Grain Business Magazine - July 2012 by Glencore Grain

July 2012

Foliar disease

Canola boom

Shifting seasons

Grain pools

Improve water use

Carbon tax

Summer rains boost risk Are they here to stay?

Fine tune crop management

Risk and reward

How is your pool performing? What you need to know

Produced for the benefit of Australian grain growers by Viterra

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CONTENTS 1

A nation of contrasts

Summer rains boost cereal disease risk

Billion dollar canola boom A potential $1.6 billion canola harvest is putting a glint in growers eyes across Australia

How is your pool performing? Since deregulation, the options presented to growers to market their grain have been numerous

A drop in time Improving on-farm water use

Early springs, longer autumns and unpredictable rainfall - Are the shifting seasons here to stay?

Advertising Rebecca Long RKL Media Phone: (08) 8843 0059 Mobile: 0417 813 480 rebecca@rklmedia.com.au

In brief Outer Harbor boosts shipping records Blueprint for Australian agriculture

Cover note: Spring crop in South Australia PHOTO: Tom Roschi from TRP Photography tom@trp.com.au

Food safety and quality assurance in the grain industry

Feeling the pulse Farms without a pulse will die

Farm profile Woodlea

Phosphorus philosophies Dry seasons make growers cautious about applying Phosphorus

Carbon era begins Love it or loathe it, the carbon tax is here

NGR card turns ten The system that transformed Australia’s grain delivery and payment process

Professional agriculture – it’s a brand problem

Wool Clip preparation key to Australian wool reputation

© Copyright. Editorial material published in Grain Business is copyright and may not be reproduced in any form without written permission from the Publisher or Editor. Print Post Approved: PP 510545/00616 Publisher Produced to add value to Australia’s grain industry by Viterra 124-130 South Tce Adelaide, SA 5000 Phone: (08) 8211 7199 gbm@viterra.com Design & Production Fuller Phone: (08) 8363 6811 37 Fullarton Rd Kent Town, SA 5067 fuller.com.au

At Grain Business, we want to provide useful, insightful, and up to date information in each and every issue. If there are any topics you would like to see featured in future editions or if you have any feedback about Grain Business magazine, please contact us at gbm@viterra.com.

Foreword

A nation of contrasts While weather forecasts are predicting a drier than average growing season across most of the country, a majority of areas have received good opening rains and I am optimistic growers will experience a successful season. The contrasts across the nation continue to surprise. In SA and WA, a lack of rain delayed the start of the seeding program for many growers; while on the East Coast, soggy soils and wet conditions after summer floods caused delays to seeding programs. Interestingly, the Bureau of Meteorology has predicted there could be a return to El Niño patterns this year, which usually result in below average rainfall. I’m sure most growers will be keeping a keen eye on the weather forecasts as the season progresses. As a result of weather conditions, the Australian Crop Report, published by the Australian Bureau of Agricultural Resource Economics and Sciences (ABARES) on 13 June 2012, has reduced the forecast total winter crop production to 38.5 million tonnes, around 15% lower than last year’s record production. While plantings of wheat and barley are expected to decrease the area sown to canola is forecast to rise by 23% to around 2.1 million hectares. I want to share with you some of the feedback we have received

about the Grain Business magazine. In South Australia, Viterra recently engaged an independent research company to conduct a Post Harvest Grower Questionnaire, providing feedback about the company’s operations. As a whole, findings from the questionnaire showed Viterra had improved its performance across all areas of storage and handling, with 65% of respondents indicating they believe Viterra’s service delivery had improved since 2010/11. It was also pleasing to note the value placed on several of Viterra’s publications, including this magazine. Growers rated the magazine highly, giving it a value score of 6.5 out of a total of 9. The previous year, the magazine also rated highly, receiving a score of 6.2 out of 9. We strive to present stories

on new and innovative farming practices and products which will be of interest to you, our readers. We endeavour to provide you with the most up-to-date agronomic advice as well as a range of human interest stories, such as our farmer profiles. In this July edition of Grain Business, read about the way seasons are shifting, how to best manage a continuous cropping program, water use efficiency, phosphorus application and stories of women from the land. I wish you a safe and successful cropping season.

Dean McQueen Executive Manager Grain

JULY 2012

cereal disease

Summer rains boost cereal disease risk

Summer and autumn rains triggered potentially perfect conditions for leaf and stem rust in cereals this season in some states, but careful early monitoring and spraying could help avoid an epidemic. This state-by-state guide suggests the best way to mange your cereal diseases in 2012. words/ Gabrielle hall

SOUTH AUSTRALIA SARDI principal scientist, cereal pathology, associate professor Hugh Wallwork published a comprehensive Cereal Variety Disease Guide 2012 in the April edition of Viterra Grain Business magazine. Now, three months on, he said summer rain in South Australia’s Upper North and Eyre Peninsula had triggered volunteer wheat and barley growth, and autumn rains enabled some seeding to begin as early as April, potentially increasing the chances of a rust epidemic. “Susceptible hosts have been available for the rusts for a longer than usual pre-winter period and at times when temperatures were still warm and thus more conductive for infection by leaf and stem rust,” Hugh said. However, for an early rust epidemic to occur, he said rust needs to have survived on the volunteer plants at one or more locations, and also the sown crops must be susceptible to rust and

not fungicide treated. “Given the spread of wheat varieties being grown there will be significant areas sown to stem rust susceptible wheats such as AGT Katana, Yitpi, Pugsley; leaf rust susceptible wheats including Corack, Correll, Gladius, Justica CL+, Kord CL+, Pugsley, Wyalkatchem and Yitpi; and stripe rust susceptible wheats such as Cobra, Corack, Derrimut, Mace, Pugsley, Scout and Wyalkatchem.” Hugh said unless an in-furrow fungicide treatment was applied, all of these wheat varieties would need close monitoring early in the season. “Some of these varieties are only moderately susceptible and these will avoid yield losses greater than around 15 per cent unless early infection is very severe,” he said. “Varieties such as Yitpi (stem rust) and Mace and Wyalkatchem (stripe rust) can potentially lose 50pc or more of their potential yield and help to generate more widespread epidemics,

so fungicides will need to be used very early to prevent serious damage occurring to those and nearby crops.” In 2011 barley leaf rust was the most damaging cereal disease in SA. Hugh said that given most barley varieties were either moderately susceptible, susceptible or very susceptible, (the worst being Keel, Buloke, Schooner, Scope and Sloop) there was a real danger a similar epidemic could occur in SA in 2012. “Early spraying of infected crops will greatly reduce this risk,” he said. “Other diseases of barley to look out for will be the net blotches and scald, although surviving inoculum of these diseases is lower than last year owing to less favourable conditions for them in 2011. “These diseases are strongly promoted by early sowing and/or sowing into infected barley stubbles.” Hugh said monitoring crops and foliar disease identification was vital at this time of the year.

JULY 2012

cereal disease

A majority of crops were predicted to have been treated with chemical protection to avoid early season rust problems, especially in varieties known to be vulnerable in the southern regions of NSW. -Colin Wellings

WESTERN AUSTRALIA In Western Australia, the wet harvest and summer rain in some areas produced volunteer regrowth and conditions for prolonged survival of cereal rust diseases. In most regions of the wheat belt, very dry autumn weather killed off any volunteer cereals and delayed sowing, diminishing risk associated with green bridge diseases. Parts of the Esperance zone received early autumn rain which supported cereal regrowth. Department of Agriculture and Food (DAFWA) plant pathologist Geoff Thomas said last year susceptible crops in the Great Southern and south coastal regions required fungicide intervention for wheat stem rust management and because of that it remains a concern for this year. “Trials at Esperance last year, run by DAFWA plant pathologist Kith Jayasena, showed significant yield and quality benefits from application of fungicides to stem rust infected Yitpi,” Geoff said. Barley leaf rust is a regular issue for barley growers on the south coast and it is likely susceptible varieties in this region could require fungicide intervention for the disease again this year. Barley powdery mildew has also been a regular threat in high to medium rainfall areas, especially in the south and particularly in the variety Baudin, and Kith warns that growers should be prepared for it again in 2012. Geoff said necrotrophic diseases remained an ongoing concern. “These include yellow spot, Stagonospora nodorum and net blotches which are regular issues for us dependant on the varieties sown, seasonal conditions and rotation,” he said. DAFWA Geraldton-based plant

pathologist Ciara Beard said many wheat crops in the northern agricultural regions received fungicide last year for these diseases and may need to again this year, but this decision would depend on the level of disease observed in crops and how the season unfolds.

