December 23, 2020
Home run Wallup broadacre farmer Daniel Keam is among grain and pulse producers across the region who have officially finished harvest 2020. Story, page 33 Picture: PAUL CARRACHER
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BY DYLAN DE JONG
armers across the WimmeraMallee crunching through the last few days of 2020 harvest are seeing promising yield and quality results for their grain and pulse crops.
The farmers’ results are reflected in an Australian Bureau of Agricultural Resource Economics and Sciences, ABARES, December report which shows Victorian crop production is almost the highest in 10 years, second only to 2016-17. Crop production is up 24 percent across Victoria. Wallup broadacre farmer Daniel Keam is among grain and pulse producers across the region who have officially finished harvest for 2020. Mr Keam, who farms wheat, barely, canola, lentils, vetch for hay and field peas, said yield and quality was above average at his farm this year. “The yield was really good for lentils and canola. The price was high while I was harvesting canola too, so I was pretty lucky,” he said. “We averaged about 2.5 tonne a hectare for our canola. “But we were probably down a bit on yield with our barley compared with last year.” Mr Keam said farmers were likely to store more grain this year as market prices were down, but yields were up.
Wednesday, December 23, 2020
READY TO CELEBRATE: Wallup farmer Daniel Keam has officially finished his 2020 winter crop production following a ‘good average’ year. Picture: PAUL CARRACHER “I think a lot of farmers have stored a lot more grain this year because of the prices,” he said. “Most farmers have covered themselves for the next two or three months. Some have already pre-sold grain as the price might fall away.
“But once the last header stops down south the price generally rises due to market demand.” Meanwhile, Rupanyup farmer Andrew Weidemann has also completed his 2020 harvest. Mr Weidemann, who farms canola,
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beans, lentils, barley and wheat, said his farm had promising yields and quality across the board. “I think overall most WimmeraMallee farmers have been pretty happy with the results,” he said “I think most farmers have ended
up getting more than they expected to get. “But the commodity prices are down quite a bit compared with last year, which takes a bit of shine out of it.” Mr Weidemann said lower grain prices were likely a reflection of rising trade tensions between Australia and China regarding tariffs on exports such as barley. But he said he was confident canola and pulses would fare better in the market. “Overall, with canola yield being up a bit and pulses a bit better than last year, it will be a similar outcome on the farm as it was last year,” he said. “My canola and lentils were really good in terms of price value and the yield – lentils will probably outstrip the canola in terms of profitability. “I’ve been getting in excess of three tonne a hectare on lentils, three to four tonne a hectare on beans and about 2.5 to three-tonne for canola.” Mr Weidemann said rain in early spring contributed to positive harvest outcomes at his farm. “Nobody would have thought we would end up with the result we’re currently seeing. I think within 60 days in winter we had 30 to 32 frosts, which really hammered the crops quite harshly,” he said. “The August-September rain really made the money for the grain industry.”
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STEPPING UP: Emma Germano, from Mirboo North in South Gippsland, has taken on the role of Victorian Farmers Federation president from outgoing David Jochinke.
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Victorian farmer survey has indicated exceptional conditions last spring and historically high livestock prices have led to a major surge in Victorian farm business confidence. The latest Rabobank Rural Confidence Survey, which surveys an average of 1000 primary producers across a wide range of commodities and geographical areas throughout Australia every quarter, suggests previous concerns about the effect of COVID-19 on rural markets had all but dissipated. This came with regular spring rain aligning with high commodity prices to push farm-business sentiment to its highest level since mid-2014. The survey found the number of Victorian farmers expecting business conditions to improve during the coming 12 months had more than doubled since a September survey. It showed sentiment up across all commodities, but had increased most among grain producers. Beef and dairy sector sentiment was also high, with both experiencing a stellar run of prices. Rabobank Southern Victoria regional manager Deborah Maskell-Davies said such optimism, combined with low interest rates, was now fuelling investment intentions among Victorian farmers, which were also their strongest in six years. She said COVID-19 restrictions easing
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in Victoria and life returning to normal for many people would also be contributing to the improved sentiment. The survey, completed last month, found the number of surveyed farmers expecting conditions to improve in the coming 12 months more than doubled to 39 percent, up from 16 percent, while half of those surveyed expected little change to current conditions. The number of farmers expecting conditions to worsen now stands at 10 percent, well down from 33 percent three months ago. In this group, overseas markets and economies were the most significant concern, while China trade relations were registering as an increasing worry. Ms Maskell-Davies said conditions across Victoria were now exceptional, even in areas badly damaged by bushfires at the start of the year. She said the survey found the optimism levels were largely being driven by the season, with 71 percent expecting conditions to improve citing seasonal conditions as the reason for their confidence, and 52 percent nominating commodity prices, especially in the beef sector. “The Victorian farm sector is in very good shape, with the season and prices combining to put farmers in a really good position at the end of 2020,” she said.
