Grain Business Magazine - July 2013 by Glencore Grain

july 2013

Big appetite for canola Consolidation of wheat classification zones Playing it safe

Making farming Ezi Think slow to boost yields Think ahead to improve water use efficiency

Produced for the benefit of Australian grain growers by Glencore Grain

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CONTENTS ÂŠ 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

Timely rain kicks-off season

A big appetite for canola

Consolidation of wheat classification zones

Publisher Glencore Grain Pty Ltd 124-130 South Tce Adelaide, SA 5000 Phone: (08) 8211 7199 gbm@glencoregrain.com.au

Watching the northern grain giants

Farm safety - Playing it safe

Making farming Ezi

Think slow to boost yields

Think ahead to improve water use efficiency

Farm Profile Anna Binna - Ben and Belinda Wundersitz

Keep up with slugs this winter

United fight against wheat quality threat

Knowing your limits on late season spraying

Make pools part of a balanced portfolio

Design & Production Fuller Phone: (08) 8363 6811 37 Fullarton Rd Kent Town, SA 5067 fuller.com.au Advertising Rebecca Long RKL Media Phone: (08) 8843 0059 Mobile: 0417 813 480 rebecca@rklmedia.com.au Cover note: John Wundersitz and Ben Wundersitz, Anna Binna, Maitland SA. PHOTO: Tom Roschi from TRP Photography tom@trp.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, please contact us at gbm@glencoregrain.com.au

foreword

Timely rain kicks-off season There’s an air of optimism among Australian growers after positive early signs. Weather is of course at the forefront of everyone’s minds so it’s good to see a positive start to the season for much of Australia, with timely rain having fallen across most regions and crops responding well. Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) in their June Crop Report is estimating across Australia, wheat production will increase 15 per cent to 25 million tonnes, barley production will increase 10 per cent to 7.4 million tonnes, while canola yields are expected to fall 17 per cent from the record production last year to 3.2 million tonnes. While there is still a long way to go before crop estimates are realised, the Bureau of Meteorology’s June outlook said wetter conditions are likely for south-eastern Australia and most of Western Australia from July to September. In this edition of Grain Business we have a feature on farm safety. Across our global business our first priority is to protect the health and well-being of everyone who works or visits our sites. James Wood has had firsthand experience of the repercussions of a workplace accident. He recently visited our sites across South Australia and we thought it relevant to share his story with you. It is a sobering reminder of how easily accidents can happen and the simple precautions we can take. James Maw, Glencore Grain’s Global Trading Manager, again shares his global grain marketing knowledge, as he gives his

insight into the northern hemisphere crops and the potential impact on demand for Australia’s 2013/14 crop. Our Canola Trader, Peter Tustin, looks at the growing global demand for canola and the potential demand for Australian canola given the recent change in import regulations in China. This month, Viterra will launch its Ezigrain Smartphone app in preparation for the 2013/14 harvest. The app will provide site, segregations and daily harvest pricing information. With many growers moving to Smartphones, we’ve also taken a look at the most popular apps available for your farm business. We want to ensure Grain Business is adding value to your business by providing relevant and timely information. We’ve included a short survey with this edition and we would appreciate your time in giving us feedback. You have the chance to win an iPad Mini if you return the completed survey by Friday, 30 August 2013. I hope you enjoy reading this edition of Grain Business and look forward to your feedback.

David Mattiske Managing Director

July 2013

machinery efficiency canola

A big appetite for canola

machinery efficiency canola

With the recent decision by the Chinese government to allow canola imports from Australia, as well as growing demand globally, the future for Australian canola looks golden. words/ Peter Tustin, Canola Trader, Glencore Grain

The growing global appetite for canola oil and canola meal is seeing demand for canola increase year on year. According to the United States Department of Agriculture (USDA), in 2008/09 global consumption of canola was 55 million tonnes and has increased to an estimated 63 million tonnes in 2012/13. The growth has come from three distinct sectors; the European Union (EU) biofuels market, consumer demand for canola oil as a healthier alternative to other vegetable oils and the use of canola meal as a stock feed. The increasing demand is particularly strong in China where a big shift in demographics of a growing middle class and a population rapidly moving from rural areas to the cities, is seeing Chinese diets change from the traditional rice base to more Western food. Until March this year, Australia was unable to capitalise on the demand growth of its Asian neighbour. Following an extensive push from Australian exporters, trade negotiations opened between the Chinese and Australian governments and the Chinese government finally changed the import regulations it has had in place since 2008/09. Australia is now able to export canola to one of the largest canola importers in the world.

News of the change caused the Australian canola prices to lift $1015 per tonne immediately. Glencore Grain has been quick to supply the Chinese market including a large canola crushing facility in southern China where Glencore Grain has a joint venture and previously only Canadian canola was able to be supplied. So far more than 400,000 tonnes of Australian canola has been sold to China since the market opened in March. Globally canola supply and demand is tight, despite a large Australian crop and average Canadian crop last year. In 2012/13 consumption was estimated to be higher than production drawing the global stocks to use ratio down to less than 5 per cent. In the USDAâ&#x20AC;&#x2122;s June 2013 estimates they predict global stocks to use will fall further to 4.1 percent in the coming year. Canada is the largest exporter of canola and Australiaâ&#x20AC;&#x2122;s major competitor in the global canola market. Canada has an average production of 13 million tonnes with exports of seven to eight million tonnes. Canada finished sowing its canola crop in late May and the USDA is estimating slightly above average production of 14.5 million tonnes at this early stage. The Australian canola crop has grown substantially from one million

tonnes in 2007/08 to more than four million tonnes in 2012/13. Australia is on track to export a record of more than three million tonnes in 2012/13, with at least one canola vessel leaving Australia every week since the beginning of harvest, the majority bound for the EU, Japan, United Arab Emirates, and Pakistan. Glencore Grain will be one of the largest canola exporters in the 2012/13 year, shipping to Europe, United Arab Emirates, Pakistan, China, and Japan. With the initial absence of the Chinese market, Australia has been shipping its exports into the EU market, with more than 1.5 million tonnes exported to the EU this year. Demand in the EU has been driven by the lucrative biodiesel industry which has premiums attached for sustainability initiatives. The EU has a mandatory target of 20 per cent of energy from renewable sources in community energy consumption by 2020 and a mandatory 10 per cent minimum target to be achieved by all Member States for the share of biofuels in transport petrol and diesel consumption by 2020. With Australiaâ&#x20AC;&#x2122;s proximity to China and Japan, as well as being a key supplier to the EU, canola looks set to continue as a key export commodity for Australian growers.

july 2013

classification zones

Consolidation of wheat classification zones Wheat classification zones in northern and southern Australia will be consolidated from six zones to three following changes recommended by the Wheat Classification Council and accepted by the Wheat Quality Australia (WQA) Board. The default classification zones scheme, which allowed varieties that had been classified in one zone to automatically receive classifications in all other zones, has also been removed. The changes will be implemented for 31 July 2013 in the 2013/14 Wheat Quality Australia Variety Masterlist.

Classification zones will be consolidated as follows: • Central New South Wales (NSW), northern NSW & Queensland will be consolidated into a new Northern Classification Zone. • South Australia and Victoria will be consolidated into a new Southern Classification Zone. • Southern NSW will be renamed as the South Eastern Classification Zone. • Western Australia will be renamed as the Western Classification Zone. Where varieties have different classifications in the original zones, they will receive the higher classification in the new consolidated zone.

The removal of the default classification scheme means that for all future classification decisions, determination of, or changes to, the classification of a variety in one zone will not affect its classification in any other zone. It will also mean that all classifications awarded will be based on a thorough assessment of quality data, resulting in a more robust classification system. The Wheat Variety Masterlist to be released on 1 August 2013 will be accompanied by a list of the varieties that have had their classifications upgraded as a result of this change, which is good news for growers, traders and storage providers near the Victorian/South Australian border, the central NSW and northern NSW border and the Queensland/northern NSW border, where classification differences can occur due to the timing of data production and classification decisions. WQA will continue to review the classification zones to determine whether further consolidation or re-zoning is possible. It will also continue to review the data required to support the classification of varieties to ensure that an accurate assessment of variety performance can be conducted.

