A Selection of Abridged Papers

Second International Conference on Women in Agriculture

Christine Ferrari
Centre for Rural Social Research, Charles Sturt University, NSW

Jennifer McKinnon
Centre for Rural Social Research, Charles Sturt University, NSW

PP: 269 - 284

Article Text

Edited extracts from some of the presentations delivered at the Second International Conference on Women in Agriculture by rural Australian women appear below and on the following pages. The Conference took place in Washington, DC between 28 June and 2 July 1998. We thank each author for allowing us to publish their papers in full or in part. The author's name appears under the title of each extract (eds).

Rural Women, Policy and the Process of Change in Australian Agriculture

by Helen Board, National Rural Women's Coordinator, Rural Women's Unit, Department of Primary Industries and Energy, Canberra

Rural women are increasingly seeking to influence the mainstream agricultural agenda in Australia by becoming involved in key policy and decision making processes. In my role as National Rural Women's Coordinator, my vision for the Australian agricultural sector is to see men and women actively participating in all aspects of agricultural decision making, from individual farms to national boards and committees. I will know this vision has been achieved when I see equal numbers of men and women speaking on behalf of agriculture in Australia.

The Rural Women's Unit

The Unit's work focuses on ensuring that agricultural women are included within key decision making forums. The Unit works closely with the national heads of three peak non government rural women's organisations and significant rural leaders to encourage them to create the cultural change necessary in their organisation to increase women's participation in decision making.

The Rural Women's Unit also has a role in promoting and improving a more inclusive client service to agricultural women as key customers and stakeholders within the sector. This includes initiating consultative mechanisms between the Department of Primary Industry and other government departments, their ministers and rural women.

Women in Australian agriculture

Historically, key Australian agricultural, government and industry structures have not recognised or actively sought the participation of women in decision making or leadership roles. This is despite the increased recognition of the impact of globalisation on the constitution of the work force, and despite the overall societal changes in Australia which have seen an increase in female participation in all aspects of the public and private domain.

Agricultural representation tended to advocate the issues of concern to men (who were visible) and not the issues of concern to women. Thus, as many women would argue, we were only getting one side of the story. Policy was not in balance.

Over the past 10 years this situation has changed, partly due to the activism of women themselves in organising key forums and rural women's gatherings. These activities, along with a number of other key initiatives and elements, provide a useful, strategic approach to increasing the influence of women in policy development and decision making. The key elements of our approach are:

• Involvement and influence
• Networks
• Finance/funding
• Opportunities
• Research
• Making a business case
• Establishing strategies
• Diversity.

Involvement and influence

Traditionally, Australian rural women have been involved in the Country Women's Association (CWA), which has pursued issues affecting Australian rural women and their families for over 50 years. The CWA is Australia's largest non government organisation with some 40 000 members. More recently established in the early 1990s, are two new non government organisations: Australian Women in Agriculture (AWiA) and the Foundation for Agricultural Women (FAAW).

A turning point in Australia was the First International Women in Agriculture Conference held in Melbourne in July 1994. This event had a significant influence on many agricultural women. For many, it was the start of a process of recognizing their own skills and identifying themselves as farmers, rather than farmers' wives.

In addition to a strong non government sector, it is essential to gain commitment from key stakeholders such as the Minister, and the Heads of Departments/CEOs of various state and national departments responsible for agricultural issues. The media too plays a significant role in either reinforcing or challenging stereotypes of who is on the land.

To achieve real and sustainable change, all parts of the sector need to embrace change. Building partnerships with industry, agripolitical organisations, the non government organisations and state agencies of agriculture, and research and development organisations is therefore vital.

Networks

From the solitary rural women's network established in Australia over a decade ago, there are now four state government agricultural agencies sponsoring rural women's networks. A number of these networks run skill development programs and play a role in influencing state government policies and programs on behalf of rural women. In addition, most states sponsor newsletters that have been important as vehicles for information sharing and a means of maintaining networks.

