate change adaptation and emissions mitigation in agriculture. A critical role of the Action Plan is to steer policies and frameworks toward supporting risk management and sustainable practices by primary producers and promoting a culture of innovation and responsiveness to change to deal with the business challenges that lie ahead.

Principles supporting the National Agriculture and Climate Change Action Plan

Seven principles were developed to support the objectives of the Action Plan. These are:

• Strategic objectives and actions to support profitability and sustainable agriculture that involve all relevant stakeholders across jurisdictions.
  
• Strategies and actions to increase the resilience, adaptive capacity and self-reliance of stakeholder industries.
  
• Actions to build capacity for priority setting in key areas of vulnerability.
  
• Actions to provide guidance for the development of planning capacity and investment by key decision makers that are not prescriptive but allow for individual tailored solutions to be developed.
  
• Strategies and actions to foster integrated risk-management approaches to sustainable agriculture, natural resource management and rural development.
  
• Strategies and actions that embrace both adaptation and mitigation approaches.
  
• Cohesive and coordinated policies that create beneficial synergistic outcomes through links to other policy initiatives.

Strategies and Actions

The Action Plan provides a framework for climate change policy for Australian governments and the agricultural sector. The following four strategic focus areas have been identified to manage multiple risks to sustainable agriculture in an environment of climate change:

Adaptation: To build resilience into Australian agricultural systems as a proactive response to climate change.

Adaptation strategies and actions in the Action Plan have been chosen to: build resilience into Australian agricultural systems to cope with climate change (Refer to Strategy 1.1); complement existing programmes to build the capacity of natural resource managers and systems to respond to climate risks and pressures (Refer to Strategy 1.2); manage the negative impacts of climate change on the range of native and foreign invasive species and disease incursions in agricultural and natural resource systems (Refer to Strategy 1.3) and take advantage of market opportunities that may arise from a changing climate (Refer to Strategy 1.4).

Mitigation: To reduce greenhouse gas emissions from agriculture, particularly for multiple benefits.

Mitigation strategies in the Action Plan focus on: reducing methane and nitrous oxide emissions and exploring further opportunities to promote improved efficiency (Refer to Strategy 2.1); understanding opportunities to reduce energy use in agriculture (Refer to Strategy 2.2); enhancing biosequestration opportunities in agriculture (Refer to Strategy 2.4); and understanding the costs and benefits to agriculture of these actions (Refer to Strategy 2.5).

Research and Development Investment: To enhance capacity in research, development and innovation to address the challenges of climate change in agriculture.

Strategies aimed at building the role research and development (R&D) will play in equipping farmers and natural resource managers to face the challenges of climate change include developing opportunities, tools and knowledge to enhance decision-making by farmers, natural resource managers and government decision-makers (Refer to Strategy 3.1 and 3.2). The Australian environment and economy will benefit from R&D that maximises the multiple benefits of managing greenhouse gas mitigation (Refer to Strategy 3.2). Agriculture will be better able to meet the challenges of climate change if Research and Development Corporations (RDCs), industry and research providers utilise a participatory approach to R&D (Refer to Strategy 3.3). There is a need to maintain and enhance the collection of accurate physical, economic and social data (Refer to Strategy 3.4), that will enable the development of models that predict the impacts on agriculture of climate change (Refer to Strategy 3.5).

Awareness and Communication: To improve the understanding of climate change issues by Australian agricultural industries and rural communities to enable them to make informed decisions.

Strategies aimed at enhancing communication of climate change implications for the agricultural sector include incorporating climate change considerations in policy and programme communications (Refer to Strategy 4.1). Such strategies will foster an increased understanding and integration of scientific knowledge into farm management decisions (Refer to Strategy 4.2) and incorporate issues of climate change into education and training packages directed at agricultural industries (Refer to Strategy 4.3).