VICTORIA In Victoria, Department of Primary Industries senior plant pathologist Dr Grant Hollaway said a drier summer meant less rust carry-over than in 2011 in the Wimmera and Mallee, but rust was “still likely to be an important disease during 2012”. In areas of north east Victoria where there was significant summer rainfall, the risk from rust will be high in susceptible crops. “Stubble borne diseases will be an issue in wheat and barley, especially when sowing into one or two year old infected stubble,” Grant said. Similarly to South Australia, barley leaf rust was severe in Victoria in 2011. “Rust will be an issue in Victoria and growers need to revise the susceptibility of their crops to disease and plan for fungicide applications to vulnerable crops, especially those not treated with fungicides at sowing,” Grant said. He said active monitoring for early signs of diseases was important to help enable timely fungicide applications if necessary.

NEW SOUTH WALES Late summer produced mild temperatures over the wheat growing areas of New South Wales, while rainfall was above average with 200300 millimetres recorded in most districts in February-April, and flooding in some districts. NSW Department of Primary

Industries principal research scientist, associate professor Colin Wellings said early sown grazing cereals and main season grain crops were met with good subsoil moisture and prospects for early crop establishment had been “generally excellent”. “A majority of crops were predicted to have been treated with chemical protection to avoid early season rust problems, especially in varieties known to be vulnerable in the southern regions of NSW,” he said. “Crops approaching second node on the main stem (growth stage 32) will need to be monitored for rust incidence, even in situations where chemical protection has been applied at sowing. “Growers and advisors will be wellplaced to manage cereal canopies provided the response of the variety to the rust diseases is understood and when monitoring plans are put in place to ensure there are ‘no surprises’. In this respect, early stripe rust onset in varieties known to be vulnerable (MS or worse) will require careful and timely consideration to implement a foliar spray strategy.” Given the trend of previous seasons, Colin expected stripe rust would re-occur. “Also leaf rust on wheat can be expected from early spring, and although not damaging in NSW in recent experience, it did re-emerge in certain districts in 2011,” he said. “Again, be aware of any potential vulnerability in varieties that are under cultivation. “Wheat stem rust has been less of an issue in NSW due to good variety resistance, although the problems associated with this disease in Yitpi in the nearby Victorian Mallee is always a reason to keep abreast of any local and regional developments.”

cereal disease

more information Bill has assisted the GRDC in producing a series of new, free fact sheets on spraying. There is also Nozzle Selection back pocket guide They can be ordered from Ground Cover Direct: 1800 11 00 44 ground-cover-direct@canprint.com.au Or take a look at the GRDC website grdc.com.au (postage & handling charges apply). Stem rust on volunteer wheat 2011. Image: Hugh Wallwork.

KNOW YOUR FUNGICIDE Know your product. That’s the number one tip from spray application expert Bill Gordon from Bill Gordon Consulting (ispray.com.au). While there are other vital factors in more efficient spraying of fungicides, Bill says much of it comes back to understanding how the fungicide works. “You need to know what your product does when it hits the plant, to know how to best target the spray,” he said. “You also need to cover yourself legally. If the chemicals are not applied the way the manufacturer recommends, and there is an issue with efficacy, you may not have the support of the manufacturer.” Bill’s other top fungicide spraying tips: • Thorough decontamination of the spray unit after each use (especially following herbicide). • Only use suitable tank mixes (read the label or check with the manufacturer) to avoid mixing problems and efficacy issues. • Make the most of good spraying conditions – reduce filling times by reducing your transit time back to refilling points (ie: utilise portable water carts or create more

mixing points closer to where you are spraying). • Use correct mixing order – contact the manufacturer or reseller if you are not clear, or check the GRDC fact sheet on mixing order. • Select appropriate water volumes to match the product’s mode of action and translocation. Most fungicides have limited translocation potential or move upwards and outwards only, meaning the spray needs to be targeted to hit the plant exactly where it is needed. If the source of infection is lower in the plant, more water may be required if the product has curative properties. • Use the recommended spray quality. Select an appropriate nozzle to match volume and spray quality – if the label recommends medium spray quality, stick with it. Check the label and manufacturer’s recommendations. • Consider nozzle design – at lower speeds (less than 16km/h) twin nozzle designs can improve coverage on both sides of the plant. Research in Australia and in Canada is showing this is particularly so in spraying fungicides. • Use controller settings and headlands to avoid under and overdosing. At the end of rows, think about controlling settings to maintain pressure at the nozzle.

JULY 2012

canola

Billion dollar canola boom A potential $1.6 billion canola harvest is putting a glint in growers eyes across Australia. But as all farmers know only too well, there’s a lot that can happen between now and the eventual delivery of such a record crop. According to Viterra’s senior trader, Andrew Freebairn, the gross margins at current prices of around $550/tonne are extremely attractive compared to cereals. “Farmers have weighed up the agronomic risks of closing up canola rotations against the potential profits, and have generally found an extra paddock or two to sow,” he said. Canola acreages across Australia have jumped from 1.13 million hectares in 2001 to 1.815 million in 2011 and are set to grow by another 15% to around 2.15 million hectares this year, promising a potential 3 million tonne harvest. That will include around 15,000 hectares of the new juncea variety Xceed Oasis which will be sown for the first time in lower rainfall areas, previously not suited to canola production. “However, with the potential of a big crop comes the risk – disease threats, oversupply, harvest management and delivery logistics,” Andrew said.

Boom and bust There’s nothing like a high price to fix a high price, said South Australian based grain marketer Chris Heinjus, from Rural Directions. “While I believe there is more upside left in canola, we can’t keep increasing production without seeing a change to the demand curve,” Chris said. “There is always a risk of the price dropping when needs are met.” He said the canola price at $550/tonne was an attractive

Decile 7 offering. However, Chris discouraged growers from trying to pick the peak of the market. Instead, they should take a strategic approach. “Our advice is that growers should make small parcels of forward sales as the season progresses, in case there is a crash,” Chris said. Andrew Freebairn said there was unlikely to be an abrupt decline in prices. “There is the potential for the price to peak mid-year but then slowly decline toward harvest,” he said. “Following the European and Canadian harvests in August/September, we will be able to make a better assessment of the likelihood of Australian price falls,” he said.

In the paddock Apart from price fluctuations, blackleg (Leptosphaeria maculans) could be the major risk to a record income in 2012, which is why most growers have already responded with widespread use of preventative fungicide – as a seed dressing and at sowing as a fertiliser coating. Also, for the first time in the 40 year history of canola growing in Australia, producers will have an in-crop management tool for blackleg. There is a new foliar fungicide expected to be made commercially available this year, having been examined in

canola

Farmers have weighed up the agronomic risks of closing up canola rotations against the potential profits, and have generally found an extra paddock or two to sow.

field trails around Australia since 2006 (ask your agronomist for details). Blackleg expert Steve Marcroft, Marcroft Grains Pathology, says it is likely a foliar fungicide will only offer an economic benefit in situations of high disease pressure (high rainfall, intensive canola growing areas) and in cultivars with a lower resistance level to blackleg or where resistance has been overcome by the fungus. “Nevertheless, a foliar fungicide extends the protection offered by seed dressings by about six weeks, which is the critical period for blackleg infection,” he said. He said this meant the timing of foliar fungicide applications was crucial, making the 4-6 leaf growth stage optimum for best results. “Canola plants are most susceptible to blackleg at the seedling stage, when stem canker can occur leading to rotting and the death of the crown,” Steve said. “Research has found that canola plants infected after the 3-5 leaf stage do not develop severe stem canker.” Steve urged farmers to assess their canola plants throughout the season to monitor leaf lesions, particularly if seasonal conditions were conducive to disease. He also said the use of foliar fungicides for blackleg management should not become a routine practice. “Rather, foliar fungicides should be viewed as a post emergent tool to be used under high disease pressure conditions where preventative measures to decrease

blackleg cannot be undertaken,” he said. “Growers and advisors should be aware that control of disease is an integral component of canola production and has to be considered at all points of crop management.”

Resistance worries Another challenge facing growers is an increased ability of the blackleg fungus to overcome resistance provided by specially bred cultivars – such as Hyola 50 resistance which has already been overcome, on Lower Eyre Peninsula in SA. In tight rotations, Steve said rotating actual canola varieties according to the resistance genes of individual cultivars was necessary to avoid and manage resistance breakdowns by the blackleg fungus. This process will be made easier with the launch of a commercial cultivar rotation guide, similar to the current herbicide resistance management system. This canola variety rotation guide, courtesy of the national GRDC Staying Ahead of Blackleg project, will be released in spring 2012. “Experimental field trial work and crop monitoring has shown that when canola cultivars with the same resistance genes or gene combinations are sown in succession they may develop higher disease severity than cultivars with different sources of resistance,” Steve said. “Two types of blackleg resistance are deployed in canola.