Conferences have played a vital role in establishing and maintaining networks within the rural women's movement. The international conference in Melbourne was followed by the National Rural Women's Forum in Canberra in 1995. This forum provided the chance to establish networks of a different kind in that it brought together senior government and non government rural women's representatives, and representatives of state departments of agriculture and agripolitical organisations.

Key issues raised at these meetings included recognition of the contribution of rural women; women's access to decision making processes and women's roles in managing change in the rural sector. The Forum also raised important social issues and began the process of developing understanding that social and human capital issues are vitally connected to the long term sustainability of the agricultural sector.

In the commonwealth arena, the Rural Women's Working Group was established as part of the Standing Committee on Agriculture and resource Management (SCARM). SCARM is a network of CEOs of the state and territory and commonwealth government agencies that have shared responsibility for agriculture and resource management. Getting a whole government interest in rural issues has the effect of integrating the issues within the core of agricultural agencies.

Finance / funding

Cultural change cannot happen without financial and human resources. State governments have for many years supported rural women's networks and rural women's conferences and gatherings. A key government initiative was to provide the funding to establish a Rural Women's Unit within the Department of Primary Industries and Energy. We are now seeing rural research and development organisations supporting the role of rural women (for example, the Dairy R&D Corporation and the Horticultural R&DC).

The large participation of Australian women at this conference in Washington is a result of increased financial support from government and industry agencies. Australia is now recognising the importance of investing in people, including women.

Evidence of the state and federal governments' growing strategic interest in the role of women in agriculture was the jointly funded SCARM National Forum on Women in Agriculture and Resource Management. The Forum marked the first time in which state and territory and national policy makers, industry and community representatives met together with rural women to develop joint strategies to recognise and support the role of women who are involved in agriculture and resource management.

Rural women attended the Forum as 'experts', a vast departure from their traditional role. They were asked by rural leaders to suggest ways in which key government and industry organisations could be more inclusive of women as stakeholders and participants in agricultural industries.

Opportunities

The role of the Rural Women's Unit is not to speak on behalf of, but to create opportunities for, rural women to speak with all their own voices directly to those with influence.

Research

Successful as these various conferences and initiatives have been in promoting the role of women in agriculture, establishing the contribution of rural women across all aspects of the sector has been far more difficult. As one of the outcomes of the First International Women in Agriculture Conference back in 1994 highlighted: 'Women in agriculture are poorly represented in agricultural statistics and measures of productivity. There is more information on the production of livestock than there is on women's contribution to agriculture'.

Fortunately this is no longer the case. A ground breaking research project entitled 'Missed opportunities - Harnessing the potential of women in agriculture' was launched in February 1998. The project is funded by the Rural Industries Research and Development Corporation and the Department of Primary Industries and Energy and it has two aims:

• To identify barriers to, and develop strategies for, women's increased participation in decision making
• To assess the economic contribution of rural women.

Barriers to women's participation in agriculture

According to the research, the greatest barriers to women's expanded leadership in the agriculture sector are:

• Organisational cultures - attitudes, communication channels
• Family unfriendly workplace - lack of flexibility
• Self-perceptions among women that their skills and abilities are not adequate to the task
• Absence of role models and mentors
• Lack of recognised experience - due to the failure of organisations to apply 'merit' principles, while valuing a narrow set of traits
• Lack of access to training.

Legal recognition of women's roles on farms was also an issue of concern, as was the frustration experienced by women involved in grower/producer organisations who found their knowledge and skills relegated to 'social issues committees'.

Along with the barriers experienced by women, the research showed for the first time the size of rural women's economic contribution to the rural sector.

Making a business case

Rural women have always stepped to the fore in times of crisis (for instance during manpower shortages in wartime and in recent years during the drought and downturns associated with low commodity prices). These were, however, always seen as 'exceptional circumstances'; short term crises that would soon be over, with everything returning to normal.

Rural women are now seeing that we are entering a time of challenge that is not going to be short term. We are entering a more complex age, with more complex markets and more complex consumer trends. A wider range of skills is needed, and they are skills which women have in abundance. Women have begun to recognise that they can no longer be 'silent partners' in the business of making agriculture competitive and responsive to change. We need their talents and perspectives to complement those of male partners in the sector.

