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New Delhi: US gives India a six-month waiver of sanctions to operate Iran's Chabahar Port
India announced on Thursday that the U.S. had granted it a six-month waiver of sanctions to operate Chabahar's Iranian port. This will help New Delhi to boost its trade with Afghanistan and Central Asian nations, bypassing Pakistan. Last year, India signed a contract for 10 years with Iran. Develop and operate a port This month, the United States has increased its cooperation with Taliban-run Afghanistan. Reopening of its Embassy Kabul was closed in 2021 after the Islamist group took power following the withdrawal by the U.S. led NATO forces. Initially, the port was planned to be built on Iran's Gulf of Oman coast in the southeast. It would have a rail connection to Afghanistan. The goal was to build the economy of the landlocked nation through trade while reducing Kabul’s dependency on the Pakistani Port of Karachi. The waiver came after U.S. president Donald Trump said this week that he hoped to reach an agreement with the European Union. Trade deal with India - a sign of a warming in relations, which had deteriorated to their worst point in decades when he doubled the tariffs on Indian imported goods to 50% in punishment for Indian purchases Russian oil. Indian refiners now cut Russian oil imports Following Washington's sanctions imposed last week on Moscow's two largest crude oil exporters, Rosneft & Lukoil. Randhir Jaiswal, spokesperson for the Indian Foreign Ministry, said at a weekly press briefing that the port had been granted an exemption. He said that India and the Trump administration were continuing to discuss a bilateral deal. Washington had last week revoked sanctions waivers for Chabahar that were initially granted in 2018 as part of an effort to "maximize pressure" on Iran in order to counter what they called destabilising activities by the Islamic Republic in support of their nuclear and missile programmes. Unnamed Indian officials confirmed that the waiver of U.S. sanctions had come into effect on Wednesday. The U.S. Embassy in New Delhi didn't immediately respond to an inquiry for comment. Reporting by Shivam Patel, editing by Sudipto Ganuly and Mark Heinrich
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Russell: Imports of thermal coal from Asia are easing as prices increase after a 4-year low.
The prices of the main grades in seaborne thermal coal have been recovering modestly from their four-year lows. However, the gains come at the expense of volume as major importers reduce demand. According to analysts DBX Commodities, China, India and South Korea are on course for lower coal arrivals in September than October. The prices of the main Australian and Indonesian grades have been rising since early June after a downward trend that began in October 2023. The lower prices in July and August did increase import demand, but the higher prices are now causing buyers to pull back. DBX estimates that China imported 28.17 millions metric tons of seaborne thermal coke in October. This is down from 28.43 in September, and below the 33.53 in October last year. India, the second largest coal importer in the world, is expected to import 13,35 million tons in October. This is down from the 13.76 million tons imported in September, and also below the 13.82 millions from last October. DBX predicts that Japan, ranked third in the world, will import 9.52 millions tons in October. This is down from 10.44 in September and 9.94 in 2024. South Korea is the fourth largest coal importer in the world. It expects to receive 6.45 million tonnes of coal in October. This is down from 8.19 millions in September but an increase from 5.92 million in October last year. It is not surprising that October's lower imports reflect the increased prices from July. PRICE RECOVERY Argus, a commodity reporting agency, assessed the price of Australian coal that has an energy content of 5500 kilocalories/kg (kcal/kg), a popular grade in China and India. The price was $76.34 per ton for the week ending October 20. The price has increased by 16% from the low of $65.72 set in early June, and now stands at its highest level since the week ending March 3. Argus assessed Indonesian coal, with an energy content 4,200 kcal/kg at $45.26 a tonne in the seven-day period ending October 20. This is a 12% increase from its low of $40.45 a tonne in the week of July 4. GlobalCOAL assessed the price for 6,000 kcal/kg of fuel at Newcastle Port at $105.34 per ton on Tuesday, an increase from $103.74 last week. Newcastle's price, however, has remained largely unchanged in recent weeks in a small range of around $104 per ton. The lower imports to Japan and South Korea is more likely due to a weaker demand during the shoulder season, between the peak of northern summer and winter. Recent trends in the import and price of Asian seaborne thermal coke show that the market is divided between buyers who are more sensitive to prices, such as China and India and those who are more seasonal-driven, such as Japan or South Korea. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
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Southern Co exceeds its quarterly profit forecasts as US demand for power soars
U.S. utility Southern Co surpassed Wall Street expectations for third-quarter profits on Thursday, thanks to a surge in demand for electricity by businesses. Kilowatt-hours sold in the commercial sector grew 2.3% from the previous year's third quarter, while in the industrial sector they increased 1.5%. The extreme heat of the summer months increased the use of air conditioners, refrigerators and data centers in factories and offices. Businesses rushing to adopt artificial-intelligence technology also drove demand for power-hungry servers. In three years' time, data centers may consume up to 12% of the nation's production, which is nearly triple its current share. Electric utilities made $1.92 billion during the third quarter of 2018, up from $1.62billion a year ago The CEO Chris Womack stated that the results highlighted "momentum surrounding electric demand growth opportunities". Southern Co is the second largest utility in the United States, with 9 million customers. It serves the states of Alabama Georgia Illinois Mississippi Tennessee and Virginia. The company's operating revenues increased 7.5% for the quarter to $7.82 Billion. According to LSEG, the Atlanta-based company reported an adjusted profit per share of $1.60 for the three months ending September 30. This was compared to analysts' expectations of $1.51, according LSEG data. Sumit Saha, Bengaluru. Devika Syamnath, editing.
