Region’s farmers well prepared for future potential

THE start of a new year brings great speculation about the fortunes and challenges of the year ahead, but if 2015 proved anything it was that Australian farmers continue to be innovative, adaptable and above all resilient.

Productivity levels across the board are continuing to increase despite doing agricultural businesses operating in not only a highly variable climate but also a turbulent global marketplace.

While seasonal conditions leading up to harvest were tough for some winter croppers, in December the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) was predicting Australian winter crop production would slightly increase.

The federal rural economic, scientific and social researcher forecast the total Australian winter crop production to increase by two per cent in 2015–16 on the previous year, with NSW and Queensland contributing to the increase.

Wool production forecasts tell a different story with the Australian Wool Production Forecasting Committee predicting a seven per cent decline in shorn wool production on the previous year, largely due to seasonal conditions lowering fleece weights and increased reductions in sheep numbers due to water shortages.

Abigail Mclaughlin and her husband Jim have a wool and stud Merino sheep operation between Nyngan and Duck Creek in the state’s west, cropping about 1000 of which about half stays on farm for stock feed.

“We were most fortunate with the timing of our winter rainfall, and although September and October were very hot and dry our crops did hang on,” Mclaughlin told Weekender.

“About half of our cereal cropping area was sown into paddocks which had previously had chickpeas.

“That particular rotation worked well this year with that portion of the crop having above average yield and also producing high protein wheat.

“The remainder of our crop was lower yielding and had higher screenings.”

Mclaughlin works for a local grain delivery centre and she says it was a mixed harvest in the west.

“We ended up taking nine different segregations of wheat, two of barley and two of canola.

“This is unusual as typically we’d receive a lot of one type of wheat, but this year it seemed like every truck had something different on it.

“There was not a lot if good quality high protein grain around and nearly everyone who did bring it in had sown their crop in a rotation with a legume crop.”

According to Mclaughlin, parts of the Nyngan district were also rain affected during harvest, and while not a lot of grain was “shot and sprung”, it was starting to show the affects of weather damage.

Despite a good start to summer setting up pastures and allowing the Mclaughlins to take on agistment cattle, storm rains have been patchy over recent weeks leaving them sitting tight in hope of good rain in about six weeks.

Closer to Dubbo, Kellie and Murray Towers have also been happy with their harvest.

“We managed to fill all our silos and built a temporary bunker for excess oats,” says Kellie Towers.

“Lamb prices have been good and each of our enterprises have exceeded our preseason expectations.

“We were bracing ourselves for a dry start to summer so we were pleasantly surprised to get rain we weren’t expecting.

“We have culled pretty hard so we’d have enough feed and water to get through summer.

“It’s a pretty good feeling now though, having done it very hard for the last few years.

“We’re very conscious though that many friends and family, particularly in Queensland, are really struggling…it’s heartbreaking.”

Towers says they’re optimistic for the year ahead.

“A wet winter is predicted and our cropping program will make the most of that, as well all the markets are up and we’re feeling more confident than we have in quite a few years.”

North-east of Wellington, Pip Smith describes this past summer as “bloody awesome”.

She and husband, Norm, run a sheep enterprise and things are looking good thanks to plenty of feed.

“I’m loving the whole El Niño prediction…we had plenty of rain and have even had some stock on agistment.

“We tried to buy some trade cattle this week but they’re too expensive.

“Bring on 2016 - it’s going to be a ripper!”

Mclaughlin is also feeling positive about 2016.

“If cattle, sheep and wool prices stay high, we’re feeling good about 2016.

“We were fortunate to have a coincidence of good seasons and high prices last year.

“The season is starting to look dry though and there is talk of El Niño which is always a concern.”

Meat and Livestock Australia (MLA) is anticipating tight Australian beef supplies going forward that combined with a weaker Australian dollar and strong export demand will see a strong market for cattle continue into the new year.

Demand for Australian lamb in 2016 will also continue to be heavily influenced by exports and a weaker dollar.

National Australia Bank (NAB) head of agribusiness markets, Greg Noonan wrote in December that one of the big challenges ahead for Australian farmers is global commodity prices.

“The grain picture globally hasn’t looked great with the surplus stocks of corn and wheat and another year of strong global production.

“For Australian producers, that’s been offset by the lower Australian dollar, but if the dollar strengthens that’s going to put pressure on that sector.

“The other one that’s going to be important for Australian agriculture is how the China situation plays out in the next 12 months.”

Just last week, financial markets were reacting negatively to the plunging Chinese market and concerns over the ongoing health of the Chinese economy.

Prior to this news, Noonan reported that despite the slowing Chinese economy NAB expected China “to continue to grow at a good rate and demand for Australian agricultural products will remain strong and that will underpin returns”.

If cattle, sheep and wool prices stay high, we’re feeling good about 2016 – Nyngan grazier, Abigail Mclaughlin