MARCH 2022
Magazine
Murray Irrigation Limited
C elebrating 27 years PAGES 11-18
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Advertising & Editorial Deadlines April Edition: March 25, 2022
Supporting young learners Tocumwal’s Thomas Hatty and Jerilderie’s Tiarna Burke have been given a handy financial boost as they continue their studies.
May Edition: April 29, 2022
M
r Hatty has been awarded the Ricegrowers Association of Australia’s Greg Graham Memorial Scholarship, valued at $10,000. Miss Burke received the runner up prize — the Peter Connor Book Award — which contributes $3,000 toward the cost of books and course materials. Mr Hatty’s scholarship will assist him to continue his studies at Latrobe University in Melbourne, where he is enrolled in a double bachelor degree in Agricultural Science and Commerce. Currently completing year three of a four year degree, Mr Hatty said the scholarship is a “big help”. “It’s nice to have something to relieve the financial pressure of study,” he said. “With this scholarship I’ll be able to concentrate more on my studies.” Mr Hatty said he has “always been business-minded”. Originally planning to study just commerce, he instead pursued a double-degree after working on farms during his gap year. “I just realised that this is something I would enjoy and am passionate about,” he said.
June Edition: May 27, 2022 August Edition: July 29, 2022 September Edition: August 26, 2022 October Edition: September 23, 2022 November Edition: October 28, 2022 December/January Edition: November 25, 2022 February Edition: January 27, 2023
“With this scholarship I’ll be able to concentrate more on my studies.”
March Edition: February 24, 2023
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Information contained in this magazine is presented only after being carefully researched. However, there are differences in state and regional regulations and conditions. Farmers are asked to check with their own advisors. FARMtalk can assume no responsibility for the contents.
MARCH 2022
FARMtalk • 3
Scholarship: Thomas Hatty, Ricegrowers Association of Australia’s Greg Graham Memorial Scholarship recipient.
“And the two go hand-in-hand; there’s quite a bit of overlap.” RGA president Rob Massina said he is a “worthy winner”. “Thomas won the award on the basis of his character, his knowledge of the rice industry and his broad understanding of all sectors of agriculture,” Mr Massina said. “Thomas’ double degree offers him a variety of career opportunities within the industry, and his determination to build a career in agriculture is evident through his varied work placements since completing High School.” The Greg Graham Memorial Scholarship is named after past RGA President Greg Graham of Deniliquin who died suddenly on New Year’s Day in 1983. The book award is named for Peter Connor, a leading rice grower from the Coleambally area. The scholarship will allow Miss Burke to buy course materials for her Bachelor of Occupational Therapy degree at Charles Sturt University in Albury. “I was really shocked actually,” she said of being selected.
“I thought I did terribly during the interview — I had just done a seven hour drive from Wollongong the previous day and had to get down to uni the day after.” Miss Burke lives is student accommodation in Albury, and said having the scholarship for course materials would ease her cost of living pressures. Mr Massina said Miss Burke had impressed the judging panel with a strong competency in agriculture and a desire to put her skills to use in Jerilderie. “Miss Burke impressed the panel with her strong primary production knowledge of rice, and her aspiration to help the agricultural community by returning to the local community to provide much needed occupational therapy to farmers,” Mr Massina said. “Her commitment to regional and rural communities was evident in her work experience, knowledge of the industry and current impacts facing growers.” Mr Massina said the RGA is committed to the industry’s long term future and see the next generation as a key part of its success. He acknowledged the generous financial support from Rice Research Australia Pty Ltd and SunRice who make these scholarships possible each year.
Runner Up: Tiarna Burke, Peter Connor Book Award recipient.
Since the awards were first introduced in 2001, more than 40 students have benefited from the generosity and foresight of the scholarships.
“Her commitment to regional and rural communities was evident in her work experience, knowledge of the industry and current impacts facing growers.” ROB MASSINA
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Records fall at
Jerilderie
JERILDERIE, NSW
MARCH 2022
FARMtalk • 5
Ask any farmer the value of his working dogs, and they will tell you they are “priceless”. And they are!
B
ut the annual Jerilderie Working Dog Auction is showing the true worth of the four-legged farm hands, with two records broken at the 2022 event in February. ‘Trixie’, a nine-month old kelpie, broke the record for the sale of a bitch under 12 months old. Dubbed a “drover’s dream” by Willacoda-based vendor Adrian Albutt, she was sold for $22,000. But it was Wilcannia’s Brad Pellow who topped the sale with his three-year-old kelpie ‘Harry’, who sold for $25,750 — also a record for the Jerilderie sale. Sales at the annual auction usually average around $10,000, but auction co-ordinator Warwick Doolan said lofty prices like those earned in 2022 do pop up every now and then. Until this year, the record price at Jerilderie was a $25,000 sale of Eveready Possum by Shane Maurer in 2019. But two sales over $20,000 at the same auction is new for the event, which doubles as a fundraiser for the local community. “Our sales are on average $3000 higher than all other working dog auctions in Australia,” Mr Doolan said. Crediting the dedication of committee volunteers and vendors, Mr Doolan said buyers could be confident in the auctions consistent and quality offerings. “Farmers and breeders recognise the value of a good working dog,” he said. “They know how much effort goes into training up a puppy — you’re looking at two-years of training before you’ve got a viable working dog.”
“Our sales are on average $3000 higher than all other working dog auctions in Australia.” WARWICK DOOLAN The Jerilderie Working Dog auction is held on the last Saturday of February every year. In 2022, 57 dogs were offered, with 55 sold netting a combined sale of $578,000. Bids rolled in from all over Australia, thanks to the growing use of the online platform Auctions Plus. “I’d say the only place in Australia we haven’t sold to is the Northern Territory,” said Mr Doolan. Mr Doolan described a bespoke buying experience, which guarantees a good fit for bidders. “People can access videos of the dogs working in a variety of conditions and livestock. “For instance you might be looking for a dog with a lot of bark, whereas I might want none at all. “Or you might need a dog to help out in the shearing shed, but someone else needs one for out in the paddock. “Everyone’s needs are different and with 59 dogs to choose from you can almost guarantee you’ll find a good fit.”
Despite the rise on online bidding in recent years, the top priced dog interestingly went to someone who was in the crowd at Jerilderie on the day. The Jerilderie Working Dog Auction got its start in 2006, and was intended to reinvigorate the now defunct Jerilderie Show, which eventually folded in 2008. The auction remained however, much to the benefit of Jerilderie’s community. Every year, the auction contributes an average $40,000 in charitable donations to the local economy — sourced from event fees, commission and sponsorships. Benefactors include the local Apex Club, Lions Club, and even local businesses. “It’s a fantastic event, and one that continues to grow year-on-year,” said Apex Club secretary Andrew Gillett. As one of the event’s biggest benefactors, the Apex Club also helps organise the event, and disseminates the proceeds to worthy local initiatives. “Over the years we’ve donated towards all sorts of things,” said Mr Gillett. “Some of our most significant investments have been $100,000 donation to the Jerilderie Independent Living Units, and $40,000 to the Sir John Monash Ned Kelly Bronze statue soon to be erected in Jerilderie.” On behalf of the Jerilderie Apex Club, Mr Gillett extended his thanks Elders Rural Services, which ran the auction, as well as the Jerilderie Lions Club and the Finley High School show team who provided assistance on the day. “We’re very pleased that such an important local event has remained an ongoing success.” Photographs courtesy Bels Rural Photography.
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MARCH 2022
FARMtalk • 7
Nitrogen Build-up under pasture One of the easiest ways to improve soil health is to include pastures in your cropping rotations. This is because both soil organic carbon levels and soil nitrogen levels increase during the pasture phase.
