1 DRAFT 2018-2030 AGRICULTURAL STRATEGY 2 Table of contents 1. Introduction 4 1.1 Background 4 1.2 Objective of the Agricultural Strategy 4 1.3 Planning period 4 1.4 Purpose of this document 4 2. Methodology 5 2.1 Desktop Review 5 2.2 Consultation 5 3. Regional Profile 7 3.1 Study Area 7 3.2 Planning context 14 3.3 Legislative Context 20 4. Land use planning 24 4.1 Situation analysis 24 4.2 Consultation findings 41 4.3 Constraints and opportunities 42 4.4 Summary and recommendations 42 5. Land capability and water availability 44 5.1 Situation analysis 44 5.2 Consultation findings 52 5.3 Constraints and opportunities 52 5.4 Summary and recommendations 6. Transport and supply chains 6.1 Situation analysis 6.2 Consultation findings 61 6.3 Constraints and opportunities 61 6.4 Summary and recommendations 61 7. Market and value-adding opportunities 63 7.1 Situation analysis 63 7.2 Consultation findings 63 7.3 Constraints and opportunities 64 7.4 Summary and recommendations 64 8. Skills and innovation 65 8.1 Situation analysis 65 8.2 Consultation findings 68 8.3 Constraints and opportunities 69 8.4 Summary and recommendations 69 9. Marketing and branding 70 9.1 Situation analysis 70 9.2 Consultation findings 70 9.3 Constraints and opportunities 70 9.4 Summary and recommendations 71 10. Central West Livestock Exchange 72 10.1 Situation analysis 72 10.2 Consultation findings 81 10.3 Constraints and opportunities 82 10.4 Summary and recommendations 82 11. Implementation 83 12. Policy alignment 86 13. Future vision for agriculture in Forbes Shire 87 14. References 88 3 Table index Figure index Table 1 Output of Agriculture, Forestry & Fishing sectors 9 Figure 1 Involvement in agriculture within the Forbes Shire 5 Table 2 Summary of recent FTAs 13 Figure 2 Primary production sector(s) involvement 5 Table 3 Plan context for the Forbes Agricultural Strategy 14 Figure 3 Forbes Shire 7 Table 4 Direction 1 Actions from the Central West Orana Plan 16 Figure 4 15 year annual rainfall against the long term average 8 Table 5 Direction 2 Actions from the Central West Orana Plan Figure 5 Forbes climatic conditions 8 2036 17 Figure 6 Top 10 industries contributing to output in Forbes, 2017 9 Table 6 Direction 3 Actions from the Central West Orana Plan Figure 7 Landuse in Forbes Shire 10 2036 20 Figure 8 Global agricultural and input commodity prices Table 7 Agricultural opportunities identified in the Central West (historical and forecast) 11 Orana Plan 2036 18 Figure 9 Megatrends impacting the global agri-food sector 12 Table 8 Forbes Delivery Program – Agribusiness Strategy 19 Figure 10 Historical Australian agricultural terms of trade and Table 9 Forbes LEP 2013 zone objectives 24 productivity 13 Table 10 Land use consent requirements 32 Figure 11 Australian broadacre farm population and average size 13 Table 11 Rural minimum lot size 32 Figure 12 Zoning and minimum lot size 28 Table 12 Building height restrictions by zone 33 Figure 13 Biophysical Strategic Agricultural Land in Forbes Shire 30 Table 13 Industrial land available 33 Figure 14 Available industrial land (Forbes Township) 36 Table 14 Land and soil capability 44 Figure 15 Available industrial land (Shire) 38 Table 15 Land and soil capability Forbes LGA 45 Figure 16 Land and Soil Capability 46 Table 16 Surface water entitlements in the Lachlan Regulated Figure 17 Jemalong Irrigation District area of operations 50 River system 40 Figure 18 Parkes Regional Transport Hub 53 Table 17 Cumulative allocation as a percentage of entitlement 48 Figure 19 NBN service within Forbes LGA 67 Table 18 Total water use in the Lachlan Regulated River system 48 Figure 20 Telstra 4G coverage 68 Table 19 Water use by crop type in the Forbes LGA, 2015/16 51 Figure 21 – Facility layout 72 Table 20 Travel times from the PNLH to major ports 54 Figure 22 Sheep throughput 72 Table 21 Freight Focus Working Group, Community Consultation Figure 23 Cattle throughput 73 findings, August 2018 55 Figure 24 Pig throughput 73 Table 22 Top occupations Forbes LGA, 2016 65 Figure 25 Average price received by selected livestock categories Table 23 Industry of employment and count of businesses by (Nov 2015 to Nov 2018) 73 industry Forbes LGA, 2016 65 Figure 26 Benchmark of costs and revenue per head 77 Table 24 Educational and non-school qualifications, 2011-2016 65 Figure 27 Staffing and borrowing costs as a percentage of total Table 25 CWLE Income Statement 74 costs 77 Table 26 Statement of Financial Position 75 Figure 28 Central West cattle selling methods 77 Table 27 2018/19 fees 76 Figure 29 Central West sheep and lambs selling method 78 Table 28 Planned capital improvements 2018/19 80 Figure 30 Benchmarking of saleyard facilities 79 Table29 CWLE draft marketing plan 81 4 Introduction The resulting strategy recommendations are summarised in an implementation plan presented in Section 11. A 1.1 Background summary of the alignment of these strategies with the The Forbes Shire Council Local Government Area (LGA) relevant local through to national policies