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grain market update

Watching the northern grain giants The major northern hemisphere grain producing regions can make or break world grain supply for the coming year with any changes to their production having a significant impact on global grain volumes. words/ James Maw, Global Trading Manager, Glencore Grain

Collectively, the European Union (EU), Former Soviet Union (FSU), United States (US) and Canada produce 90 per cent of the wheat grown in the northern hemisphere and account for approximately 70 per cent of total world wheat exports. The FSU and EU production has a major impact on the volume of global wheat export supplies. The United States Department of Agriculture (USDA) is estimating for 2013/14 the FSU and EU will produce more than 100 million metric tonnes (mmt) and 130mmt of wheat respectively, of the 330mmt for the northern hemisphere. Historically the FSUâ&#x20AC;&#x2122;s wheat production is highly volatile, from in recent years, a high of 116mmt in

2008/09 to a low of 77mmt in 2012/13 and the USDA estimating a crop of 102mmt in 2013/14, an increase of 30 per cent year on year. Any production losses or gains in the FSU, and more broadly the northern hemisphere, significantly impact on the global supply and is one

Last year, the Russian wheat crop fell over at the final hurdle, with the USDA estimating a crop of 56 million tonnes in May and it progressively dropping to a final crop of 38 million tonnes. On this news the market rallied approximately US$33/tonne in the following three weeks, aided

Last year, the Russian wheat crop fell over at the final hurdle, with the USDA estimating a crop of 56 million tonnes in May and it progressively dropping to a final crop of 38 million tonnes. of the reasons for the volatility we see in grain prices during their growing period, especially May-June when the crops are at the critical point in the production cycle.

by a simultaneous reduction in corn production in the US. In 2013/14 the USDA is predicting a world wheat export task of 144mmt. Of that figure, 97mmt is from the major

Machinery grain The market Right efficiency Rotation update

Former Soviet Union (FSU) wheat production 2007/08

93mmt

2008/09

116mmt

2009/10

114mmt

2010/11

81mmt

2011/12

115mmt

2012/13

77mmt

2013/14 June 13 estimate

102mmt

2012/13 world wheat exporters by % of total

Australia 13%

USA 20%

Argentina 4%

northern hemisphere

67% Canada 13%

southern hemisphere FSU 18%

17%

Others 16%

EU 16%

Source: USDA

July 2013

grain market update

northern hemisphere producers, showing that as a percentage of overall world wheat exports a lot rides on the northern hemisphere, especially the FSU. Global wheat stocks to use ratio is currently at 26.1 per cent. In June, the USDA estimated Indiaâ&#x20AC;&#x2122;s 2013/14 wheat production to be 92mmt which is significantly higher than current trade estimates. Based on production of 92mmt, the USDA is estimating India will export 8mmt; however, if India does not reach the production estimate their exports will be significantly reduced. In addition, China has recently finished their harvest and has been an active

buyer in the wheat market, giving rise to concerns about the quality and quantity of their crop this year. Excluding China and India, the current stocks to use ratio is 20.4 per cent, the lowest level in the past five years. Potentially India will not contribute to world wheat exports as significantly as they did in 2012/13 and China may be a more substantial importer than expected by the USDA in their June estimates. Any production losses in the northern hemisphere will further impact on global supply. A decrease in production of as little as five million tonnes can have a big impact on global stock levels and reduce the stocks to

Australian growers also need to monitor the northern hemisphereâ&#x20AC;&#x2122;s barley production. The EU and Russia are significant exporters, supplying approximately 60 per cent of total world barley exports.

use ratio towards a more critical level. The global corn market influences the wheat market as end users interchange between corn, wheat and barley depending on price and availability. Overall, world consumption of corn is increasing. In 2007/08 global corn consumption was 771mmt, and last year consumption was 864mmt, limited by world production. For 2013/14 the USDA is predicting global corn consumption will be 935mmt, an increase of 71mmt on the previous year. Actual consumption will again be reliant on the availability of corn, which is heavily impacted by the size of the US corn crop. The USDA is estimating a potential

Machinery grain market efficiency update

major competitor with Australian feed barley exports last year, and their 2013/14 barley production is anticipated to be down by 27 percent (1.5mmt) and exports down 43 per cent (1.7mmt) on the previous year, due to a reduction in planted acres. While Australian growers have finished sowing their winter crops, the size of the northern hemisphere crops and the impact on global grain supply will influence the demand for Australia’s 2013/14 crop. Therefore growers should continue to monitor the northern hemisphere harvest and use this type of information in making marketing decisions for their 2013/14 crop.

of total world barley exports. In comparison Australia accounts for approximately 25 per cent (4.1mmt). Europe this year experienced wet planting conditions during autumn. As a result less winter wheat was planted and this has led to an increase in spring barley plantings. Generally barley production in the EU is 50 per cent winter barley and 50 per cent spring barley; however this year, with increased spring barley plantings the ratio is closer to 35 per cent winter barley and 65 per cent spring barley. European spring barley tends to be malt quality and will compete more closely with Australian malt exports. On the flip side, Argentina was a

record global corn production of 963mmt (underpinned by a forecast record US production of 356mmt) and a forecasted global carryout for the 2013/14 season of 152mmt. While this is a significant increase on the previous year, US corn stocks to use ratio will continue to be tight until the new crop harvest in September, and therefore the focus in the short term will remain on the other major corn exporters, Brazil, Argentina, Ukraine and South Africa. Australian growers also need to monitor the northern hemisphere’s barley production. The EU and Russia are significant exporters, supplying approximately 60 per cent (7.6mmt)

Figures based on USDA World Agricultural Supply and Demand Estimates at 12 June, 2013.

30%

31% 28%

26% 26%

20%

16%

27%

26%

24%

23%

21%

165 total

196 total

197 total

196 total

124mmt

123mmt

120mmt

20%

180 total

181 total

97mmt

99mmt

83mmt

82mmt

106mmt 124 total 79mmt

72mmt

74mmt

76mmt

end stocks 2009/10

end stocks 2010/11

end stocks 2011/12

59mmt 45mmt

end stocks 2007/08

end stocks 2008/09

end stocks June ‘13 Stocks 2012/13 Est 2013/14

World Wheat Stocks to Use % = World stocks to use ratio

% = World stocks to use ratio excluding China/India

total = Total world wheat stocks (mmt)

World wheat stocks excluding China/India

Stocks of China/India

July 2013

machinery Farm safety efficiency

Given the risks, itâ&#x20AC;&#x2122;s not surprising that recent statistics released by Safe Work Australia compiled over an eight-year period - show that one in six workers killed in Australia are working on a farm. The most common risks were the use of quad bikes and the storage and handling of pesticides and herbicides.

Machinery The Right Farm efficiency Rotation safety

Playing it safe The agricultural sector only accounts for a small percentage of Australia’s workforce, but when it comes to workplace injuries and deaths, it’s gaining an unenviable reputation. words/ Marcus La Forgia

A farm isn’t your ordinary workplace. High-powered tools and heavy machinery, unpredictable animals and exposure to chemicals all combine to make the farm a high-risk environment. Given the risks, it’s not surprising that recent statistics released by Safe Work Australia - compiled over an eightyear period - show that one in six workers killed in Australia are working on a farm. The most common risks were the use of quad bikes and the storage and handling of pesticides and herbicides. According to Safe Work Australia Chair Ann Sherry AO the figure is even more staggering given that only 3 per cent of workers in Australia are employed in the agricultural sector. “On average 44 farm workers are killed each year and another 17,400 suffer a work-related injury,” Ann said. “This is a significant number of injuries and deaths. While the statistics themselves are alarming, they don’t reflect the many other families, work colleagues and communities who are affected by a farm-related fatality or injury.” As a result of the figures, Safe Work Australia has

identified the agriculture sector as one of its priorities under the Australian Work Health and Safety Strategy 2012-2022 and is collaborating with regulators, industry, unions and the farming community to find practical and cost effective ways to reduce the hazards farmers and their workers face on a daily basis.