R
eintroducing pasture into rotations will bring the long-term benefit of higher crop yield potentials and less reliance on fertiliser nitrogen. Pastures also offer other benefits, including better control of herbicide resistant weeds, reduction in cereal root diseases and an improvement in the soil structure. The time may now be right to move back into pastures. Stock gross margins are at a high, which favours pastures. Nitrogen fertiliser prices are also high which distracts from crop gross margins. So, can we put a value on the nitrogen that accumulates under pastures? The cost to purchase nitrogen As you know, about eighty per cent of the air we breathe is ‘free’ nitrogen. But to buy nitrogen in a form that all plants can access is far from ‘free’! A tonne of urea contains 460kg of nitrogen. If that tonne of urea costs $1,000, then each kg of nitrogen costs about $2.17, and if urea is $1,200/t, the cost is about $2.60/kg nitrogen. Quantity of nitrogen fixed by pastures With Nitrogen fertilisers currently fetching a high price, the increase in soil nitrogen under a pasture is of great interest. So, how much nitrogen is fixed each year under a pasture? Frustratingly, the answer is “it depends.” It’s a bit like asking how much grain a wheat crop will yield, the answer is it will vary greatly depending on how it is grown. An old rule of thumb was that about 25 to 40kg/ha of nitrogen is fixed per year under a sub-clover based irrigated pasture. The actual amount of nitrogen fixed
however depends on the actual amount of legume (clover) growth. The above estimate is probably correct for a mixed grass and clover pasture, but it doesn’t reveal the true potential of a clover dominant pastures. Nitrogen fixation under well grown, clover dominant pasture is more likely to exceed 100 kg/ha. This is over $200 per hectare worth of nitrogen at current prices! Quality of organic nitrogen Obviously, cost is important, but it’s not just the price of fertiliser nitrogen that is of concern. Organic nitrogen, like that fixed in the soil under legume pastures, has some advantages over fertiliser nitrogen. It is less vulnerable to loss than nitrogen applied in fertilisers such as urea. The organic nitrogen needs to mineralise (break down) into a form available to the plant, normally as nitrate (or ammonium nitrogen in the case of rice). The slow release of organic nitrogen is often a good match for the plants demand. This slower breakdown means that the rotational benefits of pastures will be evident in the cropping phase for several years.
The final word The clover dominant pastures that were once so common throughout our region performed a valuable task. They led to increases in both the organic carbon and the organic nitrogen levels in soils, increasing soil health. This in turn had flow-on benefits to the crops that were grown in rotation with them. Now that more land is dedicated to continuous cropping, we are seeing a steady decline in both soil carbon and nitrogen levels. This has a real cost that will only increase over time, so it may now be time to consider reintroducing legume-based pastures into cropping country.
Pasture vs fodder crops During the millennial drought it became clear that fodder crops could produce more forage per megalitre of water than pastures. This contributed to the demise of pasture area throughout the Murray irrigation districts. However, while they are water efficient, fodder crops cannot reverse the decline in soil organic carbon and therefore in soil organic nitrogen. In fact, the yield potential of fodder crops will also decrease over time if the soil organic carbon levels continue to decline.
Tapper Ag S24
John Fowler is senior lands services officer – extension agronomist with Murray Local Land Services.
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Floodplain harvesting win
In February, Murray River irrigators and Lower Darling communities celebrated a big victory. The NSW Parliament Upper House quashed dodgy National Party law changes that allowed floodplain harvesting in the Northern Basin - the practice of irrigators diverting rain water into their private dams. We all want to see floodplain harvesting measured, licenced and properly regulation. But the National Party’s sneaky law changes – made on a Friday afternoon while Parliament wasn’t sitting – were extremely problematic. The new laws provided for water take in the Northern Basin well in excess of legal limits. That means less water for the Southern Basin. The NSW Government’s dodgy modelling had not been independently verified and there are no provisions yet for downstream flows. We need new rules that are fair for farmers across the state – that’s what I’ll be working on over these coming months. Helen Dalton MP for Murray Authorised by Helen Dalton MP, Funded using Parliamentary Entitlements. www.helendalton.com.au
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MARCH 2022
FARMtalk • 9
The balls of it all
Is your bottom-line suffering from a reduced lambing percentage? Ovine Brucellosis (OB) is an infectious bacterial disease in sheep that can cause infertility or reduced fertility in your flock.
I
nfection can go unnoticed until a low scanning rate, lambing percentage or a longer lambing period sparks investigation. We have recently performed several infertility investigations following low scanning rates reported by producers and found OB to be the cause. OB affected rams appear healthy, but the infection causes inflammation of reproductive organs, reducing fertility, potentially to the point of complete sterility. The disease can also very occasionally cause abortion in ewes. One way of checking for infection is to manually palpate the scrotum (feel the balls) to check for lumps. If you find anything, call a vet to confirm with a blood test. Ram-to-ram spread is the most common route of infection. This means one of the best ways of preventing infection on farm is to restrict the entry of infected rams. This means good boundary fences to prevent stray rams and purchasing rams that are accredited as Brucellosis
free. Don’t buy rams from a saleyard, as they could be infected. Once a ram flock is infected, infection is maintained in the group as new rams are continuously infected by infected rams. Ewes can be temporarily infected and are occasionally implicated in spreading the disease, either from ram to ram or onto a new property. Meat breeds such as Poll Dorset and Dorper often have higher rates of infection within flock due to increased sexual activity comparted to Merinos. Unfortunately, there is no treatment for OB and control is aimed at eliminating the infection from your flock through a test and cull program. There are a few simple practices that you can implement to prevent brucellosis from infecting your flock, including: •
•
Palpating ram testicles to check for lumps prior to purchasing and before joining
•
Make sure your biosecurity plan is up to date and quarantine any new introductions for at least a month, check your boundary fences
•
Seek veterinary advice if you notice lower lambing percentages, longer lambing periods, or abnormal lumps in the testicles
If you would like further information on Ovine Brucellosis or would like to speak to a veterinarian about infertility within your flock contact your District Vet by calling 1300 795 299 or drop into a nearby Local Land Services office.
Katelyn Braine (pictured) is a district veterinarian with Murray Local Land Services.
Purchasing rams from studs that are accredited as OB free
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MARCH 2022
FARMtalk • 11
Murray Irrigation Limited
Celebrating 27 years
Murray Irrigation
On March 3, 2022 Murray Irrigation celebrated 27 years since privatisation. Its story has been described as “communities taking control of their destiny”. In this 8 page lift-out feature, FarmTalk looks back on the history of Murray Irrigation and the region’s farming and irrigation industry in general. The past 27 years have presented many challenges, in particular implementation of the Murray-Darling Basin Plan and reductions in water availability. However, just like the shareholders it serves, Murray Irrigation continues adapting and looking to the future, ‘delivering for our farmers, our communities and the environment’.
MARCH 2022
12 • FARMtalk
Controlling our destiny
Murray Irrigation: Murray Irrigation’s 2022 Board of Directors (from left) Ryan Gleeson, Phillip Snowden, Robert Burbury, Chair Steve Fawns, Noel Baxter, Lachlan Marshall and Trisha Gorman.
MARCH 2022
FARMtalk • 13
The story of water delivery privatisation in the Murray region is one of communities taking control of their destiny.