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Hurricane Melissa slams Caribbean and accelerates towards Bermuda
Hurricane Melissa, which swept through the Caribbean on Thursday and was seen gaining speed as it moved across open water towards Bermuda, left a path of destruction and high winds from Jamaica to Cuba. As the storm passed, people in the Bahamas and Turks and Caicos were slammed with rain and dangerous winds. Bermudans, located around 600 miles (970km) northeast of the last position of the storm, prepared for the expected evening arrival. Authorities in the region are struggling to keep up with the devastation. They have confirmed 25 deaths, 10 of which were children, in Haiti and four in Jamaica. According to the U.S. National Hurricane Center at 1200 GMT, Melissa had winds close to 105 mph (165 kph) and was downgraded to a Category 2. WALKING BAREFOOT IN MUD The Florida-based forecaster predicted that it would continue to accelerate northeastward, and "pass northwest of Bermuda" on Thursday before likely weakening Friday. Bermuda will, among other things, close its causeway Thursday night as well as all schools and ferry services on Friday. This is "out of a sense of abundance of caution," said National Security Minister Michael Weeks in a press release. He said: "I urge all residents to be vigilant as we face another natural threat to the way of our lives." He added that people should stay off the roads and check on their neighbors until further notice. Melissa, the strongest hurricane to ever directly strike Jamaica, struck the island on Tuesday. It had sustained winds of over 185 mph - far exceeding the minimum strength required for a hurricane classified as Category 5. Alfred Hines, aged 77, described how he narrowly escaped the floodwaters in a Montego Bay neighbourhood. He waded through thick mud with his bare feet. He said on Wednesday, "I saw the water around my neck and then (after) 10 minutes, I saw it at my waist. I made my escape." I just want it to be over and for things to return to normal. Kingston, the capital city of Jamaica, was spared from the worst damages and its airport is set to reopen Thursday. The U.S. forecaster AccuWeather estimates that Melissa will cost up to $22 billion dollars in economic losses and damages. Rebuilding could take 10 years or longer. The front page of the Jamaica Observer on Thursday read "DEVASTATION". EVACUATIONS & FLOODS AccuWeather reported that Melissa was the Caribbean’s third most intense hurricane recorded, and its slowest moving, making it particularly destructive. As the storm approached the Bahamas, the government evacuated nearly 1,500 people in one of the largest evacuations it has ever conducted. Video showed Wednesday that high winds tore up palm trees at a resort in the vicinity of George Town and created waves. The hurricane did not hit Haiti directly, but it pounded the Caribbean nation with rain for days. Authorities reported that at least 25 people died, mostly due to flooding in Petit-Goave. This coastal town is 64 km west from the capital, where a river burst it's banks. Haiti's disaster agency reported that at least 12 people were missing and 10 children had died. More than 1,000 homes in Haiti have been submerged and more than 12,000 people have moved to emergency shelters. According to initial media reports, Cubans in at least 241 isolated communities were still without communication on Wednesday after the storm passed through Santiago province. This affected up to 140,000 people. As the storm approached, authorities in eastern Cuba evacuated approximately 735,000 residents. Scientists claim that hurricanes are becoming more intense and occurring with greater frequency due to the warming of ocean water caused by greenhouse gas emission. Many Caribbean leaders are calling on heavily polluting nations to offer reparations, either in the form or aid. Reporting by Sarah Morland, Brendan O'Boyle, Steven Aristil, Herbert Villarraga, Dave Sherwood, Zahra Burton, and Maria Alejandra Cardona from Mexico City; writing by Andrew Heavens and editing by Timothy Heritage.