JULY 2012

canola

Major gene resistance (or seedling resistance), is usually effective at the point of entry of the pathogen into the plant (leaf or cotyledon); while polygenic (or quantitative) resistance (sometimes referred to as adult resistance), allows initial infection, but restricts growth of the pathogen within the plant. “Each commercial canola cultivar has now been placed into a rotation group that incorporates both the seedling and adult resistance tests.” He said growers can also use the 2012 Blackleg Ratings and Blackleg Risk Assessor (available from GRDC website) to adjust their own crop and paddock management to minimise the potential for blackleg development.

Timely windrowing Finally, if growers can avoid disease pressures and achieve an outstanding crop, they will be faced with the usual harvest pressures of getting the crop off on time. A 3 million tonne crop would put enormous pressure on growers and contractors during the critical windrowingharvesting period which could see a rise in direct heading. Grain Orana Alliance technical executive officer Maurie Street said direct heading might be an option for some growers to consider when windrowing can’t be completed at the ideal time in all canola paddocks. He said modern varieties were better suited to direct

heading and research trials in the past three seasons had shown direct heading often matched the performance of well-timed windrowing. “Compared to early or currently recommended windrow timings, direct heading performed better (with yield losses of up to 0.5t/ha noted on early windrow timings),” Maurie said. SARDI senior research officer Trent Potter said he was happy for growers with low yielding crops to try direct heading, as small windrows could easily be blown across the paddock in strong winds, resulting in significant yield loss. However, he suggested that growers should only try this if they had their own harvester and could take the crop off as soon as the grain moisture content was down to 8%. “Windrowing of higher yielding crops is a safer option and, especially this year when canola is a high price, it is good insurance,” Trent said. Rural Solutions SA Jamestown-based regional agronomist Michael Wurst agreed. “Direct heading can save significant costs in lower rainfall areas. However, in higher yielding crops direct heading is a very risky option, particularly in terms of shattering,” Michael said. “Also canola tends to ripen unevenly across paddocks and windrowing allows the seed to rapidly dry down to receivable moisture levels.”

Blackleg resistance option The launch of Viterra’s Xceed™ Oasis CL canola variety has provided growers in low rainfall environments an alternative break crop option. Xceed Oasis was launched commercially this year and its uptake has confirmed Viterra’s reputation for innovation based on the needs and demands of producers, with some 15,000 hectares of the new variety has been sown in SA and Victoria this season. Xceed Oasis has come out of the Viterra breeding station at Horsham led by Dr Wayne Burton, and partnered with GRDC as part of their Break Crop Australia program. It has performed very well in trials and, being drought tolerant, was very low risk and had high blackleg resistance. It is the first juncea type canola with herbicide resistance to produce food grade quality oil. It has the added advantage of producing high protein meal. Oasis is best suited to southern Australia in areas below 400 mm annual rainfall (ie 175-225 mm growing season rainfall). It is expected XCEED™ will out-perform conventional canola varieties when yields are less than 1.5 t/ha and would

also suit late sowing in higher rainfall zones. Oasis is also suited for direct harvesting, providing a windrowing costsaving of around $25/ha. Viterra is selling area based-production contracts for Oasis, providing growers with a guarantee that they will take 100 % of canola produced at the contracted price. Viterra is also providing guaranteed segregation for Oasis at Rudall and Murdinga on the Eyre Peninsula, Pt Pirie and Balaklava in the central region and Tailem Bend in the Mallee. Based on the success of Xceed Oasis in South Australia and Victoria, Viterra plans to release further varieties under the Xceed trademark, including a triazine-tolerant juncea variety to give more weed control options in low rainfall areas and a new Xceed™ Clearfield line, which will be in large scale grower trials in 2012. Breeding was also focused on producing higher yielding Open Pollination varieties and hybrids, earlier flowering to make more use of rainfall, improved oil contents, and improved adaptation. Additionally, Viterra plans to market Xceed Oasis into NSW and WA in the near future.

Target Price Agreement Marketing your grain has never been so easy Set the price you want

Target Price Agreements (TPA) enable you to get the grain prices you want, without having to constantly monitor the ups and downs of the market. Simple to use It allows you to nominate a price and when our bid sheet meets or exceeds it, a contract is formed. Itâ&#x20AC;&#x2122;s that easy. Flexible options Until a contract has been established, you can amend or cancel your agreement as you see fit. A TPA can also be used for both cash sales and forward contracts.

For more information contact your Customer Relationship Manager or phone 1800 018 205 www.viterra.com.au

Grain pools

How is your pool performing? Since deregulation, the options presented to growers to market their grain have been numerous. With so many different contract types and greater flexibility than ever before, growers now have full control over their marketing strategy. One of the popular options in this mix remains a pool. In the past three years, new entrants have enhanced competition, but not necessarily provided better returns. Grain pools, however, are an interesting beast and have been misunderstood by many in the past. words/ Paul Greener, pool trader, viterra

With 18 years experience as a trader working with fund managers in London, New York and Hong Kong, I have come to realise that no matter what the asset class, the motives for investing in a pool or a managed fund are the same. Ultimately, the reason for investing in a pool or fund is to diversify risk and maximise returns on your investment grain. The role of the pools operator is to outperform the relative benchmark of the cash market by using their economic credentials, market knowledge and industry experience to structure marketing plans that provide consistency and stability to growers. Pooling is a risk management strategy; effectively spreading your price risk across a marketing period in your chosen market. The aim is to never settle for the lowest price while resisting the temptation to chase an all-time high that can rarely be achieved. Pools have changed in recent years and have become a more conventional business tool to outsource the marketing of grain. Pool managers aim

to achieve a better return than the daily average cash price and by investing in a pool, growers are simply employing a commercially astute business strategy. Viterra grain pools for wheat and barley provide an actively managed portfolio that use futures and options to preserve capital and maximise returns for growers. I come from a world where performance is king. If you outperform benchmarks and make money for your clients, you will grow your assets under management. This results in a positive outcome for both parties. That is our goal with Viterra pools. If we perform consistently, over time, we will grow our assets and align our interests with those of the grower. The grower achieves greater returns and the pool makes greater returns. Note the emphasis on consistency. Fund managers are judged on their one, three and five year performance record – not their performance over two or five months. It is much harder to perform consistently over these time periods and given the volatility in markets at the moment, it doesn’t necessarily reduce risk. That’s how

pools should be used – to reduce risk and smooth pricing over the course of the marketing period. Picking the tops in the physical market based on detailed supply and demand analysis as well as moving in and out of the futures and foreign exchange markets to trade basis levels is what a pool manager is paid to do. With this in mind, it is good to know that the Viterra pools have outperformed the average of the daily cash prices in four of the last five years using the APW Port Adelaide wheat prices and pool returns as the indicator. This is a fantastic achievement and yet can often be overlooked. There is no doubt growers would have benefitted significantly by the extra cash in their pockets in recent years. Consistency is the key for pools and the benefits to growers come in the form of better cash flow management and superior returns than if the grower had marketed the grain themselves. Viterra’s performance exceeded that of the market in four of the last five years and the best performance was in the 2010/2011 financial year.

Grain pools

What Viterra pools offer: • More than 60 years combined experience managing pools • Streamlined approach to pool products • One pool for wheat • One pool for barley • Protein, moisture, screenings increments for wheat • Fast and flexible payment options • Fixed management fee If you would like more information about Viterra’s pools, please contact Paul Greener on: 08 8304 1343 or paul.greener@viterra.com.

$/mt at port

2010-11 Pool Performance - APW at Pt Adelaide

$350 $330

Pool Return ($/t at silo)

$310 $290 Average Cash (at silo)

$270 $250 $230 Daily Cash Prices

$210 $190

2010

OCT

SEP

AUG

JUL

JUN

MAY

APR

MAR

FEB

JAN

DEC

NOV

$170

2011

This chart demonstrates the outperformance of the Viterra wheat pool in 2010/11 versus the daily cash price for APW1 at Port Adelaide during the same period. The pool return also includes an average of $10/t quality rewards.

JULY 2012

water efficiency

A drop in time

Improving on-farm water use

In the face of a drying, warming climate, growers need to fine-tune their crop management to enhance water use, minimise risk and boost yields. words/ Rebecca Leigh

Since the 1980s, the concept of water use efficiency by Australian farmers has hinged on the French and Schultz estimate of 20kg/ha/mm of transpiration for wheat. However, this was derived from Halberd wheat (a variety from the late 1960s) and experiments in South Australia indicate the potential for current varieties is closer to 24kg/ha/mm – setting a new benchmark for growers. According to Associate Professor Victor Sadras, a crop physiologist with the South Australian Research and Development Institute (SARDI), growers can capitalise on variety development and introduce farming practices to improve water use.