T
he first official Board meeting of Murray Irrigation Ltd took place on March 3, 1995, being recognised as an unlisted private company with 10 elected board directors. Two years ago marked the silver anniversary of this historic day in irrigation history, however for various reasons it was not celebrated on this date, and soon after our intentions to celebrate the milestone were thwarted as the world was turned upside down by COVID-19. I believe, though, that it is an important achievement that should not go unrecognised. Today, 27 years on from the day Murray Irrigation was born, we have a lot to understand and appreciate. Firstly, we should acknowledge all members of the irrigation community who took the brave step to achieve irrigator ownership and control of the Murray Irrigation Area and Districts. In the 1980s, most landholdings had been extensively developed and the introduction of new laser levelling techniques was improving farm water use efficiency. However, many irrigators felt that not enough of the money being raised locally through the water price was being re-invested in the maintenance and upgrade of their irrigation system. Irrigators believed there were significant opportunities to improve water supply efficiency and began agitating for local management, separate financial accounting and independence from government. After considerable discussion and negotiation, in November 1994, Murray Irrigation Management Board Chairman Kelvin Baxter, in a letter to irrigators, advised them that: “The Department of Water Resources has resolved to withdraw from the job of water retailing and distribution, and concentrate on its core function – management of dams and rivers, and regulation. This means that change for irrigators is inevitable – and we must work together to influence and reap the benefits of this change.” At about the same time, the Minister for Land and Water Conservation George Souris wrote: “I congratulate the Murray Irrigation Management Board for the tireless representation on behalf of irrigators and urge all Murray Irrigators to participate in this important reform, which will see one of the ‘Jewels of the Murray’ in the hands of the experts – the irrigators.” And so the foundations for Murray Irrigation Ltd were firmly in place.
The first decade was a period of consolidation for MIL as it set about improving the operation and efficiency of one of the world’s best gravity-fed irrigation systems, allowing the company’s shareholder/customers - ie. our farmers - to do what they do best, which is grow food and fibre for domestic and international consumption. This included implementing the Land and Water Management Plans, a successful program in which the company worked hand-in-hand with shareholders to improve their on-farm efficiencies. Then we were hit by the Millennium Drought and in the early years of this century our shareholders had to contend with record low water allocations. But the challenges were not about to stop. Part of the Federal Government’s response to the drought was the Water Act 2007, and subsequently the modelling and development of the Murray-Darling Basin Plan, with its implementation starting after it was passed by the Australian Parliament in 2012. As we know all too well, this has led to significant reductions in the water that is made available for delivery by Murray Irrigation. In fact, since privatisation in 1995, our average water delivery has reduced by around half from approximately 1,000 to 1,200 gigalitres a year to approximately 600 GL/yr. A large portion of this is the result of water recovery under the Basin Plan. The challenges that have been faced since privatisation have placed increasing emphasis on the need for Murray Irrigation to operate at the highest possible level of efficiency. To this end a funding agreement between our company and the Australian Government was signed in 2012 for the modernisation of the water delivery system. The Private Irrigation Infrastructure Operators Program – or PIIOP, as it became known - was an asset renewal project which involved upgrading ageing infrastructure across our entire footprint, with a focus on providing our customers with infrastructure that would last into the future and support the increased need for efficiency, innovation and resilience. It was the largest construction program ever undertaken by Murray Irrigation, the largest asset renewal project in the region since the mid1990s and was described in 2019, on completion, as “an exemplary public and private investment in Australian agriculture”. PIIOP rounds one and two were delivered at a total cost of more than $300 million. As I write this snapshot of Murray Irrigation in early 2022 we have fortunately returned to a La Nina induced
period of higher rainfall, and subsequently a season in which our shareholders are enjoying the benefits of 110 per cent allocation. We know, moving forward, that allocations at the level under which we historically operated will be the exception, rather than the norm. What this highlights, as the Murray Irrigation Board of Directors fully appreciates, is the absolute imperative that the Murray Irrigation journey towards maximum efficiency in all aspects of our operation must be pursued, supported by an engaged and highly skilled workforce. At present one area of focus is on our Regional Recovery Prospectus 2021-2026, which contains a suite of projects that will enable smarter use of existing parcels of water to achieve both environmental and agricultural outcomes. Discussions have taken place with the Australian Government, including Water Minister Keith Pitt, Environment Minister Sussan Ley and Senator Perin Davey, encouraging the Government to provide funding so work can start on at least some of these projects, which are ‘shovel ready’. We look forward to a positive response. We are also currently undertaking the recruitment process for a new Chief Executive Officer who can build the necessary momentum and drive Murray Irrigation forward into the next phase of our growth and development. Vital years are ahead for our company as we work with stakeholders and government agencies to rebuild greater certainty in allocations and continue developing the efficiencies which technology can provide, enabling our shareholder/customers to get maximum benefit from every drop of water we deliver. As I said at the start of this article, when Murray Irrigation came to being in 1995 it was seen as our community taking control of its destiny. We should take immense pride in what has been achieved in the past 27 years, and ensure that when our Golden Anniversary is celebrated in 2045 we can reflect on a half century in which irrigators in the NSW Murray took control of a Government instrumentality and moulded it into the world’s number one irrigation company.
Steve Fawns Chair/Executive Director Murray Irrigation Limited
MARCH 2022
14 • FARMtalk
Opening: NSW Premier Alex Mair officially opened the FInley section of the Berriquin Irrigation District at the opening of HJ Close, three miles north east of Finley on October 2, 1939.
Wakool: Turning of the first water wheel in the Wakool Irrigation District in September 1935 on the property of J W and H R Clarke, ‘Glendale’, Wakool. Pictured on the right of the wheel is H R Clarke with farm manager G Osbrough and his children to the left.
Irrigation … a timeline of events 1870s:
Southern Riverina landholders begin serious lobbying for the development of irrigation in the region after a series of droughts.
series of storages including Hume Dam, Yarrawonga Weir and Lake Victoria, and a series of locks and weirs along the Murray to enhance navigation.
1895-1902:
1919: The first sod is turned in the construction of Hume Dam.
World War II begins, resulting in labour, materials for construction projects, and some food shortages across the nation.
1920s:
1942:
Extended drought again decimates the Riverina landscape. There is growing conflict along river and creek systems over water as landholders increase the intensity of their efforts to have dams and irrigation systems built to secure more reliable water supplies.
1901: Federation: After considerable debate about control of the nation’s water resources, and the use of the Murray River’s water in particular, the new Commonwealth of Australia Constitution Act 1900, Section 100, protects the rights of the states to the “reasonable use of the water of rivers for conservation or irrigation”. 1902:
Community concerns, particularly those of landholders in the Berrigan district, lead to the Corowa Water Conservation Conference attended by State Premiers and the Prime Minister. It agrees to a Royal Commission “to inquire and report on the conservation and distribution of the Murray and its tributaries for the purpose of irrigation, navigation and water supply.”
1906: NSW begins development of the Murrumbidgee Irrigation Area. Construction of Burrinjuck Dam starts the following year. 1912: The NSW Water Act is enacted, creating the Water Conservation and Irrigation Commission which would oversee the development and operation of irrigation in the state for more than 60 years. 1913-14:
The Murray and Edward Rivers ceased to flow because of severe drought. There is photographic evidence of a picnic on the bed of the Murray River.
1914-1919:
World War I: Australian troops are
called to arms.
1915:
NSW, Victoria, South Australia and the Commonwealth finally reach agreement on the sharing of the Murray River’s resources and the River Murray Waters Agreement is enacted. Plans are drawn for a
The Government begins serious implementation of its closer settlement policy, resuming land from larger properties and subdividing it into smaller properties for lease or sale to settlers, and particularly solider settlers. However, drought and the lack of reliable water causes some settlers, particularly in the Wakool region, to abandon their properties.
1925: First water is released from Hume Dam. 1929: Landholders are advised that the Wakool Irrigation Scheme will proceed, the first large scale irrigation scheme to make use of NSW share of the Murray River waters. 1933:
Construction of Wakool Irrigation District channels and Steven’s Weir begins. Before a crowd of 400, NSW Premier Bertram Stevens drives in the first pile to begin the building of the weir.