Learning the lesson James Wood of CNB Safety Speakers is someone who knows about the impact of making a split-second decision that has lasting consequences. Working as a diesel mechanic on a mine-site about 20 years ago, James was sent out on a job to repair a truck that had broken down and return it to a parking bay. “The job that I was doing that day happens in almost every industry and it’s a very common scenario on the farm,” he said. “I went out to fix the truck and once I’d finished I took off down the road. “I was in a bit of a hurry as I was keen to get back and

July 2013

Farm safety

catch up with my mates and I was going too fast for the conditions on a wet dirt road. “I lost control and ended up rolling down the side of a hill and got thrown out of the vehicle. “The next thing I can remember I was lying on the ground. I could see the truck and it had landed back on its wheels. I could see the cabin and it was in really good shape. It looked as though it hadn’t even been in an accident. “Yet I couldn’t move - I was to discover that I was a paraplegic. “If I’d jumped into the truck that day, reached up and pulled the seat belt down and clipped it in – 2 or 3 seconds – I wouldn’t have been thrown out and I wouldn’t be getting around in a wheelchair today. “When I speak with farmers, I ask them to think about how often they do that – how often they jump into a vehicle and don’t put their seatbelt on. If they have two or three gates to open, the last thing they want to be doing is clipping their seat belt on and off.” James now spends time visiting workplaces around Australia and telling his story with the goal of spreading the safety message. Viterra recently engaged James to visit its worksites in South Australia to talk to its employees. “There are three things I try to get across – take your time and plan the job, don’t take unnecessary risks and always protect yourself,” he said. “I didn’t plan the job. I didn’t think about what might go wrong and think about how to do the job more safely. “I took an unnecessary risk - I was going down the road too fast for the conditions and I didn’t protect myself - the truck had seatbelts in it and I didn’t have one on. “Farmers are quite happy to jump on a quad bike or motorbike without a helmet on. They’re quite happy to jump in the ute and drive a couple of hundred metres without a seat-belt on. They’re the sort of simple risks that can change lives. “I remember thinking to myself in hospital – this doesn’t happen to me. It’s not someone else’s job to keep you safe, you have to take on that responsibility yourself.”

The letter of the law While the responsibility for staying safe at work should fall equally on the shoulders of both employers and employees, in the eyes of the law the employer has very clear accountabilities. In a farming environment, meeting these responsibilities can be tricky, particularly where there’s a mix of permanent employees, seasonal workers and contractors coming on to the farm. According to Senior Associate of Norman Waterhouse Lawyers, Amanda Green, planning ahead, assessing risks and documenting those risks are key steps in not only providing a safer workplace, but also protecting against potential prosecution. “One of the most important things you can do as an employer is risk assessment,” she said. “I can appreciate that at the farm level that’s probably quite difficult as there are many different tasks employers may require their staff to do. “However it has to be done - you have to identify all the jobs that an employee would be required to do as part of their role and list the associated risks or hazards with each task. “Then identify if there is anything that the farm can do to eliminate the risk or, if it can’t be eliminated, things you can do to minimise the risk. “Ideally, there would also be policies and procedures in place. Having written documentation in place really does help a business if it is subject to inspection or prosecution.“ Amanda said one of the most important procedures was ensuring documentation around incidents and near misses. “I understand that putting these things down in writing may be onerous for business owners and, in particular, farm owners who generally are not large employers. ‘But it is very useful to rely on in circumstances where employers are put under the spotlight, sometimes years after an event has actually occurred. “Lawyers will always ask for a paper trail when prosecution ensues.”

Machinery The Right Farm efficiency Rotation safety

If I’d jumped into the truck that day, reached up and pulled the seat belt down and clipped it in – 2 or 3 seconds – I wouldn’t have been thrown out and I wouldn’t be getting around in a wheelchair today.

Quad Bike Fatalities 2011-2013.

Male

Female

2011

2012 2013 (until May)

2 7

2012 & Year to date 2013: worker deaths by industry of workplacea Industry of workplace

2012

2013

Transport, postal & warehousing

Agriculture, forestry & fishing

Construction

Manufacturing

Administrative & support services

Public administration & safety

Arts & recreation services

Miningb

Electricity, gas, water & waste services

Education & training

Health care & social assistance

Other services

Retail trade

Wholesale trade

Accommodation & food services

Financial & insurance services

Government administration & defence

Professional, scientific & technical services

Industry unknownc

Total worker deaths

192

Ranked in descending order, and then on alphabetical order for industries with no fatalities. b Mining fatalities include fatalities that occur in the coal mining, oil and gas extraction, metal ore mining, gravel and sand quarrying, and services to mining sectors. c Includes notifiable fatalities that occurred overseas. a

July 2013

Farm safety

Induction training –Ensure workers know the risks are associated with that job and how they go about protecting themselves. What is a workplace?

Seek expert advice

According to Amanda, the law in Australia defines the workplace as any place a worker goes or is likely to go as part of their work - something which is “quite fluid”. The ‘likely to go’ clause adds a level of vagary for employees and farmers in particular, need to consider carefully the diverse environment of a farming property. “In the four walls of an office it’s really quite easy to define a workplace, but in circumstance where you might have a barn or a paddock, or roads between paddocks, they could all be classed as workplaces as they’re places a person will go, or is likely to go as part of their role,” Amanda said. “What constitutes a workplace can be quite undefinable and I think that’s the difficulty a lot of employers have both on the farm and off.”

Amanda said another activity that farmers could consider, if they have the financial resources, would be to engage a third party to come out and conduct a risk assessment, such as an agribusiness consultant, lawyer or insurance company. “This can be useful because they can look at your farm with a different set of eyes and identify things that you might not always see as a business owner,” she said. “It’s probably best having someone who’s familiar with a farm environment because they can recognise what’s a real risk and what isn’t. “However, this costs money so won’t be an appropriate course of action for everyone.”

Upskilling workers Given that farm employees could be asked to undertake a range of tasks in a range of environments, Amanda’s message is to ensure farmers upskill their staff so they have the tools to identify and deal with risks and hazards as they arise. “One of the responsibilities for a business is to make sure staff are informed, trained, instructed and supervised, so it’s advisable to undertake induction training,” she said. “If you’ve got someone coming on to your farm, particularly if that person hasn’t been in a farm environment before, like a seasonal worker, it’s important that they know where to find things, who to talk to about safety and understand the basics of doing their job safely. “I always recommend a formal induction and orientation. “It need not take hours - it could be half an hour with the person making them aware of what their job is, what the risks are associated with that job and how they go about protecting themselves and their workmates. “But it’s important to document that the training has been undertaken and have the employee sign off that they did the training and they understand their responsibilities.”

No uniform laws At the current time there isn’t a uniform set of laws for workplace safety across Australian states and territories, so Amanda suggested the best place to begin when looking for information on providing a safe workplace is the relevant state body. She said while the current workplace health and safety laws were quite prescriptive, there was some inherent flexibility in the way that businesses could apply the rules. “The most common question I hear is ‘am I captured by the legislation?’. “For the most part the answer will be yes, because the law is structured in such a way that it captures as many employers as possible. “As an employer you have to assume you will be liable to prosecution and that as the key decision maker you are the responsible safety officer. “Basically the buck stops with you.” For more information visit safeworkaustralia.gov.au

Machinery Farm efficiency safety

Top tips to keep your farm safe Follow best practice – Understand what your obligations are to provide a safe workplace for your employees. Know your obligations – Ensure you keep up to date with your obligations as an employer through your relevant state body. Conduct risk assessments – List all the jobs that any farm employee would be required to do as part of their role and list the associated risks or hazards with each task. Induction training – Ensure workers know the risks are associated with that job and how they go about protecting themselves. Keep a paper trail – Document everything. Should an incident ever happen, keeping a paper trail will be extremely important.