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Vulcan Materials posts quarterly results above estimates on strong construction demand
Vulcan Materials, the U.S. construction materials giant, reported quarterly profits and revenues above Wall Street expectations on Thursday. This was fueled by a resilient demand for concrete, asphalt, and other building aggregates. The company said that favorable weather conditions in most of its markets and strong public construction activities helped it boost aggregate shipments 12% during the third quarter. As we look ahead to 2026 ,...we anticipate continued strength in the public construction sector and an improved private non-residential outlook. This combination should also benefit a healthy pricing environment, said CEO Tom Hill. LSEG data shows that the company expects its 2025 adjusted EBITDA range to be between $2,35 billion and $2,45 billion. This is compared to analysts' estimates of $2,43 billion. Vulcan announced a third-quarter adjusted net profit of $2.84 a share, which was above the analysts' estimate of $2.72. The country's largest producer in construction aggregates reported a gross profit of 612,1 million dollars, an increase of about 23% compared to a year ago. The company reported $2.29 billion revenue for the third quarter ending September 30, exceeding estimates of $2.27. Reporting by Abhinav Paramar in Bengaluru
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Exclusive -State Street removes US Fund arm from climate group
State Street, third largest asset manager in the world, announced that it will withdraw the majority of its operations from the main global climate alliance of the sector, despite its efforts to retain its members by relaxing the rules. State Street's spokesperson did not give a reason for its decision to withdraw its U.S. division from the Net Zero Asset Managers program, but said that the European units would continue to be part of the State Street group. State Street's spokesperson stated that they were "determined to redefine our membership to NZAM in order to support our clients who have net-zero investment goals and objectives". State Street Investment Management's decision, which involves $5.4 trillion of assets, coincides with other major U.S. funds evaluating their memberships in light of rule changes. This is in response to political pressure from the United States and in advance of climate talks in Brazil. NZAM HAS CHANGED THE STATEMENT OF ITS MEMBERSHIP CONDITIONS NZAM was launched five years ago with the aim of addressing financial risks associated with climate change, and providing a platform for collective actions. However, critics have accused it of possible antitrust violations. Vanguard, followed by BlackRock as the industry leader, left the group. This prompted NZAM's review of their activities which culminated on Wednesday with confirmation that membership rules will be relaxed. JPMorgan’s fund division also left the group back in March. NZAM no longer requires members to achieve net-zero emissions portfolio by the mid-century or to set interim goals. Members will be asked to do simpler things, such as providing information on climate risk to clients. State Street refused to discuss the new rules or specify what percentage of assets would be covered by NZAM membership. Other firms that assess membership State Street stated that its EU and UK subsidiaries remain "subjected to our fiduciary duty to our clients", and added that its business "remains at all times independent in investment decisions". The language could be used to counter claims made in Texas, where the Republican Attorney General of Texas has sued State Street BlackRock and Vanguard for their climate records and cited NZAM membership as proof that they have engaged in improper collective behavior. A judge in August allowed the majority of claims to proceed. Maria Elena Drew said that T. Rowe Price, the Global Head of Sustainability at T. Rowe Price, would be reviewing whether it remained a signatory after a period of three months evaluation by NZAM. She said: "Whether or not we do, we are committed to making investment decisions and stewardship with an understanding all material risks, opportunities, and those related to climate and environment," Wellington Management sent an email to say that they were currently reviewing the NZAM commitment. We maintain that we believe material ESG factors, such as climate considerations can impact the long-term value and profitability of assets in which we invest. It is therefore in the best interests of our clients for us to analyse them. (Editing by Kirsten Doovan)
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Quanta raises its annual revenue forecast due to strong US demand
Quanta Services beat expectations for the third quarter results and raised its revenue forecast on Thursday. Growing power needs in the U.S. drove the energy contractor’s electric and renewables businesses. The company, which provides infrastructure services to the utility, renewable energy and technology industries, as well as communications, pipelines and energy, benefits from the surge in power demand for data centers, as well as from aging power grids and electrification, as it also benefits from onshoring manufacturing in America. It raised its revenue forecast from $27.4 to $27.9 Billion to between $27.8 and $28.2 Billion, citing an acceleration in demand for the larger electric segment. According to LSEG, the Houston-based company reported a quarterly adjusted profit per share of $3.33, compared to analysts' estimates of $3.26, LSEG data shows. The revenue for the third quarter ended in September rose 17.5%, to $7.63billion, as compared to estimates of $7.39billion. Quanta's adjusted profit forecast was reduced to between $10.33 to $10.83 per common share from its previous view of $10.28 - $10.88, while maintaining the midpoint at $10.58, which is in line with its estimates. (Reporting from Aatreyee dasgupta, Bengaluru. Editing by Sahal Muhammad)
