4 Opportunities to Fix Australia's Agriculture Labour Crisis

4 Opportunities to Fix Australia's Agriculture Labour Crisis

4 Opportunities to Fix Australia's Agriculture Labour Crisis

 

Contribution to Economy

According to the National Farm Federation (NFF), the agriculture industry is a powerhouse of the Australian economy:
 
  • The gross value of Australian farm production was $60 billion (2016-17)
  • Contributes 3% to Australia’s total GDP
  • $44 billion earnings in farm exports (2016-17)
 

Employment

Agriculture is also a significant national employer. Agriculture, Forestry and Fishing employment has fallen over the past 15 years, but it continues to provide jobs for more than 300,000 workers. 82% of jobs are in regional Australia.
 
The average age for workers in this industry is 48 years. Average earnings are around $954 per week (before tax) for full-time employees. Most skills are learned on the job, but the Vocational Education and Training sector also contributes to this industry’s skills. A relatively old workforce, seasonal work provides opportunities for everyone. Majority of jobs involve routine manual duties which are more susceptible to automation.
 
The NFF 2018 Farm Workforce Survey reported the seriousness of the sector’s labour shortage.
 
Key findings of the survey:
 
  • A significant shortage of skilled, semi-skilled and unskilled workers during peak and non-peak seasons, resulting in significant productivity and financial losses
  • Workforce needs can increase by as much as 500% during peak periods
  • 66% of surveyed farmers ranked labour concerns as among the top three challenges they predict to face in the future
  • Most employers experienced difficulties recruiting suitable workers, with almost 75% of farmers paying above-average wages
  • Majority of farmers noted the shortage of labour, employment costs and red tape were their most important labour concerns
  • Dairy farmers; pig, beef and sheep producers and grain growers confirmed labour shortages was their primary concern in the coming years
 

Occupational Shortages

Similarly, the Department of Jobs and Small Business reported occupational shortages in agriculture and horticulture: 
 
 
 

Reasons for Shortages

The 2015 Queensland Agricultural Educators’ Conference noted some factors for the labour crisis:
 
  • Ageing workforce. The supply of agricultural workers is inadequate to replace the ageing workforce.
  • Competition from other industries (mining) offering higher compensation packages drives younger workers away from agriculture
  • Shortage of qualified and suitable agribusiness graduates – 50% decline in agricultural qualifications over the last decade
  • Investment requirements – approximately $400b for farm ownership transitions and a further $600b to improve productivity
 

Key Opportunities

There are 4 key opportunities already taking place to increase the attractiveness and recruitment into agriculture:
 

1.      Undergo Job Image Makeover

Agriculture and farming jobs are usually perceived as rough and uneducated. In a study by Youth Insight regarding developing student interest in the agriculture sector, many young people classified agriculture jobs as ‘dirty, hard manual labour, regional, remote, unprofitable, risky and boring’.
 
These perceptions of the industry do not reflect the actual innovation and advancement that a career in farming offers.
 
Youth Insight has some suggestions on how to attract young people to take agriculture careers: 
 
  • Job advertisements must emphasize that the skills, experience, education and business acumen needed to work within agriculture covers not just farm workers but across the whole value chain and rural communities: from production, transport and manufacturing to marketing, finance and sales
  • Explain the high demand for agriculture workers. There are currently 6 positions available for every graduate. Kelloggs, Unilever, Coopers Brewery, Arnotts and Bayer are just some major employers in the agriculture sector. These companies are employing graduates with business, law, math, science, engineering, chemistry, IT, communication and education degrees.
  •  Job advertisements may sometimes obscure the technical primary production competencies requirements of agriculture roles. Provide insights on how farming has evolved into a technology and innovation-driven field: drones, biotech, software and programming and automation
  • Present ideas that connect agriculture to current world’s problems: sustain current food supply, improve practices to limit environmental impacts, reduce reliance on animals and incidences on animal cruelty, use technology to improve quality of food and society
  • Mention the positives of regional living: easy access to the natural environment for recreation, less stressful lifestyle, a strong sense of community and lower cost of living
 

2. Offer Attractive Compensation Package

Compensation packages within agriculture are less compared to what’s offered within the mining sector. However, it should be presented as a total rewards package by including other perks like on-site family-friendly accommodation, meat, vehicle, seasonal bonus and other lifestyle benefits.
 