July 2013

technology

Making farming Ezi

Improved access to high speed Internet and increased network coverage in regional areas allows Australian farmers to improve management practices by using a range of purpose-built Smartphone applications. words/ Sarah Parker

The latest agriculture apps available on iPhone and Android devices are changing the way farmers make decisions on crop varieties, identify weeds in crops, and search, store and share information online. Viterra has introduced a new app – Ezigrain - to provide growers with on-the-go information, including latest grain prices, site opening/ closing times and segregations.

“The demand for up-to-date information is ever-increasing and we understand the importance of providing this information in an easy to access way to help growers make more informed business decisions,” Andrew Hannon, Viterra’s Country Operations Manager said. “The user-friendly app allows growers to experience the convenience of information on the go, which is particularly important to

growers during the harvest period.” Version one of the Ezigrain mobile application will provide fast and easy access to information on: • pricing – daily cash and pool prices of commodities, available over the harvest period from October 2013 • segregations – each commodity/ grade received at sites • site information – opening times, contact details and site specific messages/notifications

Machinery The Right technology efficiency Rotation

Ten popular agriculture apps CropMate Variety Chooser - an app developed by NSW DPI which allows users to determine the right crops to sow in their region with comparative yield trial results. CliMate - Released in December 2012 the CliMate app enables farmers to make better decisions about their farming operations based on recent weather patterns and future forecasts. F Track Live - developed by a group of farmers in NSW to replace the function of the traditional stock book, allowing users to records and share information to benefit a particular community. Weeds: The Ute Guide - the popular glove box weed identification booklet from GRDC has now gone digital.

“Geo-location functionality will also provide users with graphical views of sites to assist with the logistics and transportation to Viterra storage and handling sites,” Andrew said. “We understand the importance of providing a positive customer experience, so this app is just the beginning for us in this area, with more service offerings underway.” The Ezigrain app is available in July as free download for both Apple (iOS) and Android devices. Users will be able to set up and personalise the app for their local sites; however cash pricing and site information will not be available until the beginning of harvest.

TankCalc - a storage tank analyser and calculator to help plan and monitor crop spraying tank volumes.

Weatherzone - Australia’s most popular weather app, Weatherzone uses Bureau of Meteorology forecasts and meteorologists to produce accurate forecasts for Australia, including animated radar and real time observations. Water Storage - the Bureau of Meteorology’s official app allows you to find how much water is available in Australia, your state, capital city and for individual storages Spray Lite - replaces the manual spray log, records and stores spray sheets and chemical details and historical sprays and provides export data in CSV format. Weed Smart - Enables farmers to gauge their risk of developing herbicide resistant weeds and assess how effectively they are managing their weed bank. The app sends an email to the user with an assessment and advice on best practice. Farm Manager - allows farmers to manage cropping, sowing, livestock, fertilizer and chemical use and machinery maintenance.

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July 2013

Slow maturing varieties

Think slow to boost yields Another dry April and May across south-eastern Australia in 2013 meant grain growers again had to make hard decisions on the optimal sowing period for their winter crops. words/ Marcus La Forgia

While farmers have no control over the weather, slow maturing wheat varieties are emerging as a new way to maximise available moisture. Recent research has demonstrated that it’s possible to use stored moisture from summer and early autumn rainfall to establish wheat crops earlier than is currently practiced and in turn, boost yields. The findings come from a two-year, on-farm study as part of the Grains Research and Development Corporation (GRDC) Water Use Efficiency Initiative. CSIRO research scientist, Dr James Hunt, said previously undervalued slow-maturing wheat varieties extended the sowing window and took advantage of stored soil moisture

without incurring frost risk associated with early-sown, faster-maturing varieties. “For various reasons, we’ve seen movement in the subtropical ridge, which has led to a decline in rainfall in April and May, the critical time for establishing mid-fast spring wheat varieties,” James said. “Also, with larger farm sizes and cropped area, contemporary sowing programs often exceed the available sowing timing window. “Our research looked at the opportunity to overcome these problems by using any rain which falls during the summer and early autumn fallow period and establish wheat crops much earlier than is currently practiced.”

Slow machinery maturing efficiency varieties

For various reasons, weâ&#x20AC;&#x2122;ve seen movement in the sub-tropical ridge, which has led to a decline in rainfall in April and May, the critical time for establishing mid-fast spring wheat varieties.

july 2013

Slow maturing varieties

Significant yield advantages The study involved field trials that were conducted in three locations with differing climatic conditions - Lake Bolac in Victoria (high rainfall zone), Temora/Junee in New South Wales (medium rainfall zone) and Condobolin in New South Wales (low rainfall zone). In addition to the field trials, virtual simulations were completed in five locations across south-eastern Australia using the Agricultural Production Systems Simulator (APSIM). The field trials achieved yield advantages of between one and two tonnes per hectare from the early-sown, slowmaturing wheat variety EGA Eaglehawk at the test sites at Temora and Junee, compared to mid-to-fast maturing varieties LongReach Lincoln and EGA Gregory sown in early to mid-May. The average yield advantage across all sites and years of slow maturing varieties sown in April over faster varieties sown in May was 0.8 t/ha. At the simulated sites, the results indicated that including a slow maturing wheat variety in a cropping program could lift average farm wheat yield by 13 to 47 per cent and reduce by a third the risk of crops yielding less than 1 t/ha. James said, the results clearly demonstrated that incorporating slow maturing varieties into the cropping program could provide significant benefits not only from a yield perspective, but in overcoming climate and sowing window issues. “Slow maturing varieties have been relatively undervalued because they are generally sown too late in National Variety Trials, meaning they’re unable to achieve their full yield potential,” he said.

“What this research has shown is that slow maturing varieties could play an important role in modern cropping systems, which increasingly need to rely less on in-season rainfall and more on stored soil moisture from fallow rain events. “While many growers may be reluctant to keep multiple seed varieties on hand to sow an unknown area of crop each year, the yield benefits are substantial.”

Why early sown crops yield more According to James, there are a number of reasons why early sown crops may yield more than mid-to-fast maturing varieties. In situations where the soil profile fills with water, the roots grow deeper and use more water and early sowing of slow maturing wheat varieties increases potential rooting depth. The second reason is that early sown crops also develop a canopy faster and as a result lose less water to evaporation meaning water is converted to dry-matter more efficiently. Finally, slow maturing varieties have a longer spikedevelopment phase, meaning they intercept more radiation and generate higher grain numbers per head. “As always farmers considering using slow maturing varieties should conduct the appropriate due diligence and ensure that it is the right cropping choice for their situation,” James said. “However, the research certainly proves that it is worthwhile having that choice when a season will apparently start late.”

Slow Machinery maturing efficiency varieties

Slow maturing varieties have a longer spike-development phase, meaning they intercept more radiation and generate higher grain numbers per head.

GOING SLOW – PUTTING INTO PRACTICE If you’re planning to sow early, knowing the optimal flowering window for your location is the most important requirement. Once you’ve established the ideal flowering period, the next step is understanding how to achieve it using different varieties from a broad range of sowing dates. There are three basic strategies for achieving the optimal flowering period: 1. Plant winter wheat from early March to mid April 2. Plant slow maturing spring wheat from early to late April 3. Plant mid-fast varieties from late April into May. The first two strategies require some stored soil water to be present. Use a shovel to check the soil is wet to at least 30cm on most soil types. These crops must germinate and emerge shortly after they are sown because winter and slowmaturing spring wheats will flower too late if they do not establish before the end of April. Choose paddocks that are relatively weed-free and do not require a knock-down for grass weed control. Reduce seeding rates if sowing early into high soil nitrogen. For more information on incorporating slow maturing varieties into your cropping program, contact James Hunt on 02 6246 5066 or james.hunt@csiro.au

July 2013

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Machinery Water use efficiency

Think ahead to improve water use efficiency Water is a limited resource in southern Australia and growers are continually searching for ways to make the most of what they have. words/ sarah parker

Now, a recently completed five-year study into water use efficiency (WUE), suggests that yields can be increased by up to 60 per cent by following some simple management guidelines. According to CSIRO Senior Principal Research Scientist, Dr John Kirkegaard, introducing long-term WUE programs months or even years before a crop is sown, is the key to improving yields - whatever the weather forecast. “Advanced planning allows growers to take greater advantage of what happens throughout the year,” Dr Kirkegaard said. “Rather than just focusing on what can be done in-crop, it’s important to consider what can be done in the summer months, to ensure the best chance of achieving profitable yields.”