1935: Premier Bertram Stevens turns the first sod in the construction of the Mulwala Canal in April. The first water is supplied to farms through the Wakool Stock and Domestic Water Supply and Irrigation District. Construction of Yarrawonga Weir begins. The weir is to create a pool capacity of 120,000ML.
1938:
Hume Dam completed to stage one, with a capacity of 1,540,000ML, slightly increased on the original proposal.
1939: Yarrawonga Weir is completed. The first stage of the Berriquin Irrigation District, which reaches Finley, is officially opened by the NSW Premier Alex Mair. Construction begins on the Lawson Syphons to provide water to the Deniboota Irrigation District. Premier Alex
Mair turns the first sod in August. Work was expected to take four years to complete.
Construction of the Lawson Syphons is suspended.
1940-45: Drought again bites deeply across most of south-eastern Australia. 1942: Experimental rice production began at Tulla Estate, near Wakool. This followed a request from the Commonwealth to the NSW Government and WC&IC to increase rice production to aid wartime food shortages and marked the beginning or rice growing in the Wakool District. Rice production had previously been prohibited in the Murray. 1945: Work resumes on the Lawson Syphons and Deniboota Irrigation Scheme with the appointment of a resident engineer. 1946: The Tullakool Irrigation Area is established for
soldier settlement as part of the Government’s Home Maintenance policy. The Government also creates subdivisions in other areas for soldier settlement including land near Blighty.
1946-48:
Flooding, material and plant shortages, and industrial disputes hamper construction of the Lawson Syphons.
1949: Work begins on construction of the Snowy Mountains Scheme. Construction of Mulwala Canal and Deniboota Main Canal are complete.
1950-54: Floods continue to stop work periodically on the Lawson Syphons and labour shortages also hamper construction. The arrival of migrants helps to ease labour problems. Although the NSW Government is having trouble raising loan funds for infrastructure projects, the Lawson Syphons and Deniboota Scheme
MARCH 2022
FARMtalk • 15
are high on its priority list. Construction at the syphon goes to three shifts, 24 hours a day.
1955: The official opening of the Lawson Syphons is
conducted by NSW Premier John Cahill in April, with the first water available to 40 holdings in Deniboota District.
1956:
There is record flooding in the Edward and Murray Rivers. Small pockets of land show signs of salinisation, as flood waters mobilise salts in the soil.
Mid 1960s: The recurrence of drought and water shortages raise concerns about Murray River water sharing arrangements, as demand outstrips supply for the first time. 1967: Volumetric water allocations are introduced in the Area and Districts. Subdivisions are no longer automatically entitled to additional water rights. 1974: Major flooding again affects the region. Rising
water tables and increasing salinisation are identified as significant issues which could affect the health of the landscape.
1978:
Construction of Stage I of the Wakool Tullakool Sub Surface Drainage Scheme begins. The scheme is designed to reduce the levels of highly saline groundwater in the Wakool District which is threatening the health of the local landscape.
1979: Dartmouth Dam is completed with a capacity of 3,906,000ML. Water entitlements are increased.
1987: lrrigators take a “no pay” stand against proposed water price increases. The Government establishes Irrigation Management Advisory Boards allowing irrigators greater involvement in the operation of the irrigation supply system. The Federal Government, NSW, Victoria and South Australia sign the Murray Darling Basin Agreement to develop integrated management for the basin’s natural resources. Queensland and the ACT are now also signatories to the agreement. Hydrological modelling predicts that up to half of the region may be affected by water tables within two metres of the surface by 2020.
1988:
Stage 2 of the Wakool Tullakool Sub Surface Evaporation Scheme begins. Work is completed by 1992.
1989:
The findings of a detailed NSW Government inquiry leads to the separation of the State’s regulatory and commercial operation. lrrigators ask government to consider privatisation.
1991: Landholders begin to develop regional strategies to deal with rising water tables which threaten productivity. These strategies evolve into the Murray Land and Water Management Plans. 1993:
Discussion between local Irrigation Management Boards and government produces the framework for legislation which will allow privatisation to proceed. The Barmah Millewa Forest is granted the first “environmental allocation” of water to help restore forest and wetland health.
1995: Murray Irrigation Limited is formed on March 3. Murray Irrigation is Australia’s largest private environmental and irrigation water supplier, providing over 2,200 farm businesses and landholdings across the Southern Riverina with reliable access to high-quality irrigation water and services. 1995-2020: The MIL operating licence conditions include implementation of the $498 million Murray Land and Water Management Plans, with a pledge of $116 million State and Federal funding over the next 15 years. 1995-96: Murray Darling Basin Cap on extractions is introduced, limiting the volume of water extracted from the Murray River system to the 1993/94 level of development. 1996-2010: From late 1996 to mid 2010, much of southern Australia experienced a prolonged period of dry conditions, known as the Millennium Drought. The drought conditions were particularly severe in the early years of the new millennium, and again from 2006-2009. 2002: The Murray-Darling Basin Ministerial Council
establishes The Living Murray which aims to maintain and improve the health of the River Murray System. Widespread drought affects the region with record low rainfall and record low water allocations for irrigation.
2004:
The Federal and State Governments commit to the National Water Initiative, giving irrigators more security over their entitlements, but also seeking to expand water trading and provide water allocations to the environment.
2007: The Commonwealth Water Act 2007 is enacted, on the premise that it would provide the legislative framework for ensuring the Murray-Darling Basin – Australia’s largest water resource – is managed in the national interest.
2008: The Murray-Darling Basin Authority is established, replacing the Murray-Darling Basin Commission, as an independent statutory agency providing, for the first time, one Basin-wide institution responsible for planning the Basin’s water resources. 2012:
The Murray-Darling Basin Plan passes the
Federal Parliament with bi-partisan support, paving the way for the plan’s implementation to begin. The aim of the Basin Plan was to bring the Basin back to a healthier and sustainable level, while continuing to support farming and other industries.
2012: A funding agreement is signed between Murray Irrigation Ltd and the Australian Government for the modernisation of the MIL water delivery system, known as the Private Irrigation Infrastructure Operators Program (PIIOP). 2017-2019: The NSW Murray and broader parts of Australia are again in the grip of drought. Coupled with reduced water for productive use under the Basin Plan, this led to some very low allocations for irrigators, especially in 2018-19 with a zero allocation, and 201920 when it was only 3%. 2019:
On completion of PIIOP’s round one and two, at a total cost of more than $300 million, the project was described as “an exemplary public and private investment in Australian agriculture”.
2020: Murray Irrigation Ltd has been operating as a privatised company for 25 years. 2022:
Following a COVID-induced delay, Murray Irrigation Ltd is finally able to celebrate its achievements over its first 25 years (plus two).
MARCH 2022
16 • FARMtalk
Supporting our communities Supporting the communities across its footprint is an important part of the social responsibility for Murray Irrigation.