State welcomes new leaders The State Government has welcomed the appointment of the Victorian Farmers Federation’s first dual-female president and vice-president. Agriculture Minister Jaclyn Symes congratulated new president Emma Germano from Mirboo North in South Gippsland and vice-president Danyel Cucinotta from Werribee on their appointments She also thanked outgoing president and Wimmera farmer David Jochinke from Murra Warra for his four years of representation and advocacy for Victorian farmers. Ms Symes said the government had worked closely with Mr Jochinke and the VFF on many programs to help Victorian farm-
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ers, especially in drought relief, bushfire recovery, farm safety and agricultural education. She said some of the most notable programs included the government’s $81-million Drought Support Package, which helped farmers buy new equipment and build business resilience; the emergency fodder program providing donated hay and feed pellets to hundreds of farmers in the northeast and Gippsland; and the Quadbike Rebate Scheme helping farmers to make their bikes safer. “The Labor government has also delivered on several of the VFF’s priorities for farmers in the Victorian Budget 2020/21, including the $65-million Agriculture Strategy, which invests
$30-million to extend the popular Agriculture Energy Investment Plan and $15-million to make AgTech accessible to more farmers, and a separate $50-million for the Agricultural College Modernisation Program,” she said. Ms Symes said Ms Germano, having previously been VFF vice-president and as managing director of her family’s mixed farming operation, a Nuffield Scholar and a passionate advocate for Victoria’s horticultural industry, brought a wealth of experience to the role. She said Ms Cucinotta also brought valuable knowledge to her role as a third-generation egg farmer from Werribee and VFF committee member.
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s far as Elders HorshamKaniva branch manager Mat Taylor is concerned, being named Elders’ national employee of the year simply represents a team effort.
“The biggest thing for me is ensuring everyone at the branch works together, if I can help that in the smallest way then that’s great,” he said. “Being one of the senior staff here, I’ve been there and done that in chasing sales targets and so on. “It’s not about that for me anymore – it’s about coaching new employees in agriculture and making them better, watching their engagement with clients and working on building better relationships. That’s what I get my biggest kick from.” Elders has provided agribusiness services across Australia for more than 180 years, providing various services to primary producers from finance, banking, insurance and realestate to wool, grain, livestock and farm-supplies trading. Elders has its headquarters in Adelaide and 300 branches across Australia. Mr Taylor said he had an inkling he was in the top three after a nomination process via business executives and ‘was lucky enough’ to get the final thumbs-up from chief executive Mark Allison.
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NATIONAL AWARD: Elders HorshamKaniva branch manager Mat Taylor of Horsham is Elders’ national employee of the year. Picture: PAUL CARRACHER
“It’s all a team effort at Elders Horsham though. There’s been some tweaks here and there and a few changes and with that has come a lot of youth and excitement into the team – and the clients just love it,” he said. “Some of us older ones are doing a lot of coaching with the newbies, who are just great. The energy they bring in provides a great vibe around the business. “When it comes to farmers we’re there to help. This young brigade we have are going out on the farms and that’s something our clients appreciate. They ask can we go and do the drenching, can we go and do the
shearing – they just want to learn by doing. The more they know and work in with farmers, the better they will be – they will be the next generation in agriculture, so it’s great.” Mr Taylor, who found out about his award via an online presentation, started his first job in agriculture with agribusiness Heinrich Merchandise. “I was lucky enough to get a start there and I then spent 15 years at Nufarm. I then took on a people-management role at Elders and have been the branch manager in Horsham for the past three years,” he said. Mr Taylor said working in Elders was about developing strong relationships with clients and riding a wave
with them through the various ups and downs of the agricultural industry. “That’s why we’re delighted that most of our clients are having good results this season,” he said. “They’ve had a very long and tiring year. We spoke with a lot of clients back in March at the start of the COVID-19 pandemic, to make sure they were covered for the season. “We’ve worked so hard as a collective group and what’s happening now is just reward. “Good luck to the farmers. They have done it tough for a long time. “I’m so happy they are going to get some good money back this time around.”