The 'Missed opportunities' research contributed significant evidence to suggest that it makes good economic sense to include women in activities in the rural sector. Facts arising from the research include:

• Women comprise 32 per cent of the paid farm work force
• 77 000 women define themselves as farmers or farm partners
• Women contribute 28 per cent of total farm output, estimated in 1995-96 to be $14.5 billion. In addition, the market value of women's off farm work amounts to $1.1 billion in 1995 dollars. This is over 80 per cent of total off-farm wage income
• Real farm income, which includes paid and unpaid work, is estimated to be around $28 billion. Women's real contribution to real farm income is estimated at 48 per cent
• Women contribute $8 billion a year through unpaid household work
• Rural communities benefit to the tune of $.5 billion dollars annually through women's voluntary contributions.

These facts are at odds with the evidence that suggests that women represent less than 20 per cent of agricultural decision makers.

Establishing strategies

The 1997 National Forum on Women in Agriculture and Resource Management was a key point in the development of strategies for change, particularly in the government sector. These strategies, currently evolving from consultations with government agricultural agencies, rural industry groups and rural women's organisations, will be encapsulated in a National Plan for Women in Agriculture and Resource Management.

The aim of this plan is to help achieve profitable and innovative agricultural industries and sustainable resource management and rural communities by realising the full potential of women as participants and contributors, as leaders and decision makers, and as clients.

Key result areas

The key result areas of the plan will be:

• Structures and strategic support:
  • More women in decision making
  • Leadership and direction setting
  • Greater diversity
  • Increased involvement.
• Skills:
  • More skilled women
  • Better recognition and use of skills
  • Improved access to skills development.
• Design and delivery:
  • Improved consultation about services, programs and policies
  • Increased participation.
• Communication:
  • Improved communication
  • Positive media representations of women.
• Data and research:
  • Improved understanding of women as clients
  • An increased role for women in research.

The plan will include best practice examples of how organisations can support the work of rural women with compelling arguments as to why rural industries should be pro active in seeking the views and perspectives of rural women.

In response to the plan, the Department of Primary industry and Energy is exploring strategies which will improve the recognition of women as clients of, and participants in, DPIE portfolio programs, polices and services. This project will include the development of a hand book which will act as a guide to improve the department's service to women, and an implementation plan.

Diversity

The last, but by no means least important, of the elements of our strategic approach to increasing the influence of women in policy development and decision making is the issue of diversity. If we are to take advantage of the new opportunities and at the same time help Australia to advance and consolidate a place as a major economic player in the global market place, we will need to harness the skills and expertise of women at a leadership level.

The Industry Taskforce on Leadership and Management Skills led by David Karpin in 1995, found that the best business outcomes are to be achieved through the best use of human resources that are available. Karpin identified that more effective use of the skills and capacities of women and of Australia's multicultural work force is an essential part of this process. Achieving diversity among leaders has at least two significant advantages. Firstly, a diverse leadership reflects a diverse marketplace - not only in Australia but overseas. Secondly, a diverse leadership enables a greater range of abilities to be brought to the management table. Increasing diversity among leaders and decision makers, through initiatives such as those to be delivered within the National Plan, will inevitably lead to better decisions being made about issues that are of concern to all parts of the agricultural sector.

Conclusion

I have outlined the Rural Women's Unit's approach to the issues surrounding rural women, policy and the process of change in Australian agriculture. It is worthwhile saying that I have not presented these elements as the ingredients of a sure fire recipe for successfully improving the role of women in agriculture. As with most good recipes, success is as much due to the method of combining components, and dare I say, stirring vigorously and applying the right degree of heat, as it is about defining a list of specific ingredients. These ingredients have worked for the Rural Women's Unit. I can only suggest that for others, the proof of the pudding will be in the eating'.