Fallow weed management Results from the Grains Research and Development Corporation (GRDC) funded study, suggest that summer fallow weed management is one of the most profitable ways to increase WUE in cropping systems. “Taking a zero-tolerance approach to fallow weed is the best way to prepare the soil for a profitable season,” Dr Kirkegaard said. “Through successful weed control and soil maintenance, growers can increase the soil’s capacity to store and retain water from summer rain.” “Coupled with a long-term stubble retention and minimum tillage program, water run off will be reduced and water infiltration increased to improve pre-season soil moisture.”

Dr Kirkegaard said this pre-crop management practice alone had the potential to increase wheat yield by up to 60 per cent depending on soil type, crop rotations and rainfall zones. Having this pre-crop management practice in place also allowed for earlier sowing. “This is important in modern cropping systems as it not only extends the sowing window, but acknowledges the reliance of modern grain crops on out of season rainfall.” “Introducing a slow maturing wheat variety early in the season to take advantage of the stored moisture, has the potential to lift average wheat yields by up to 47 per cent. “These slow maturing wheat varieties rely less on in-season rainfall and are

July 2013

Water use efficiency

at a lower risk of frost damage.” The results from the study suggest that as much as two thirds of the average wheat yield can be attributed to these pre-crop WUE management practices.

Break crops Introducing break crops into a crop sequence also provides soil moisture benefits. Not only do break crops improve the productivity of subsequent crops and overall WUE, they’re also profitable in their own right, Dr Kirkegaard said. “We all know that pulse-based break crops such as lentils, chickpeas and vetch will assist in improving whole farm profitability by breaking the cycle of cereal root diseases, maintaining soil fertility and delivering nitrogen

benefits but their contribution to WUE has not been widely understood. “It’s a matter of balance.” “Canola break crops are profitable and offer disease and weed benefits,

the best results to the overall WUE program.” “It’s important to identify what is going to work best in the long run short term profits are a bonus.”

A vetch break crop increased WUE of the following two wheat crops by 16 to 83 per cent relative to wheat on wheat.* however do not deliver water and nitrogen benefits to following wheat crops.” “Legume break crops also deliver water and nitrogen benefits but are not as profitable as wheat or canola.” “Introducing break crops needs to be considered carefully to determine which variety is going to deliver

Fertiliser matching Another outcome of the GRDC research into water use efficiency has been a better understanding of the benefits of matching nitrogen applications to soil type. Studies undertaken in the Mallee dune cropping regions of South Australia showed that a conservative

Water use efficiency

farm wide application of 15kg/ha of nitrogen (the district average) actually wasted money. The heavier soils on the dune swales failed to respond to the

“Cropping systems across the Mallee Region have highly variable soil types and variable seasonal rainfalls, therefore require a variable nitrogen application plan.”

Increasing nitrogen inputs on deep sands can increase WUE by up to 91 per cent relative to district practice.* additional fertiliser, whereas a higher rate of 60kg/ha on the deep sands of dune crests increased average net return by $136/ha. “District practices are a good guide to nitrogen application, but achieving the best possible result requires a tailored application plan,” Dr Kirkegaard said.

“Depending on the current nitrogen levels of soil, growers in the Mallee Region would see better results from increasing the nitrogen applications on sandy soils, and lowering those on heavier soils.” To assist growers in determining the success of their management plans; the GRDC has introduced a new

benchmarking approach to WUE so that growers can evaluate the success of their interventions. “Local consultants and the CSIRO are also working with growers to develop tailored solutions to ensure these programs will be effective,” Dr Kirkegaard said. “I am confident that growers, if they start their management practices early, will see results within a year.” “As with all sustainable agriculture practices, there is no quick fix and to see the best results these practices need to be used in combination and not in isolation.” “The most important thing for growers to consider now is what they will do post harvest. “Getting ahead early will certainly pay off in the long run.”

*Reference GRDC Ground Cover Supplement, Water Use Efficiency, March – April 2013.

July 2013

farm profile machinery Farm Profile efficiency

Anna Binna

machinery Farm efficiency Profile farm profile

Property Name Anna Binna Pty Ltd Business owners/managers Anna Binna is owned and operated by Ben and Belinda Wundersitz. It is a fifth generation farming operation with Ben’s parents, John and Verity Wundersitz still involved in the business. Property Location Maitland, on the Yorke Peninsula, South Australia. Annual rainfall Maitland has an average annual rainfall of between 300mm and 500mm. When was the farming district settled? The central Yorke Peninsula district was settled in the 1860s. The region soon became known for its barley production and today, is still recognised as one of the world’s leading barley-growing districts. Total farm area and cropping program The total arable farming area of Anna Binna is approximately 5250 hectares, with 750 hectares owned and 4500 hectares leased. Continuous cropping is run over six properties in a 50-kilometre radius on central Yorke Peninsula. The properties are located from the east side of the Yorke Peninsula at Ardrossan to Maitland in the centre and through to Port Victoria on the west side of the peninsula. The cropping program consists of 40 per cent wheat, 30 per cent barley, 20 per cent legumes and 10 per cent canola and oaten hay. Employees Anna Binna employs three full-time staff and up to four casuals. Full time staff include: Marco and Danny Luciani, Derek Sansbury and Tim Rowe. Machinery Machinery used on Anna Binna includes: • Tractors : Case IH STX 535, MX 275, MX 245, MX210 • Seed: Rig Flexicoil SC430 and Flexicoil 820 18mt @ 9, atom jet points • Spray Rig Hardi Saritor 2 5600lt 42 mt boom • Harvester: CASE IH 8120 and Case IH 8010 both 12mt 2162 Flex Drapers • Trucks: Western Star B Double Tippers Ford and KW prime movers with semi tippers • Other: Kuhn spreader and 36mt urea boom to apply urea From left, Ben Wundersitz, Marco Luciani, Denny Luciani, Derek Sansbury, John Wundersitz

April 2013

Machinery Farm Profile efficiency

From left, Belinda Wundersitz, Charles Wundersitz and Ben Wundersitz.

What is the history of your farm? Our family settled in Maitland in 1875 and our ancestors cleared the area. Over the years, our family looked to expand the farm but these opportunities were limited as our home property is very prone to waterlogging. We started continuous cropping in the mid 1970s but were continually plagued with wet droughts, particularly during the 1980s. As a result we looked to expand through farm contracting and leasing during the 1990s and started leasing properties from 1998. We purchased additional land in 2002 and have continued to lease land when the opportunities present. The business has experienced massive growth in the last 15 years to become one of the larger cropping operations on the central Yorke Peninsula. Weâ&#x20AC;&#x2122;ve always focused on cropping because of its reliable margins (compared to stock) and additionally stock would compromise our cropping system. My father, John, took over the farm in 1966 (from his father, Syd) and he passed the farm on to me in 1994. He has semi-retired at Port Vincent and still works during the

busy seasons on the farm. John takes a hands-on role in the business and continues to provide support today. What made you want to be a farmer? I grew up on the farm and Iâ&#x20AC;&#x2122;ve always loved the land and the challenge that farming brings. What education and training did you undertake? I attended Maitland Area School until year 9, and then boarded at Prince Alfred College in Adelaide for years 10 to 12. After school, I did some training at TAFE and during my early years on the farm, I did some part time work with Aerotech, a local aerial spraying company. This work allowed me to be home for seeding and harvest yet still travel all over the state, working for some of the best farmers which also help develop my knowledge of good farming and business practices. How do you manage your cropping program? We have no set crop rotation, but generally run two cereals then a break crop. In the lower rainfall country at Port Victoria we grow more barley as itâ&#x20AC;&#x2122;s good in the dry, as well as some wheat and lentils. In the higher rainfall land at