“The amount and distribution of rainfall are major factors influencing crop water use. Growers’ management decisions affect how much rainfall is used by the crop and how it is used to boost yield,” Assoc. Prof Sadras explained. There are many management practices growers can adapt to their soil and seasonal conditions, but the time of sowing and nitrogen application are critical. “The time of sowing has a marked effect on how water is used by the crop. Sowing a variety at a time that is too early or too late for its maturity type will reduce yield and water use efficiency.” This approach requires growers to view sowing decisions

water efficiency

The time of sowing has a marked effect on how water is used by the crop. Sowing a variety at a time that is too early or too late for its maturity type will reduce yield and water use efficiency. in terms of when the crop will flower, rather than when it can be sown. Slow developing and later flowering crops are best suited to earlier planting, whereas quick growing/early flowering varieties are more appropriate for late sowing. “An adequate and balanced nutrient supply is also essential. Nitrogen is the nutrient required in largest amounts by crops and can greatly affect growth, yield and water use efficiency,” Assoc. Prof Sadras said. “A nitrogen-deficient crop will have impaired photosynthesis so yield per millimetre of in-crop rain will drop. Nitrogen deficiency reduces the crop’s ability to capture soil water and can increase soil evaporation.”

Many growers are moving away from the traditional single application of nitrogen to a strategic split application, which allows them to adjust inputs to the season and the crop’s development. For example, in wheat this second application should target the critical period for kernel set which is between stem elongation and shortly after flowering. Matching nitrogen use to growing conditions allows growers to manipulate canopy development, biomass production and water use to achieve more bang for their fertiliser-buck. However, growers should conduct a costbenefit analysis of fertiliser application as the best yielding crop may not be the best earning.

JULY 2012

water efficiency

An adequate and balanced nutrient supply is also essential. Nitrogen is the nutrient required in largest amounts by crops and can greatly affect growth, yield and water use efficiency. PADDOCK MANAGEMENT Plant density and row spacing also directly link to water use, as the degree and timing of canopy closure affects soil moisture evaporation. Assoc. Prof Sadras said in some situations, evaporation from bare soil can account for as much as half of the water used. “There are other agronomic considerations for selecting plant density/row spacing combinations, so growers may decide to compromise between the need to achieve high yield, the appropriate sowing rate, their desire to maintain crop residues, and the need to access the crop for pest/weed management.” Fallowing captures out-of-season rainfall and increase the water available for crop growth. Control of water-competing summer weeds also contributes to a reduction in water loss, although paddock gradient, soil texture and rainfall are impacting factors. Other tools include species selection (cereals have a greater water use efficiency than oilseed crops), planting break-crops such as legumes (their shallower rooting depths leave subsoil moisture reserves), and paddock engineering to better capture in-crop rain. “Australian growers face a diverse range of soils, rainfall patterns and water availability, so there are many regional differences in crop selection, time of sowing, and input requirements,” Assoc. Prof Sadras said. “Adjustments can be made to balance interactions between these management practices to minimise droughtstress during key developmental stages, and boost the economics of water use by increasing yield per mm of crop water use.” Assoc. Prof Sadras Assoc. Prof Sadras is a co-author of ‘Water use efficiency in grain groups in Australia: principles, benchmarks and management’, funded through a GRDC water use efficiency project. This resource will be available to growers by mid 2012.

Researchers measure soil moisture in a stubble trial. Image: SARDI.

Summer weeds can compete for soil moisture reserves so should be managed to maximise water use efficiency. Image: SARDI.

water efficiency

Tapping into soil moisture With 25 years experience advising South Australian growers, Mick Faulkner of Agrilink Agricultural Consultants, Penwortham, has seen new varieties and technology set new benchmarks for water use efficiency. “Crops are really just little factories which use water to produce new plant parts up to the flowering stage. It is critical to produce enough dry matter to support the plants’ functions without rapidly depleting soil water before grain filling,” Mick explained. “Growers need a water budget so they can make appropriate decisions about variety, when to sow and when to add inputs.” Tools to measure soil water range from complex models to simply digging a hole. By exposing the soil profile with a shovel or dig stick at sites across the paddock, growers can see how much water is stored and use their own experience and known infiltration rates for different soils to determine the available water in that particular soil. Crop production models such as Yield Prophet, which project yield using sophisticated soil water characterisations and modern varietal phenology information, provide a more formal approach. Soil moisture and soil nitrogen measurements and local temperature data has resulted in a high degree of accuracy of Yield Prophet on the particular soil type used. Soil moisture probes are another option, however they do have limitations: • Probes measure the depth of water penetration, so are most effective when growers understand the soil characteristics. • Inaccuracies occur if probes are incorrectly inserted, so use a trained technician. • Probes have not been calibrated for a range of soil types. • Soil moisture probes should not be used in soils that crack. • Inaccuracies occur if water runs down the side of the probe.

“Models and probes rely on point data so have their limitations and should not be used in isolation,” Mick advised. Agrilink has conducted wheat canopy management research for seven years with the aim of linking water use to grain yield given a range of seeding dates, varieties, seeding rates and nitrogen management. “Early sowing of wheat should be aligned with reduced plant populations, longer season varieties, lower nitrogen status and delayed nitrogen applications; whereas late sowing is best served by short season varieties, higher plant populations, higher nitrogen status and earlier nitrogen application,” Mick said. “This approach encapsulates plant physiology, complex interactions of plant population, nitrogen status, seeding date and the need to conserve soil moisture during the growing season so it can be used for grain filling. “Growers should reassess seeding rates and nitrogen application every 10 days from mid April, so they can adjust variety, seeding rate or nitrogen, or a combination of all three.”

A Yield Prophet subscription costs between $100-$150/paddock/year. Soil testing to accurately support the model ranges from $60-150 for analysis (prices ex GST). yieldprophet.com.au

JULY 2012

climate

Early springs, longer autumns and unpredictable rainfall -

Are the shifting seasons here to stay? Changing weather patterns mean that grain growers in south eastern Australia can no longer rely on old ‘rules of thumb’ to guide the cropping season, said Darren Ray, a Senior Meteorologist for the South Australian Climate Section of the Bureau of Meteorology. words/ Heather Rowland

“Traditional markers for sowing and harvesting, such as the Anzac Day season break, may no longer apply,” Darren said. “And the latest modelling evidence suggests that this is a longterm trend that may yield even more radical departures from what has been the norm over earlier decades.” He said seasonal weather patterns are shifting, making it important for growers to adopt a more flexible approach. “Predicting planting and harvesting times in specific regions varies year to year from natural variability, but long term trends in the seasons are becoming apparent,” he said. “The best option is to closely monitor what is happening in your region through the range of online resources available,

including improved seasonal forecasting tools under development.” (See useful links at right). Darren said that there are two main climate shifts occurring in Australia that are affecting the onset of the seasons. The first is from increases in temperature, and the second is marked changes in atmospheric circulation patterns. “Over the past 50 years, Australia has experienced an overall temperature increase of about one degree, in line with warming seen generally around the globe,” he said. “This background warming is resulting in extended autumns, shorter winters and the early onset of spring, meaning that the growing season is, in a sense, contracting.

“In 2009 for example, South Australia experienced an extremely hot August, and November was consistently in the low to mid 30s, which markedly reduced crop yields. Farmers report that flowering is occurring two to three weeks earlier than in the past, in response to that one degree of warming.” Darren said that global warming is also likely to blame for changes to atmospheric circulation patterns, which strengthen the intensity of highpressure systems across south eastern Australia, delaying rainfall at the start of the southern growing season. “As atmospheric circulation patterns change, the cold fronts that bring the rain stay further south,” Darren said. “This has caused a strong drying trend

climate

Darren said that global warming is also likely to blame for changes to atmospheric circulation patterns, which strengthen the intensity of high-pressure systems across south eastern Australia, delaying rainfall at the start of the southern growing season. across south eastern Australia across the southern growing season, most particularly in April to June.” According to a report from the Centre for Australian Weather and Climate Research (a joint initiative between the CSIRO and the Bureau of Meteorology) south eastern Australia experienced its driest 13-year period on record since 1900 in the period from 1997 to 2009. Significantly, the record spring and summer rainfall experienced over the past few seasons has occurred mainly outside the southern growing season and has been driven by natural variability. “Impacts from the long term drying trend included a 44% drop in stream flows to the Murray River system with an 11% decline in rainfall, in the drought

which ended in 2010.” Darren said. “The South West of Western Australia is also experiencing marked rainfall decline. But this is due to broader changes in atmospheric circulation patterns, rather than what is happening in south eastern Australia.”

coming decades. “The drying pattern is pretty likely to re-emerge over the next year or two, and it may get more extreme with time. If that happens grain growers will need to make significant changes to their farm management over the next two decades.”

