The most common innovative change for broadacre farmers was the introduction of new cropping equipment, new fertiliser practices and new soil management practices. Dairy farmers mainly introduced new irrigation and water management practices, new pasture types and new fodder conservation and use practices.

These new practices are documented in the report Farm innovation in the broadacre and dairy industries, 2006-07 to 2007-08, released today by ABARE Deputy Executive Director, Dr Terry Sheales.

The report looks at the proportion of broadacre and dairy farms adopting innovative changes across production, farm and natural resource management activities and analyses the characteristics of farms’ making changes.

“Adoption of more efficient technologies and management practices is considered a key driver in improving farm productivity and financial performance. It is important we have a clear understanding of these new management practices and technologies adopted by farmers, and the reasons why farmers adopt them,” said Dr Sheales.

“The report indicates factors, including farm business size and farmer education, can be significant in either directly or indirectly affecting the adoption of new methods and technologies. Financial performance appears to have influenced farmers’ decisions to adopt capital intensive innovations such as new cropping equipment and machinery. However, for many innovations, particularly management intensive changes, adoption is likely to be driven by a much wider range of factors including behavioural characteristics,” Dr Sheales said.

The report indicates that many innovative changes made on broadacre and dairy farms over the two years ending 2007-08 appear to be motivated by either an improved capability to implement changes as a consequence of improved income or reduced costs of implementation, or an imperative to act because of seasonal conditions and high farm input prices.