Speech to Sustainable Agriculture Summit, Toowoomba, Queensland

Introduction

I acknowledge the Giabal, Jarowair and Jagera peoples, who have cared for this land for many millennia, recognising its richness in providing sustenance.

On the back of that stewardship, this land continues to sustain millions of Australians, having been transformed into a thriving agricultural centre.

Industry leaders, it’s great to be with you today, here in the heartland of Queensland’s agricultural industry.

I want to thank my friend Minister Watt for convening this summit.

I also want to thank everyone here for making time for what will be a very important conversation about the future of agriculture in this country.

A conversation about the Agriculture and Land Plan we’re consulting on.

We said we would engage deeply with your community on this, and we’re here today doing just that.

We issued a consultation paper last year, and the quality of submissions to it was very high. I enjoyed reading them.

Some of the submissions confirmed my thinking about some of the challenges and opportunities in agricultural decarbonisation.

Others gave me plenty to think about, proposing good ideas that I hadn’t heard before and gave me food for thought in other ways.

So this consultation process, and I know Murray feels this way too, is very real.

But before I continue, I thought it would be useful to give you some background to the agriculture and land sector plan and where it fits in the broader picture.

Last year I announced we would develop six sector plans to help inform the 2035 emissions reduction target we will need to set in the next eight months.

This wasn’t my idea: it was the idea of the private sector.

Of people and firms interested in substantial investment in Australia’s decarbonisation efforts but who told me that government guidance on the likely pathway of decarbonisation would be very useful to help guide those investments.

So we are accordingly developing six sectoral decarbonisation plans.

So you aren’t alone!

Murray and I jointly hold the pen on the Agriculture and Land Sector Plan, with Tanya Plibersek also being collaborating with us on the “land” elements of the plan.

Ed Husic and I are developing the Industry and Built Environment plans. Catherine King and I are responsible for the Transport Sector Plan. Madeleine King and I the Resources Plan, while I hold the pen on the Energy and Electricity Plan.

Because I am involved in the writing of each of these plans, it’s my job to ensure they are consistent. That they support and re-enforce each other and that no one sector is asked to take too much or too little of the national decarbonisation plan.

The Climate Change Authority is advising the Government on potential decarbonisation pathways in each sector, but the Government will make the decisions about what is in and out of each plan.

We’re now in the middle of our biggest economic transformation since the Industrial Revolution.

The goal is net zero emissions. This goal is driven by climate and environmental imperatives. But designed correctly, our country and each sector can collect significant economic dividends and our economic security in a decarbonising world can be secured.

Economic security built on our renewable energy endowment and a Future Made In Australia, running through sectors across our nation.

From farm to furnace to factory.

This is an ambitious national agenda that will serve Australia for years to come.

Over the past two years, our government has put the key pillars in place.

Legislating a stronger 2030 target, along with net zero by 2050.

Creating a practical pathway for Australia’s heavy industry to reduce emissions.

Investing in a national Capacity Investment Scheme to support the build of new renewable generation and storage, to make sure we have enough power ready for households and industry a sold and increasingly unreliable coal power plants retire.

A scheme that’s supporting our 82% renewables by 2030 target.

And establishing a New Vehicle Efficiency Standard to give Australians greater choice to drive cleaner cars and save money at the bowser, legislated just last week.

And the six sectoral plans will build on this work.

These plans will form part of Australia’s new net zero by 2050 plan, which will further guide our actions to reduce emissions and achieve our net zero target.

Decarbonisation is a whole-of-economy effort requiring close collaboration and consultation between government and all sectors.

The plans work in tandem, contributing to the overall national task of net zero.

A partnership approach

Now we all know that agriculture and land will play a vital role in our decarbonisation. At 18% of emissions, agriculture is an important part of our journey to net zero.

As I said, I enjoyed reading all the submissions to our consultation paper. There is strong innovation already in this sector. 

Your submissions talked about solutions that we need to develop, commercialise and deploy.

Ideas from nitrogen inhibiting fertilisers, to asparagopsis, and other methane-reducing technologies for our cattle industry.

You can’t, and shouldn’t, have to make the shift alone. This year’s Federal Budget investment into the sector is a downpayment on that. Minister Watt will talk more about the budget.

What I want to do today is outline what I see as the three key principles that will have to underpin the Agriculture and Land Sector Plan.

The details and policies in the plan will be very much subject to consultation with you and farmers around the country.

But Murray and I think the following three principles are the absolutely vital underpinnings to the plan.

First, agricultural decarbonisation must be achieved with the sector, not imposed on the sector.

We’re serious about making collaboration work. We want to talk about policies, incentives, opportunities, and challenges. We won’t be imposing arbitrary sector wide targets or top-down approaches.

Second, action on climate change is necessary to ensure food security, and action on climate change won’t come at the expense of food security.

We know that unchecked climate change is a huge risk to farm productivity and food security.

But we are determined that the solutions and policies we propose will enhance food security, not damage it.

Third, the agricultural and land sector will not be taken for granted to do the heavy lifting to offset emissions from other sectors that carry on with business as usual.

We recognise the sector is an important source of carbon sequestration – and net land use is projected to be storing the equivalent of around 56 million tonnes of emissions a year by 2035. This provides economic opportunities for those farmers who are able and choose to pursue them, recognising that in-setting will be an important priority for farmers.

But we’re also very conscious of the land use issues with sequestration, including through carbon crediting, plus other demands for land use, such as feedstocks for low carbon fuels.

Carbon crediting

Let me know turn to carbon crediting.

Carbon crediting is necessarily a critical part of the net in net zero.

