Will Australian agriculture go under-cover?

Under-cover agriculture refers to the practice of growing crops indoors, which offers farmers a number of advantages.

Farmers use greenhouses, shade houses and other structures to better control their growing environments, thus protecting fruits and vegetables from ecological factors they can't control. With the right equipment and know-how, farmers can dictate how much water, sunlight and nutrients their plants receive.

There are risks associated with under-cover agriculture, as well as benefits. For example, an electrical fire could compromise a greenhouse and damage or destroy plants. If such an event were to lead to crop loss, would crop insurance plans provide assistance? This is just one consideration farmers have to take into account.

Costa Group leads the way

Both large and small farmers use under-cover farming techniques, but Costa Group is one of Australia's biggest practitioners.

According to a presentation delivered by CEO Harry Debney in March, under-cover agriculture - also known as protected cropping - accounted for 75 per cent of the company's produce earnings before interest, taxes, depreciation and amortisation in 2015.

??€‹Mr Debney concluded that growing in factories, tunnels, glasshouses and other facilities enables Costa to support year-round production. Sustaining a consistent supply of fruits and vegetables is advantageous because it:

• Mitigates seasonal pricing trends across the market
• Sustains consumer reach
• Provides consistent cashflow

Consideration for the small players

Although Costa Group has benefited enormously from its under-cover agriculture operations, being a large company means it can access resources that the average farmer cannot. Some farmers may deduce that building greenhouses isn't feasible for them.

Under-cover agriculture offers several financial and operational advantages to farmers.

Those who do decide to implement under-cover strategies won't be left to fend for themselves. New South Wales' Department of Primary Industries identified several measures farmers should take when managing greenhouses, some of which are listed below:

• Install windbreaks to reduce the number of pests and diseases that flow into greenhouses. A windbreak could be a hedgerow of plans or a screen fence.
• Cover the floor to make cleaning and sweeping much easier. Although weed matting is more common than white plastic, the latter can improve light levels and offers better temperature control.
• Use a water disinfecting system that doesn't exceed budgetary constraints or impact the environment surrounding the greenhouse.
• Inspect all seedlings for diseases upon delivery. This will ensure indoor crops aren't contaminated.
• Measure the chemical, physical and biological properties of your soil before planting. These factors should be appropriate for the types of produce being grown.

In addition to conducting best practices, farmers must speak with their insurance providers to see how greenhouses will affect their policies. Protecting under-cover assets is just as important as securing conventional operations.