Economic Perspective 13 February 2026
- Feb 13
- 3 min read
The Latest Trending Economic News Curated for You by Balmoral Group Australia
Good morning readers,
The Balmoral Group was well represented this week at AARES in Adelaide with Valerie Seidel, Shima Madani and Wendy-Lin Bartels. Enjoyed catching up with Sam Miller, Anthea Coggin, Sir John Rolfe, and an amazing retirement celebration by Dr David Pannell. Inspiring keynotes by Productivity Commission Chair Danielle Wood and Dr Ken Henry and impressive research across the board on price transmission, sustainability, renewable energy, and so many other topics. Amazing week!
In this week's edition, we examine technological advancements in agriculture and developments in government projects around energy and water. First, an assessment of the effects and risks associated with AI adoption on farm operations. Then, an overview of advances in genomic and genetic technologies that are driving yield and strengthening resistance in both livestock and crops.We also cover the opening of consultations in regard to proposed wind and transmission tower projects, as well as new government projects aimed to advance science for management of underground aquifers to improve regional water security. Finally, we included a figure from a recent academic paper suggesting that increasingly volatile weather conditions may be distorting our estimates of productivity growth in agriculture.
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Hope you enjoy the articles and have a great weekend!
AI isn’t likely to wipe out all farming jobs – but it is changing who bears the risks
New research investigates AI adoption on Australian farms and the potential for job losses or productivity gains. AI exposure on farms is mostly at the task level and labour demand is growing for decision-making skills, oversight, and tech management. However, on-farm adoption of advanced tech remains low, especially among small producers, largely attributed to risk-bearing and accountability concerns. For example, if disease-detection responsibility is delegated to automated AI systems, farmers still absorb costs of AI prediction errors. Specific AI tasks on-farm include crop stress detection using satellite imagery, predicting irrigation needs, tracking livestock behaviour and flagging disease and weed risks. Read more here.
Partnership delivers three new innovative genomics tools for Angus breed
New collaborations, products and advancements in genetic and genomic tech increasingly expanding productivity avenues for Australian agriculture. Efforts in the beef sector to establish genetics testing will provide commercial verification for “angus” beef lineage claims, and new breeding decision-making tools could bring yearly genetic gain in beef herds from the current 0.5% to potential 5%. Furthermore, encouragement of high-density genetic testing in older breeding females could expand the Angus reference population – which underpins breeder’s genetic evaluation – lifting prediction accuracy. Advancements in feed come alongside new research on plant super pan-genome analysis, which could fast-track breeding of stress-resistant and high-yielding crops, and heavy investment across agricultural Research Development Corporations in genetic studies.
Consultation open to boost Australia's clean energy industry
Consultation opened on Monday to manufacturing firms, workers and local communities to make submission regarding wind and transmission tower manufacturing projects. The government is seeking input regarding domestic manufacturing capacity, business opportunities for steel manufacturers, metal fabricators and other domestic producers who could contribute to wind and transmission tower production. Government is also seeking suggestions to make infrastructure more competitive and insights into market conditions to drive long-term investment. Read more here.
Over $6m for water science in South Australia
New $6.2 million will be invested across three water science projects investigating managed aquifer recharge (MAR), an underground water storage method, for strengthening regional water resilience in South Australia. The projects include: establishing a reverse osmosis desalination plant at Loxton, where desalinated brackish groundwater can then be stored in underground aquifers for later use; a state-wide MAR project exploring options for capturing and storing stormwater; and a small-to-medium scale desalination brine disposal targeting groundwater resources to avoid regional water shortages. Projects will be funded through the National Water Grid Fund. Read more here.
Adjusting agricultural productivity measurements for climate change
Recent research shows that estimates of productivity growth across Australian agriculture rise after we account for the effects of both short-term climate variability and long-run climate change. This suggests that beneath climate fluctuations, underlying productivity growth in Australian cropping is more stable than standard measures indicate.
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