and plans, is one of the most productive agricultural areas in NSW, including the 2018-28 Forbes Shire Council Community contributing around $97 million of Gross Regional Product Strategic Plan currently on public exhibition, is provided in (GRP) for the LGA and providing approximately 18% of the Section 12. local employment opportunities. This report: has been prepared by GHD for Forbes Shire Council GHD has been commissioned by Forbes Shire Council to and may only be used and relied on by Forbes Shire Council for undertake an Agricultural Strategy with an aim to drive the purpose agreed between GHD and the Forbes Shire Council continued growth across primary industries in the Forbes as set out in section 1 of this report. LGA and unlock new market and growth opportunities. The GHD otherwise disclaims responsibility to any person other than strategy is multi-faceted, with consideration of land-use Forbes Shire Council arising in connection with this report. GHD planning, land capability and water availability, supply chain also excludes implied warranties and conditions, to the extent and transport infrastructure, value-adding opportunities, legally permissible. skills and innovation, marketing and branding, and the Central West Livestock Exchange (CWLE). The services undertaken by GHD in connection with preparing this report were limited to those specifically detailed in the 1.2 Objective of the Agricultural Strategy report and are subject to the scope limitations set out in the The development of an Agricultural Strategy for the area has report. been identified as a key step by Council to aid growth across The opinions, conclusions and any recommendations in this all agricultural sectors in the LGA. report are based on conditions encountered and information The development of an Agricultural Strategy will: reviewed at the date of preparation of the report. GHD has no responsibility or obligation to update this report to account for 1. Support existing and identify and encourage new events or changes occurring subsequent to the date that the agricultural products and industries report was prepared. 2. Identify and explore new marketing and value adding The opinions, conclusions and any recommendations in this opportunities report are based on assumptions made by GHD described in this report. GHD disclaims liability arising from any of the 3. Review existing and identify required new/upgraded assumptions being incorrect. infrastructure GHD has prepared this report on the basis of information 4. Support interaction, cooperation and the building of provided by Forbes Shire Council and others who provided strong and dynamic partnerships. information to GHD (including Government authorities)], 1.3 Planning period which GHD has not independently verified or checked beyond the agreed scope of work. GHD does not accept liability in This Agricultural Strategy provides the framework for connection with such unverified information, including errors managing growth, change and development for agriculture and omissions in the report which were caused by errors or in the Forbes LGA to the year 2030. omissions in that information. 1.4 Purpose of this document This document provides the background information and analysis undertaken to develop the Agricultural Strategy. This included a situation analysis, community consultation and identification of constraints and opportunities against each of the key areas considered. This information and analysis is presented in Sections 2 to 10 of this document. 5 Methodology Production sectors The methodology used to develop the Forbes Shire Council 56% of respondents are primarily involved in “Grazing” Agricultural Strategy has involved a combination of desktop with another 47% indicating they are primarily involved in review of background information and community consultation. “Broadacre cropping”. “Horticulture” and “Cotton” both had a response of 11%, while 16% selected “Not applicable” and 1.5 Desktop Review 22% selected “Other”. Respondents that answered “other” The desktop review for the Agricultural Strategy involved specified “Honey”, “Dairy”, “Adviser” and “Deal with clients in research into key agricultural, environmental and industry various sectors”. focus areas for the region, and included review of relevant Figure 2 Primary production sector(s) involvement legislation, policy and planning documents, reports and statistics, as well as consideration of recent consultation undertaken for the 2018 Revised Community Strategic Plan, Service Level Review and Freight Focus working group. 1.6 Consultation 1.6.1 Online survey An online survey of 46 members involved in agriculture in the Forbes community was completed to gather information to better understand the constraints and opportunities for growth. The survey collected information 1.6.2 Targeted interviews regarding respondent’s occupation and the production To supplement the responses provided in the online survey, sector for which they are primarily involved in.