Machinery Farm efficiency Profile

We practice no till farming. We have been running a Flexicoil with a knifepoint press wheel system since 2001, with RTK guidance since 2003 and we now have six RTK guidance units spread throughout our machines. Maitland, we run wheat then wheat and follow with lentils or we use canola as a break where water logging is a problem. In terms of the varieties that work for us, Mace wheat is an unbelievable variety and we experience yields as high a 6 to 7 tonne/hectare (t/h) in high rainfall areas. Clearfield Justica wheat and Scope barley have been excellent to clean up brome and barley grass in our coastal blocks. We use Hindmarsh barley elsewhere. Our typical average yields over all properties would be 4 to 5 t/h on wheat, 4 t/h on barley and 2 t/h on lentils. We practice no till farming. We have been running a Flexicoil with a knife-point press wheel system since 2001, with RTK guidance since 2003 and we now have six RTK guidance units spread throughout our machines. All of our paddocks are mapped and we have six Trimble FMX RTK systems that are rotated through major plant items. They are a quality product with good local support and fit in any machine. Most importantly, with multiple operators it means we only have to learn one system. We start sowing on 18 April every year regardless of

soil moisture. We are very fortunate the Yorke Peninsula coastal climate provides a very low risk of frost. Our coastal properties only receive about 13 inches of rain, but if you sow early and use all of the growing season rain we can often produce yields close to our high rainfall blocks. “All we’re doing is turning rain into grain. And in low rainfall country, you’ve got to be good at it.” During sowing, the seeder runs 24 hours a day and we only shut it down either for a service or if it rains. We have four semi-tippers with seed and super units and a truck supplying the boom spray with water. It’s simple and efficient and we can sow our crop in four weeks. For harvesting, our approach is to get stuck in and get it done. We run two Case IH headers, two chaser bins, two mother bins, four auger bins and about 12 round paddock bins. Two fire trucks are on hand and we run a B-double and two singles. Most of our grain goes in to the export market so we aim to truck it direct to Port Giles about 80 kilometres away. We have up to five B-doubles assisting from local carrier, Maitland Freight.

July 2013

Machinery Farm Profile efficiency

Lentils have been a good cash crop but must be harvested on time. We generally windrow all of our barley to speed up the ripening process and we aim to get the barley harvested before the lentils are ripe. Our lentils are generally warehoused at Australian Milling Group at Bowmans or stored on farm if we have quality problems. We only have 1000 tonne of on farm storage at this stage but are looking to increase this. Our wheat is generally carted direct to port to enable us immediate access the export market. Our fertiliser regime consists of DAP 18/20 (70 to 100 kilograms), with some vari-rate application since 2012. We also use Urea (80 to 120 kilograms) on barley and up to 250 kilograms on wheat. We use some UAN in place of Urea. Most cereals will get two applications of nitrogen to manage yield and protein as the season progresses. A Kuhn spreader and 36-metre urea boom are used to spread urea and are operated 24 hours when necessary. For weed control, we use a lot of pre-emergent herbicide up front, including high rates of Avadex to maximise our bang for buck on ryegrass on cereals in coastal areas. We use Sakura on wheat in high rainfall areas. To manage resistance, we ran chaff carts for a few years but couldn’t deal with burning the heaps. Now we simply focus on

rotation, along with double knock where possible at seeding, wick wiping and desiccation in lentils and early windrowing in barley. In regards to the use of fungicides, we use Impact on DAP on all cereals to get 10 weeks protection against rust and then we normally only apply one fungicide application on cereals at flag leaf emergence. For lentils, we use a preventative spray at canopy closure and a couple more to finish. Our philosophy in regards to chemical use is to always use full label rates, along with decent water rates and apply product as professionally as possible. We operate our Hardi Saritor along with a water truck for in-paddock filling. This ensures we maximise the sprayer work rate and we only need to operate the sprayer six days a week during seeding and five days a week during the rest of growing season. Our staff are very important to our business and we aim to give them a healthy work/life balance. We use Sam Holmes from Holmes Consulting for all of our agronomy. His service is excellent and he visits regularly during the growing season. We also network with local and interstate farmers to keep on top of the latest trends. Our aim is to do what we do, as well as we can. I’m not into doing twice as much, half as well. I don’t care if it’s our worst

Machinery Farm efficiency Profile

paddock at Port Victoria or our best paddock at Maitland, we aim to maximise yields over our entire program. All our equipment is operated at 100 per cent efficiency to get the best out of the capital invested. Who do you rely on for grain marketing advice? I really enjoy grain marketing and I formulate strategy with advice from Rural Directions. We work hard on maximising crop yields however we get paid on yield times price. They are as important as each other. Rural Directions do the contract sales, administration and monitor our position. I update our crop yield on a monthly basis and they send monthly position reports on sales. Generally, we sell wheat up to three years in advance at profitable levels and barley up to two years out if pricing is available. We aim to have about 30 per cent of our cereals sold prior to seeding and we generally increase sales during the growing seas on as we become confident of potential crop yields. Prior to harvest, we’ve generally sold 70 per cent of our cereals. We sell the remainder of our cereals in the early cash harvest period. We tend to market the lentils during harvest when we have a better handle on quality and tonnage. We also have a significant focus on the purchase of our inputs. We often purchase fertiliser and chemical inputs up

to 12 months ahead. We find if we purchase our crop inputs and fuel in bulk at reasonable pricing it keeps our cost of production down. “If we can lock in the price of our inputs and lock in the price of our grain we only need to add water to return a profit.” Our properties are spread over a 50 kilometre radius so this gives us a good spread of rainfall which reduces the risk of climate variability. What’s your approach to new technology? As much as I’d say we’re reasonably cutting edge farmers, I won’t take any risks in investing in unproven technology. Innovation in new machinery can be very expensive if you get it wrong. I often say, all we do is manage risk, and it doesn’t matter if we’re dry sowing in April or whether we’re making a decision on a new seeder. We stick to technology we know and use it well. What have been or are the biggest challenges/risks to your business? I think the transition from a family farm to a professional farming business has been one of our largest challenges. We have recently introduced a management board to oversee our company’s operation. Rural Directions handle the administration for the board. Having a management

July 2013

Machinery Farm Profile efficiency

We have worked hard to maintain long-term relationships with all of our machinery and farm input suppliers and the buyers of our grain.

board has certainly helped us in strategic planning for the future and ensuring we meet the ever increasing areas of compliance. Small business can be pretty lonely and the board provides a fantastic forum to brainstorm and discuss new ideas with professional people. We are also participants in a Rural Directions benchmarking program. These figures are discussed at our meetings and give us valuable information compared to other farming operations. We have a separate farm office and employ a professional book keeper to ensure our office work is up to date. We have had a fantastic relationship with our accountant John Crouch from Brentnalls SA. John has helped guide us through many of the issues associated with families and farms. We have worked hard to maintain long-term relationships with all of our machinery and farm input suppliers and the buyers of our grain. We also prioritise supporting our local town and businesses. Staffing is always a challenge in a seasonal business. We aim to give both permanent and casual staff the best overall work environment we can and three of our staff members have been with us for in excess of ten years. Do you have future expansion plans? With land values on the central Yorke Peninsula ranging from $3000 to $5000 an acre leasing has been a fantastic way of growing our business without the massive capital costs of buying land. We have looked at buying land in other areas of South Australia and Victoria but have decided to stay local.

Would you shift to another district for cheaper land or if rainfall becomes a problem due to climate change? We really enjoy the coastal lifestyle that Yorke Peninsula offers and its close proximity to Adelaide. We have seen massive yield increases as we have introduced better farming practise and technology particularly in lower rainfall coastal-country. Do you thing food production has a good future in Australia? Absolutely. The world has to eat and I can see huge opportunity for Australia to participate in this market. I think Australia is well respected throughout the world as a producer of quality product. Will you encourage your children to return to the farm? Our plan is to give our children the best education and life experiences we can and the opportunity to take on the farm will be here if they are interested. What is your retirement/succession plan? Our plan has been to establish a progressive farming business with all the systems in place to grow in the changing world of agriculture. I see this as a balance of both buying land and leasing farming land, particularly as we see outside investors in farming land in Australia. I think investment in off farm assets is also important. Iâ&#x20AC;&#x2122;d like to retire at one of our local York Peninsula beaches. I think a balance of farming and fishing is a good retirement plan.

