Climate-smart farming is at the front of agribusinesses' minds as overseas markets continue to demand sustainable solutions to farming.
NAB is partnering with Farming for the Future to help farmers make informed and strategic decisions about their natural capital investments.
Farming for the Future, initiated by philanthropic organisation the Macdoch Foundation, aims to deliver knowledge about the value of natural capital in agricultural businesses and a framework for quantifying and reporting on natural capital.
Natural capital can be defined as the stock of renewable and non-renewable natural resources that combine to yield a flow of benefits to people.
These can include plants, animals, air, water, soils or minerals.
Agricultural natural capital consists of all of the different types of natural resources on a farm - whether that be the health of the soil or biodiversity on the farm.
The Farming for the Future program has currently engaged more than 130 livestock farms from across the country, the biggest study of its kind ever undertaken.
They intended to work on the cropping and mixed cropping sector in the next phase of the program.
The program has been supported by the National Farmers' Federation and has received funding support from philanthropists, and industry bodies Meat & Livestock Australia and Australian Wool Innovation.
The partnership includes the participation of two NAB agribusiness customers in the research program, with each to receive a report that reviews the natural capital of their farm and how it influences performance of their business.
NAB executive regional and agribusiness executive Khan Horne said it was a unique opportunity to be a part of a "ground-breaking program" that will benefit the entire agricultural sector as farmers seek to be able to quantify and report on their environmental resources.
"Empowering farmers to help shape the future of natural capital accounting and reporting was a key reason for NAB's investment," Mr Horne said.
"Farmers recognise that natural assets underpin production and profitability and the importance of protecting those resources through improved land management practices."
Mr Horne said NAB has noticed that increasingly customers are moving towards more sustainable and climate-smart agriculture.
"The thirst for knowledge about how to run the farm better is also growing," he said.
"This is why we're partnering with Farming for the Future to conduct research aimed at developing knowledge and tools necessary for farmers to make informed and strategic decisions about their natural capital investments to drive greater productivity and profitability."
Farming for the Future program director Dr Sue Ogilvy said the research aimed to help producers, financiers and supply chains better understand the benefits of natural capital.
"Currently, information about returns on investment in natural capital is only available in studies of individual farm businesses or small-scale studies that are not representative of the industry more broadly," Dr Ogilvy said.
"Data and insights collected through this research will help establish an online platform that presents information about how different investments in natural capital may help farmers to achieve their business and personal ambitions, including information about upfront expenditure and timing of returns on investment.
"As Australia's largest agribusiness lender, NAB's partnership demonstrates the great potential value that Farming for the Future is working to deliver."
Jasmine Peart
Jasmine is a earnest listener and a passionate advocate for justice. She feels privileged to be trusted by farmers across Western Australia to tell their truth.
Jasmine is a earnest listener and a passionate advocate for justice. She feels privileged to be trusted by farmers across Western Australia to tell their truth.
