One paddock at a time

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By Dwain Duxson - An Ag Enthusiast

One paddock at a time - Like in yesterday's newsletter we have a Farmer who replied to one of our stories that piqued my curiosity. The reply was about how Farming here in Australia is reaching the cost/price crossroads. Take a read of the original story here first. Then read the letter below next.

This particular Farmer in his particular area can't get his Cropping to compete with his Sheep, so he is slowly but steadily shifting his program to more Sheep and less Cropping.

We write a lot about incremental growth/change is the only way to go in Ag. Don't get me wrong; if we could do things quicker, we would, but Ag doesn't let us do that.

What piqued my curiosity is how he is going about his change, one paddock at a time. I think that's smart. You have to do what suits you and what works for you. Avoiding the cost/price crossroads should be on everyone's radar. How you deal with it, only you will have the answer to that. Can you please share with us some of the things you are doing? Reply to dwaind@farmtender.com.au

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Hi Dwain. Another light frost here, just what is needed. The costs have been running away from us for some time, and your analogy of the wine industry, I'm sure, is replicated across all ag sectors. 

I have been growing Grain since 1997, and our cost blowouts now are to the point that I can't see a short-term future. As you said about the wine industry, our margins have been shifted to finance costs, insurance, spare parts, labour, freight, machinery purchase, and, worst of all, the cost and volume required on ag chem and fert.

We no longer have the ability to stem the bleeding. We have to be aiming for above-average yields at above-average prices regardless of the seasonal conditions. Every year, Sheep play a larger role in our farm, and we are going to make them our core focus and grow Grain and Hay for fodder. That way a few wild outs or radish can be left and save another couple of passes at $50 p/ha. We can move to another paddock next year.

Pasture management in the industry is getting better and the choice of a vast selection of genetics is available for every different environment. Our numbers tell us that our Sheep this year will be equal to 3.5 t/ha of barley at $270. An above-average price at an above-average yield, with below-average meat and wool prices. Like every industry, though, it is very difficult to make a swift transition from one to the other. Reply to dwaind@farmtender.com.au

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