Growers faced with difficult decisions for cereal crops

WHETHER grain growers cut cereal crops for hay or take paddocks through to grain this season, prices for feed grain and hay appear to be holding strong for the moment. It makes for difficult decision making, depending on where in the country farmers are and what yield will realistically be. The January 2019 ASX East price broke the $440-a-tonne barrier last week, while cereal hay delivered to sale last week reached $450 a tonne, well up on $165 a tonne last September. Frost-damaged grain crops in Western Australia have dented the nation’s total grain production in what was already shaping up to be a meagre season. In Victoria, many growers are busy cutting cereal crops for hay that, given current demand from the dairy and livestock sectors, could almost be sold directly out of the paddock at a price nearly $300 higher than last season. If growers aren’t vulnerable to frost and able to take crops through to grain, they could reap the reward of high prices, with the January ASX East wheat price reaching $445 a tonne on Monday. But there are concerns many paddocks simply won’t have the bulk required to take advantage of strong hay prices. Taking crops to grain could also prove to be risky, with low-yielding crops unable to capitalise on record prices. But what is the bigger risk reward? Cutting cereal for crops or pushing on and taking grain to harvest to capitalise on high prices? There’s no clear answer.