Australia’s carbon crediting scheme, the ACCU Scheme, will continue to support our emissions reduction efforts and support projects that create jobs and new sources of farm income.

We’re bolstering the integrity of the scheme, implementing the Chubb Review recommendations and in this year’s Budget, we allocated almost $50 million to continue the ACCU Scheme reforms.

This funding will strengthen the scheme’s administration and enable the new Carbon Abatement Integrity Committee to deliver on the Chubb Review vision.

That includes delivering on the Review recommendation to bring forward more innovative ways to reduce emissions through the ACCU Scheme.

So we’re implementing the new proponent-led method development process meaning methods will be developed by individuals and organisations outside of our government.

On Tuesday I called for the first proposals to support the development of new methods under this model.

Any interested individual, group or organisation can now submit a method proposal for consideration, so if you are interested, I encourage you to make a submission.

The Emissions Reduction Assurance Committee will assess all proposals and advise me on which proposals should be prioritised for method development.

Low carbon liquid fuels

Low-carbon liquid fuels will also be critical, as you’ve said in submissions to the sector plan.

That means fuels like renewable diesel for farm vehicles as well as heavy transport, and sustainable aviation fuels for air travel.

It is an important part of the decarbonisation agenda.

That’s why we’re putting more than $20 million towards developing certification for these cleaner fuels through the Guarantee of Origin Scheme. It will make it much easier for you to prove the emissions reduction credentials of using those fuels in your businesses.

We also know there’s more to be done on low carbon liquid fuels around commercialisation and incentivising production and demand.

Part of the work that needs to be done now is balancing different needs in this process – demand for feedstocks to produce these fuels impact on land use decisions. Food security, fuel security and carbon sequestration are all necessary. But we are going to need a high degree of collaboration and consultation to ensure we get the balance of these needs right.

Addressing cross-cutting issues

That’s why sector plans will consider any cross-cutting issues relevant to multiple sectors.

Individual plans will focus on the parts of the issue that are most applicable to that specific sector.

In many cases, these are issues that go beyond direct emissions reduction and include:

• considering a circular economy, sustainable finance, and the role of carbon markets
• supporting jobs, skills, science and research, and innovation
• growing social equity through the transition, including creating opportunities for First Nations and regional communities

We want our ag sector to remain strong domestically and globally. Moves in international markets to require reduced supply chain emissions means the work we do in other sectors, transport, energy, industry necessarily benefits you.

Developing our sectoral plans in tandem has been done intentionally to maximise the interplay and opportunities across the entire economy. 

Farmers and renewables

Renewable energy and agriculture is one area we’re seeing more cross-over.

Rural and remote communities are playing a key role in the transition of the electricity sector, which underpins global and domestic net-zero goals.

Obviously we’re seeing more media interest and discussion about how renewables interact with the food and fibre industries in the agriculture sector.

As we plan for both new generation projects and the transmission needed to carry more energy to more users, the impacts on landholders and communities are becoming better understood. There are legitimate issues to be considered.

That is why we are implementing the Dyer Review on community engagement, with $20.7 million in last week’s budget.

And it’s why we are working through the land use issues together – government, industry, communities, and as part of that work we’re seeing big opportunities as well.

We have heard from a broad cross section of people on this and recognise while the footprint of land required for new energy infrastructure is minimal – the NSW Agriculture Commissioner estimates it at 0.1 per cent of rural land to 2050 – impacts are real.

The Dyer report highlights this and we’re seeing more work now on how agriculture and energy can co-locate very successfully.

Some 97% of land under onshore wind farms is either grazed or cropped.

There are many cases of the benefits of co-locating solar farms with animal grazing.

I saw this first-hand when I opened the nation’s largest solar farm in Uralla. The New England solar project has a nameplate capacity of 720 MW, is expected to accommodate over 6,000 sheep.

The shade from panels helps with the impact of severe weather on their flock.

Multiple reports have concluded the shade from solar panels can increase water efficiency and create microclimates that extend growing seasons.

Renewable energy projects can also provide an additional stream drought resistant income for landholders.

I saw it first-hand in Uralla. I heard it first-hand in Grabben Gullen.

In Grabben Gullen I met cattle farmer Ken.

Ken used to oppose wind farms. In fact, he fought the proposed wind farm which now abuts his property.

Now, he told me, he thinks it’s the best thing that has ever happened to his farm.

He reached an agreement with the wind farm operator that he can run his cattle on their wind farm at no cost, in fact they pay him.

He’s expanded his herd and says his farm has never been more economically secure as a result of the neighbouring wind farm.

Talking more about the goals, benefits and requirements of the transition will be key, and we’re doing more to create the platforms and opportunities to share these learnings.

Conclusion

As a nation, we pride ourselves on our world-class agricultural industry, thanks to our hardworking farmers here in the Downs and across our wide continent.

The environment in which our farmers operate is rapidly changing as Australia and the world act to prevent the worst impacts of climate change.

As we grapple with this emergency by acting to reduce emissions, there’s huge economic opportunity to be grasped, especially by regional communities like yours.

We can play an important role as a supplier of lower-emissions food and fibre, meeting growing food demand while contributing to global emissions goals.

And our government is determined to work with you to realise it.

The Agriculture and Land Plan presents an opportunity to chart a way forward.

It will allow us to work together to achieve agricultural decarbonisation and unlock new opportunities for Aussie farming communities, well into the future.

I’m keen to hear your views about how we can work together to realise this future.

How we can overcome the challenges and realise the opportunities.

Australia’s future food security is in your hands.