To do to agriculture what Spring does with the cherry tree

by Cathy McGowan Vice President, Australian Women in Agriculture Project Officer: Women in Dairy

The title of my paper comes from a love poem by the Chilean poet, Pablo Neruda (1969). As a woman in agriculture, my work is a labour of love. I hope the benefits of the project, 'Women in Dairy' will emulate Spring's effect on the cherry tree thus making agriculture bloom beautifully, colourfully and fruitfully. Taking the metaphor further by associating it with the grace, potential and power of many women in leadership in agriculture - I imagine an orchard of cherry trees in Spring. The aim of the Women in Dairy project is to enhance the contributions of women to the Australian dairy industry, on the farm, within the family, in the community and within the industry.

Over the past three years, my colleague, Cheryl Phillips, and I, have been working with women and men in the dairy industry to develop this cooperative project. The project is national and involves all sectors of the industry - manufacturing, research, development, media, and government and industry organisations. The project is funded on a yearly basis through the major national corporation: The Dairy Research and Development Corporation (DRDC). In the first three years the project has run on an annual budget of approximately $50 000.

There are four major phases of the project: (1) The research phase; (2) the introductory phase; (3) leadership workshops; and (4) the establishment of a national women in dairying network by the year 2000.

1. The research phase

The initial research to investigate women's participation in the dairy industry began in order to understand any barriers to participation, successes and needs. We began with a small scale pilot project in order to test some of the assumptions behind the major project.

We wanted to find out, for example, if women were interested in gender specific projects such as all female workshops. We wanted to understand why women were not involved in decision making 'off the farm' because when the project began there were only five women, Australia wide, who had senior leadership positions within the dairy industry. We wanted to understand the barriers women encountered when they did seek to be part of the 'mainstream' decision making processes. We were also interested to learn what worked for women, what they considered to be elements of success and how we could duplicate these elements.

The research phase was completed when a report, 'Welcome aboard' was presented to the DRDC and approval was given to take the project nationally.

2. The introductory phase

The second phase involved Cheryl and myself introducing ourselves and the project to the various 'players'. With a greater understanding of women's participation in decision making, the barriers they faced and their needs and aspirations, the project was in an ideal position to work with women dairy farmers. We travelled around the country meeting women in their homes, in halls, and in the offices of dairy industry organisations. We invited the women to participate in the Women in Dairy project. Using the information from our research we offered workshops in improving skills in areas such as building personal confidence, problem solving, team work and understanding industry structure. These meetings were held in local venues, usually with onsite child care and between school bus times.

3. Leadership workshops

This third phase has been the development of three day, live-in workshops which are offered in partnership with dairy industry regional development planning boards. The workshops highlight a number of elements. The first day focuses on building confidence and understanding difference, as well as learning about personal operating styles and leadership. The second day explores organisational and community changes and the skills needed to participate as agents of change. The final day is devoted to participants designing and sharing the development of a personal project they will complete during the next six months.

A cocktail or dinner party is held each evening with guests including leaders in the dairy and agricultural industries. Participants learn and practice the skills of lobbying, articulating a position, and developing conversational and listening skills. That is, they combine business with enjoyment.

Approximately six months after the workshop, participants join a one day 'reporting back' session in which they share the outcomes of their project with each other, as well as the skills they have gained. At these sessions Cheryl and I gain the sense of cherry trees in Spring. Almost without exception, each participant learns 'to bloom where they are planted' and to discover and develop their own potential.

One of the most exciting outcomes from these projects is the growing confidence of women who say 'yes' to invitations to participate in leadership positions within their communities, on their own farms, and within the industry.

4. National network of women in dairy

This final phase of the project concerns the formation of a national Women in Dairy network. This network began at the inaugural Women in Dairy conference held in May 1998 in Nowra, NSW. Organised by the local women in dairy group and sponsored by the NSW Dairy Farmers' Association, the conference attracted delegates from each state and all areas of NSW.

Sixteen women from the dairy industry are present here at this Washington conference - the largest delegation from any Australian industry. Many delegates, sponsored by their industry bodies, will report and make recommendations when they return to Australia. These women will form the core of the national network of Women in dairy.