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India claims that companies are licensed to import rare-earth magnets from China
India's Foreign Ministry announced on Thursday that Indian companies had received licenses to import rare earth magnets. This signals a relaxation of Beijing's export controls. China has become more powerful in its trade wars with the U.S. because of rare earths. Rare earths are a grouping of 17 elements which play an important role in planes, cars and weapons. Randhir Jaiswal, spokesperson for the Indian foreign ministry, announced the licensing decision at a press briefing. He did not give details about the companies who received approval or the number of licenses granted. China is the only country that has a near-absolute control over the technology used to convert rare earth minerals into magnets. In an effort to strengthen its geopolitical power, Beijing has restricted the exports of these materials, including to India. China had a busy day earlier in the morning Delay is acceptable The introduction of the latest round of export controls on rare earths is part of a deal reached between U.S. president Donald Trump and Chinese leader Xi Jinping. However, previous restrictions are still in place. Beijing has significantly increased its Export controls on rare earths This month, the list of controls was expanded to include five elements new and dozens of technologies for refining. These rules require that foreign producers who use Chinese materials comply with China's system of export control. China announced new export restrictions on industrial diamonds and electric battery equipment on October 9. Battery-related restrictions caused a global rush of customers. Reliance Industries in India, for example, has been urged to speed up shipments by the deadline of early November. China's export restrictions on rare earths has highlighted the dangers of being dependent on a single supplier. The April curbs caused shortages which threatened to disrupt the global auto production. (Reporting and editing by Sudipto Ganuly and Ed Osmond; reporting by Shivam Patel, Surbhi misra)
SPECIAL RELEASE-Less Rain, More Wheat: How Australian Farmers Fought Climate Doom
Curtis Liebeck, in a newly planted wheat field scoops up some sand and pours it through his fingers. The light brown dirt is a far cry from the clumpy, dark earth of more rainy nations.
The Liebeck farm in Western Australia is 300 km (186 miles), away from Perth. It receives half as much rain as the wheatbelts in central Kansas and northern France. The state's growing-season rainfall has decreased by one-fifth in the last three decades.
It should be harder to farm. Liebeck's yield of wheat has doubled in the last two years. Liebeck, 32 is part of the revolution in farm management which has allowed Australia to produce 15 million metric tonnes more wheat per year than it did in the 1980s despite the hotter and drier climate. This is the equivalent of around 7% of the wheat that is shipped around the world each year, and it's more than Britain's annual harvest.
According to U.S. Department of Agriculture statistics, Australia's wheat-farming productivity has surpassed that of the United States, Canada, and Europe. It continues to grow, while other developed markets are slowing or reversing.
Many growers and scientists say that the ability of Australia's wheat farmers to produce more for a growing world population is largely due to a series of innovations made since the 1980s. These innovations changed how farmers planted seeds, how they planted them, and the way they cultivated the soil. The Australian system of applied researchers and the relentless search for efficiency by farmers who receive minimal subsidies have accelerated these advances.
This account of the way Australia's wheat farmers defied climate odds is based upon interviews with over 20 farmers and scientists, a review and analysis of more than 12 academic papers, and an examination and analysis of decades worth of farm data and weather. Visited four farms, two government research facilities and a seed breeding company.
Australia's fields aren’t the most productive, nor is it the largest wheat producer. It is still important, but for two different reasons. The modest population of the country means that its extra production is used to feed other countries. It is also the driest continent, and climate instability could have made some farming unprofitable. It is one of the top exporters of wheat in the world.
Five scientists said that Australia's success in dry-crop land research has inspired other countries, such as the U.S., Canada and Australia. Although some Australian practices have been widely replicated, like soil reengineering, others, like the re-engineering of soil, are not as widespread, because the ground conditions may be less suitable. The country's focus in closing the gap between maximum theoretical crop yields, and actual results has spurred worldwide efforts to improve productivity during the last 15 years.