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he company takes pride in supporting healthy, viable and vibrant local communities by assisting projects and initiatives which ameliorate, promote and embed safety and wellbeing within communities across its area of operations. This is all made possible by contributions from its shareholder/customers, the irrigators who grow the food and fibre on which our nation and the world relies. An ongoing program supported by Murray Irrigation sponsorship for nearly 20 years is Learn to Swim across the region. Since its inception it is estimated more than 20,000 children have been involved. This year it is expected to involve 18 schools and three regional swimming clubs. In all, about 1,200 students will take part in the program, learning valuable and potentially life-saving skills. Murray Irrigation also has an annual program, in which community organisations are invited to apply for sponsorship funds to support specific projects or activities. Successful applicants in last year’s program were:
Murray Irrigation Directors 1995-2022 MURRAY IRRIGATION DIRECTORS FROM MARCH 3, 1995 TO 2022 Kelvin (Kel) Baxter
Daniel Liphuyzen
Stewart Ellis
Maxwell Goudie
William (Bill) Hetherington
Vic Landini
Peter Martin
Denis Tinkler
Alan Batley
Barry Ireland
Ian Morton
Gordon Ball
Ian Gillett
Alexandra Anthony
Michael O’Callaghan
David Hunter
Leigh Chappell
Anthony Read
Malcolm Holm
Vicki Meyer
Michael Humphris
Michael Hughes
Mark Robertson
Noel Graham
Tim McKindlay
Robyn Clubb
Roger Reynoldson
Bruce Simpson
Chris Badger
James Sides
John Bradford
Ben Barlow
Chris Brooks
Dr Sharnam Stone
Shane McNaul
Peter Mogg
Phil Snowden
Claire Filson
Waander Van Beek
Ryan Gleeson
Noel Baxter
Steven Fawns
Don Marples
Patrick Largier
Robert Burbury
Trisha Gorman
Sponsorship: (From back, left) Edwina Circuitt, Indi and Savannah Bain, Jake Wharton, Dallas Bain and Grace Jefferies; (front) Layla Werner, Gabriella, Phoebe and Monique Crothers and Marlie Mison at Outback Theatre for Young People’s ‘Monsters have feelings too’ workshop in Deniliquin sponsored by Murray Irrigation Limited.. •
Western Murray Land Improvement Group – $2,499 for a school tree planting project in which eight local school and groups participate with the planting of 464 native flora.
•
Outback Theatre for Young People - $2,000 for a ‘Monsters have feelings too’ workshop, in which young people from Deniliquin and surrounds navigated discussions around their reactions to current events through the lens of art, creating imaginative non-traditional sculptures.
•
Wakool Tennis Association - $1,750 to correct long-term surface deformation and enhance the flood lights across the courts.
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Finley Menshed - $3,298 to assist with kitchen upgrades, allowing for a safe and welcoming place to have planned barbecues, a general chat and a cuppa.
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Southern Riverina Irrigators - $1,000 to support its Women of Water events, which draw on local expertise to give a supportive environment for women and enable them to learn more about water and irrigation.
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Country Education Foundation (CEF) of Edward River region - $2,500 to help promote and enable the further education, career and personal development opportunities for rural youth through community-based encouragement and financial assistance.
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Deniliquin Rescue Squad - $1,908 to purchase a Brayden PRO CPR Manikin that will help to train more than 15 Deniliquin rescue volunteers.
The Murray Irrigation sponsorship program will continue this year. Watch in local media for information on when and how to apply. “This is an important program for our company that offers financial support for numerous community organisations,” Murray Irrigation chair Steve Fawns said. “I encourage groups across our footprint to submit their applications when they open so we have a range of projects to select from. “I would also like to recognise our shareholders who, through their contributions, make this program possible,” Mr Fawns said. Murray Irrigation also supports Southern Growers, a not-for-profit grower group local to the southern Murray Valley that conducts research and trials to provide today’s irrigators with innovative ways to improve profitability, efficiency, sustainability and performance of agriculture in irrigated farming systems. Murray Irrigation is providing a donation of irrigation water as part of the sponsorship program to support several projects. These include optimising irrigated grains with GRDC, Vetch for Hay with Dairy Australia, double cropping with rice in collaboration with NSW DPI, soil moisture network probe with Agri futures, irrigated Durum trials with Southern Australia Durum Growers and self-funded trials in wheat irrigation timings.
“This is an important program for our company that offers financial support for numerous community organisations.” STEVE FAWNS, MURRAY IRRIGATION CHAIR
MARCH 2022
FARMtalk • 17
Water buybacks and their impact on the NSW Murray
When planning was underway prior to the establishment of Murray Irrigation on March 3, 1995, no-one would have envisaged the changes that were going to take place in water management over the next two decades.
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oves to redirect water from productive use to the environment had started in 1993 when the Barmah-Millewa forest was granted the first ‘environmental allocation’ of water to help restore forest and wetland health. The push for more environmental water gained momentum over the next decade, culminating in The Living Murray in 2002, with its aim to maintain and improve the health of the River Murray system. Over subsequent years, with the nation in the grip of the Millennium Drought, water became a hot political issue and we saw enactment of the Commonwealth Water Act 2007, which was the catalyst for the $13 billion Murray-Darling Basin Plan. The following year, then Water Minister Penny Wong announced the first round of water buybacks, at the time saying: “The Commonwealth Government is putting $50 million on the table to purchase water in the Murray-Darling Basin to use for the benefit of the river, so this is a down payment on the future of the River Murray.” An alternative proposal for an across-the-board reduction in water entitlements was strongly opposed by local irrigators and their advocacy organisations, who argued they had a property right in regards to their water entitlements and the allocation process, so any water recovered from farmers must be purchased from willing sellers. This battle was successfully won, however the definition of a ‘willing seller’ became clouded as the buyback process progressed. Many irrigators across the NSW Murray region were under immense financial stress, having endured one of the most difficult decades on record through the enduring drought. Many saw the opportunity to sell their water through the buyback process as their chance to reduce debt. Anecdotal evidence suggests some were pressured by banks to take this course of action. And why wouldn’t they, with water being purchased by the Federal Government for significantly more than its trading price on entitlement markets. Others believed they could sell their entitlements and purchase temporary water as it was required, although this strategy has proven problematic in some instances with temporary water prices soaring to record highs during dry years. The impact of water buybacks was felt hardest in the western parts of the Murray Irrigation footprint, though no area was immune. And while the buybacks had a positive impact on some individual farm businesses, whether they were willing or distressed sellers who could retire debt or improve their cash position, the same could not be said for the communities and businesses which had built economies that relied on a prosperous and productive irrigation sector. The impact was also significant for Murray Irrigation, with its business model built on delivering volumes of water. In the case of communities and businesses, there were job losses, closures and, as a natural consequence, big declines in population. For example in the Wakool region, data prepared by the Murray-Darling Basin Authority shows that “total surface water entitlements available in Wakool prior to Basin Plan water recovery was 258GL” and that “91GL was recovered through purchase”. Overall, there had been a net reduction in available water of 88GL, or 34.5 per cent. The same MDBA evaluation shows a population decrease at Wakool of 45.6 per cent, from 1,569 to 854 persons between 2001 and 2016, and a total area workforce reduction in the same period of 53.7 per cent. Analysis showed there were population declines from 2001-2016 in Berrigan/Finley of 20.4 per cent and in Deniliquin of 12. 2 per cent. The MDBA points out the Basin Plan and water recovery was ‘just one of a number of factors’ for workforce and population declines. While this may be correct, those involved in agricultural production across these communities are committed to their view that they have certainly been the most significant … by a long way. The Federal Government introduced so-called structural adjustment packages, such as the Murray-Darling Regional Economic Diversification Program, which provided funding for projects designed to create employment opportunities and replace some of the
jobs lost through water recovery and Basin Plan impacts. However, in reality they were grossly inadequate. From Murray Irrigation’s perspective, water buybacks led to less water to deliver with a subsequent impact on its financial model. Since privatisation the average annual water delivery has decreased from approximately 1,000 to 1,200 gigalitres a year to approximately 600 GL/yr. A large portion of this is the result of water recovery under the Basin Plan. As such there has also been a big reduction in yield, with a recent Murray Irrigation submission highlighting that: “Over the past 20 years the yield of General Security entitlements in the Southern Basin has fallen from an average 74% to an average now of under 50%.” So what does this mean for the future? At Murray Irrigation, it means operating an efficient business to deliver water through an efficient system. As a region, it means managing water in a more competitive space. It also means working with the NSW Government, in particular its Department of Primary Industries and Environment, so those in charge of water allocations appreciate the effect of their decisions on Murray Irrigation, as well as the planning by its shareholders and, ultimately, the economy of the regional community. While Murray Irrigation has no say in allocation announcements, the company, its shareholders and the community at large have to wear the consequences when they are low or conservative. The future should also mean accepting that the environment has enough water and if it is managed efficiently the desired outcomes can be achieved. Murray Irrigation, its shareholders and the community have done a lot of ‘heavy lifting’ throughout the water recovery process. Going forward, we need a Basin Plan that has the flexibility to work collaboratively with Murray Irrigation, and others throughout the Basin, to deliver water saving projects that efficiently use our precious resource to not only protect the environment, but also our farmers, the food and fibre they grow, and the regional communities they support. Never again do we want to see water buybacks across the Murray Irrigation footprint, or have to encounter further adverse effects like we have had to endure from buybacks of the past.
