Diversifying farm income: integrating renewable energy into agriculture

Project overview

Renewable energy is emerging as a new land-use opportunity across Western Australia’s Wheatbelt. This project provided information on how renewable energy developments can be strategically integrated into farming systems to strengthen farm business resilience, support drought preparedness, and maintain long-term sustainability. As growers face increasing climate, financial, and market pressures, diversified income streams are becoming of interest.

While renewable energy offers the potential for stable income and environmental benefits, many growers currently lack independent, evidencebased information to assess opportunities, risks, and long-term implications. Uncertainty around contracts, governance, land-use trade-offs, and community impacts can create hesitation, highlighting the need for guidance grounded in real farm decision-making.

Impact and results

The project combined a desktop review of national and international experience with on-ground insights from Western Australia. A literature review confirmed a lack of WA-specific research, which was addressed through 40 grower surveys, stakeholder interviews, and local government perspectives. This grower-led approach ensured findings reflected the realities of farm business decision-making.

Economic and environmental analysis showed that renewable energy projects can provide financial buffers, improve resilience during dry periods, and support sustainability objectives, when negotiated effectively. At the same time, social and governance challenges emerged as critical factors. Growers highlighted concerns around confidentiality clauses, contract transparency, long-term control, and community acceptance.

A key learning was that success depends as much on governance and relationships as on economics. Strong negotiation capacity, clear governance arrangements, and early, proactive engagement with neighbours and local communities were essential to building social licence. Local examples, such as community-led engagement in the West Arthur Shire, demonstrated practical ways to address these challenges.

Looking ahead

The project has produced practical reports that have informed extension resources, including newsletters, a three-part podcast series, industry presentations, and media coverage. Moving forward, there is potential to develop decisionsupport tools, negotiation and governance resources, and community engagement models to support broader adoption.

When thoughtfully integrated, renewable energy can complement farming systems, diversify income, and strengthen resilience across regional Western Australia, provided growers have access to the right information, support, and safeguards.

This project is supported by the South-West WA Drought Resilience Adoption and Innovation Hub, through funding from the Australian Government’s Future Drought Fund.

FAQs

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News

Resources

Additional resources

Collaborators

Project Team

Kelly Ryan

Farmanco

Ian Richardson

Farmanco

Greg Easton

Farmanco

Katrina Kowald

Farmanco

Lucy Tomassini

SW WA Hub

Contact

Ian Richardson

Farm Management Consultant, Farmanco
irichardson@farmanco.com.au
0455 455 287

Kelly Ryan

Project Manager, Farmanco
kryan@farmanco.com.au
0457 000 833

Lucy Tomassini

Project Manager, South-West WA Drought Resilience Adoption and Innovation Hub
lucy.tomassini@gga.org.au

Start date:
22/03/2024
End date:
29/08/2025
Status:
Project lead:
Farmanco
Funder:
DAFF – Future Drought Fund
Hub role:
Project sponsor, Project management, Extension and communications
Commodity:
Broadacre cropping, Mixed farming
Resilience type:
Relevant region:
Wheatbelt