THE Victorian Government is walking away from agricultural research, PETER HEMPHILL reports

The recent takeover of the Department of Primary Industry's canola breeding program by Canadian grain company, Viterra, has raised questions about the Victorian Government's dwindling commitment to the agricultural sector.

In recent years, the DPI has abandoned a string of functions it has traditionally carried out in favour of "high tech" programs.

Farmers have seen:

• The DPI hand basic wheat, barley and canola breeding programs over to the private and not-for-profit sector, with fears the pulse breeding program will be next.
• Traditional government farm research and extension programs being superseded by those run by farmer groups or private companies.
• The Mallee Research Station at Walpeup starved of resources before being finally mothballed by the DPI in 2008. Reacting to public outcry, the department is in the process of handing a lease for the 1000ha farm over to the Sunraysia Institute of TAFE.
• Closure of the Kyabram Dairy Research Institute in 2008.

The Victorian Government has been criticised for acting with stealth over the transfer of services to the private sector.

Among the critics is former head of the Mallee Research Station, John Griffiths, who said a succession of governments had progressively eroded agricultural research in the state.

"One would have to imagine the department (DPI) is basically walking away from everything but basic research, concentrating all its resources at La Trobe University," Mr Griffiths said.

"It's death by 1000 cuts and no one wants to say what the policy is."

While there has been a shift from government-run programs to the private sector, there has not been a corresponding transfer in government funding to the new providers.

The Birchip Cropping Group, Southern Farming Systems, Mallee Sustainable Farming Inc and Riverina Plains Inc have been running their own research programs for more than a decade.

Private consultancy firms are expanding into agricultural research.

BCG chief executive officer Alexandra Gartmann said there was no doubt there were better research and development service providers in the private and not-for-profit sector than the government sector.

"But we have not seen an investment (by the government) in other service providers," Ms Gartmann said.

"And we are not seeing any information to suggest the government is putting resources into other services, particularly if there is a public benefit in it.

"A lot is going into biotechnology, which won't provide results until 10 years' time.

"But where are today's farmers going to be in 10 years' time?"

Ms Gartmann said the BCG was not opposed to change and the way the DPI carried out its functions.

"But we can't let the resources get lost in the change for the sake of our farmer clients," she said.

Swan Hill accountancy firm Dodgshun Medlin is one of a number of private companies that have filled the void in government-funded research.

It has recently employed a manager to run its expanding agronomic research and development program.

Dodgshun Medlin now boasts 12 agricultural advisers among its 40-plus general accountancy and tax advisory staff.

Senior consultant Danny Conlan said Dodgshun Medlin began an agricultural management division in 2002, to fill a void on one-on-one decision support for farmers.

The service included the blending of profit and business development advice with the services provided to family farming operations.

Mr Conlan said research and development had always been a part of its operation but was becoming more critical with the change in environmental conditions.

Dodgshun Medlin also provided agronomic advice to Glencore, which had an expanding farming operation, but Mr Conlan said this was only a small part of its client base.

A Department of Primary Industries spokeswoman said the department had increased efforts to help farmers keep pace with 21st century ideas, technology and practices.

"The research is ... developed in partnership with industry," she said. Out of the $205 million committed to support farms in Victoria, $77 million was for research and development, she said.