Also, while most of the agri-jobs are regionally based, the benefits of such regional living should be highlighted, particularly compared to the more high-stressed, fast-paced, overly priced metro living.
 
Engagement and partnership with the regional authorities to promote this would be beneficial.
 
Upgrading the reward system like share farming arrangements and investment opportunities can also benefit the attraction and retention of skilled workers in the agriculture sector.
 
 

3. Deliver Quality Agriculture Education and Training 

The Australian Government’s ‘Agricultural Competitiveness Green Paper’ published in 2014 proposed Policy Idea 14 - the strengthening of agriculture education. The policy emphasised on the importance of higher education and VET for existing farmers and new entrants to maintain Australia’s agricultural R&D expertise capacity.
 
Stakeholders raised the difficulties faced by young farmers in entering the industry, due to a lack of clarity about career options, growth possibilities and high capital costs. Some options for the government to consider:
  • Work with States and Territories to deliver customised training in agriculture in the future ensure that agriculture schools and colleges have the resources to continue to specialise in agriculture.
  • Build a young farmer mentoring and networking program — Grants could be provided for partnerships to give advice on new opportunities on business models and options to enter farming without having to purchase a farm.
  • Raise financial support for regional education – expand Assistance for Isolated Children (AIC) allowance to support families in a regional or remote community with children in education. Another suggestion is creating ‘living away from home’ allowance for tertiary students from remote areas studying agriculture
  • Create national agricultural tertiary centres of excellence—design a partnership approach to use multi-level providers (researchers, producers and marketers) to deliver a comprehensive package of the program tailored to industry needs.
 

4. Launch Agriculture Visa

An existing solution like Seasonal Workers Program scheme has met a lot of complaints from farmers and agriculture employers:
 
  • too rigid and structured to adapt to the unpredictable nature of harvest season
  • the tedious process of farmer’s reapplication from scratch every year
  • farmers were not guaranteed the same workers they previously had on their farms
  • strict rules around the dates workers can work
Even the current “Backpacker Visas” (Working Holiday) cannot seem to mitigate current agriculture employment issues.
 
To address growing demand from the farming sector, Federal Agriculture Minister David Littleproud proposed a special visa dedicated to the agriculture sector.
 
Details of the new agriculture visa:
 
  • Eliminate effort of going through several different types of visa by having a specific visa dedicated to farmers and those who desire to work on farms
  • Visa flexible enough to permit workers to return year-on-year for three to five years before renewal is needed. This would address the issue of having to train staff yearly – from scratch - during busy harvest season
  • Short-term multiple-entry visa without labour market testing or requirement of sponsorship allowing workers to move between employers within the agriculture sector
  • Employers who demonstrated sustainable workplace practices are eligible to access visa workers mechanism through Fair Farms certification scheme
 
Mr Littleproud noted that the agriculture visa could be made available soon.
 
The Department of Home Affairs says the Government is dedicated to supporting the skills needs of regional Australia and is always looking at ways to improve the migration system.  
 
 

Conclusion

The above four opportunities to attract workers are only examples of transformation and progression necessary to resolve agriculture labour crisis. Investing in agricultural workforce recruitment can benefit the Australian economy in plenty of ways: national productivity, innovation, global investment and competitiveness. Such a transformation requires a joint effort by the government, agricultural industry, communities, media, educational institutions and private enterprise.
 

 

(This article appeared on LinkedIn

Filed under
Blogs
Date published
Date modified
11/03/2019