The Victorian Farmers Federation is encouraging primary schools, primaryproduction sites and farmers across Victoria to connect with the ‘Kids to Ag’ project. The project aims to educate primary school students about agriculture by accessing grants of up to $2000. VFF immediate past president David Jochinke said it was important the next generation had the opportunity to learn more about agriculture and the option to get a hands-on, practical experience on working farms. “Kids learn by seeing and doing and the best way to understand the agriculture industry is to see it up-close and personal,” he said. Mr Jochinke encouraged teachers and other educators to be creative in their applications. “A school group could apply for a series of visits which followed a product along an entire supply chain, perhaps from a grain farm, to a silo and finally to a bakery,” he said. Groups can apply for up to $2000 and must make their submissions at least one month before a planned activity or start of the first activity in a series. Activities can start from the first school term on January 28 and for the remainder of the school year. Mr Jochinke said further details about the project were available by emailing kidstoag@vff.org.au.
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BY BRIAN WATTS
Forty bags to the acre’ has been heard more than once in the past week.
Wimmera farmers are enjoying well above-average yields for certain grain types. My bet is that 2020-21 will go close to being a one-in-ten year, with farm productivity and profits exceeding the most recent fiveyear moving averages. Our most recently completed report on Wimmera Farm Profit and Performance, the five-year rolling average, had the median farm – the farm in the middle from lowest to best – spending 60 percent of farm income on operating costs. The top 20 percent profitable farms in the survey only spent 41 percent. At this stage we can predict those key performance indicators, KPIs, will be shattered. Farm productivity can be measured by comparing the result, or output, against an input. The productivity of the farmland used, the amount of labour, the amount of income produced from the dollars invested in farm plant and farm assets being managed are four key measures. We expect they will be shattered as well. In our most recent Wimmera
farm report, the median farm: • Earned $343,600 in farm income for each farm worker involved. *Top 20 percent most profitable farms earned $592,900. • Had invested $122,000, or 122 percent, in farm plant for every $100,000 of farm income earned. *Most profitable farms, $800,000 or 80 percent, with lower meaning better. • Created a 4.57 percent rate of return in ‘cash profit’ on the value of farmland under management. *Most profitable – land owned, leased or share farmed, 10.5 percent. If this farm year turns out to be a ‘bottler’, here are some suggestions. Build resilience into your farming business by taking several steps. The government has offered incredible tax incentives to invest in plant. Wise decisions need to follow. Know your financial position. Know your likely ‘taxable’ – as opposed to your ‘real’ – profit to take advantage of this ‘one-inten’ year. Apart from sound grain-marketing decisions that are dependent on storage-capacity and knowledge, many will engage with grain marketing consultants.
Tax planning with your tax accountant early to ensure tax-effective decisions are made is encouraged. However, only invest in plant that is commercially sensible. We encourage Wimmera farmers to have various tax scenarios calculated by creating ‘what if’ tax outcomes for major farm outlays, such as plant, FMDs and superannuation. Financial decisions such as leasing, chattel or cash need to be weighed up to avoid a mistake. Perhaps it is time to alter your farm-business structure for both tax and asset protection reasons. A basic 13-column cash flow budget can be extremely helpful for better decision-making that results in reduced tax bills. None of us ‘do not know what we do not know’; we all make mistakes, best practice is to minimise such. • Watts Price Accountants of Horsham started reporting on Wimmera farm performance in 1991. Work on the 30th report – for the 2020 financial year – has already started. Any Wimmera farm is welcome to be involved and receive a comprehensive report on 17 KPIs for 2020 and the previous five-year rolling average.