Long-term trend? “It’s normal to see bursts of climate variability decade to decade, but the warming trend and atmospheric circulation pattern changes have been consistent through the past 50 years,” Darren said. “The long term trends starting to become apparent are not just from natural variability. There will likely continue to be further broad scale changes to atmospheric conditions over

Cropping programs “A shorter growing season and later starts are leading many growers to experiment with alternative varieties that require shorter growing seasons,” Darren said. Pest management will also require some revision, as warmer weather and lack of rain makes pests stick around for longer and arrive earlier (see next page).

Useful links for growers Rainfall forecast - bom.gov.au/jsp/watl/rainfall/pme.jsp Soil moisture analysis from Australian Water Availability Project - csiro.au/awap Australian climate variability and change - trend maps - bom.gov.au/cgi-bin/climate/change/trendmaps.cgi Climate maps displaying conditions from 1900 (rainfall) and 1910 (temperature) to present - bom.gov.au/climate/maps/ Report: Understanding the anthropogenic nature of the observed rainfall decline across south eastern Australia from The Centre for Australian Weather and Climate Research - cawcr.gov.au/publications/technicalreports/CTR_026.pdf

JULY 2012

climate

Ten integrated pest management tips The change in seasons will certainly lead to more complex pest management challenges, but according to SARDI Entomologist Kym Perry, simply filling up the boom-spray is not the answer. “Certain pests are heavily influenced by seasonal variations in temperature and moisture,” Kym said. “Cold, wet winters restrict the development of pests such as aphids and diamondback moth but in milder winters we’ve seen higher populations of these pests carrying through into spring. “Weather patterns also influence the timing of arrival of migratory pests such as native budworm and Etiella moth

into agricultural areas in spring. “Early sowing and establishment where possible can help crops get a head start on autumn and spring pests.” Kym said that an integrated pest management program using all available tactics, rather than a purely chemical solution, will lead to better results in the field. “Integrated pest management is about planning ahead and taking a proactive, rather than reactive approach,” Kym said. “Thinking in advance often provides more control options and reduces the reliance on anyone single method of control.”

1/ Unusually high numbers of diamondback moth larvae were observed in canola crops on the Lower Eyre Peninsula in winter, 2010. Image SARDI. 2/ Numbers of diamondback moth larvae in canola crops on the Lower Eyre Peninsula caused concern for a huge spring population in 2010, which thankfully didn’t eventuate. Image SARDI. 3/ A cabbage aphid colonises a flowering canola crop in early spring. Image SARDI. 4/ Damage to crops on the Lower Eyre Peninsula from diamondback moth larvae caused by late summer rainfall in 2010, which led to a green bridge. Image SARDI. 1

climate

Kym’s Tips: 1/ Identify potential problem paddocks well before sowing Planning ahead means you have more control options. Tillage, stubble management, weed control, crop rotations, varieties, insecticidal seed dressings, seeding rates and time of sowing are all cultural practices that can be manipulated to reduce pest populations at seeding.

2/ Monitor crops regularly to detect pest problems early As seasons become milder, monitoring needs to start earlier – say in mid winter – to detect signs of infestation.

3/ Correctly identify the pest responsible for damage before deciding on control methods Crop Insects: The Ute Guide – Southern Grain Belt Edition is available from the GRDC Bookshop for $27.50 plus postage and handling. SARDI Entomology provides a free diagnostic service for subscribers of PestFacts SA and Western Victoria Edition (see tip 10).

4/ Use insecticides strategically They play an important role as part of an integrated pest management approach but should be used strategically to complement rather than disrupt natural biological controls to improve overall pest suppression.

5/ Only spray when necessary – avoid prophylactic sprays Spray decisions should be based on monitoring and correct identification rather than routine sprays. A blanket approach can be a waste of money if pest pressure is low or if the product used is inappropriate for the pests present.

6/ Calculate whether spraying is economically justified For some pests, there are economic threshold guidelines available to assist with this. Look at the cost of potential future damage (rather than damage that has already occurred) if no treatment is undertaken, versus costs of control. This will depend on grain prices, chemical and application costs, density of pest and beneficial insects, and crop growth stage and health.

7/ Choose insecticides carefully Use an insecticide that will effectively control the target pest and consider selective options which are available for aphids and some caterpillar pests.

8/ Rotate chemical groups to reduce the risk of insecticide resistance Multiple sprays with the same chemical group selects for insecticide resistance, therefore use products from a difference mode of action group for repeat sprays.

9/ Treat only affected areas where practical to conserve beneficial insects in untreated areas Many pests have a patchy distribution within crops and can be effectively controlled by spot or border spraying without needing to treat the entire paddock.

10/Stay abreast of new information regarding pest activity Growers and advisors are encouraged to subscribe to PestFacts SA and Western Victoria Edition. This free e-newsletter is published by SARDI Entomology on an asneeded basis during the winter growing season providing updates, alerts and the latest information on current invertebrate pest issues in grain crops. Subscribe here: sardi.sa.gov.au/pestsdiseases/publications/pestfacts2

JULY 2012

in brief

Outer Harbor boosts shipping records Viterra’s ports have continued to be busy into the year, following two record crops in south-eastern Australia and strong demand for Australian grain. The State’s most recently built port, Outer Harbor, has exported almost 20% of the State’s grain since the first ship was loaded there in October 2009. In total, 119 ships have been loaded at Outer Harbor, with a total of 3.643 million tonnes of grain on board destined for Asian and Middle Eastern markets. Since October 2009, more than 18.72 million tonnes of grain has been exported from the State. Viterra also recently broke another

all-time shipping record, with more than 900,000 tonnes of grain exported from its South Australian ports in March 2012. The 912,029 tonnes of grain shipped during March exceeded the previous monthly record of 839,658 tonnes shipped in February 2004. Dean McQueen, Executive Manager Grain, said the result was a positive reflection of Viterra’s commitment to facilitating export shipping from South Australia. “The continued high shipping figures reflect the strong demand for South Australian grain,” he said. “It is thanks to our employees

that exports are being facilitated in such an effective way enabling us to consistently break record after record,” he said. “Last year, we broke the calendar year record by shipping 8.41 million tonnes of grain on behalf of 15 exporters, and now, five months into 2012, we’ve already shipped 4.03 million tonnes from the State. “The through-put we’re seeing, despite high world grain stocks, demonstrates the global demand for South Australian grain and is a positive result for the State, marketers and growers alike.”

in brief

Blueprint for Australian agriculture The future direction of Australian agriculture is being determined over the course of this year as the National Farmers’ Federation and the agricultural sector put together the Blueprint for Australian Agriculture. Designed to bring together ideas from all with an interest in, or involvement with, agriculture, forums have been held in each state and territory across Australia over the last four months. At the same time, Blueprint contributions have been sought from stakeholders through a sophisticated online survey, webinars and social media discussions, community-run Blueprint forums, the NFF membership network, and additional industry participation. Farmers, transporters, processors, retailers, consultants, rural businesses, agribusinesses, educators, governments, rural communities,

community groups and consumers have all been involved. The purpose has been to identify what stakeholders believe are the key issues and challenges facing the agricultural sector and the wider agricultural supply chain now and in the future, and also to capture the opportunities and solutions to achieving a strong and sustainable future. It is anticipated the Blueprint for Australian Agriculture will ultimately become a document which will set out the road map for the future of the agricultural sector and its supply chain. Stakeholders were asked to prioritise issues they believe are of importance now and will become of greater importance into the future, including such issues as the perception of agriculture and the profitability of the sector; land use change;

water availability and management; education, training and skills; labour shortages; commodity prices; climate variability and Government policy and regulation. The findings of the Blueprint are now being analysed and will be tested at the NFF National Congress in Canberra on 22 and 23 October, with the final Blueprint document slated for release in December. Importantly, this will not be the end of the Blueprint process. Following its release, the NFF will continue to work with the agricultural sector and the supply chain to ensure that the Blueprint helps shape the future of the farming sector. The Blueprint is an initiative of the NFF, with support from Westpac, Woolworths and the Australian Department of Agriculture, Fisheries and Forestry. To find out more on the Blueprint, visit nff.org.au/blueprint.

