Prolonged drought, along with a growing population and projected global warming effects are driving a focus on more efficient management of water in Australia. As the major user of water, the agriculture sector is currently considering alternative sources such as recycled water.

Recycled water provides an opportunity for the pasture and fodder crop industries by supplying a secure and reliable water source with high levels of nitrogen and phosphorus contributing to plant growth. This manual is designed predominantly to assist landholders in managing recycled water for irrigation. It will also be of use to industry groups, water authorities and others involved in irrigation and recycled water schemes.

Information is provided on how recycled water can be safely used including; how a scheme can be started, what needs to be considered when using recycled water, some case studies describing some of the key issues and information sources.

GHD was contracted to undertake works by the National Program for Sustainable Irrigation through the grant, 2nd Round 2008 National Program for Sustainable Irrigation, Western Australia and the South West Development Commission to undertake investigations into surface and groundwater interactions in the Wilyabrup and WarrenPemberton agricultural regions. The primary objective of this work was to further understand the nature of the surface and groundwater interactions in the Wilyabrup region, Margaret River and Smith Brook catchment, Manjimup. These catchments were selected as they are both reliant on reliable water supplies to sustain established agricultural and viticultural systems.

Based on a review of common methods used for investigating surface and groundwater interactions, GHD adopted a holistic approach to this investigation and used a combination of low cost methods to understand surface and groundwater interactions in two catchments in the south west of Western Australia. The approach considered a range of factors that have the potential to influence surface and groundwater interactions and provide a reasonable interpretation of the processes occurring at both a catchment and subcatchment scale.

Baseflow contribution to the Wilyabrup Brook was known to be minor based on field observations and communications with DoW staff. This was confirmed through a combined geomorphic and baseflow separation analysis by GHD which indicated that the Wilyabrup Brook is a surface water and interflow dominated system with minor baseflow influence driven largely by the prominence of duplex soils. Similarly, surface and groundwater interactions in the Smith Brook catchment were determined to be limited to the stream reach only. It was concluded the Smith Brook catchment is largely a surface and interflow dependent system, with minor baseflow contributions.

There appears to be good connectivity of surface water flows and some groundwater flows (interflow) to both the Wilyabrup and Smith Brook and that these connections should be managed to ensure their sustainability. Areas recharging both superficial and deep groundwater should also be carefully managed to ensure their connectivity to these systems is maintained. Areas most likely to recharge to these water systems are shallow and deep sands, located in the upper catchment reaches.

Under The Rights in Water and Irrigation Act, 1914, both a surface and groundwater licence is required for some dams that receive inputs from surface water and underground water. In the case of both the Wilyabrup and Smith Brook catchments, baseflow contributions to streamflow are low. It is therefore fair to assume that underground water intercepted by some dams is likely to be interflow, not baseflow.

Given the strong linkages between surface water and interflow, it a reasonable argument that surface water and groundwater be combined as one surface water license. There is also a strong argument to reconsider the definitions of surface water and underground water within the current act and whether these terms are applicable to all areas of the state, or whether specific acts are required regionally. In the case of the south west of Western Australia, the strong linkages between surface and groundwater make licensing difficult and in this case, combining these two water licenses into one may solve many water licensing issues. At the very least, it would streamline and simplify the licensing process and make interpretations by the public easier.

Various cotton industry programs over recent years have placed more focus on alternative aspects of the traditional extension model such as skill development, knowledge management and capacity building. Indeed the cotton industry extension system has undergone substantial reform over the last decade. Inherent in this reform has been a greater recognition of the role of the agribusiness sector in contributing to adoption, particularly given the extensive nature of the advisory sector within the industry. However, some individual projects have also highlighted difficulties in integrating the advisory and extension systems.

Similar processes have been underway in many agricultural industries across Australia, which would suggest that there is much to be learnt from how other industries have addressed similar issues. This report presents case studies from three of these industries. The first case study takes an industry wide view, studying the activities of a number of projects and organisations within the dairy industry. The second case study looks at a specific program in the Sugar industry which engages growers to undertake on-farm research. The third case study looks at a specific organisation, the Future Farm Industries CRC (FFICRC), which overtly targets agribusiness as an R&D delivery mechanism, with a formal partnership with a major Australian agribusiness as part of their engagement strategy.