We anticipate that in 1999 a national women in dairying leadership workshop will take place with representatives from each state and section of the industry. Hopefully, in the year 2000, a national Women in Dairy conference will culminate in the formal development of the national network.

Factors contributing to the success of the project to date

Women are interested in participating in industry decision making and in leadership training opportunities.

We have strong industry support in that the chair and executive officer of the DRDC are personally committed to the project. This 'top down' support has given the project further credibility, and, where there has been flack (and there have been pockets of resistance along the lines of why women'?) these men have handled the situations with support and strength.

We have made important links with other leadership programs. The Women in Dairy project has provided a model for other gender specific industry programs. There are now specific programs for women in the grain, pig, fishing, cotton, wool and horticulture industries. However these are not the only leadership programs available. The Women in Dairy program fits within a continuum of leadership programs for women, men, and mixed groups, offering choice and diversity across industries, states and regions.

[Cathy closed her presentation by encouraging all at the Washington conference to] share the vision and work with us all to build an orchard of cherry trees in full blossom in Spring. As an international agricultural community that fully represents the diversity of all its members, we will then be truly able to 'feed the world'.

Being an entrepreneur in an agricultural community

by Barbara Scott Coonabarabran, NSW ABC Australian Woman of the Year (1996) Sydney Business Review Business Woman of the Year (1997)

Coonabarabran is a small country town situated in North West NSW, It has a population of 3000 and like many country towns suffers from decreasing population and services, few industries and declining employment opportunities. Agriculture is Coonabarabran's major economic base, though tourism is a developing industry.

When a series of personal circumstances occurred in 1993, our extended family combined resources and skills to make an entrepreneurial opportunity out of adversity. To me entrepreneurship is about turning negatives into positives, having a vision and a direction, and having the will to take action. An entrepreneur in any community requires adversity, opportunity, knowledge, experience, determination and vision.

Adversity

In 1993 Coonabarabran was in the third year of what turned out to be a six year drought. Sheep were being shot because of lack of feed, wool prices had crashed from $13.20 per kg to $3.20 per kg, and other commodity prices had slumped. Drastic changes in the employment and economic situation of myself and my husband John and the extended family led to the establishment of a wool value adding company - The Wool 'n' Yarn Company. We aimed to use our own wool clip to produce woollen junipers and doonas and to provide employment for our family. While it is difficult to be innovative and positive in the face of opposition, we decided to make the best of things.

Opportunity

Given the negative circumstances that beset our family we decided to make those negatives work for us. We assessed each of the negatives as opportunities:

• My father's death provided the opportunity to move my mother from South Australia to New South Wales
• My brother-in-law's retrenchment provided us with start up funds for the business
• My brother's retrenchment provided extra labour which meant that I now had the time to think creatively and laterally
• We had three years' wool clip in the shed (plenty of raw material)
• We now had time to develop a new venture.

Within six months we established a wool manufacturing business although we faced one hurdle after another - from the community, bureaucrats, individual 'knockers', etc. Consequently our business has in its plan a vision that involves education, growth and community development.

We continue to build on the assets we have, and to investigate the potential of natural, human and economic resources we, and our community, have before looking outside for new developments. We share the leadership (recognising that one leader does not necessarily have the skills to lead all the time). We recognise and capitalise on the skills of others that suit particular situations believing that good leadership nurtures the growth of others. We encourage the development of new leaders and provide opportunities for them to contribute and train new workers to suit the needs of our particular community, and, we plan for the future.

Knowledge

We need to recognise the team effort involved in our type of venture and recognise the equal worth of others. John and I gathered around us people who had the skills we needed, or skills that could be developed. We now work in Coonabarabran with knitters, sewers, weavers, pattern makers, cutters, retail shop staff and a wide assortment of other skilled people as we need them. We also utilise the skills of other factories outside our town - tie makers, spinners of woollen yarn, weavers and fabric printers.

It is not necessary that we own everything - we have formed alliances with other companies. We have provided training as well as opportunities for others to be entrepreneurial. We share the knowledge we have with each other for the benefit of the community.