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Northern Territory
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Murray Irrigation Area of Operations
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South Australia
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Main Canals Supply Channels Area Of Operations
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Murray Irrigation
Delivering for our farmers, our communities and the environment murrayirrigation.com.au
MARCH 2022
Keys to Successful Pasture Establishment
FARMtalk • 19
As we head into autumn again, many producers will be thinking about their autumn and winter feed requirements – and establishing new or renovating existing pastures may be ‘front of mind’.
Key Points •
New pastures can be expensive to establish
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Soil test to understand soil fertility and any imbalances
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Choose the right variety(s)
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Keep an eye on newly established pastures – weeds, insect damage etc
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Manage grazing to allow good regrowth and seedset.
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part from the obvious livestock benefits, pastures are well known for improving soil structure, soil fertility (where there is a legume component), and there is good evidence they can certainly maintain (and perhaps improve) soil Carbon levels. Before producers consider the ‘how’s’ of establishing pastures, careful consideration should be given to the ‘why’. A few of the questions will include: •
Is the pasture short or long term?
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Are there specific paddock issues, such as prone to water logging, soil acidity, etc?
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What species are suited to my climate and rainfall?
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If irrigating, is the intent to fully or partially irrigate?
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What role will my pastures play – grazing (and whether sheep or cattle), hay production etc?
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Do you want a single species, or a range and diversity (including, grasses, legumes, herbs, annuals and perennials etc)?
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Can you appropriately manage your pasture over the long term?
These are only some of the questions producers need to be clear on before they set their seeder up and hook on the tractor! But once these are answered, there are several clear steps to follow to give your newly sown pastures every chance of returning you a good investment.
What are the keys to successful pasture establishment? Establishment costs of new pastures can be high. We need good establishment in the first year to guarantee the pasture is productive over its lifetime.
7. Seedbed preparation
1. Planning Establishing new pastures can cost well over $300 per hectare, so it is important to do everything you can to get a good result! Plan well in advance of sowing considering factors such as soil limitations and weed and pest control.
Everyone has their own ideas of what works best for them – a prepared seedbed, direct drilling, broadcasting etc. Whatever method you choose, critical things to remember are: •
Sow seed shallow. Sowing too deep will significantly reduce germination and establishment, whilst dropping seed on the surface can often lead to ‘harvesting’ by ants, or the seed drying out before the root enters the soil.
•
Aim to sow to a depth of 1-2 cm, cover lightly with soil, and get good seed-soil contact (use a rubber tyred roller or similar).
2. Soil fertility A soil test will identify any soil issues which need correcting. Issues to be particularly aware of are soil acidity, nutrient status and potential imbalances or toxicities (such as high Aluminium levels). 3. Choose the right variety(s) Choose your pasture species based on soil type, rainfall (or irrigation) requirements, maturity, and disease and waterlogging tolerance. A mix of legumes and grasses will provide high quality pastures for your livestock. Always use high-quality, certified seed. Seed cost is a relatively small component of the overall budget, and certified seed will ensure high germination rates and minimise impurities. Seed treatment is also an important consideration. If sowing legumes, inoculation with the correct strain of rhizobia is essential – particularly where there is no recent history of legumes in the paddock. Local testing of rhizobia strains in pasture legumes (e.g. sub clover) has shown relying on pre-inoculated (coated) seed to be unreliable. If using pre-inoculated seed, ensure it is sown within six weeks of the inoculation date. Consider other seed treatments and/or primers to minimise problems caused by pests and diseases. 4. Correct seeding rate Lowering seeding rates will result in lower production, whilst providing greater opportunity for weeds to germinate and establish. Always take note of the recommended seeding rate – and if conditions are less than ideal, consider increasing the rate.
8. Monitor Once your newly established pasture is on its way, keep an eye out for weed germinations and any pests – in particular red-legged earth mites and aphids. Get on top of these early, to minimise costs and any impacts on pasture productivity. 9. Grazing management Successful pastures, once established, are very dependent on suitable grazing management in their first year: •
Do not graze too early – plants must resist being ‘pulled out’,
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Graze lightly to encourage tillering and good root development, and
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Ensure good seedset by minimising grazing during the flowering and seed production period.
Landholders wanting further advice on their pasture management should contact their consultants, advisors or resellers, or a member of the Agricultural Extension team at Murray Local Land Services.
5. Sow with good soil moisture Favourable condition’s are desirable for at least a couple of weeks after sowing. When sowing dryland pastures, aim to sow with a good profile of moisture. Sowing into the late autumn-winter will reduce pasture establishment, growth and production. 6. Soil temperature Apart from the obvious issues around increased water requirements, high soil temperatures will inhibit germination of many annual pasture species. The ideal soil temperature (at sowing depth) for ryegrass is 15250C. The most practical indicator is to use average daily air temperature over a period of 7-10 days.
Adrian Smith (pictured) is senior lands services officer — mixed farming with Murray Local Land Services.
The life of a musterer
A Finley couple and their team have tapped into a “gap in the market” in agriculture, to build a “one stop shop” company from the ground up.
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ontractors Rachel and Tim Brindley of T&R Pastoral have created a logistics company which services a wide variety of livestock agriculture needs. In 2017, the pair were managing a station between Balranald and Ivanhoe when they noticed a gap in worker skills related to mustering and other livestockrelated work. So they went about “utilising the people we knew in ag who were already contracting or were looking to do contract work”. “It’s increasingly difficult to find staff in ag, like every industry, and we saw that contractors could be part of the solution,” Rachel said. So, why the gap? Tim believes a lack of investment in training jackaroos and jillaroos in New South Wales has led to a decline in young people who can turn their hand at general farm work. He believes a lot of the young people interested in farming or physical labour found work in Queensland, the Northern Territory, or in mining during the boom of recent decades, where they could also access more training or a higher salary. “New South Wales was forgotten in agriculture, now we’re missing those skills — something’s gotta give,” Tim said. And it’s not for a lack of interested young people. “I think this (dynamic contract work) is the way the modern day young person wants to live. “You’re moving camp all the time and it’s exciting — you’re seeing all this different country and it’s go, go go.” The reduction of backpackers in Australia due to COVID-19 has also made life difficult for farmers who need seasonal staff.
“There’s no junior structure for livestock positions anymore, so there are no jackaroos around the Riverina,” he said. But once you’re contracting, you’re “the pick of the crop”, says Tim. “It’s difficult to source enough work as a single contractor. “We thought if we could have a large number of contractors working with us to complete jobs that we sourced, but they still have the flexibility to do their own work when it’s on, we could be a pretty unique business model that would be solving staffing issues for graziers and enabling contractors to fill their calendar with work.”