Implementation

Implementation of the strategic directions and actions to manage climate change across the Australian agricultural sector outlined in theAction Plan is an opportunity for the Australian Government state and territory governments, and the agricultural industries and rural communities they represent to work together to achieve shared goals and outcomes. The Action Plan provides a framework to coordinate activities within the institutional, legislative and budgetary frameworks that exist in each jurisdiction. The Natural Resource Management Ministerial Council will oversee the implementation of this Action Plan.

Introduction

Climate change poses challenges for all sectors of the Australian economy but particularly those sectors dependent on natural resources such as agriculture. Developing effective government policy to address these challenges, particularly the reduction of greenhouse gas emissions and adaptation to climate change impacts, requires a coordinated approach form all Australian governments. The National Agriculture and Climate Change Action Plan 2006-2009 (the Action Plan) represents an agreement by Australian governments to develop a framework for a national strategic approach to developing climate change policy for Australian agriculture.

This Action Plan will coordinate policy development by Australian, state and territory governments, and research and development (R&D) organisations within the natural resource and agricultural sectors. The objective of the Action Plan is to prepare agricultural industries and rural communities for climate change through an efficient, integrated approach to policy development involving governments and industry with the support of R&D organisations. Actions by individuals are not addressed through this Action Plan as these are best left to individual enterprises to determine depending on their circumstances.

The development of the Action Plan builds on the issues and needs indentified through previous processes including:

• work on climate change policy coordinated through the Ministerial Councils and the Council of Australian Governments (COAG);
  
• state and territory agriculture and climate change strategies that address greenhouse in agriculture, climate variability and the impacts of climate change;
  
• Report the Commonwealth Government by the Agriculture and Land Management Working Group (Cronin 2003);
  
• Climate Change Risk and Vulnerability; promoting an efficient adaptation response in Australia report (Allen Consulting Group, 2005);
  
• Farming Profitably in a Changing Climate workshops undertaken by the Bureau of Rural Sciences (Bureau of Rural Sciences, 2005); and
  
• Creating our Future - agriculture and food policy for the next generation (Agriculture and Food Policy Reference Group, 2006).

The Action Plan provides an overview of the priority strategies and actions requiring national cooperation on climate change policy, and accounts for a range of other policies impacting on agricultural industries, regional authorities and communities in rural Australia. The objectives, strategies and actions presented in this Action Plan have been endorsed by the Natural Resource Management Ministerial Council. The Action Plan complements the National Biodiversity and Climate Change Action Plan 2004-2007, which was released by the Natural Resource Management Ministerial Council in 2004, and is expected to provide input into the Council of Australian Government's consideration of climate change.

Background

Climate Change

There is evidence that the global climate has changed over the past century and that climate will continue to change throughout the 21st century. It is now generally accepted that observable changes in climate are linked ot antropogenic activities as well as natural cycles. The risk of extreme events and abrupt changes in climatic patterns is also increasing. Natural resource based industries such as agriculture, fisheries and forestry, are particularly vulnerable to these risks, and thus the need to increase the adaptive capacity of production systems to deal with climate change risks has been identified as a priority.

There is concern that Australia will face some degree of climate change over the next 30 to 50 years irrespective of global or local efforts to reduce greenhouse emissions. Adapting a changing climate and continuing to seek opportunities to reduce greenhouse gas emissions thorugh cost-effective mitigation options are becoming increasingly important in the development of policies and programmes by Australian governments.

Climate Change in Agriculture

Agriculture represents a vital part of the Australian economy, and Australia is a significant player in world trade for many commodities. In 2004-05 there were approximatelly 360 000 people employed in Australian agricultural industries. There were around 120 000 commercial farms spread across the continent and farming contributed 21.7 per cent of Australia's merchandise exports.

Around 60 per cent of the Australian land mass is devoted to agriculture, with the types of agricultural pursuits being determined primarily by climate, soil type and water availability. As indicated in Figure 1, there are three broad zones in which agricultural activity occurs. These are commonly referred to as the pastoral, wheat-sheep and high rainfall zones. Within these areas there is also some irrigation-based farming, drawing on stored surface water from dams on major rivers and streams and underground sources of water. These water supplies, and the farming activities that depends on them, are sensitive to climate change.

