Over recent years, farming and agriculture have been under threat from the elements- most severely the drought, changing market demands and political decisions involving the impact of the Fair Trading Agreement (FTA) with the United States, ignoring initial government comment on how it would be "un-Australian to leave out sugar". There are subsequent initiatives from the Federal Government to supply income support and retraining through Centrelink schemes to sugar producers (in the short term), who are choosing to leave the industry or need support to continue on. Increasing costs in running an established business are also reducing the productivity of many property owners and causing discomfort amongst farmers, leaving them no choice but to seek alternatives or consider the retraining.

Appeals to Government for additional funding are being made to accommodate for the drought, yet additional ideas could be generated from the people in the industry themselves, taking the lead from existing partnerships currently formed overseas, especially in Canada. Farmers have been successfully cutting costs associated with land maintenance by forming "Machinery Co operatives".

In countries such as Moldova, political reform had forced farmers to reluctantly join together and pool resources for the benefit of themselves and their farming industry. They are now sharing equipment quite successfully.

Time and equipment- particularly machinery is expensive. Costs can be reduced by an estimated 33% through forming a co operative. Members benefit from collectively buying machinery. Members are also in a position to receive group training, share knowledge and information. They can also use some of their capital for other purposes including repairs and replacement costs. Giving one another a hand with manual labour may also be an attractive benefit of pooling time and energy. There may also be opportunities to reduce energy costs by linking with a 'wind or electric co-op' as is the case in Minnesota, USA.

With a greater call to accountability for environmental damage in Australia, it may be worthwhile for farmers, agriculturalists, politicians and community entrepreneurs to discuss alternatives to 'soften the blow' of industry changes and environmental conditions. Co-operatives may be an appropriate structure to provide financial, communal and information support to workers of the land.

For further information, contact Lee Wilson, Research Assistant, ACCORD: lee.wilson@uts.edu.au

References:

Alley, M (1997) Economics of Precision Farming: Payoff in the Future
www.ext.vt.edu

Butts, L (2000) Teaching Farmers "How to Share" in Moldova, International Career Employment Weekly
www.acdivoca.org

www.centrelink.gov.au

"Farming the Wind: Wind Power and Agriculture" Fact sheet
www.ucsusa.org

"Farmers warn on FTA impact" May 18, 2004
www.theage.com.au

Ford, C. and Cropp, R. (2002) An analysis of machinery cooperatives for dairy farms in the Upper Midwest
www.wisc.edu

Harris, A., Fulton, M. (2000c) Farm Machinery C-operatives: a Idea Worth Sharing, Centre for the Study of Co operatives, University of Saskatchewan

"Priced to go- Machinery sharing can be effective management tool to reduce and increase profitability" - April 2, 2004
www.royalbank.com

"Sugar aid announcement soon" April 22, 2004 - "The Land"

"The agriculture sector in the NIS is still under organised"
www.tacisinfo.ru