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Machinery Farm efficiency Profile

From left, John Wundersitz and Ben Wundersitz

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July 2013

Machinery pest management efficiency

Keep up with slugs this winter A late break to the 2013 cropping season in some districts has also meant a delay in slug activity, with baiting only starting in May after the first substantial rains. words/ megan rusk

However, according to a leading slug researcher southeastern Australian grain growers should not be complacent. Michael Nash, research fellow at The University of Melbourne, said an active monitoring and responsive baiting program during winter and spring may help protect growing crops and safe guard yield potential. “With the drier autumn this year the slugs had a slower start,” Dr Nash said. “Some areas reported activity starting as late as May. Growers will be monitoring for slug damage in emerging and young crops, but the job doesn’t stop there. Slugs will still be active, feeding and breeding throughout winter and spring.” Dr Nash said seasonal conditions had the biggest affect on pest pressures. “In previous seasons we’ve had spring reports of slugs being sighted on flag leaves of wheat and in established canola crops,” he said. “In high pest densities slug damage can continue right throughout the growing season. The message is to monitor. If slugs are feeding on crops and causing damage, a winter application of bait may be required.” A year-round focus on slug management is needed to maximise control efforts if growers are to stay on

top of the problem. “Understand your slug problem, what’s there, and when it’s active,” he said. “Slugs are nocturnal pests. To monitor simply provide a moist refuge for them to hide during the day. For example, hessian bags soaked in water or cardboard soaked in water. “Terracotta paving tiles can also be used. These refuges give an indication of slug activity and the relative number of slugs present. Check the refuges early in the morning before it gets too warm, because slugs seek shelter in the soil as the day warms up.” But how many slugs are too many? “Research has established the thresholds for slug control and these have been verified in Australian conditions,” he said. “In canola crops, the threshold for control is one slug per square metre and in cereals, the threshold is around seven to eight slugs per square metre.” Dr Nash said the jury is still out on the benefits of a late bait application in spring and its ability to protect paddocks for the following year. “A late bait might be needed if slugs are still causing crop damage in spring, but we don’t fully understand how that might prepare paddocks for the following year,” he said.

Machinery pest management efficiency

Source: Michael Nash

“New research is looking at the effects of late baiting. Current recommendations centre on a bait application in autumn at sowing before emergence, and a follow up in winter if needed. “It is also important to maintain context with seasonal conditions and time of year when making baiting decisions. “In previous years a well-timed bait in spring was worthwhile to protect crops where populations were up and feeding in the canopy, however with the late start and a more limited window for slug breeding, a late bait may not be required in 2013.” Dr Nash said slugs are not just a problem for winter cropping systems - they also affect the establishment of summer crops. “In higher rainfall areas, slugs can damage summer crops such as poppies, sunflowers, corn and mungbeans,” he said. “Monitoring should be done in areas where irrigated summer crops are planted. Ongoing monitoring is the key to understanding your slug populations, whether it be in winter or summer cropping districts.” Growers are urged to remember the value of beneficial insects and to search for these when monitoring in the paddock and surrounds.

Monitor for slugs by providing a moist refuge for them to hide during the day (Source: Tatyoon and Gorst Rural).

“When you are monitoring for slugs in winter, don’t forget to keep a lookout for beneficials in your paddock,” he said. “Spiders, earwigs, carabid beetles and rove beetles can all have an impact and can drive slug numbers down through feeding on eggs, juveniles and sometimes even adult slugs. “Carabid beetles in particular are good natural predators to have around as they feed on both ground dwelling and plant dwelling pests.” For more information, contact Michael Nash on (03) 8344 2521, or manash@unimelb.edu.au

July 2013

machinery wheat quality efficiency

United fight against wheat quality threat More than two decades after it was first identified as a threat to Australiaâ&#x20AC;&#x2122;s wheat quality, the industry continues to work in a collaborative effort against Late Maturity Alpha Amylase (LMA). words/ Marcus La Forgia

Machinery wheat efficiency quality

Developing new screening technology for LMA early in the breeding cycle has emerged as the key to ensuring the longterm quality and market competitiveness of Australian grain, but limiting the impact on varietal development. LMA is a genetic defect that can result in the accumulation of damaging levels of the enzyme alpha-amylase in wheat grain. Accumulation of alpha-amylase is commonly seen in rain damaged wheat and results in low falling numbers. While LMA also causes low falling numbers it is different from and independent the alpha amylase that is present in wheat as a result of weather damage. This defect is most commonly brought on by a cold period or changes in temperature during grain fill and reduces the milling grade quality in wheat. While there’s now widespread recognition amongst researchers and millers about the potential impacts of LMA on production quality, farmers remain largely unaware of the risks. General Manager, Technical, of Wheat Quality Australia, Cindy Mills said wheat breeding companies reported losing some of their most advanced and promising lines just prior to release due to LMA screening failures. So it is significant that the industry is working towards an alternative approach that will protect Australia’s wheat quality, but limit the impact on varietal development. ”A number of Australia’s breeding companies have reported the loss of promising new lines because of

detection of LMA expression,” Cindy said. “Currently the screening for LMA occurs almost at the point of variety release. The opportunity exists to develop screening technology and capacity much earlier in the breeding cycle which will mean that we will already know the LMA status of high yielding lines reaching the end of the breeding process. “Fortunately we now have widespread recognition in the industry of the potential impacts on production quality and the importance of effective management strategies. Major wheat quality and research organisations gathered in Perth recently to discuss a national approach to LMA management. The national model will see key research objectives and screening capacity prioritised for investment. “Industry participants are now working together to shape the research and development priorities and ensure that innovative approaches to LMA management and adequate screening capacity will be available now and into the future.” Cindy said LMA is an issue that the entire wheat industry supply chain needs to be aware - including growers whose levy funds support this essential research and testing. Currently, all wheat varieties in Australia are required to pass LMA testing before they are allowed to be classified into a milling grade in the Australian system. The primary impact of LMA is that it can result in falling number levels below the internationally accepted standards used for the trade of wheat.

Future priorities - The Grains Research & Development Corporation (GRDC), wheat breeding companies and Wheat Quality Australia have identified a number of priorities in relation to LMA management, including: LMA classification

Secure LMA

Develop Markers –

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testing – Seeking

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additional research

improvements to the

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markers for LMA that

understanding of

and development -

statistical analysis of

phenotyping facility is

allow early detection

LMA to ensure an

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the LMA test, including

available. This is likely

and selection of LMA

informed decision

the relative industry

the establishment

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prone parental material

making process.

risk of different levels

of accepted LMA

facility with research

and lines.

varieties and the right

and development

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capability, and

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glasshouse testing to

providing proficiency

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obtain further data to

testing service for

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of LMA expression,

screening service.

July 2013

machineryresidue Chemical efficiency

Knowing your limits on late season spraying When it comes to ensuring the quality of Australia’s domestic and export grain, growers play a key role in minimising the risks of chemical contamination. words/ Marcus La Forgia

Every time a farmer takes his boom spray out of the shed he is taking responsibility for maintaining Australia’s outstanding reputation for clean, green food. That’s the view of Ian Reichstein, Director of the Department of Agriculture, Fisheries and Forestry’s (DAFF) National Residue Survey (NRS). DAFF has been screening Australia’s grain for chemical contamination since 1964. “Residue testing results over the past decade, for both domestic and export grain, has indicated a very high degree of compliance with Australian Standards,” Ian said. “Compliance in export grain has been high for many years with compliance in domestic grain only slightly lower. “This isn’t surprising. Domestic grain usually comes directly off farm where use of grain protectants is not as sophisticated, and bulk handlers also have a better capacity to blend grain.” Ian said that despite Australia’s excellent record it was

every farmer’s responsibility to guard against contamination. He also said that it’s important farmers follow directions on agricultural chemical product labels, which must be approved by the Australian Pesticides and Veterinary Medicines Authority (APVMA) before being cleared for use. “An awareness of the requirements stipulated on the product label is paramount for farmers,” he said. “Grain purchasers will choose not to accept grain if chemical residues are found above the maximum residue limit (MRL). “The NRS residue monitoring program verifies good agricultural practice and confirms that the farmer has used the product in accordance with the label. “And if farmers are directly involved in exporting grain, they must also be aware of the MRLs which apply in the export market, as they can vary significantly from country to country.”

machinery Chemical efficiency residue

july 2013

Machineryresidue Chemical efficiency

To provide assurance to export customers, growers are required to complete vendor declarations, guaranteeing the quality of the product they deliver to bulk handlers.