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JULY 2012

food production

Food safety and quality assurance in the grain industry In recent years, the most significant change in the field of food safety and quality assurance has been the increased move to mutual recognition of quality assurance and food safety programs globally. As developing countries enter the international food market, food safety becomes an increasing challenge. words/ Fred Andersen, Vice President of Food Safety and Quality Systems, Viterra

food production

The United Nations is projecting that by 2020 the global population will be in excess of 7 billion which will be an estimated 30% increase in population from the mid 1990s. As the overall population increases there will be significant challenges for food safety systems. To meet the demands of the increased population, agricultural practices will need to intensify. Food handling, processing and distribution will expand and need to be more efficient .The food industry globally will be required to assume the responsibility of addressing and meeting food safety, quality and regulatory requirements. The food industry encompasses the whole supply chain including farmers, storage, processing, transportation wholesale and retail marketers. Everyone in the â&#x20AC;&#x153;farm to the forkâ&#x20AC;? supply chain has a role in ensuring food safety and quality. The establishment

of risk-based food safety systems throughout the supply chain can ensure improved food safety and quality, and increased market competitiveness. Regulatory bodies globally are currently redefining these requirements in collaboration with industry with the goal of continuing to supply safe food. The Global Food Safety Initiative (GFSI) was established by global food manufacturers and suppliers to pursue continuous improvement in food safety systems. The harmonisation of worldwide food safety standards is designed to provide assurance of safe food for consumers worldwide, by increasing transparency and efficiency in the supply chain. The initiative provides an opportunity for collaboration between leading food safety experts from retailer, manufacturer and food service companies, and service providers associated with the food supply chain,

international organisations, academia and government. There are a number of companies in the food industry that either require or accept a GFSI food safety standard. These include Viterra, Cargill, Kraft Foods, ConAgra Foods and many others. At Viterra, our processing facilities are certified to the FSSC 22000 standard and our grain and malt facilities are all ISO 22000:2005 and certified in compliance with the GFSI requirements. The key elements in our food safety system focuses on a hazard assessment and preventative control process to address food safety hazards and risks, inspection and testing protocols, product traceability and recordkeeping and management of our supply chain. The benefits of a food safety and quality system include a reduction in food borne illness, consumer protection and enhanced consumer confidence.

JULY 2012

pulse management

Feeling the pulse Farms without a pulse will die – whether that pulse be vetch, field peas, lupins, faba beans, lentils or other legumes. words/ heather rowland

That’s the sobering advice from Peter McInerney, a principal and senior consultant at Wagga Wagga based agricultural management firm 3D-Ag, who has long been an advocate for brown manure. Peter believes that as continuous cropping enters its third decade, farmers need to be constantly re-assessing their systems to achieve sustainable weed control and soil nutrition. “Brown manure is an investment requiring low inputs, with positive flow on effects to subsequent crops as well as the potential to generate income from grazing livestock or fodder conservation,” Peter said. “It mimics the benefits of a pasture phase in a traditional mixed farm system and properly managed, it allows farmers to develop a more sustainable program with more reliable returns – and it builds resilience against seasonal variability. “Overall it is a great risk management tool.” Peter said the benefits in introducing a brown manure phase in a continuous cropping program included: • ‘Free’ natural nitrogen for following crops, therefore reducing input costs • Conditions the soil and promotes organic matter accumulation • Provides an opportunity for timely weed seed set control • Grazing/fodder conservation, generating additional income “Manuring a pulse such as vetch has produced enough nitrogen for two to three following crops,” Peter said. “Certain field pea varieties can produce five to seven tonnes of above ground biomass, which makes an amazing natural weed mat and water conserving mulch. “In addition, the slow release nature of the organic nitrogen

produced means that the crop can take up the nitrogen when it needs it,” he said. “In a dry finish, for example, the crop will not be over fertilised and therefore reduce the potential for high screenings. “Our clients found that during drought, crops following brown manure hang on much better than their manufactured nitrogen counterparts. “In fact one client found that during the worst of the drought years, brown manure itself was the highest returning enterprise on the farm, due to his ability to trade lambs.” Despite this good news, Peter cautions that there is no ‘one size fits all’ solution. “It’s important to build a rotation that fits the individual farm, the available resources and those responsible for farm management,” he said. “The key is to build the performance of the whole rotation to ensure your most profitable crops have the opportunity to perform at their best.” Peter said his clients had now been able to quantify the results after several years of brown manuring, with a widening margin between expenses and income. “We are seeing a definite increase in yield following a brown manure phase, as well as higher quality, with wheats achieving H1 and H2,” he said. “This compares directly with other paddocks where manufactured nitrogen has been used and they have only produced lower grade APW. “If you look at the bottom line, this represents a cash saving on nitrogen inputs of approximately $70/ha and an increase in grain income of over $100/ha. “It’s not hard to see the benefits.”

pulse management

The 20 Year Legacy “Many farmers in Australia adopted a continuous cropping program to maximise income, following the 1991 collapse of the wool floor price scheme,” 3D-Ag management consultant Peter McInerney said. “Most favoured a reduced till or no-till model, predominantly sowing canola and wheat.” 3D-Ag recognised that systems with such a tight rotation were not sustainable. There was a decline in natural soil fertility, which meant extensive (and expensive) applications of nitrogen. There was also an accelerated risk of developing herbicide resistance. “Reliance on group A and B herbicides in cereals and groups A and C in canola, led to a rapid increase in the development of annual rye grass resistant to group A and B herbicides across South East Australia, and group

A herbicide in South Australia and Western Australia,” he said. “The extensive use of Triazine resistant canola in Western Australia resulted in Triazine resistant wild radish in the region. “In areas such as Western Victoria, where soil pH meant that group B herbicides were infrequently used, the pressure fell on Trifluralin, resulting in the development of group D resistance. “There has also been a recent emergence of ‘Roundup ready ryegrass’ as a result of the over-use of Glyphosate.” Peter said it doesn’t mean that continuous cropping is finished – just that new and more sophisticated rotations must constantly be considered..

JULY 2012

farm profile

Woodlea Business Owners/Managers The Dayâ&#x20AC;&#x2122;s farming enterprise is owned and run by Max (67) and Fran (59), Steven (34) and Mark Day (31). Max and Fran also have a daughter Tanya. Steven and Felicity have three children, Will, 6, Majella, 4 and Sophie, 2 and Mark and Rachel have a son, Charlie who is 17 months. Property name and location Woodlea, at Lockhart on the New South Wales Riverina, (West of Wagga Wagga) Annual rainfall 450mm Cropping area/program 3400ha with a mix of canola, wheat and field peas.

farm profile

JULY 2012

farm profile

The future for farming looks bright for us, there are always going to be challenges that will make it difficult, but if we can maintain a low cost base farming system and produce wheat in the tough years, we are confident the future for farming will remain positive.

When was the farming district settled? The Lockhart farming district was settled in the 1840â&#x20AC;&#x2122;s and was originally all grazing land. It naturally evolved over time into cropping. Our family are fourth generation farmers. The original property was settled by my great grandfather and has been handed down from generation to generation since. Today the farming land owned by the Day family in the district has expanded to the equivalent of approximately 10 farms. What made you want to run a farming business? After both Steven and I finished our tertiary education in agriculture we wanted to be farmers. Opportunities presented themselves with the family farm, with that we took hold of them and created a family partnership and expanded the operation. We have both had a passion and keen interest in farming from a young age. Now we both have young families we are driven to give them the opportunity to be famers as well. How do you manage your cropping program? The farming system is now built around a rotation of canola, wheat and brown manure field peas. We decided to sell our livestock in 2006 and begin a

continuous cropping rotation of canola-wheat. In 2009 we introduced a brown manure phase to our canola-wheat-wheat rotation to increase effective weed control and reduce the onset of herbicide resistant weeds, as well as manage cereal diseases and improve soil nitrogen levels. We planted just 200ha in 2009 to enable us to gather evidence that would support ongoing use of a brown manure phase and after the first year we noticed that weed control and nitrogen levels had improved in the subsequent crops. That year our yield improved by about 0.5 tonne a hectare, better than any other canola grown on the farm. This season we will plant our second wheat crop in the rotation. The system has reduced the application of expensive nitrogen, our use of herbicides in broadleaf and grass control have been scaled back and weâ&#x20AC;&#x2122;re not entering the paddock once the crop is sown, so thereâ&#x20AC;&#x2122;s less fuel and labour costs. Since 2009 we have seen better soil moisture retention, improved yield, reduced disease levels and a boost in natural levels of nitrogen.

farm profile

It is too early to determine whether we will see income improvements. But early analysis shows that this program can compete with both mixed farming and continuous cropping systems. We do have a lower income in the brown manure phase, but this has been balanced out by a reduction in expenses. In 2010 we were lucky enough to be nominated for a Conservation Farmer of the Year Award and won the award for the Murray catchment. This award recognised some of the sustainable practices we’d introduced to our farming system such as stubble retention, brown manure phase, maintaining ground cover and reduced soil compaction through a 12m controlled traffic system. What does the future look like? The future for farming looks bright for us, there are always going to be challenges that will make it difficult, but if we can maintain a low cost base farming system and produce wheat in the tough years, we are confident the future for farming will remain positive. We will continue with the same rotations unless something comes up that gives us a reason to change.