“We could be mustering any sort of animal, processing them and making happen whatever the producer wants to happen,” Tim said. “In early March for example, we’ve got sheep shearing, a skeining team, and we’ll be back on goats after that.” T&R Pastoral primarily work with sheep, however the company is capable of working other livestock jobs. “If you break it down, about 75 per cent of our work is sheep, 20 per cent cattle, and the rest is goats.” The couple’s background in agriculture has created a strong network for the family to branch out, and word of mouth has been their best companion. Tim was born and raised into agriculture in south western Queensland and spent his younger years as a jackaroo. Rachel is a Melbournite who is a trained chef and worked at Mt Hotham ski during the winter months, and then spent a year in the Northern Territory on a cattle property, harnessing her skills as a jillaroo. They met at Moolooloo, a cattle station TIM BRINDLEY in the Northern Territory’s Victoria River District, and the rest is history. Rachel said her trip to the NT was necessary to achieve a childhood ambition — to learn to ride a horse properly. “Fortunately Moolooloo needed a cook, so I jumped at the chance to get a foot in the door,” Rachel said. “After a few months, they let me on a horse to chase cattle and that was the start of a love of agriculture. “The year after, I went back as a jillaroo and Tim was there as a stockman, and we’ve been together ever since.” The couple found themselves relocating and after their time in the Balranald region, they settled on a 324 hectare sheep farm at Finley.
“You’re moving camp all the time and it’s exciting — you’re seeing all this different country and it’s go, go go.” It boils down to logistics, doing what they know so well, and what they love, according to Rachel and Tim. A normal say begins at 5am, and they usually receive a call by 6am which will set the tone for their day, outlining what they’re needed for. “If you have a job we have the staff, the gear or the contacts to get it done, whether it’s a helicopter, trucks, crutchers, shearers, musterers — any job, we can do it all,” Rachel said. “The client gets one invoice and the job is done efficiently and with the minimum of fuss.” Tim says no two days are the same.
FINLEY, NSW
These days, T&R Pastoral operates widely. They service properties at Booligal, Hay, Finley, Hatfield, Oxley, Rand and Lockhart. Their jobs involve mustering livestock, often with helicopters and always with motorbikes, drafting, paddock carting livestock, drenching, jetting, needling, lamb or calf marking, tailing weaners, regular water runs, and regular livestock welfare checks. While their roles have moved away from the jackaroo/jillaroo lifestyle as the business has grown, Tim still manages to get out in the field with his teams as often as he can. “There’s days where there’s no energy (for this work), but I sort of look at it as if I didn’t know anyone else who’s doing it at this level,” Tim said. “I want to see it succeed and I don’t wanna let people down that are involved. “My main job now is just logistics; I’m coordinating and setting jobs up. “I still love doing stuff like mustering the goats with two choppers and utes and guys everywhere. I still love that first day when you’ve got three shearers set up — it starts with a lot of stress but once it all starts, it falls into place.”
The business has grown from three or four contractors, to four employees and more than 30 contractors. What has been an even greater perk in the Brindleys’ growing business, is the fact that Tim can coordinate most of his work from home, freeing up more time to spend with his wife and two children. He can spend between 260 to 300 days away from home annually, which isn’t always easy. “Tim is away a lot, which can be hard particularly for our two boys,” said Rachel. “But even when we were managing (properties), Tim was rarely home before their bedtime, particularly in summer. If there was light outside, then there was something that could be done.” Tim agreed the shift to being home more has been a positive. “It’s a massive challenge (to be away from home), but as we’re growing, I’m coming home more and more. “It’s nearly a full time job getting things ready for the group to take out with them.” There must be something addictive about this lifestyle, because from all accounts the business move — and the move to Finley — has suited them well.
MARCH 2022
FARMtalk • 21
Family business: Tim Brindley with sons ?? and ??
“I’m nothing without my wife and my kids — they’re as much a part of this as I am.” On Rachel’s side, the job can be just as big. “While all this is happening, I would be doing the day to day admin, invoicing, paying bills, completing payroll, workplace health and safety tasks, all the ‘fun stuff’, plus running our farm at Finley when Tim’s away, and looking after our two boys,” she said. “Managing properties was fantastic when we were younger and had small children, but as we get older the autonomy of working for yourself is hard to beat. “The positives are definitely meeting new people and going to new places. “Tim absolutely loves seeing different parts of the country and seeing how someone else does things; if it’s good, it’s something to learn from, if it’s bad, it reinforces that we’re doing things right. “It’s also given us a sense of freedom and independence, yes we are still working for other people but it feels like it’s more on our terms now.”
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MARCH 2022
FARMtalk • 23
Buying used equipment - what to consider With the increasing shortage of new vehicles and equipment, the second hand market for many items has inflated by 20 to 30 per cent in the past 12 months.
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his boom is being compounded by high commodity prices and long wait times for new equipment deliveries. With this in mind, buyers should prepare for their second hand purchases with a thorough checklist, effective due diligence process and the best equipment financing options. We discuss these three important steps below.
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Your second hand asset checklist
The next thing to consider is your due diligence process, which extends beyond the inspection. In the right market, purchasing used equipment can offer great value, but it’s important to remember that the risk of problems with buying second hand equipment is significantly higher than buying new. Here are a few key questions to be addressed through the due diligence process:
Finding the right used machinery with satisfactory working conditions can be a difficult task — particularly if the buyer isn’t familiar with conducting inspections. The process can be simplified by having a comprehensive checklist at the ready before starting your second hand equipment search. Here are some important points you should consider including in your checklist: •
• •
Start the equipment inspection with a vendorsupplied copy of the condition report, interstate registration transfer and insurance. Ask how the machine was used, where and in what type of working environment. Conduct a check of the equipment including the tyres, lower body, buckets and blades.
Get an oil sample and check for metal contamination through an oil analysis.
These tips can be used to conduct a basic inspection on any used equipment you buy, however it is best to have a qualified technician perform the inspection on your behalf if possible.
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•
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How long is the equipment likely to last? It’s important to match the product lifespan with your requirements. Is the equipment an exact match for your needs? Second hand equipment buying typically involves less choice than buying new, so ensuring it’s a genuine match is worthwhile. Is the seller reputable? Dealing with sellers with solid reputations is likely to increase your chances of buying quality second hand products.
Identify any components that appear worn out, or close to being worn out.
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Conduct an interior cabin check of the controls, steering and backup systems. Also check if the seat adjustments work.
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Check the hours on the meter for an accurate gauge of how much usage the equipment has had.
When conducting private sales, a little diligence can go a long way. There will always be some risk involved with purchasing second hand, and these risks grow with the list of former owners. However, being aware of these risks is paramount to effective planning and mitigation.
•
• •
Turn the machine on and listen for warning signs such as coughing, squeaking or any other unusual noises. Pull the machinery forward a few metres to check it tracks straight. Check the hydraulic system and engine for signs of fluid leaks, breaks, corrosion, scratches or dents. Also check for loose belts and dirty filters.
options available which allow them to pay off second hand assets over time, as opposed to full payment at the time of purchase: •
Are there any additional removal and shipping charges? This is worth checking, particularly for heavy machinery.
Finance lease – involves the lender purchasing an asset and leasing it back to you. At the end of the
Due diligence is key
•
•
Business owners have a number of equipment finance
lease period, you’ll have the option to purchase the asset. The payments can also be tax deductible. •
Commercial hire-purchase – a financing option wherein you pay the total amount of the asset in instalments over a specified period. Ownership is transferred to you after the final instalment of the asset has been made. While only the interest portion of the payments is tax deductible, your business can claim depreciation deductions.
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Specific security agreement (formerly a chattel mortgage) – is similar to a home loan, wherein the equipment being financed is owned by you/ your business, but is mortgaged to the lender by a registrable charge over the equipment. This is a secured loan where the equipment acts as security for the lender. These are just some of the finance options available,
but finding a suitable finance option doesn’t have to be complicated. A broker can help simplify the process and find you the best finance option and lender, depending on the equipment you are buying and what it’s being used for. For further advice, call Grass Roots Finance in Deniliquin, on 0427 629 522. Grass Roots Finance offers business, equipment and personal finance, drawing upon the full suite of major lenders.