Ken, his 66 year old father, was amazed that Liebeck's farm produced 1 ton per hectare despite the lowest rainfall it had seen in half a decade.
Liebeck said: "I asked my dad what life would have been in his time and he replied, 'Absolute Disaster'."
In such conditions, the elder Liebeck said he would only have produced 400 kg per hectare around the turn-of-the millennium.
BEACH SAND
Australia's farming has always been precarious. Weather conditions can change from drought to heat, fire, and flooding. The soil lacks nutrients.
Official weather data shows that Western Australia has experienced the largest decline in rainfall average of Australia's cropping regions over the last three decades. The rainfall patterns have changed, with more rain falling in the summer when fields are fallow and less in the winter when crops are growing.
It also has some the most poor soils.
Imagine beach sand," Tress said Walmsley CEO of Perth based seed breeding company InterGrain. The company develops wheat strains that are better suited to Australian conditions. These soils are depleted of nutrients, toxic and resistant to water. At the end of every season, the crop is dehydrated.
The thirst for water was the catalyst for many changes in Australian agriculture. Scientists Reg French and Jeff Schultz calculated in 1984 that, under ideal conditions, Australia's growers should be able, after evaporation of water, to produce 20 kilograms per hectare of wheat for every millimeter rain received during the growing season from April to October -- four times more than they were currently achieving.
John Kirkegaard is a plant scientist with the Commonwealth Scientific and Industrial Research Organisation, the national science agency of the Australian Government. The researchers and growers focused on closing the yield gap and began benchmarking the water-use efficiency in order to extract more crop from each drop.
The key was to switch from tilling agriculture to no-till. The constant plowing of soil to control weeds damaged the soil and exposed it for evaporation. This reduced the amount water that could be stored by crops. The dust bowls of the 1930s in America gave rise to no-till techniques, which use herbicides rather than plowing. According to the Grains Development and Research Corp., Australian adoption increased from 5% to 80% in the early 1980s. Western Australia has a higher adoption rate than the rest of Australia.
Over time, the compacting of soils by farm equipment driving over tilled fields hampered water infiltration and root development. Farmers began to restructure the soils by spreading lime on them to reduce acidity and then using heavy machinery.
Liebeck shows off his deep ripper. It is a huge, orange steel frame with ten metal claws which can rip through soil up to 84 cm deep. The machine is so heavy that even his tractor with 540 horsepower can only pull it at a walking pace.
The spader is a rotating cylinder that has protruding shovels heads. It breaks up the compacted earth layers. No-till farming is a tillage method that does not use plowing or ripping to prepare the soil for planting. Spading and ripping are bolder, but less frequent interventions that often go deeper. The soil is restructured and the constituents are changed. Unproductive layers become a more absorbent mixture that holds water and nutrients better.
Liebeck stated that dragging the ripper across a field could increase his wheat yield between 36% to 50%. The machine cost A$220,000 (roughly $143,396). He said that the machine was "a bit expensive for a glorified hoe," but "digs up profits."
Farmers and researchers say that rippers and spaders may be used in other countries, but not as extensively as they are in Australia. In areas that are wetter, such as Europe and the UK, rippers can be difficult to pull through heavy soils.
Two-thirds of Western Australia's roughly 4,000 growers had deep-ripped, spaded or inverted their soil by 2023, state government-commissioned research found, up from 52% in 2019.
Kirkegaard said that efforts to improve Australian soil echo those in Europe and North America, where land is drained and then reclaimed from the sea. He said that the strategies used in Australia to turn poor farmland into productive land were probably unique.
Other innovations helped farmers curb disease. They introduced new crop rotating, including canola (also known as rapeseed), an oil seed, and lupins (a legume used in animal feed). Canola area in Australia has risen from 50,000 ha in 1989 to 3.5 mil hectares now, according to data provided by the agriculture ministry.
Kirkegaard explained that farmers began sowing up to four weeks early, and sometimes on dry soil, in order for plants to flower at the best time. Kirkegaard said that sowing began around mid-April. This gives wheat several months of growth during the winter and spring in the south, when there is still water available.
TAKE-OFF
Productivity soared. In the early 1980s, Western Australian farmers grew 3.3 kilograms of wheat per hectare, which is a third less than the national average. This was a third lower than the national average. In 2024 they were only one-fifth short of the national average of 11.5 kg.