BLOW ME DOWN: Damaged silos at Charles de Fegely’s Dobie farm near Ararat after a November storm.
‘Dramatic’ weather variability A La Niña climatic system predominating over eastern Australia this year has played a major role in dictating weather throughout a dramatic spring and early summer. While spring weather throughout western Victoria is traditionally more turbulent than all other seasons, rain-bearing La Niña, opposite to the dry El Niño, typically promotes more storms across large parts of the continent. Occasional storms, some sudden and extreme, have developed in the Wimmera,
Mallee and Western District during the seasonal crossover, in some cases causing significant damage. A cyclone cut a swathe through Horsham’s northern fringe earlier this month, following other damaging wind and rain storms across the region throughout the spring. Ararat and district was also among areas hit by storm activity in November, prompting several State Emergency Service call-outs.
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PROJECT DONE: Key figures involved in the Horsham Regional Livestock Exchange roof project, from left, Paul Christopher, David Grimble, Kevin Pymer, Member for Mallee Anne Webster, Horsham mayor Robyn Gulline, Neville McIntyre and Ray Zippel at the opening. Picture: PAUL CARRACHER
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ork on Horsham Regional Livestock Exchange’s $3.7-million roof has finished on time and within budget.
Member for Mallee Anne Webster and Horsham Rural City Council mayor Robyn Gulline were at the Burnt Creek saleyards last week to mark the official opening. The roof features a sawtooth modular design that covers a saleyard area of 23,400 square metres.
LED lighting throughout, solar panels and a new rainwater storage system have also been part of the upgrade. Cr Gulline thanked Dr Webster for the government’s contribution, which helped make the project possible. She said long-term benefits from the roof included weather protection for livestock, staff, agents and buyers, improved livestock quality and reduced cleaning and maintenance costs. “The new upgrades ensure the Horsham facility remains a modern and
competitive livestock exchange, generating more than $70-million of stock sales annually for the wider Wimmera,” Cr Gulline said. “Importantly, sales were able to proceed throughout the construction period with minimal disruption to the sale process. This is a testament to the close co-operation between the agents, construction contractor MKM Constructions and council staff. “’The council is appreciative of the ongoing advice from the exchange
board and recognises that this roofing project is the result of its ongoing long-term planning for the site as identified in the 2018 master plan.” The Horsham council was successful in an application for a $1.49-million grant from the Federal Government’s Building Better Regions Fund last year. The council also allocated $2.02-million for the project in its 2019-20 budget and construction started in December 2019.
Federal Agriculture Minister David Littleproud has welcomed stronger measures to strip charitable status from extreme activist organisations that illegally harass, intimidate and spy on farming families. “Extreme activist groups that target law-abiding Australian farmers will no longer be able to claim tax-free status for their fundraising efforts, with a broader range of prohibited conduct to be considered against their charitable status,” he said. “New regulations introduced by the Australian government will now include trespass, unlawful entry, malicious damage or vandalism and threatening violence. “The changes also strip charitable status from any group that uses their resources to promote or support others to engage in the conduct prohibited by the new regulation. “I know these changes will be welcomed and supported by farmers who live with the very real threat of being attacked and having property destroyed and vandalised, not to mention the serious biosecurity and animal welfare risks these mindless extremists bring with them. “Activists who take the law into their own hands will now find it more difficult to fund their illegal operations, and that is a good thing for farmers and their families.”
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Production tipped to hit $65-billion
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orecasts predict the gross value of Australian agricultural production to rise by seven percent to $65-billion in 202021. But Australian Bureau of Agricultural and Resource Economics and Sciences figures in a December-quarter agricultural overview showed the value of exports was still predicted to fall by seven percent year-on-year to $44.7-billion. The bureau summarised circumstances by explaining the forecast downturn in exports in a year of strong domestic production growth was due both to differences in what was exported against what was produced, combined with the impact of drought on the livestock sector. It went on to say that in most years of the past three decades, the cropping sector, including horticulture, contributed far more to the value of domestic agricultural production than the livestock sector. However, both sectors generally contributed equally to exports because most horticultural products – worth more than $12-billion annually – were consumed in Australia.
