12 December 2023. Michael Guerin, AgForce CEO.
As the end of the year relentlessly charges towards us…it gives us some precious moments to reflect on the challenges we have faced and those yet to come. And importantly - what we have learnt.
I’ve been pondering a theme that emerged in various forms this year - the concept of `nature repair’. And whether this is ultimately an opportunity - or a risk?
While there’s an inevitability about the growth in the value of our natural capital assets, there’s also a huge question over whether landholders win or lose from this progression. And whether they’re being dealt out of a precious opportunity.
Natural capital is the world's stock of natural assets - the rocks and soil beneath our feet, our streams, rivers, and oceans. Even the air that surrounds us.
And just like other forms of capital – whether that be financial, built (or physical), human, or social, it can produce economic outputs. And importantly - it also has an inherent value that appreciates with time if managed well.
We as primary producers have a stronger understanding of this than most. We are surrounded by these natural capital assets. A large percentage of it is inherently part of land that we own.
The Nature Repair Bill (what a horrible name) that has just passed the federal parliament, allows more of those natural capital assets to be monetised.
Prima Facie that provides us with a huge opportunity as landholders. Indeed in Australia we have a significant opportunity as producers borne partly from this legislation.
However, as with any new development - there are also many risks to manage and mitigate to ensure this value stays with the landholder.
Remember when water became a tradable asset – bankers and others along the supply chain quickly moved in and removed a lot of value from landholders and the local communities they support, before we even realised the value of what we had lost.
Let’s not be caught out again.
This time, let’s learn from history and make this an opportunity for our industry of food and fibre production, that our nation relies on for its prosperity.
AgcarE is the platform to do that - https://www.agcare.org.au/ - built by producers for producers, allowing us to truly reap what we sow. Now we just need to back it.