The dairy industry case study demonstrates an advisory sector which is well integrated with the industry RD&E network. Advisors frequently deliver not only industry messages but also industry extension programs. Many advisors derive some or all of their income from industry programs and have a vested interest in ensuring their success. Advisors are widely employed in the dairy industry, at rates commensurate with their earning capacity within their businesses, for project management, regional coordination, development of materials and training delivery. Countdown MAX was an attempt to develop new commercial services, but was limited by the ability for individuals to integrate the services into an existing business, which requires allocation of time, commitment of resources and support from all members of the business.

The sugar industry case study focuses on the Grower Group Innovation Projects (GGIP) initiative, an on-farm grower led research program which provides substantial opportunities to improve grower knowledge and the adoption of new practices. This program is also an opportunity to integrate advisors with on-farm research and to utilise this integration to improve scientific rigour and adoption of industry messages. The GGIP program is successful at improving on-farm links with research and extension personnel whilst project evaluation has suggested that adoption of GGIP research is more rapid than in other RD&E systems. The grower networks inherent to GGIPs provide improved project evaluation opportunities with regard to demonstrating practice adoption. As well as the potential to integrate advisors into on-farm research projects, project management has also been outsourced to an independent advisory group, with the intent that this arrangement would become self sufficient.

The FFICRC has a commercially focussed plan for encouraging adoption of their perennial plant research programs which includes a core partnership with national agribusiness Landmark. Unfortunately, most FFICRC projects are still at the awareness raising level, thus the commercially focussed adoption strategy has not been fully developed and tested. However the approach does suggest that whilst some specific technologies will naturally lend themselves to exclusive commercialisation pathways, it is also possible to engage with agribusiness in a mutually beneficial yet non-exclusive basis. Forward thinking businesses, such as Landmark, see this as an opportunity ‘to be ahead of the curve’ to retain or increase market share, rather than as a new revenue stream. From these case studies, a number of strategies have been developed to improve engagement with agribusiness within the cotton industry’s adoption system.

Transgenic (Bt) cotton has provided major benefits for the Australia cotton industry (e.g. control of Helicoverpa and reduced pesticide use), but the possibility of Bt resistance in these insects is a major threat. Until recently, Bt resistance research focused only on H. armigera. However, recognition that Bt resistance alleles becoming increasingly common in H. punctigera has moved focus to both species.

As part of a resistance management plan (RMP) for (no exposure to Bt toxins) are required to be grown in association with Bt cotton, at prescribed amounts (ha, as a % of Bt cotton grown), according to historic views of their abilities to produce large numbers of moths that will then disperse, mate with potentially resistant moths emerging from Bt cotton, and thereby reduce the likelihood of Bt resistance emerging to a damaging scale. Initially, several refuge crops were available for use, but this has recently been reduced to only pigeon pea and conventional cotton, because these crops harbour both Helicoverpa species. Pigeon pea is the most commonly used refuge because less (5%) is required cf cotton (10% when unsprayed). However, there is significant desire in industry to move to a less demanding requirement of cotton refuge, because of side benefits it could provide (e.g. cotton yield). Refuge crop options are also less available for dryland than irrigated cotton. In tandem with all this, the amount of Bt cotton on the landscape has drastically changed from a 30% cap of all cotton in the 1990s (Ingard) to 80-90% now (Bollgard II). This background led to this project which sought to answer :

1. How effective are current refuge crop options ?,

2. Are there novel refuge crop options ?,

3. Is the abundance of the target pests, Helicoverpa spp., changing in time at landscape scale ?

The work has shown that there have been substantial changes in the abundance of both Helicoverpa species at landscape scale in recent years. Whilst H. armigera has tracked the abundance of host crops, the numbers of spring migrant (susceptible) H. punctigera have seemingly diminished. The latter has implications for resistance management in this species. Ingard cotton was unable to suppress the abundance of H. armigera, but it is looking increasingly likely that Bollgard II will.

Long-term monitoring of pigeon pea and cotton refuges suggests that the 2 : 1 differential assumed in Helicoverpa productivity has been maintained, but separate work within the project has highlighted the large variability in these refuges’ performance. At times, cotton refuges can be as productive, or more so, than pigeon pea. Many refuges “under-perform”. Modelling is in progress using intensive data sets obtained from surveying refuge crops within regions (St George, Macintyre) to assess the collective performance of refuges in servicing landscapes. Initial results suggest this will demonstrate there are weak links in coverage, where Bt resistance risk will be heightened. Such work will help focus monitoring efforts, and indicate where greater care in placement / management of refuges is needed. This project stresses strongly that high standards of farmer management of refuges (e.g. adequate nutrients, water) are imperative in delivering optimal refuge performance. Perhaps incentives for such management need to be put in place by industry.