Figure 1: Location of Australian Agriculture (Australian Bureau of Agricultural and Resource Economics)

Over the past 200 years, Australian agriculture has evolved within one of the world's most variable climates. Australian farmers have developed highly adaptive land management systems in response ot varying climate regimes.

Long-term climate change could increase this variability, particularly the frequency and severity of climatic extremes such as droughts and floods. Continuing changes may expose farming systems to conditions not experienced before. For example, there is a risk that changing climate conditions will shift the areas where agricultural production can occur. Hypothetically, this could mean the margins of the wheat belt shift, or the entire wheat belt shifts, because of changing temperature profiles or storm frequency. Such geographical shifts in agricultural land use could threaten the viability of some agricultural systems, and also disrupt rural communities and the infrastructures taht support rural livelihoods. There needs to be recognition that droughts and floods are a normal part of the agricultural environment and that in the future such events may become more common (Bureau of Rural Sciences, 2004). Moreover, climate change may increase climate variability beyond the range considered normal under past experience. While such scenarios may pose threats in some regions, they may create opportunities in other regions.

Potential impacts of long-term climate change on agriculture could include increased invasion of weeds, pest and diseases; changes in pature growth and carrying capacity; and a reduction in the potential for expansion in irrigated agriculture. Changing rainfall patterns combined with higher temperatures could reduce water availability and add pressure on water allocation systems. Effective adaptation measures, such as efficient use of resources, drought-tolerant crop cultivars and divers and diverse income opportunities for rural communities could reduce the extent of these impacts.

Climate change impacts are likely to vary across geographical regions and this could impact on the comparative advantage of existing industries with possible influences on international commodity trade. Climate change adaptation measures have the ability to enhance opportunities and minimise risks to exposed sectors.

Agriculture's impact on Climate Change

Australia's National Greenhouse Gas Inventory (Figure 2) estimates that on-farm activities (excluding energy use) produce around 18 per cent of overall national emissions. This is more than all of Australia's transport-based emissions, making the agricultural sector the second largest source of greenhouse gases after electricity production.

Methane (CH4) is the dominant agricultural greenhouse gas in Australia, with methane from livestock representing 12 per cent of national greenhouse gas emissions. Nitrous oxide (N2O), the other significant greenhouse gas from agriculture, represents around 3 per cent of Australia's overall greehouse gas emissions. Most of Australia's nitrous oxide emissions come from agricultural soils, particularly following the application of nitrogenous fertilisers. Carbon dioxide emissions (CO2), from the burning of fossil fuels for farm power and transport, and land clearing and soil organic matter decomposition, represents another form of greenhouse gas emissions from agricultural activity.

Figure 2: Greenhouse gas emissions from agriculture

Objectives of the Action Plan

Australian farmers and natural resource managers face a number of challenges in maintaining profitable, sustainable and competitive agricultural industries. As acknowledged by the National Farmers' Federation, and highlighted in the Report of the Agriculture and Food Policy Reference Group Creating Our Future agriculture and food policy for the next generation, climate change is considered the most serious long-term threat to agriculture. Responding to climate change, through both adaptation and mitigation strategies, will create new challenges but may also bring opportunites for rural enterprises. Understanding a changing climate, identifying potential risks and seeking opportunities to respond proactively to minimise those risks is a collective challenge for Australian governments, research and developement organisations, industry, rural communities and all Australians.

The Action Plan has a number of principles and parameters for addressing this objective, which led to the development of strategies and actions under four focus areas:

• Adaptation
  
• Mitigation
  
• Research and Development, and
  
• Awareness and Communication. 

Underpinning the criticl role for governments is the development of policies and frameworks that support risk management and sustainable practices by farmers and promote a culture of innovation and responsiveness to change to deal with factors affecting agricultural businesses in the future.

