Water Scarcity Risk For Australian Farms & The Implications for the Financial Sector

Kelly, S; Plant, R; Cunningham, R; Maras, K

Water Scarcity Risk For Australian Farms & The Implications for the Financial Sector

Kelly, S

Plant, R

Cunningham, R Maras, K

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Publisher:: UTS Printing Services
Publication Type:: Report
Citation:: 2019
Issue Date:: 2019-02-28

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Field	Value	Language
dc.contributor.author	Kelly, S https://orcid.org/0000-0002-8454-6144	en_US
dc.contributor.author	Plant, R https://orcid.org/0000-0003-3006-741X	en_US
dc.contributor.author	Cunningham, R	en_US
dc.contributor.author	Maras, K	en_US
dc.date.issued	2019-02-28	en_US
dc.identifier.citation	2019	en_US
dc.identifier.uri	http://hdl.handle.net/10453/131080
dc.format	Physical Report and Digital Report	en_US
dc.publisher	UTS Printing Services	en_US
dc.title	Water Scarcity Risk For Australian Farms & The Implications for the Financial Sector	en_US
dc.type	Report
utslib.location	Institute for Sustainable Futures	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/DVC (Research)
pubs.organisational-group	/University of Technology Sydney/DVC (Research)/Institute For Sustainable Futures
pubs.organisational-group	/University of Technology Sydney/Strength - ISF - Institute for Sustainable Futures
utslib.copyright.status	open_access
pubs.consider-herdc	true	en_US
pubs.commissioning-body	National Australia Bank	en_US
pubs.confidential	false	en_US
pubs.place-of-publication	Institute for Sustainable Futures	en_US
pubs.publication-status	Published	en_US
pubs.rights-statement	Research background This research was conducted in the field of economics, business and sustainable development. Although drought is a significant issue for Australia, there is a gap in research looking at how risks of drough can be better managed by the financial sector. This research aims to fill this gap. The main research questions addressed by this study include: How does the Australian financial sector presently manage the risks of climate change? How can farmers better use and finance technology to manage water scarcity risk? How can water risk be quantified and developed into a risk model that can be used by banks to better assist farmers in addressing water scarcity risk? Research contribution Water scarcity risk represents a material risk factor for farms across Australia with the potential for a reduction in yields and increasing the costs of farm production. At present, the materiality of water risk is not fully incorporated into the assessment of farm loan applications. Introducing water risk assessment processes into farm loan applications has the potential to reduce financial risks for farms and financial institutions as well as improving the long term viability and sustainability of farming in Australia. This report develops a new method to calculate the water risk xposure for a farm and therefore estimates the materiality of water risk for finance in the Australian agribusiness sector. This research project assesses the current approach undertaken by financial officers (in the Agribusiness sector) and farmers in Australia when assessing water risk, and from this seeks to identify opportunities to improve the associated financial decision-making processes. Research significance This ground-breaking research forms the foundations for how the financial sector in Australia can start to accurately assess water scarcity risk in Australia at a farm level. The research was funded by the National Australia Bank through the The Yield.	en_US

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http://hdl.handle.net/10453/131080