@article{Brennan:125545,
      recid = {125545},
      author = {Brennan, Lisa E. and Carberry, Peter S. and Hochman, Zvi},
      title = {Participative research on use of enhanced climate  variability information within agribusiness},
      address = {2001-01},
      number = {412-2016-25861},
      pages = {14},
      year = {2001},
      abstract = {Climate variability impacts significantly on the  agricultural service sector, affecting
the operations and  policies of agribusiness suppliers, banking and  insurance
companies. For example, bank lending policy and  agribusiness advice was likely
affected by recent El Niño  drought events. Through consultation with  agribusiness
suppliers, banks and insurance companies, it  is clear that their business operations and
policies could  benefit substantially from access to enhanced processes for  dealing
with climate variability.
The Agricultural  Production Systems Research Unit (APSRU) has demonstrated  that
farmers can utilise information derived from climate  forecasts and simulation models
in interpreting past  experience, planning and decision making. Variability  in
production also poses challenges for both input  suppliers and firms involved in the
value chain from farm  to consumer. Bank lending policies, crop insurance  policies,
product inventories and marketing advice may all  be positively influenced through
better dealing with  climate variability. For example, insurance policies based  on the
Agricultural Production Systems Simulator (APSIM)  model’s objective prediction of
yields may potentially  reduce claimant disputes and cut legal costs,  representing
significant savings to industry. Likewise,  better prediction of seasonal outlooks using
the APSIM  model, climate forecasts and fallow water reserves would  allow farmers
and lenders, such as produce suppliers and  banks, to negotiate individually-tailored
financial  packages. APSRU has recently extended risk management tools  developed
primarily for farmers to agribusiness to  determine whether better targeted and  costeffective
agribusiness services can be provided for the  benefit of agribusiness
organisations and Australian  farmers.
In this paper we report on our experiences and  learnings from our action research
approach, where APSRU  researchers are working alongside agribusiness staff  on
relevant case studies to identify the opportunities for  and to resolve constraints against
implementation of  improved agribusiness operations based on climate forecasts  and
use of the APSIM model. Our collaborators represent a  mix of agribusiness
organisations, including input  suppliers, marketers, banks and insurance companies.
The  case studies involving our collaborators are described and  discussed in the paper,
along with results of our initial  evaluation. The use of climate forecasts and APSIM
has  generated interest amongst the agribusiness sector. While  the costs of conducting
this research are high, we conclude  that there are good opportunities for these tools to
assist  agribusiness operations in providing better services to  Australian farmers.},
      url = {http://ageconsearch.umn.edu/record/125545},
      doi = {https://doi.org/10.22004/ag.econ.125545},
}