Experience

We learned to acknowledge our mistakes and move on. Our venture benefits from drawing upon communal experience and knowledge rather than relying on a few individuals.

Determination

Entrepreneurial opportunities can be lost if one is bogged down in what used to be, in what should be, and not what COULD be. Be positive. Set goals and stick to them but take one step at a time.

In Coonabarabran we have started our own tidal wave which has a long way to go before its course is spent. The Wool 'n' Yarn Company now produces 34 product lines, including the wool scarves worn by our team at this conference. We provide employment for 34 people and sell our products nationally. We plan to offer our products internationally, having strong interest from the likes of Nike and one of the biggest wholesalers of fabric in the United States.

In my view entrepreneurship in an agricultural community involves innovative and lateral thinking which converts negatives into positives, utilises knowledge, skills and resources in the ongoing development of a vision.

Innovative child-care solutions for families in rural Australia

by Rowan O'Hagan Agricultural Scientist Corowa, NSW

Summary

This paper discusses the factors which make rural and remote child care different to metropolitan services. It will outline the characteristics of rural childcare provision in Australia at present and introduce some innovative programs and ideas now being trialled. The aim is to promote discussion about universally essential features of quality child-care in rural areas as well as discovering some of the specific attributes that may occur in other parts of the world.

Why rural child-care?

Factors such as distance, small numbers of children, higher costs, extended hours of employment, quality and regulatory issues combine with community attitudes to form challenges to the adequate provision of child-care in rural areas. Statistics tragically show that farm safety is a serious occupational health and safety issue for adults and children, and accessible, affordable and flexible child-care is considered essential in tackling this problem. Access to quality, culturally and developmentally-appropriate childcare is important for the social development of rural children, for whom interaction opportunities are limited. When discussing 'rural' child-care, the diversity of communities described as rural means that some closely settled areas and towns have some formal child-care available while others (generally termed remote) may be kilometres from a township or even from another farm. Larger provincial towns often have a similar level of child-care provision to capital cities.

The Australian scene

In Australia, the changing economic and social role of women in agriculture means that women participate more in both on-farm and off-farm work and training. Most farms can only support one family so extended family is often unavailable and permanent hired workers are no longer part of the labour structure on many farms. At the same time, there has been rapid growth in agricultural services due to the export orientation and the need for technical and management expertise of agricultural industries which is providing job opportunities in rural areas. Quality affordable child-care is therefore essential for rural families in whatever capacity they are working. The child-care needs of rural families are essentially the same as those of non-rural people but where and how the care is provided manifest important differences.

In Australia, child-care funding is primarily a Federal responsibility, while regulatory powers lie with State governments, and community-based programs are generally administered at local government level. Federal funding is in the form of a means-tested allowance and rebate system for families as well as operational funding for community-based child-care schemes. The formal child-care schemes are centre-based long day care (both private and community-based), family day care (carers based in their own home, administered by local councils), out-of-school hour's care (before and after school care predominantly for school aged children, generally community-based) and occasional care. Informal child-care includes home-based care, baby-sitting and nannying. Rural areas have been hard hit by recent cuts to operational funding to both community centre-based long day care and out of school hours care. Private long day care centres have proliferated in metropolitan areas but are less profitable in rural areas, so community long day care centres are often the only child-care option available. Out of school hours programs are beneficial to rural families whose work schedules can be irregular and unpredictable. They also benefit children who may arrive at school early because of bus timetables, particularly primary school children whose bus then goes on further, perhaps to another town, to deliver secondary students.

Child-care models

Rural families are continually looking for alternative models of child-care which better suit their needs and circumstances. Multipurpose centres and mobile child-care and preschool programs function well in many areas of Australia, including programs specifically for Aboriginal and Torres Strait Islander communities. The 'Farm-based Child Care Pilot Project', based in Albury-Wodonga (NSW-Victoria) is a pilot scheme to trial innovative and community-needs based child-care for farm families. The project has joint Federal and State funding. The pilot aims to develop models of farm-based and rural community child-care that will be adaptable for other rural areas of Australia.