The Action Plan provides a framework for climate change policy for Australian governments and the agricultural industry. It is a cost-effective, no regrets approach to mitigate emissions of greenhouse gases in agriculture. It achieves this through a combination of strategies and actions under each focus area to manage multiple risks to sustainable agriculture in an environment of climate change. The strategies and actions have been drawn from an assessment of scientific, economic and environmental policy needs to address the range of issues involved. The Action Plan recognises the role of farmers in primary production and resource stewardship, and seeks synergies and cost efficiencies to streamline climate change considerations in natural resource policy. The Action Plan builds on existing partnership between Australian Government agencies, state and territory governments and primary production industries.

Principles supporting the National Agriculture and Climate Change Action Plan

1. Strategic objectives and actions involving all relevant stakeholders across jurisdictions to support profitable and sustainable agriculture.	Measures designed to address climate change in agriculture need to be suitable for implementation by key stakeholders, which include all levels of government, the agricultural and food industry sectors, as well as regional NRM bodies.
2. Strategies and actions need to increase the resilience, adaptive capacity and self-reliance of stakeholder industries.	Uncertain climate impacts require a focus on adaptive planning and action based on a risk management framework. Building resilience and adaptive capacity to deal with sudden changes in climate that might impact on agronomic thresholds and ecological functions is necessary.
3. Actions should build capacity for priority setting in key areas of vulnerability.	To position for the future the Action Plan needs to foster nationally consistent policy frameworks which focus on: Identification of areas where actions will have the highest payoff; Coordination, risk sharing, capacity building and contingency planning; Opportunities for cost-effective “no’regrets” responses that can be applied; and Promotion of science and technology, voluntary partnerships and incentives.
4. Actions need to provide guidance for, but not prescribe, the development of planning capacity and investment by key decision makers.	Given the diversity of Australian agriculture, it is not possible to develop a one-size-fits-all approach. Therefore, planning and investments should support individuals’ future decisions in response to emerging needs.
5. Strategies and actions need to foster integrated risk management approaches to sustainable agriculture, natural resource management and rural development.	Climate change is one of many drivers that determine the future competitiveness and sustainability in the agricultural and food sectors. Recognition of other drivers for change in agriculture, including economic, social, technological and resource conditions, will enhance planning and capacity building effort and the effectiveness of actions directed at climate change adaptation and mitigation. Integration will facilitate coordinated and cost-effective actions capable of multiple benefits through efficient use of resources in agriculture.
6. Strategies and actions need to involve both adaptation and mitigation approaches.	Mitigation and adaptation are complementary strategies in dealing with climate change in agriculture. New opportunities and multiple benefits should be sought as part of this combined approach.
7. The Action Plan needs to link to other action plans and policy initiatives to achieve synergies and multiple benefits.	A number of other initiatives, such as the Biodiversity and Climate Change Action Plan 20 04-20 06, and processes under COAG have been developed. In order to be effective, complementary and cohesive, this Action Plan needs to link to these other initiatives.

Strategies and Actions

Some level of climate change is inevitable and adaptation is a necessity if Australian agriculture is to remain viable in global markets. In responding to climate change, adaptation should complement emission mitigation efforts and provide a window of opportunity to adjust resource management practices and support the sustainability of agriculture. Such adjustments could better prepare Australian agriculture to cope with climate change by increasing the resilience of human and natural systems (Box 1).

Climate change adds to the complexity of the farming environment which is characterised by uncertainties in markets, resource conditions, technology and changing community values. Fostering adaptation to climate change by agricultural industries entails a mix of innovation and strategy initiated by individuals, communities, business and governments. This Action Plan seeks to enhance consideration of climate change risks as a component of mainstream decision making.