KNOWING WHAT TO USE Understanding the types of chemicals registered for use, particularly when applying late in the season for crop desiccation, as this increases the risk of detectable residues above MRLs, is vital knowledge for farmers. For example, the only herbicides that can be used in Australia for late season applications in cereals are diquat in barley, and registered glyphosate products on wheat with a seven-day withholding period. For canola, paraquat and paraquat/diquat are not registered for late season crop desiccant application and should not be used for pre-harvest canola desiccation or under-the-cutter-bar spraying during swathing or windrowing canola. Diquat is the only registered option for late season use in canola. No herbicide products are currently registered for underthe-cutter-bar spraying during windrowing or swathing operations of canola. Ian said that while it was the NRSâ&#x20AC;&#x2122;s role is to provide a final screening point for the presence of chemical residues, it is the responsibility of growers and bulk handlers to

meet the MRLs when providing grain to the supply chain, particularly when providing grain for export. Maintaining chemical residue levels below the MRL of the export country is essential for accessing those markets, as compliance with an Australian MRL doesnâ&#x20AC;&#x2122;t mean compliance with trading partners. To provide assurance to export customers, growers are required to complete vendor declarations, guaranteeing the quality of the product they deliver to bulk handlers. The NRS has in place a testing program that collects samples from a grain processing site for domestic grain, or from the holds of ships for export grain, and screens them for the presence of chemicals above the prescribed MRLs. If a sample is found to contain a residue above the Australian Standard, a traceback investigation is undertaken to establish the cause. The responsible state or territory agency then provides advice to the producer to prevent recurrence. In certain cases, the state or territory agency may take regulatory action in accordance with chemical control-of-use legislation against the chemical user.

Registered herbicides for late season spraying (crop desiccant use)

Paraquat

Diquat

Glyphosate

Wheat

Not Registered

Registered

Barley

Not Registered

Registered

Not Registered

Canola

Not Registered

Registered

Not Registered

Chickpeas

Registered

Lentils

Registered

Faba beans

Registered

Field peas

Registered

Source: GRDC

Machinery Chemical efficiency residue

KNOWING THE MRLs The MRL is the highest concentration of a residue of a particular chemical that is legally permitted or accepted in a food. An MRL is determined by the Australian Pesticides and Veterinary Medicines Authority (APVMA) after a comprehensive evaluation of a product’s chemistry, metabolism, analytical methodology and residue trial data. Based on the residue trial data, the APVMA sets an appropriate withholding period, which is the shortest time that must elapse between the last treatment with a chemical product and the harvest of a crop. Current Australian MRLs can be found at www.apvma.gov.au. International MRLs are set by various bodies and information on MRLs for different countries can be found at www.daff.gov.au. It is possible for overseas MRLs to differ to those set in Australia, As such, when exporting grain, it is critically important for the marketer to be aware of the MRL applying in the particular market. Market failure can have a significant impact on Australia’s reputation as a producer of quality grain.

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July 2013

grain pools

Make pools part of a balanced portfolio Pools continue to be an important option in a strategic grain marketing plan. words/ Peter Fuller

grain pools

It’s important to apply the same thinking to your grain marketing portfolio - if you’ve put all of your crop into one grain pool, you’ve actually failed the fundamental rule of managing your investment - diversification.

Farmers should start seeing their grain marketing strategy in the same way they see their superannuation or investment portfolio. That’s the view of Chris Heinjus, Executive Director of agribusiness consulting company Rural Directions, who believes hedging risk by creating a balanced portfolio of cash and pools marketing is the best strategy in the current deregulated environment. “If you’ve got a farmer with 1000 tonnes of grain worth $250/mt in a pool, that’s a face value of $250,000. That’s a significant amount of money to have in one place,“ Chris said. “We encourage growers to think about a more diversified plan where some might be allocated to short term cash sales, forward contracts and a balance might be spread across several pool providers.” Chris said a good analogy was the growth in self-managed super funds in the last five years in the finance sector, where mum and dad investors had taken more control over their retirement savings.

“When you manage a superannuation investment portfolio you will probably have some money in domestic and international shares, some in property and some in cash in the bank,” he said. “It’s important to apply the same thinking to your grain marketing portfolio - if you’ve put all of your crop into one grain pool, you’ve actually failed the fundamental rule of managing your investment - diversification.” But Chris was quick to point out that pools can still play an important role. “It’s a very individual decision which is influenced by personal business factors such as your tax position, cash flow, debt burden and your level of confidence in managing your own grain marketing. For some farmers it is still the best decision.” Grain pools started in Canada in the 1920s as a cooperative marketing alternative to private grain sales to large trading companies. While they died out in the Depression due to poor returns, pools were warmly adopted in Australia in the 1950s and seem to have been part of the grain landscape ever since.

As recently as 20 years ago more than 95 per cent of grain in Australia was sold through Australian Wheat Board and Australian Barley Board pools. They never promised exceptional returns but they did provide a sense of security to Australia’s conservative farmers who had enough to worry about with droughts and floods. But that all changed when grain marketing was deregulated. Now, only about 20 per cent of Australia’s grain is sold through pools. Farmers want to customise their marketing to their own operation, risk appetite and cash flow. Farming is an expensive business with upfront costs scaling up for many it’s simply too risky to wait for pool returns. “Historically, pools represented a norisk approach as the pooling manager had a statutory obligation to maximise returns to participants of the pool,“ Chris said. “The view at the time was that farmers were responsible for growing the grain, and the pool’s job was to market it.

July 2013

grain pools

We operate in a global market and when we are a net exporter of commodities - wheat, barley, canola - we have to accept commodity price fluctuations.

“That’s no longer the case, so it’s wise for farmers to take a more hands-on approach to managing their grain marketing.”

ESR only a guide to price According to Chris, grain marketers who continued to offer pools had to compete with cash pricing when setting ESRs (Estimated Silo Return) and could therefore no longer be as accurate with their estimates as they were in the past. “That means the ESR is just a guide to price, at a point in time in an ever changing environment. The final pool return can vary depending on the final average outcome in the market,” he said. “People get concerned if pool estimates vary however, in a market place that’s operating effectively, pool ESRs shouldn’t actually all be the same as pool managers all have different strategies. “In recent times, some pool operators appear to have been more focused on generating management fees rather than managing the pool and that’s when problems arise.

Market volatility not to blame Chris said the current global economic downturn - and the high Australian dollar - had certainly not helped pool returns but then cash and commodity prices were also subject to the same conditions. “We operate in a global market and when we are a net exporter of commodities - wheat, barley, canola - we have to accept commodity price fluctuations.” Chris said. “The high dollar has been detrimental to the whole market including cash and pooling products. We would have got more for everything – not just pools but for cash as well – if we had a lower dollar.

Due diligence Chris said that like every business relationship, farmers should undertake their own due diligence with pool operators before committing their grain. “You have to look out for rhetoric,” he said.

“It’s also important to know the strategy of how the grain marketer will manage the pool. “How are they managing risk - through derivatives and foreign exchange or physical sales, or a combination of both? “What is their timing of exposure to the market. It can range from just three months sell down to active management over 18 months. “I look for inconsistencies between advertising and reality. If I see something in the advertising that I don’t like or it sends the wrong message in the way it’s portrayed, then I just don’t touch that provider at all. It’s black and white for me.“ Chris said due diligence also includes researching the pool provider’s financial credentials - their financial strength, their people, their resources and systems - and being wary of sales people signing up to a new pool before the previous pool has been finalised. “Buyer beware is still the best advice,” he said.

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