The main philosophy of the pilot is to consult with the community about their child-care needs and how and where they would like the services to be delivered. The pilot is fully funded, so participants pay only a minimal fee. Local venues and staff are utilised via a centrally administered mobile service.

Another innovative scheme currently receiving Federal funding is being run by the Western Queensland Remote Family Care Service. The scheme utilises many of the administrative strategies of family day care, but places carers in the home for periods of two to three weeks according to need. In the successful delivery of child-care services in rural areas, several key principles are apparent. They are:

• The need for consultation within a community development framework so that community attitudes can be understood and broadened
• Adequate funding to ensure affordability and access for families
• Flexible yet secure guidelines governing service delivery so that quality and safety is not compromised
• Culturally and developmentally appropriate programs
• The utilisation of local expertise and staff to benefit and local esteem and economies

Land ownership and access to capital

by Lynn Johnston 'Riverslea', Bokal via Darkan Western Australia

Agriculture does not happen without people - the human capital - and, as a profitable business investment, it does not exist without money.

This paper addresses these two quite distinct requirements that land is useless without. I intend to show how these issues are interrelated and how priority placed on one is diminishing our access to the other.

I will also seek to demonstrate how these two issues have real implications for women in agriculture by virtue of the economic, legislative, social and cultural barriers to equity that they create.

Access to capital

Agriculture is rich in history, commitment and initiative but starved of capital - both human and financial. By confining the industry within the straitjacket of land ownership we deny it access to the vast raft of human potential available with every new generation. To attract this fresh personnel, we must be able to offer them a career path that takes them to the top job. If land ownership is a prerequisite, then we may have lost the potential of their untarnished, entrepreneurial and innovative minds forever.

When we refer to financial capital we can clearly see the liability of sinking it into land ownership. Profits that should be available to the business for increasing productivity, providing risk management opportunities, superannuation investments, developing new opportunities either on or off the farm, etc, are invested into the land by way of loan repayments, interest, etc. If your crop fails through drought, disease, pestilence or the price disappears in a cyclical economic downturn, your obligations to financing debt, etc, leave you little room to accommodate the adverse circumstance. Even if your land is fully paid for, the only means of accessing this capital for your emergency is by way of a loan against your equity.

I believe that the future viability of agriculture lies in separating ownership of land from us of the land so that we can free up the wealth from the fixed asset and invest in productivity.

Modern business practice across the board in most industries has long adjusted to separation of fixed asset from business operation (productivity) with very few businesses owning the land on which they operate.

Investment in agriculture should be an active investment, it is an active industry.

Agriculture (farming) is production, producing a product from source (seed) via a medium (soil). Just as a bank is not the building nor the land on which it sits but the active service industry of moving, investing, handling money, agriculture is not land ownership, a passive investment in capital growth, but an active production industry.

Accepting this concept requires real paradigm shift, but our industry must consider change as our terms of trade continue to decline.

The family business

In agriculture we emphasise the importance of family but the reality is, when we talk about the family farm we really mean the farm not the family, the land not the farming.

The paradigm shift that I ask you to consider will take you from the family farm to the family business. It is not that piece of dirt surrounding you that is important - it is the people and their skills, talents, ideas and commitment that will make your profit.

It is time that agriculture caught up with business best practice and sought outside capital to invest in the passive asset allowing the industry to set its capital free to pursue the various goals that your family business could achieve.

This will provide the industry with two streams of capital - on the one hand landowning capital and the other, the farmer, productivity capital.

The productivity capital must simply pay rent for the use of the medium - the land. This is a business cost with all of the concomitant advantages that business costs have - tax, etc.