As supported in this Action Plan bringing climate change rather than just climate variability into focus as an additional element in normal strategic planning and risk management in agriculture requires awareness raising and capacity building. This includes development of the science, knowledge and management tools for application in practical solutions across a range of decision scales. Agricultural industries have the capacity to adapt independently to ongoing changes. However, government policy and scientific research is seen as critical in supporting longer term strategic adaptation planning, including developing flexible management and innovation to contain costs and seek profit in a changing climate (BRS 2005). Farmers, in particular, need practical options and tools to cope with climate change - down to the enterprise level.

To be cost-effective and to allow flexibility for jurisdictions to promote local policies and programmes to meet specific needs, adaptation strategies and actions in this Action Plan have been chosen to:

• build resilience into Australian agricultural systems to cope with climate change (Refer to Strategy 1.1);
  
• complement existing programmes to build the capacity of natural resource managers and systems to respond to pressures (Refer to Strategy 1.2);
  
• minimise the negative impacts of climate change on the range of native and foreign invasive species and disease incursions in agricultural and natural resource systems (Refer to Strategy 1.3); and
  
• take advantage of market opportunities that may arise from a changing climate (Refer to Strategy 1.4). 

Strategy 1.1

Integrate climate management considerations into programmes for developing farm management systems and build industry and rural community capacity to increase resilience and adaptability, and to seize opportunities through best management practices to manage climate risks.

Actions

1.1.1 Develop dynamic farm/agricultural management tools that integrate climate change risks into existing and emerging management systems to facilitate adaptation.

1.1.2 Develop tools that manage the related issues of climate change and climate variability.

1.1.3 Build on Australia's ability, as a world leader, to develop and promote farming systems that both promote adaptation and encourage mitigation of environmental impacts, such as greenhouse gas emissions.

1.1.4 Identify and build on successful strategies of adaptation by the agricultural sector to climate change already experienced.

1.1.5 Develop, where possible, environmental management systems for agriculture.

Strategy 1.2

Integrate climate adaptation into agricultural adjustment and natural resource management (NRM) programmes through a risk management approach, including progressively building considerations of climate change into existing national natural resource management programmes such as the National Action Plan for Salinity and Water Quality and the Natural Heritage Trust, and any successor and future programmes.

Actions

1.2.1 Build on existing work regarding climate change risk and vulnerability to identify and prioritise industries and agricultural regions that are most vulnerable to climate change, and integrate these considerations into NRM planning and investment.

1.2.2 Promote diversification and industry adjustment as strategies to manage risks associated with climate change and variability.

Strategy 1.3

Integrate the pest, weed and disease implications of climate change into strategies that minimise their impact on agricultural and natural resource systems.

Actions

1.3.1 Assess and prioritise the implications of climate change on the distribution and abundance of pests, weeds and diseases.

1.3.2 Indentify potential impacts of climate change on managing pest, weed and disease risks, including significant future resource costs.

Strategy 1.4

Monitor and analyse impacts of climate change on domestic and overseas markets, facilitate adaptation options and inform rural producers of potential opportunities.

Actions

1.4.1 Encourage socio-economic and market research that address climate issues on a regional and national basis as a high priority, and ensure findings are communicated effectively to farmers and natural resource managers.

1.4.2 Assist agricultural industries to seek new market strategies to support business viability under climate change.

The Australian agricultural and land use sectos have already made significant contributions to Austrlalia's commitment to reduce its greenhouse gas (GHGs) emissions to 108 per cent of 1990 levels by 2012, principally through reduced land clearing. Agricultural activity can influence the atmospheric level of three of the major GHGs - carbon dioxide (CO2), nitrous oxide (N2O), and methane (CH4) - both a source and a sink. This dual role, unique to the agricultural and land use sectors, to mitigate GHG emissions have been the subject of intensive scientific study over the past several years. Scientific evidence suggests that agricultural practices focussed on mitigating GHGs could also provide significant economic, environmental and social benefits (Australian Greehouse Office, 2005, Box 2).