Federal Agriculture Minister David Littleproud celebrated the strong positive message generated by the rise in value of overall 2020-21 agricultural production. He said the rise was testament to the resilience of farmers, better seasonal conditions and key support measures applied by the Federal Government. “Growth is driven by drought recovery with Australia’s second largest winter crop, a favourable outlook for summer cropping and high livestock prices,” he said. “This is an outstanding result for the farming sector that has helped stay on an even keel despite all the challenges 2020 has thrown at us. “Australians should be justly proud of the farming achieved this year. Now more than ever we know the importance of the agriculture sector to our economy.” Mr Littleproud said the Federal Government, from the first day of the COVID-19 pandemic, recognised that agriculture was an essential industry and worked to ensure COVID-safe plans were in place, supply chains remained open
CLOSE EYE: An alpaca keeps an eye on proceedings at a Viterra grain bunker. Picture: PAUL CARRACHER and moved to help secure the agriculture workforce. “This latest ABARES forecast is a testament to the effectiveness of those actions and the resilience of our farming sector,” he said. “As we and the global economy recover from COVID-19, it will be agriculture again leading the way.” Mr Littleproud said trade tensions and issues surrounding agriculture workforces would present challenges to the farming sector. “I am particularly concerned at
the potential impacts of China’s decisions to impose anti-dumping and countervailing duties on barley and the recent impost of provisional anti-dumping duties on Australian wine,” he said. “But I am buoyed by this latest forecast. In October I laid out the government’s Ag2030 Strategy to support the industry target of $100-billion and I am committed to supporting Australian agriculture to reach its full potential.”
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Farmers can now better understand the potential opportunities from carbon-reducing activities using a farming tool developed by CSIRO, Australia’s national science agency. The LOOC-C or ‘Look See’ app gives farmers detailed assessments of how their land and farming practices could be eligible for rebates under a Climate Solutions Fund, CSF. The newest update of the app now includes measurement of soil carbon and beef-cattle herd management. The app gives estimates of abatement quantity for CSF methods in Australian carbon credit units for specific land areas, such as a paddock, and is consistent with the latest version of the National Carbon Accounting Model, used to estimate land-sector carbon emissions. This means LOOC-C users have access to the most up-to-date carbon estimates available, at the touch of a button. CSIRO’s LOOC-C project leader Peter Fitch said the aim of the tool was to help farmers and land managers participate profitably in greenhouse-gas mitigation and maximise the benefits to the land from carbon markets. “LOOC-C is unique and the quickest way of finding out what carbon farming options are available for your farm, what you’re eligible for and what the benefits might be,” he said. People can access the app online at https:// looc-c.farm/. CSIRO has also developed a digital service allowing access to the app’s data streams for ag-tech companies and carbon service providers to add value to their products and services. Formerly
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Branch: Legacy Agritech Rural Role: Fertiliser & Seed Sales
Branch: Legacy Agritech Rural Role: Fertiliser Logistics/ Admin.
I started working in Agriculture straight out of school with no real idea or clear ambition on what I wanted to do with my life. In 2013 I started work at Agritech Rural where my passion and fascination soon grew for the Agricultural world, the more I learnt the more I wanted to learn. Now in my seventh year I have been given more opportunities and taken on more responsibilities managing all fertilizer and seed in Horsham. The hardships you see firsthand, the work ethic that’s second to none and the relationships you form with the Agricultural community are the reasons we go above and beyond servicing our clients.
A familiar and hopefully welcoming face from Legacy Agritech Rural team, I began working for the business in Fertiliser Administration and Logistics back in 2008. Over my 12 years in the business I feel I have gained respect and acceptance in a largely male dominated industry/role. I value and enjoy the challenges that come with the Ag industry and even more so, the relationships I have built over the years. My role has evolved over time however limited as primary caretaker of my two boys. Going forward, I will be taking on a more Accounts and Fertiliser support role in Horsham store, and a more involved role in the Fertiliser Management, Logistics and Administration of the Nutrien Ag Solutions Dimboola Store. I look forward to Nutrien Ag growing and continuing to support our new and existing clients to run their own businesses at the highest standard.