Productivity capital is free and flexible. It can seize the moment, maximise new opportunities in new enterprises, new locations. Without the commitment to land purchase, profit can create liquid reserves that are available for:

• Risk management
  • Managing drought or any other disaster circumstance
  • Commodity prices fall - move the production emphasis from wool to grain, from broadacre to intensive farming.
• Superannuation
  • Allow the older generation to access the rewards earned over a lifetime to be used as and when they require - not when there may be a good year and the incumbent new generation can spare them some cash
  • Facilitate intergenerational transfer at an earlier age, so maximising the new generation's most productive years
  • Allow the older generation the opportunity to follow some other life goal. Women who gave up their life aims and objectives to follow their husbands; men who farmed out of duty to family expectancy. With capital they have the opportunity to follow those dreams before it is too late.
• New technology
  • The free capital is available for investment in new technology that can be used to increase productivity. Industry best practice is constantly changing as research and development forge ahead. It is wasted if we do not have the free capital to take advantage of our research dollars.

Personnel and business opportunities

Available capital is necessary to be able to attract new talent to executive positions and provide new members of the business, finance to maximise their special talents. This could lead to multifaceted businesses with ventures based on special expertise of various members of the family.

Should you look around the members of your family business, it is a small step to imagine the diversity that your business could attain if there was the capital available to back ventures related to their various talents and the advantages that would have for the business as a whole. Risk management, value adding, family harmony. It is often only the lack of capital that limits this being achieved now.

Joint ventures

Variations on this theme of separation of capital include the investment of outside capital into your farm in the form of joint ventures in various enterprises. Inviting investment into productivity on your land allows you to be the landholding or passive investor, while the joint venturer is the farmer or active investor. Joint venturing your grain, livestock, or horticultural enterprise brings the injection of new capital both human (labour and expertise) and financial.

Landcare

There are considerable advantages to landcare in the separation of ownership and productivity. In a mono capital investment the farmer/landowner has total responsibility for care and repair, while at the same time must continue the cycle of productivity, service debt and make capital repayments on land. With separation of these two elements, we now have two interested parties.

It is in the interests of both investments that the land be well cared for - the landowner to protect their investment and the farmer to improve and maintain their productivity. A synergy is possible.

Women

How do women in agriculture benefit from this shift in emphasis from land ownership to farming?

• Daughters as managers are not seen as such a threat to continuity in a business as they have been perceived in land ownership
• Women with ability and commitment can lease land to farm in their own right without the huge capital backing that purchase of land entails. With the appropriate business plan and evidence of their ability, they will have the opportunity to secure a lease. Granted, it will be harder for them than it would be for a male tenderer but there is nothing new in that, and they do have anti-discrimination laws on their side.
• As wealth would no longer be locked up in the land, but available in the business women cannot be so easily denied access to remuneration for work done nor equity in the business. Should a relationship fail, then equity is more readily accessible to provide a fair distribution of assets.
• By being a part of the business on a more equitable footing with their partners, women can have ownership of their industry - that critical sense of ownership that can provide them with the key to the boardroom.
• Women with interest other than the core activity of farming have access to capital to develop other business interests as a part of the family business.

Inevitably these ideas beg the question - just how do we make such change happen?

With courage, marketing and attention to the most critical objective of all - any such change, shift in our method must be WIN-WIN for both sides.

Conclusion

Agriculture is a living industry. To survive and prosper it must continue to evolve with the changing terms of trade and mores of society. We must forever seek industry best practice and not allow emotion and the past to inhibit the future. Agriculture produces primary industry and we must not make the serious mistake of believing that just because we produce a product, albeit critical in importance, that we have a right to sell and profit.

Primary products by definition will always be at the mercy of the market place which is governed by economic cycles. The inescapable trilogy of supply, demand and price has an essential synergy that we interfere with at our peril. It is how we deal with this phenomenon of the market that distinguishes the successful from the failure. The successful improve productivity and their ability to interpret markets. They adopt new enterprises, value add - but all of these need available capital.

As women in agriculture, moving forward to take our place in the vanguard of the industry, we are ideally placed through our lack of traditional baggage, our enviable objectivity, to look beyond the paradigms that bind our vital industry and grasp the advantages of such a seminal change. I invite women in agriculture to consider the proposition and how both your business and your industry can profit from it.

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