This Action Plan provides strategies and actions that promote the mitigation of GHGs for multiple benefits to agriculture and natural resource management. This set of strategies is designed to inform policy and decison makers in government and industry, agricultural producers, potential investors, and the general public. Actions have been chosen to address all three major GHGs and to consider the potential tradeoffs and synergistic benefits in practices aimed at carbon sequestration and mitigation of N20 and CH4 emissions.

Agriculture impacts on emission pathways in many ways. This occurs through the use of synthetic fertilisers, animal waste and otehr organic fertilisers, and by biological nitrogen fixation by crops, cultivation of soils, and mineralisation of crop residues returnign to the field.

Mindful of the potential to achieve multiple benefits, such as improved natural resource management combined with increased operational efficiencies, the Action Plan focuses on:

• reducing methane and nitrous oxide emissions and explores opportunities to promote improved efficiency (Refer to Strategy 2.1);
  
• understanding opportunities to reduce energy use in agriculture (Refer to Strategy 2.2);
  
• promoting cost effective alternatives to fossil fuel use in agriculture (Refert to Strategy 2.3); and
  
• the Action Plan also aims to enhance biosequestration opportunities in agriculutre (Refer to Strategy 2.4) and understand the costs and benefits to agriculture of these actions. 

Strategy 2.1

Reduce emissions from agricultural systems and explore further opportunities to promote improved efficiency.

Actions

2.1.1 Evaluate and promote current best management practices for methane and nitrogen management in agriculture, including capture and use for multiple benefits.

2.1.2 Promote research and development in methane and nitrogen emission management for integration into best management practices.

2.1.3 Develop tools to encourage tillage and soil management practices that improve soil carbon storage

2.1.4 Encourage research into farming systems to recognise potential direct and life-cycle impacts on greenhouse gas emissions.

2.1.5 Develop, where possible, emissions intensity benchmarks and environmental management systems for agriculture.

Strategy 2.2

Improve energy efficiency in agriculture.

Actions

2.2.1 Explore opportunities to reduce on-farm energy demand and increase energy use efficiency.

2.2.2 Evaluate and promote options to reduce energy demand along the agricultural industry supply chain, beyond the farm-gate, including full life-cycle analysis.

Strategy 2.3

Promote cost-effective alternatives to fossil fuel use in agriculture.

Actions

2.3.1 Assess the potential cost efficiencies of bioenergy and renewable energy sources for the agricultural sector.

2.3.2 Assess the regional economic, social and environmental impacts of change in agricultural enterprises to provide feedstock for bioenergy production.

Strategy 2.4

Enhance biosequestration opportunities in agriculture.

Actions

2.4.1 Explore economically efficient policy options to encourage biosequestration through forest sinks.

2.4.2 Identify the feasibility and effectiveness of other on-farm options for biosequestration.

Strategy 2.5

Ensure efficiency of investment in research and development resources for greenhouse gas abatement.

Actions

2.5.1 Review existing research work on greenhouse gas mitigation in agriculture to assess the likelihood of success and value for investment.

2.5.2 Use the results from this review to guide research and development investments, particularly with relation to actions in Focus Area Three, Research and Development, of this Action Plan.

Climate change and increased climate variability will present a number of challenges for agriculture and natural resource management in Australia over the next 30 to 50 years (Allen Consulting Group, 2005). As such, farmers and natural resource managers will need to make decisions that increase resilience, allow for adaptation and seek multiple benefits of mitigating greenhouse gases. This requires R&D that promotes innovation in science, tools development and policy development. Additionally, R&D must address climate change as a component of future business and natural resource management risks facing agriculture, and recognise adaptation measures undertaken in response to past climate variability. This will require a whole systems approach to problem solving (Box 3).

Australia is a world leader in understanding climate variability in agriculture R&D, and has arguably the most efficient industry-specific R&D model available. Australian R&D organisations invest in a number of cross-sector themes, including climate change and variability. It is critical that this investment continues to enable farmers and natural resource managers to remain resilient in the face of imminent climate change. This will require enhanced participatory engagement with stakeholders, especially collaboration between RDCs through the continuation and evolution of multi-partner R&D such as the Managing Climate Variability Programme.