The benefits of equipment financing Being prepared with a finance solution is also an important step. Many of us associate private sales as a lump sum which must be paid at time of purchase, however this doesn’t have to be the case.
Chantelle Shevels is an authorised finance broker and owner of Grass Roots Finance.
Women in dairy In honour of International Women’s Day on March 8, FARMTalk interviewed Mayrung based dairy farmer and business manager Jo Burn on what it’s like to be a ‘woman in dairy’ in the Southern Riverina. Jo is an all-rounder as a business manager, farmer, mother and community member. This is her story.
MAYRUNG, NSW
MARCH 2022
FARMtalk • 25
W
ith a background in business and a keen eye for logistics, Jo Burn is a natural at running the ‘Arcadia Park’ dairy farm at Mayrung, alongside her husband Phil. The couple met on a holiday in the Pacific 20 years ago, and Jo followed Phil back to the family farm within the year. Although her business skills were sharp, she was yet to learn the art of dairy farming, but says she picked up the basics pretty quickly. “In the early days my focus was learning the basics of animal husbandry, focusing on milk harvesting and raising calves. “I don’t do as much herd management now, more in a relief role, but to be a good dairy farmer, I had to know how to do all the jobs. “I didn’t learn much on the machinery side of things — it was clear pretty quickly that’s not my strength — but I can certainly manage the figures and make sure our team are well looked after — my focus remains to become an employer of choice. “I had great teachers in the beginning — Phil and his mother Rose taught me all that they had learned about dairying, and as I came from a business background that really helped with taking care of things in the busy office.” Phil, an accredited diesel mechanic, is in charge of “the mechanical side” of the operation. “Between us we make a pretty good combination with which to run a business like this,” Jo said. With Jo’s help, the business has grown from a 300 milker operation to now over 800 milking cows. Phil and Jo have two young sons Daniel, 10, and Mitchell, 6. They go to school in Deniliquin. “My boys are always my number one priority ... and that includes Phil!” When their children were young, much of Jo’s time was spent caring for them. Daniel was diagnosed with Acute Myeloid Leukaemia at age three. “Our eldest son Daniel went through a cancer journey in 2015 and the dairy industry was very supportive of our family and our business during that time when we lived in the Kookaburra Ward of the Royal Children’s Hospital in Melbourne,” Jo said. Mitchell was born in Melbourne during Daniel’s treatment. Daniel is six years post-treatment and is “doing incredibly well” according to his mum. That network that supported the family through those tough years has sustained her through personal and business ventures, with a unique kind of solidarity in the dairy industry. “There aren’t as many dairy farmers in this area anymore; the impact of lower water allocations has made it very challenging for many to remain in the industry. “But for those who are still in agribusiness here, we’ve got a really strong network. “And there are some extraordinary woman making a real difference locally.” “There are quite a few dairy farmers, female and male, and there’s a lot of information sharing and support there.” Jo says there’s a “very good feeling amongst dairy farmers” in the Southern Riverina. “We’re lucky. We don’t feel like we’re competing with each other and we know how hard we all work.” And to be successful, Jo has embraced the diversity of a role such as this one. “Some days the focus is finances, or human resources, occupational health and safety, quality assurance, or herd management.
“There are quite a few dairy farmers, female and male, and there’s a lot of information sharing and support there.” JO BURN “It’s a very rewarding and diverse industry to be part of. “I’ve learned so much about so many aspects of dairying — I don’t think I realised before I came to the farm how hardworking any farmer that is producing a daily product is, and how hard they work. “I knew, and everybody said that farmers work hard, but I don’t think I really understood deep down what that really looked like.” While having young children meant her focus was split between childcare and the business, today Daniel and Mitchell go off to school and by 9am, Jo is sitting down to work. She completes a regular work day, which often extends into the evening. Between after school activities including cricket and gymnastics, and governance work on local community groups, Jo is heavily invested in her community, family and business. She also assists many of their cancer charities with fundraising, and will be raising funds for the Leukaemia Foundation this May in the World’s Greatest Shave. Over time, she has adjusted to the pace of the lifestyle. There are busy days, and hectic ones. The busy days are like harvest time for others — a constant flow of work. The hectic ones are when weather and irrigation conditions are dictating you need to also act immediately on that aspect of the business, mostly the pasture program. “There’s a saying; ‘make hay while the sun shines’.” And when the Burn family aren’t stealing small breaks between all their roles, they’re ensuring their product is of the best quality possible. “We’ve got quality parameters that we have to supply that milk at. All dairy farmers work hard daily to
produce a product which has a certain level of protein, fat, bacteria, and is at the right temperature amongst other criteria,” Jo said. She says her team is always taking care to provide a great product, and are always ready to respond. “If your phone starts alerting you at 6.30pm that there’s a quality problem, you’re back to working on fixing that straightaway” she says. “For you to feel confident as a consumer when you pick out that bottle of milk off the shelf, you need to know that we are responding to any issues. Quality is at the centre of everything we do.”
Dairy: Jo and Phil Burn at djfkajdfklajfkljadklfjklsdf.
Design 1
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METER VALIDATION & INSTALLATION
Design 2
Water meters are the key tool for measurement and monitoring of water usage in NSW. Accurate metering is essential for fairness and equity of water sharing between users. The NSW Government’s new non-urban water metering framework came into effect in December 2018 and is being implemented through a staged roll-out over five years. At Crightons we stock a wide range of Pattern approved meters suitable to all applications including Axial flow, submersible and mixed flow.
RURAL ENGINEERING, HAY, NSW
Ph: 02 6993 1768
DQPs are trained to install metering equipment and ensure it is working correctly. They can also give you advice on the best metering equipment to use for your situation and help you understand how to comply with the new metering rules. You must use a DQP to install and validate your metering equipment, contact us today to arrange an inspection of your meters. Certified Meter Installers & Validators (CMI) - CMI’s are DQP’s. We have 6 DQP’s on staff Contact: Jasen Crighton P: 0428 931 768 E: jasen@crightons.com.au
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MARCH 2022
FARMtalk • 27
Dairy Levy Poll Open Dairy industry stakeholders are going to the polls, as Dairy Australia recommends milking farmers for more.
T
he 2022 Dairy Poll opened on February 24 and offers members of the peak industry body a chance to determine potential increases to the dairy service levy. The levy, which has not been reviewed nor raised since 2012, allows Dairy Australia to invest in advocacy, disaster relief, and research on behalf of stakeholders. Participants can vote for one of four options. The first will see no change to the levy, and subsequently no change to Dairy Australia’s services. Other options include a 15 per cent increase, a 20 per cent increase, and a 25 per cent increase. All proposed increases will facilitate expanded services to Dairy Australia’s current offerings, which include labour resources, regional services, climate initiatives, and policy development. An Independent Levy Poll Advisory Committee (LPAC) was established for the purpose of reviewing the levy. It is composed of 15 members, 12 of which are dairy farmers, and three industry representatives. LPAC considered a number of factors before initiating the poll, which was passed unanimously. These included the length of time since the levy was last increased or reviewed — which is currently four years past its supposed five-year shelf life - and increases to the Consumer Price Index, which has ‘eroded’ Dairy Australia’s current services, according to the LPAC. According to the Dairy Poll 2022 Information Memorandum: “Dairy Australia’s current reserves will be reduced over the next two years, and with no change in levy, this will require a reduction in Dairy Australia’s services to the order of $2million to $3 million per annum.” These factors resulted in LPAC recommending a 20 per cent increase to the levy. “After detailed consideration LPAC strongly agreed that a levy increase of 20 per cent is recommended and in the best interests of the dairy industry.” For more information, and voting details, visit: https://dairypoll.com.au/home/. All votes are to be submitted before Thursday, March 31.
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