The Ag Retailer of the Future. 7 Golf Course Road, Horsham 3400 Wednesday, December 23, 2020
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s we gallop down the straight, tongue over the bit, all a-lather fighting for the finish line to put 2020 behind us, let us press the pause button and contemplate what this year from hell has taught us.
Who knew this time last year what was in store? I was madly dieting so I would look slimmer than my ex-husband’s third wife at our son’s wedding. We were yet to have an inkling of that terrible c-word, coronavirus. As something of a Christmas grinch I was glad to see another come and go and then, ‘things started getting very real’. By the end of January, the pandemic had started to spread its devilish fingers into Australia. The global death toll, 40 people. My son’s wonderful wedding went ahead on March 14, the weekend before the first lockdown. My daughter was unable to return to London where she lived and worked. She went to stay with the ex and wife number three in Queensland and ended up stuck there as the second wave hit Victoria. So here we are 12 months on. Nearly 75-million cases worldwide, 1655 million deaths and counting. If ever we were living in the lucky country, it is now. We’ve had 28,000 cases and 908 tragic deaths, but it could have been so much worse. My daughter returned to London after the first lockdown and now we do not know how long it will be before we can see each other again. Boris ‘BoJo’ Johnson seems inconsistent with his COVID-19 policies and life in London is a pandemic-riddled rollercoaster ride. I have to keep telling myself, she’s young, strong and very sensible. Touch wood.
Country Today with Libby Price
So, no more about me. How about our planet? She has told us in no uncertain terms, ‘don’t mess with me!’. I would like to think more of us are understanding her message: Life is precious, our planet is precious and when things go wrong, it’s deadly. As international travel has ground to a halt, carbon emissions have stalled and it is as if we can feel her take a deep, life-prolonging breath in the hope it is the start of a new era. I believe it is. That the sentiment to act to minimise climate change has been invigorated as we reflect on what is truly important. I am not trying to convert the climate sceptics. You will not believe the 99 percent of scientists who believe in the climate-change emergency, so why would I bother? You are not going to change your mind as you probably rarely, if ever, do. You like to stick to your guns, and, this is where I add, ‘I may disapprove of what you say, but I will defend to the death your right to say it’. So breathe, Mother Nature, breathe. Our great farmers are determined to leave their beloved land in a better state than they found it. And yes, I was slimmer than wife number three. But we sat next to each other at the wedding and are now great friends. Who knew?
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Imagine more with Nutrien Ag Solutions PrePay Plus Our PrePay Plus offer gives you the advantage of earning rewards on your funds. By prepaying for products from our extensive range ahead of time, you will earn a reward of 4.15% p.a. on your funds to be used on our extensive range of products.
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Tax benefits may apply, see ATO Tax Ruling PR2019/3*
The Commissioner of Taxation (Commissioner) does not sanction, endorse or guarantee this product. Further, the Commissioner gives no assurance that the product is commercially viable, that charges are reasonable, appropriate or represent industry norms, or that projected returns will be achieved or are reasonably based. Potential participants must form their own view about the commercial and financial viability of the product. The Commissioner recommends you consult an independent financial (or other) adviser for such information.
Horsham: Dean Toet 0429 891 369 | Dimboola: Jade Clark 0428 378 130 NutrienAgSolutions.com.au/finance/prepay-plus Important Information: Nutrien Ag Solutions Limited ABN 73 008 743 217 (Nutrien Ag Solutions), its employees, agents or contractors are not providing any financial, legal or tax advice. Nutrien Ag Solutions recommends that interested parties obtain their own independent tax and/or financial advice on the suitability and benefits of this product based on their specific circumstances. The ‘Prepayment Amount’ is to be redeemed within 12 months from the Prepayment Date and the Reward Amount must be redeemed on purchases of Goods from a Nutrien Ag Solutions store. The Prepayment Amount cannot be withdrawn. Depending on individual circumstances this product may provide tax benefits. Contact your local branch manager or Rural Finance Manager for the Full Terms and Conditions.*ATO Ruling PR 2019/3 is only a ruling on the application of taxation law as it applies to this Prepay Plus product. The ruling and any taxation outcomes referred to therein is only binding on the ATO if the Prepay Plus product is carried out in the manner outlined in the ruling.
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