There has been significant investment in developing models, tools and knowledge to address climate change in the recent past. Further development of these tools will be critical for decision making by farmers, natural resource managers and Australian governments. This will only be achieved if RDCs, industry, research providers and other stakeholders collaborate to develop a whole system understanding of climate change effects, drawn from diverse models of the physical climate system, agricultural systems, ecosystems, social processes and economic systems, validated with representative data.

This Action Plan aims to build the role of R&D will play in equipping farmers and natural resource managers to face the challenges of climate change. It will develop:

• opportunities, tools and knowledge to enhance decision-making by farmers, natural resource managers and government decision makers (Refer to Strategy 3.1 and 3.2);
  
• the Australian environment and economy will benefit from R&D that maximises the multiple benefits of managing greenhouse gas mitigation (Refer to Strategy 3.2);
  
• agriculture will be better able to meet the challenges of climate change if RDCs, other industry and research organisations utilise a paricipatory approach to R&D (Refer to Strategy 3.3);
  
• there is a need to maintain and enhance the collection of accurate physical, economic and social data (Refer to Strategy 3.4); and
  
• that will enable the development of models that predict the impacts on agriculture of climate change (Refer to Strategy 3.5). 

Strategy 3.1

Develop approaches, tools and improved participatory engagements to assist Australian agriculture to manage risks from climate change.

Actions

3.1.1 Build on existing R&D capability to improve tools to manage climate risks, also drawing on farmer' existing expertise in managing climate variability.

3.1.2 Facilitate greater understanding in the R&D community of climate change research needs for both farm management tools and policy development.

3.1.3 Promote research and development that addresses the need for both short term and long-term tools for decision-making.

Strategy 3.2

Identify opportunities that provide both greenhouse gas abatement and productivity benefits to farming systems.

Actions

3.2.1 Encourage research and development for agriculture and climate change that considers multiple benefits through a whole systems approach, and recognises the simultaneous goals of productivity, sustainability, adaptability and abatement.

Strategy 3.3

Encourage industry-based research and development organisations, including Research and Development Corporations (RDCs) to work together, and with research providers and industry, to develop a coordinated approach to climate change research and development in agriculture and natural resource management.

Actions

3.3.1 Promote cooperation between RDCs and other R&D organisations in the implementation of R&D programmes that focuses on a whole systems approach to managing climate change.

3.3.2 Facilitate the development of cross-cutting cooperative research agendas, incorporating the joint expertise of RDCs, other research and development organisations and industry.

3.3.3 Build on previous world-class research on climate change and climate variability.

Strategy 3.4

Support the development and maintenance of observational networks and systems to monitor climate changes and agricultural systems response to better understand climate change and variability.

Actions

3.4.1 Support the collection of climate data at a variety of scales (spatial and temporal) to better inform policy and management decision making.

3.4.2 Ensure the scientific value of long-term data is appropriately assessed to recognise the benefits of continuous records.

Strategy 3.5

Improve capacity of models to predict climate impacts on agriculture at scales relevant to farmers and natural resource managers.

Actions

3.5.1 Promote the development of a variety of different models to underpin climate adaptation and mitigation research, particularly incorporating a whole systems approach.

3.5.2 Develop research programmes that address the social implications of climate change, particularyly the capacity for adaptation and mitigation to achieve multiple benefits.

3.5.3 Promote the development of a large knowledge base to support climate and agricultural research as an area of critical importance, particularly to add relevence to existing models.

Australia's climate is changing as part of a global trend, with potentially substantial implications for agriculture and natural resource management. Therefore, farmers and natural resource managers need to understand these trends and the implications on their businesses, implement strategies to adapt to these changes and respond to the need for appropriate greenhouse gas mitigation.

In responding to strategic issues such as climate change, governments have a significant, ongoing role in supporting the efficient allocation of resources, managing distribution and costs and benefits proportionally amongst those potentially affected and facilitating efficient decision-making by providing information, institutional support and policy frameworks.