Various novel refuge options were explored, especially focusing on improving cotton performance through increased seasonal breadth of attractiveness (e.g. split plantings, mixing varieties and host crop species). However, none of these approaches proved persuasive enough to merit changing options. Pest pressure during the project was generally low, making demonstration of novel refuge options difficult.

A key assumption, implicit in the Bt resistance RMP is that mating occurs at random between moths from different plant host origins. This project supports the assumption. The project also explored the possibility that egg lays (attractiveness) might be correlated with refuge productivity, thereby enabling simpler evaluation of likely refuge performance, in particular relative to Bt cotton. However, such a relationship was not demonstrated clearly. Research in dry- land cotton has been difficult in the past, in part because of the difficulty of traditional methods of assessing refuge productivity (pupae digs, efficiency is compromised in harder soils). This project developed a modified emergence cage which can assist with assessing refuge productivity without the labour of digging.

The National Program for Sustainable Irrigation provided funds to undertake an 8-week research study on-farm during the 2010-2011 summer. The initial approach to this study sought to investigate and improve irrigation application efficiency of furrow irrigated sugarcane in the Arriga Flats of Far North Queensland, using the surface irrigation model SIRMOD. Due to above average summer rainfall preventing growers from irrigating during the whole study period, an alternative approach had to be developed. Seeking to identify areas of irrigation inefficiency on a fine spatial scale over one furrow- irrigated sugarcane block, I related bulk soil electrical conductivity (ECa) measurements, obtained from an EM38 survey, to deep drainage (DD) estimates as calculated by the model SALFPREDICT, using analytical data from 8 selected soil profiles. Using simple linear regression analysis, the study found that in this area (with soils that are variably sodic but not saline), the ECa was a poor predictor of estimated DD (r2=0.12). The study also found estimated DD to vary considerably (40-254mm/year) within the block, even though it was mapped as having one soil type. Appropriate identification of areas of irrigation inefficiency and the management of areas most susceptible to DD losses therefore requires a fine scale quantification of soil properties which influence DD.

The aim of this project was to provide a mechanism for growers of the Lower Namoi Valley to learn from other innovative growers experiences. This was done by running topic focused grower forums with researchers from the topic area in attendance. The response of growers to this format was very positive with requests for more of this format.

Also a number of growers who had tried different row configurations for cotton production over a number of seasons were interviewed and their experiences were compiled into a simple record and published. The interest in this publication and the information it contained was significant. With growers improved water stocks uptake of these management strategies has not occurred.

A workshop on pumping efficiently was held by Irrigation Australia Limited. The content was developed with the input of the Lower Namoi Growers Association. There was disappointing attendance from growers at the workshop.

The value that growers see in the experiences of other growers was highlighted.

A number of growers were identified by the activities of the project as resources for other growers to learn from. Seasonal developments made it even more difficult to get growers along to forums. The Lower Namoi Cotton growers Association will continue to facilitate this sort of forum on various topics as its members see the value.

The Cotton CRC and CRDC sought to gather quantitative information on cotton growers' usage and adoption of research and key farming practices, with a particular focus on change since 2001, in order to

1. Gain an understanding of where to focus research

2. Review the adoption of past research

3. Undertake an economic analysis of the Cotton CRC's investments and impact.

Existing information on Cotton CRC investments and related farming practises were collated into 'stories' by Ingrid Rencken (Crop Protection) and Guy Roth (Soils & Nutrition; Water). These drew together information from project data sets, the CCA survey and the latest grower survey conducted in 2007.

A new survey of cotton growers was necessary in order to fill the gaps in current information about farm practises. due to the relatively tight timeframes and previous low responses rates to written/electronic surveys, it was agreed that the most reliable approach would be to gather the information through structured telephone interviews.

At the same time, there was seen to be a need to develop evaluation expertise within the cotton CRC's development and delivery (D&D) team.

“Cotton growers working together for a sustainable landscape project” funded by the Australian Government’s Caring for our Country initiative consisted of three core components which included working directly with landholders to manage natural vegetation and improve biodiversity, an Envirostories competition involving schools, and an Aboriginal Cotton Traineeship program focussed on agriculture and environmental rehabilitation.