Our family - with the help of our farm advisor, solicitor and accountant - has developed a succession plan for the family business. While our parents will still be actively involved in the business for the next few years it’s good to know how the transition will take place. We would like to grow our farming enterprise but this will happen organically rather than aggressively. I imagine our operations will look pretty similar to what they are now in five to ten years’ time. Eventually we’d like to give our kids the opportunity to be involved with the farm as the fifth generation on the property but it’s really too early to tell whether they will be interested. How do you see the farming business changing in your district? The biggest change will be that family run farms will have to increase scale to remain competitive. Different business models that involve the combination of leasing/owning will become more common. Equipment costs will need to be spread over wider areas to maintain a low cost structure. Careful and well-managed cropping systems will continue to dominate the land use.

JULY 2012

Phosphorus

Phosphorus philosophies Dry seasons make growers cautious about applying phosphorus – in fact adding extra phosphorus in some conditions amounts to a downright waste of money. Grain Business shares the latest research findings from CSIRO, that will help growers minimise input costs and maximise yield. words/ Olivia Fuller

When it comes to philosophising about phosphorus (P), Dr Therese McBeath from CSIRO is a fertile thinker. “Most farmers feel quite comfortable with the application of nitrogen before or during the growing season to boost yield,” Therese said. “However, there is less confidence in the understanding of the impact of phosphorus because of its sensitivity to variables such as soil type, seasonal moisture, the existing residual P rates and the types of crop grown.”

Soil Type Naturally enough, soils that are deficient in phosphorus will show the greatest response to fertiliser application. “Phosphorus deficiency is usually diagnosed using soil or tissue testing,” Therese said. “The soils that are most commonly deficient in phosphorus have a high buffering index which means a high capacity to retain added phosphorus within the soil matrix, reducing availability to crops.” She said soil components that increase the phosphorus buffering index include calcium (eg. Calcareous soils), iron (eg. Ironstone soils), aluminium (eg. Vertosols) and to a lesser degree soils with high levels of magnesium and organic matter. Despite a low phosphorus buffering index, sandy soils can also be deficient where fertility has been allowed to run-down.

Seasonal Moisture Therese said trials across various parts of South Australia and Victoria had found the amount of phosphorus fertiliser added that was actually used by plants increased with higher rainfall. “Unfortunately as there is no reliable way to tell if it is going to be a wet or dry season, the application of extra phosphorus at sowing is used to manage risk,” Therese said. “Unlike post-emergent nitrogen, the application of postemergent P is still a developing research area. “Current research suggests that the uptake of phosphorus from stem elongation to anthesis is very important for productive crops. “The hypothesis that we plan to test in a newly funded GRDC project is whether we can ‘top-up’ phosphorus supply during this growth phase using in-season phosphorus application in seasons of higher yield potential and therefore higher P requirement.” Therese said the investment in phosphorus versus nitrogen depended very much on the soil type and yield potential. “If the soil has a P level well above sufficiency but a high demand for nitrogen, an example of this is some of the sands that we work with in the Mallee, then there may be some merit in reducing investment in phosphorus to supply adequate nitrogen.

Phosphorus

Research undertaken by Sean Mason at the University of Adelaide suggests that canola removes twice as much P as cereals and that pulses are also high removers of the nutrient. Cereal hay, cereal straw and oats on the other hand are lower removers of P than cereal crops.

JULY 2012

phosphorus

“But it is not something that we can generalise, it requires information at the paddock and soil level to sensibly make that decision.” She said rainfall was also not an accurate guide. “There is no magic cut-off rainfall as there are too many variables at play,” Therese said. “For example in 2011 we had very high summer rains but low in-season rains which gave us an above average yield potential. “Generally summer rainfall will have a lesser value than winter rainfall because of evaporation, but in this case it was enough to set a higher yield potential. This is why there is no one number. “Some farmers use in-season nitrogen application as a way of managing risk as they can wait until they have a firmer knowledge of yield potential before applying nutrients. However, there are also risks associated with in-season nitrogen application that come from not having the right weather conditions (eg the appropriate rainfall at the right crop growth stage) that managers find logistically difficult on large-scale farms.”

Residual Phosphorus Therese says that many southern Australian farms have residual phosphorus in soils because crops only use around

30% of the phosphorus applied in the year before. “The ability of residual phosphorus to feed growing crops depends on a number of factors including soil type, phosphorus demand and soil moisture,” She said. “Some farmers use a phosphorus balance method as a means of maintaining phosphorus levels in their soils by adding the amount of phosphorus that was removed in the grain harvested in the previous season. “This grain P removal is usually determined using an arbitrary figure for phosphorus removal of 3-4 kg/tonne of grain harvested/ha. There is some variability in phosphorus removal between different soil types that shows up in grain phosphorus testing in trials and this variability creates some uncertainty in the use of an arbitrary figure. “Research undertaken by Sean Mason at the University of Adelaide suggests that canola removes twice as much P as cereals and that pulses are also high removers of the nutrient. Cereal hay, cereal straw and oats on the other hand are lower removers of P than cereal crops.” With all of these variables at play an understanding of whether phosphorus fertility is building, maintaining or running down using monitoring tools such as soil and plant testing or in-paddock test strips will provide more confidence in P management decisions.

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carbon era

Carbon era begins Love it or loathe it, the carbon tax is here. But what does it mean for growers? Grain Business explains the facts and figures you need to be aware of. While farm businesses are not classified as liable entities and agricultural and land sector emissions are exempt from the legislation, farmers - like other businesses - will pay for the carbon tax indirectly through increased input costs. According to Malcolm Wight a Tax Director with William Buck, the best thing farmers can arm themselves with is knowledge. “The businesses that acknowledge the reality of the carbon tax and are prepared for it, will handle the change the best,” he said. words/ Olivia Fuller

The Carbon Facts - what you need to know Who is required to pay?

What is the price of carbon?

Only a few businesses will be impacted directly by the tax and would be required to acquire eligible emission units (EEUs). You would need to be emitting 25,000 tonnes or more of carbon dioxide a year and this is restricted to around 500 large businesses. To satisfy their obligations under the legislation those businesses must surrender an eligible emission unit (EEU) for each tonne of carbon emitted. An EEU can be one of three types: • A“carbon unit issued by the regulator” • An “eligible international unit (generated overseas)” • “Australian carbon credit unit (generated in Australia via undertaking certain green activities).”

Initially the price of carbon will be fixed at $23 a tonne and liable entities will be required to acquire and surrender EEUs equivalent to their tonnes of emissions. Liable entities will be required to report to the regulator that they are able to cover 75% of their emissions by 15 June 2013. An entity will know of its liability, as the calculations are currently required to be undertaken and reported under the National Greenhouse and Energy Reporting Act (2007).

What cost increases can growers expect? Most businesses and consumers will be affected indirectly by the costs passed on by those larger energy consuming companies. In most

cases this will lead to an increase in electricity costs, fuel and in the case of farmers, fertiliser. The significance of each of these costs within each farming enterprise will determine how negatively growers will be impacted. An initial increase in electricity costs of 10%-15% is expected. If your enterprise uses significant power you should already be speaking to your electricity provider to discuss your contract. While other businesses may have their fuel tax credits reduced, agriculture, fisheries and forestry will retain the same fuel tax credit. Fertiliser prices are anticipated to increase as manufacturers use a lot of energy to manufacture their product and will pass those costs on to the consumer.

carbon era

An initial increase in electricity costs of 10%-15% is expected. If your enterprise uses significant power you should already be speaking to your electricity provider to discuss your contract. Malcolm Wight, William Buck

Machinery costs will not necessarily increase significantly and there should be no impact on labour cost as a result of the carbon tax.

How can growers compensate for this? Certainly more efficient use of any input can assist and there may be alternative products. For most however, knowledge is important and it is worthwhile looking at the government’s clean energy website: cleanenergyfuture.gov.au The government will apply a 15%

tax offset for the purchase of eligible “Conservation Tillage” technology purchased between 1 July 2012 and 30 June 2015. The amount can be claimed through a tax return and eligible parties must participate in a survey.

Accessing the Carbon Market For those growers that may be able to participate, the government has set aside $1.7 billion to invest in the land sector. The government indicates that “Australian farmers and land managers will have access to the carbon market and be able to generate revenue by reducing emissions or increasing carbon storage.” The possibilities, although limited, can be reviewed on the Clean Energy website cleanenergyfuture.gov.au

How can growers pass on the rising costs? Farmers are unlikely to be able to easily pass on the cost impact as they generally have little impact in determining the price received for their products.