These improvements have helped Australia double its exports of wheat in the past four decades, to over 20 million tonnes a year. The majority of the wheat is exported to Southeast Asia and Middle East where population growth has been rapid.
The rising production has held prices in check. In the 1980s, a bushel of Chicago Board of Trade wheat, which is the benchmark for the world, cost an average of $3.50. Since then, the world population has increased by 3.5 billion. However, a Chicago bushel now costs $5.50. This is a far lower increase than inflation.
Dennis Voznesenski is an agricultural analyst with Commonwealth Bank of Australia. He said that a serious threat to the Australian wheat supply could cause prices to increase significantly. He noted that Australia accounts for the same proportion of global trade as Ukraine before Russia's invasion. Wheat prices increased by 60% after the war caused disruptions in production and exports.
Farmers and researchers agree that there is still room to improve productivity.
Kirkegaard said that advances in seed breeding and farming management should increase maximum theoretical yields from 25 kg to 30 kg, and possibly even more.
According to Greg Rebetzke of the CSIRO, researchers and breeders have been testing wheat varieties whose protective sheaths - called coleoptiles – can be pushed up to a depth of soil between 10 and 12 centimeters, rather than 2 to 4 centimeters, allowing the seeds to penetrate the subsoil. According to Rebetzke, field trials have shown that long coleoptiles can increase yields up to 20%. Several varieties will be commercially available in Australia within the next five years.
Rebetzke explained that people are interested in the technologies developed by Rebetzke and want to know if they will be useful for their country. He cited Canada, India and Bangladesh as examples of countries with a high level of interest. "The dry climate we are experiencing is the future for some countries which are currently wetter."
Researchers in Western Australia have been experimenting with soil re-engineering, including the addition of clay, compost, and gypsum, to increase the earth’s ability to retain water and produce grain, according to Gaus Azam.
Ty Fulwood is a grower from Grass Valley in the east of Perth who showed what was achieved. He said that they were trying to make the perfect soil by adding clay to the top 10 centimeters of soil.
Fulwood admitted that the system is expensive but, if it can deliver on its promise of doubling yields, researchers and farmers will invest money in it.
There are limits to adaptation. Wheat does not thrive in conditions of high temperatures, as they accelerate the evaporation process and growth phase. The rain is decreasing and becoming less predictable.
In a paper published in 2017, plant scientist Zvi Hochman found that hotter and drier conditions reduced Australia's maximum wheat yield achievable by 27% from 1990 to 2015.
Hochman said that if we continue to work hard, we could achieve 80% of the potential yields. But going beyond this in a climate with a high degree of variability is unlikely to be economically viable.
There are also downsides. Scientific studies have shown that herbicides are harmful to the environment and can encourage resistant weeds. Australian farmers use more synthetic nitrogen fertilizer, even though it is less per hectare, than other countries, according to U.N. This is made using natural gas which contributes to carbon dioxide emissions. They are also affecting the Earth on a large scale.
Azam, a researcher, said: "We must always be careful because we disturb the natural soil." "But benefits far outweigh risks."
Other Nations
Australian yields are low compared to global standards due to challenging soil and weather conditions. USDA data shows that Australia's yield of 2.6 tons/hectare was lower than the U.S. (3 tons), China (5.9 tonnes), and Britain (7 tons) last year.
Since the 1980s, some developing nations have improved wheat yields faster than Australia, including China, India and South Korea. According to the USDA however, productivity growth has been slower in many advanced economies. This is due to soil degradation, restrictions on pesticides and fertilizers, and other factors.
Scientists and farmers credit Australia's low-subsidy system and its applied research system for setting it apart.
The Grains Research and development Corp is a statutory company established by parliament in 1990 to drive innovation within the industry. The government adds funding to the 1% that farmers give. The committees are made up of farmers, scientists, and agribusiness executives. Kirkegaard said that the research agenda doesn't revolve around farmers looking for quick fixes or scientists working on blue-sky projects.
This model is not replicated by many countries. Canada also has research groups that are funded by levy, but they're less centralised. Kirkegaard says that in Europe, researchers might never have spoken to a farmer. This can lead to studies that are not practical.
According to the OECD, Australia is among the countries with the lowest levels of agricultural subsidies. They are mainly used for biosecurity and research, not payments to farmers.
Liebeck, who lives in a farmhouse surrounded by eucalyptus trees, said that he's not intimidated by the increasingly hostile climate.
He said, "The challenge to grow more crops with less rain is thrilling." "I'm optimistic."
(source: Reuters)