In the Central Queensland region, milestones contributing to the Project objectives were:

• Organise and hold field day and workshop with 20 cotton growers from the Dawson Valley Cotton Grower Association and Comet Sustainable Farming Association

• 20 farmers participating in the Cotton industry’s myBMP program

• Assist the Dawson Valley Cotton Grower Association and Comet Sustainable Farming Association to complete on-ground environmental activities

• Activities completed to assist at least 20 farmers to adopt activities that contribute to the ongoing conservation and protection of biodiveristy on at least 2000ha

22 landholders attended a total of three workshops at Theodore (one) and Orion (two). At the workshops, growers completed the IPM and Natural Assets of the Cotton myBMP workshop. They also received technical presentations from Dr Nancy Schellhorn (Team Leader, Spatial Ecology, Entomology Division, CSIRO) on how to manage on-farm remnant to improve productivity in their agricultural operations and from Duncan Swan (Principal Land Protection Officer, Biosecurity DAFF CQ) and Gordon Twiner (Rural Services Coordinator, Banana Shire Council) on identifying environmental weeds, impacts, their life cycle and suitable control methods.

Cotton growers identified that catchment-wide coordinated control of environmental weed infestations was a priority to conserve and protect local biodiversity assets, following the 2010/11 floods.

10 businesses covering a total property area of 57,857 ha have completed 40% of planned on-ground control for Weeds of National Significance in the Dawson and Comet riparian areas. These include:

• 106.1km of parkinsonia

• 5702 ha of parthenium

• And 1663.8ha of hymenachne, lueacaena and rubber vine.

Most on-ground work is expected to completed by end December, weather permitting.

CHRRUP, the local catchment group in the Central Highlands is providing ongoing technical support to the Comet Sustainable Farming Systems Association members and working with DERM to identify, source funding and undertake complementary environmental weed control work targeting the source of infestations upstream.

The project in the Central Queensland region provided cotton growers with an increased appreciation of the role biodiversity can have in productive cotton systems. Growers benefited from enhanced knowledge of ecosystem services and have a better understanding of biodiversity management. This knowledge will enable more cotton growers to utilise ecosystem services as an integral component of their production systems.

The 2013 Australian Cotton Comparative Analysis (ACCA) is the ninth report produced by Boyce Chartered Accountants in conjunction with the Cotton Research & Development Corporation (CRDC). In this report, we present an analytical review of the 2011 results, a comparison with prior years and comments on emerging trends.

The 2013 was a very hot and dry season, with corresponding excessive water usage. Heat and flooding

impacted yields and profitability.

Net profit per hectare was well down on 2012 and the three year average. A low profit year puts pressure

on the industry, with less money being available for debt reduction or reinvestment.

In the 2012 report, we predicted that 2013 and 2014 would be tough financially for the industry. This has

played out in 2013 and seems to be playing out with what looks like low water allocations for the 2014 year.

This will obviously impact the ability of growers to further reduce debt.

The data in the Cotton Comparative Analysis has in previous years been affected by low water; this was an

issue in 2013 and 2014 is likely to be similarly impacted. While much effort continues to be invested in arguing

whether or not climate change is real, our view remains that growers should spend their efforts on ensuring

they can survive and indeed profit during extreme events. If this can be achieved, profit will be maximised

regardless of the outcome of the climate change debate.

Although we have not attempted to analyse in detail the return on assets from a capital growth perspective,

we have noted that in the past, many growers have obtained a large increase in their net assets from the

increase in the value of land and licences, rather than the accumulation of profits. It is probable that capital

growth of water and land has slowed in established cotton growing valleys; for some growers this has formed

the majority of their increase in net assets over time.

The agricultural sector in general and the cotton industry in particular are known for their early adoption

of technology. The technology available today, whether it is genetic, machinery-based or relating to systems

and process, is no doubt leading to increased yield and reduced labour. The question is though, at what cost?

If maximisation of profit is the goal, we think growers should establish the impact of technology on profitability

before it is adopted.

A slowing to the increase of asset values will see a greater focus on profits. This focus should hopefully result

in farmers understanding what it takes to be in the top 20% and striving to ensure their business implements

the necessary changes to achieve this objective. A healthy irrigated cotton farm cannot survive on capital

growth alone.

The 2013 Australian Cotton Comparative Analysis maintains our goal to measure and analyse the

components that provide farmers with a stronger financial bottom line.

The Australia cotton industry, through providing reinvestment in best management practice, sustainability

programs and in the communities in which it operates, plays an important role in the agricultural sector

of this country

Term of Reference I: Progress of cotton water research to desired economic, environmental and social outcomes since 2005

Term of Reference 2: Assess strength of cotton water story

Term of Reference 3: Identify opportunities for improvement

Term of Reference 4: Publication avenues for scientific and other target groups

Term of Reference 5: Assess quality of research

Term of Reference 6: Assess whether outputs meet end user needs

Term of Reference 7: Identify priority R&D and adoption gaps