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JULY 2012

streamlining

I don’t have to shuffle cards around, all I need is the one card. - Robert

NGR card turns ten The system that transformed Australia’s grain delivery and payment process - the National Grower Register (NGR) - is celebrating its tenth birthday this year. Up until 2002 Australian growers had to register with every bulk handler and grain buyer – a nightmare of paperwork and record keeping for time poor farmers. This September marks the tenth anniversary of the introduction of the NGR card and with more than 50,000 registered business arrangements and almost 100% satisfaction rate from growers, the NGR certainly has something to celebrate. NGR General Manager Debbie Newmarch said the system was established to address inefficiency and duplication. “NGR provides a win-win situation for both growers and the industry,” Debbie said. “We offer growers a centralised place in which to register and maintain their contact and payment details, saving them from having to fill in multiple registration forms. “Our service is free to growers and they enjoy being able to call the NGR freecall number to either register or update their details.” Debbie said the system also benefits buyers, who have the ability to keep grower contact and payment details up to date without having to maintain their own registers, saving them time and money. “The unique identifier (the NGR Card) facilitates the transfer of information directly between growers and the

buyer as well as enabling buyers to access up to date, standardised details of growers they have transacted with (authorising the buyer to access their details) for the purposes of contact and payment,” she said. And it’s not just Debbie Newmarch who believes in the system. A recent independent survey found that 99% of growers enjoyed being able to register and update their details in a centralised register; 99% of growers supported the concept of having a single card that could be used at multiple grain delivery points; and 95% of growers supported having a single card that authorised multiple buyers to access card holder information for contact and payment. “NGR has proven it can deliver and will continue to deliver on its founding principles of providing a simple, streamlined and secure data transfer system between growers and buyers,” Debbie said. “We are tried and tested and are now an integral part of the industry. We are proud of our achievements over the last 10 years including standardising and simplifying the data transfer system between growers and buyers; reducing duplication and paperwork for both industry and growers; and proving ourselves as a trusted provider.” To contact NGR or to find out more information freecall 1800 556 630 or email admin@ngr.com.au.

Harvest Jobs Expressions of interest open July 16 What we offer:

. . . . . .

Flexible working hours Employment opportunities from October to February Supervised team environments Male & female workers required at all sites All training and uniforms supplied Overtime and penalty rate opportunities

Visit www.viterra.com.au for more information

work force

Professional agriculture – it’s a brand problem Building and sustaining an educated agricultural workforce is the sector’s biggest challenge – and the answer might be making farming sexier.

work force

Over the past quarter of a century the proportion of the Australian community with tertiary qualifications has increased by 15% but in the agricultural sector that proportion has risen by only 3%.

Agriculture is a complex business and never more so than in the 21st century. Farmers are required to be production experts, marketers and climatologists as well as dealing with health and safety compliance and native vegetation and biodiversity issues. The agricultural industry – on-farm, the farm service sector, post-farm gate value adding ¬plus research and development – requires a workforce which is highly educated and skilled. And that means creating an image and reputation which attracts the best and brightest young people away from business, engineering, law, medicine and IT. The demand for professionals is clear, according to Charles Sturt University’s Professor Jim Pratley who says there are more than 4,000 new jobs (predominantly off farm professional roles) in agriculture every year. “However the number of graduates being supplied by Australian universities continues to decline and is currently less than 20% of the number needed to satisfy the job market,” he said. “Over the past quarter of a century the proportion of the Australian community with tertiary qualifications has increased by 15% but in the agricultural sector that proportion has risen by only 3%. “The gap is widening, yet food production would seem to be an essential service industry where standards should be unquestionably high.” He said degrees and associate degrees in agriculture delivered around 800 graduates to the industry in the late 1980s. By 2001 numbers had declined to around 500 and that decline has continued so that only 300 degree graduates in agriculture entered the workforce at the end of 2010. Overall there has been a 40% decline in the last 10 years. Professor Pratley said these figures highlighted that education had not been a high priority for the agricultural industry for more than a generation. To address this issue, the Australian Council of Deans of Agriculture (ACDA) was formed in 2007, to provide a point of contact for university agriculture in Australia and to cultivate

the next generation of agricultural professionals. “The challenge in agriculture at our universities is to offer courses of study which directly meet the changing needs of the sector,” Professor Pratley said. “Students need to be equipped with skills which put them at the leading edge of science, technology and management. “Regardless of the needs of the industry the level of educational attainment is unacceptable. “There has been complacency towards the improvement of skills and knowledge of the agricultural workforce, at a time when the rest of the community has embraced the opportunities and moved well ahead. “It is not surprising therefore that the image of the industry is not seen as progressive. The younger generation just doesn’t see the same opportunities for careers in agriculture that are seen in other industries. “Yet agriculture is clearly an industry that needs an educated and skilled workforce, that offers exciting and rewarding careers and presents a strong employment market.” Professor Pratley said the industry response to workforce shortages – increasing the workload of existing staff, stealing staff from competitors – masks the problem. Alternatively less qualified people are employed reducing the quality of service to clients and putting agribusinesses at risk. “Anecdotal evidence from industry is that qualified people are leaving the industry due to the work demands being placed upon them, which is exacerbating the problem,” Professor Pratley said. “The issue is not that there are no exciting and rewarding careers in agriculture – it is that the emerging workforce generation does not perceive that those opportunities exist in agriculture and is attracted to the more positive images portrayed in other employment settings. “The challenge for the industry is to make prospective students aware that careers in agriculture are at least as interesting, rewarding and challenging as in most other industries.”

JULY 2012

“I’M LOOKING FOR A WAY TO EXPAND MY AIR SEEDER’S EFFICIENCY AND LOWER MY INPUT COSTS.”

THE TRIMBLE FIELD-IQ CROP INPUT CONTROL SYSTEM IS YOUR EXPANDABLE SOLUTION. The Field-IQ™ crop input control system from Trimble offers multi-channel capability for your air seeder and is compatible with the Trimble® FmX® integrated display. The Field-IQ system supports many different drives, including linear actuator and PWM. Add Farm Works® software to create your own prescription maps and expand your productivity even further.

Visit www.trimble.com/agriculture for more information or to find a reseller near you. © 2011, Trimble Navigation Limited. All rights reserved. Trimble, the Globe & Triangle logo, Farm Works, and FmX are trademarks of Trimble Navigation Limited, registered in the United States and in other countries. Field-IQ is a trademark of Trimble Navigation Limited. All other trademarks are the property of their respective owners.

Wool

Clip preparation key to Australian wool reputation Two decades of tough times may have left woolgrowers underprepared for the current price recovery – especially in the area of quality clip preparation. words/ Olivia Fuller

“Australia has experienced a decline in clip preparation quality due to difficult market conditions and a decline in both sheep numbers and rural labour availability,” said Alister Carr, Trading/Buying Manager: Wool Export at Viterra.

“But the underlying demand from the world’s wool buyers remains the same – they want a low risk technical and commercial product that delivers predictable results with no surprises. “Therefore, with wool prices strong and top quality clips in high demand,

there’s never been a better time to ensure wool preparation processes are in order.” Alister said Australia’s high wool classing standard (The Australian Wool Exchange’s (AWEX) Woolclassing Code of Practice) had enabled

JULY 2012

Wool

The Standard • Employ formally certified wool classers • Prepare uniform and predictable lines of wool (that meet the needs of buyers and wool processors) • Ensure the wool is free of contamination • Ensure the wool is packaged, described and documented correctly • Ensure product integrity – no surprises! • Support wool classer registration

The Penalties Poorly prepared wool can receive the following: • 19.0 and finer Merino wool - 3040 greasy cents per kilogram • 19.0 and broader Merino wool 15-20 greasy cents per kilogram • XB wool 5-10 greasy cents per kilogram

• Encourage compliance and performance monitoring

producers to sell their product as the wool of global choice for more than a generation. The AWEX Standard is issued to trained and registered woolclassers who oversee and participate in the preparation of wool in the shearing shed. Clip preparation policies in the standard are based on technical principles that have been developed after extensive research. “Wool prepared to, or above the standard means end users can buy the wool with confidence. This in turn attracts price premiums and market attractiveness,” Alister said. “Failure to meet these requirements not only adversely affects the buyer/processor commercially but also reduces

wool’s ability to compete against other fibres in an aggressive global textile market.” Alister said producers needed to use a trained, registered woolclasser to ensure wool conformed with the AWEX “P” certification. “Clip preparation is the first stage of the wool processing pipeline and the quality of the work at this point can materially influence subsequent stages of wool handling, pricing and processing,” Alister said. “Wool prepared by a registered wool classer is identified in sale catalogues to enable buyers to identify and preferentially source classed wool. “As each flock and shearing shed is different, the wool classer and wool handling team must assess and

respond to the type of wool being removed and prepare it accordingly,” he said. On the flipside, unclassed wool can attract significant spot market discounts particularly in fine wool. For example poorly prepared fine merino wool can be discounted by as much as 40 greasy cents/kg and broad wools by 15-20 greasy cents/kg. XB wools can also attract discounts of 5-10 greasy cents/kg. “This is more evident in softer market conditions when the buyer is not under pressure to source quantity but can focus on quality,” Alister said. “Ultimately the price discount on unclassed wool is defined by the amount of commercial risk that a buyer is prepared to undertake.”

Viterra FP Clip Prep AD

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