In a setting where the cumulative impact of past changes and future climate trends may expose farming systems to conditions not experienced before, the scale and significance of climate risk and appropriate response strategies may vary significantly across industries and individuals. Industries and individuals are therefore best placed to make relevant investment decisions, enterprise choice and similar business decisions within the contexts in whch they operate. To be able to meet these challenges effectively, farmers and other decision-makers need to be kept informed of ongoing developments, including opportunities for innovation and investment. Research and development organisations, including Research and Development Corporations, and Australian governments will need to work closely with farmers and industry groups to efectively communicate information, tools and strategies to respond efficiently to climate change risks.

This Action Plan aims to enhancde communication of climate change implications for the agricultural sector by:

• where relevant, incorporating climate change considerations in policy and programme communications (Refer to Strategy 4.1);
  
• fostering an increasing understanding and integration of scientific knowledge into farm management decisions (Refer to Strategy 4.2); and
  
• incorporating issues of climate change into education and training packages directed at agricultural industries (Refer to Strategy 4.3). 

Strategy 4.1

Ensure climate change issues are integrated, where relevant, in policy and programme communications.

Actions

4.1.1 Indentify priority industries and groups to target communication messages.

4.1.2 Assess the level of understanding of climate change issues in rural industries and identify barriers to communication.

4.1.3 Indentify priority messages to increase climate change awareness amongst stakeholders.

4.1.4 Promote capacity building to enhance awareness of the climate issues within the agricultural sector, particularly agricultural industry and community leaders, research and development organisations and prominent scientists.

Strategy 4.2

Increase understanding and integration of scientific knowledge of climate into farm management decisions.

Actions

4.2.1 Develop a range of appropriate tools and training programmes to enhance understanding of the risks and opportunities presented by climate change.

4.2.2 Encourage partnerships between the scientific research and rural extension networks.

Strategy 4.3

Incorporate issues of climate change into education and training packages directed at agricultural industries.

Actions

4.3.1 Indentify and develop key information, education and training channels such as media, education, training and extension networks.

4.3.2 Indentify and develop mechanisms for raising awareness leading to attitudinal, behavioural and practice change through developing partnerships by partnering with industry and communities.

Implementation and Delivery of Action Plan

This Action Plan presents a set of strategies and actions collectively endorsed by all Australian governments to address climate change issues across the agricultural sector in a coordinated way. The Action Plan complements the actions being implemented through the National Biodiversity and Climate Change Action Plan, and together they cover much of the Australian landscape where Australia's natural capital is managed for sustainable use and production for the benefit of all Australians and the global community.

Implementation of the strategic directions and actions to manage climate change across the Australian agricultural sector outlined in the Action Plan are the joing responsibility of the Australian Government, each state and territory government, and the industries and communities they represent.

The Action Plan provides a framework to coordinate activities to manage the impacts of climate change within the institutional, legislative and budgetary frameworks that exist in each jurisdiction.

Natural Resource Management Ministerial Council will oversee the implementation of this Action Plan. In further developing its implementation plan the focus will be on the following steps:

• Review existing activities by jurisdictions against the Action Plan - July 2006
  
• Commend the Action Plan to the Council of Australian Governments as an action to address climate change issues in the agricultural sector and for natural resource management by farmers - July 2006
  
• Indentify any gaps in coordination required to achieve the Action Plan and determnine resource implications for addressing those gaps - October 2006
  
• Recommend to the Natural Resource Management Ministerial Council specific actions to address indentified gaps - November 2006
  
• Review effectiveness of the Action Plan in generating specific actions that are addressing the challenges of climate change - April 2008 

Review

This Action Plan is to be reviewed annually for progress in implementation and reported to the Natural Resource Management Ministerial Council for appropriate action in the second meeting of the year. A comprehensive review is to be be conducted durings its third year of implementation for its effectiveness and follow-up action.