How successful was 2021 for Lower North farmers?
I’ve been at Mallala for 55 years, and this was probably the best financial year we’ve had in that time. The harvest turned out really well and the prices were through the roof.
But balancing that out, the prices of all the things we consume – like fuel, fertiliser and machinery – have also gone through the roof.
When you have a really good year with high prices, you can still afford those input costs, but it does bring some reality back to what was a sensational year.
Have rainfall conditions over summer posed any challenges?
We probably had about 40mm to 50mm above average.
We’ve been busy spraying summer weeds, and we had 40mm or 50mm in (late January), but nothing like they’ve had in other parts of the state.
The challenge for us is to now control all those summer weeds because of the rain, and given the fact there’s a shortage of herbicides. The price of Roundup has doubled, or more, if you can get it.
Are there any worries surrounding the supply of fuels and fertilisers?
We were running on empty for AdBlue. We had a bit here and there just to keep going, but the truck was really running on empty for AdBlue for a period of time.
The take- home message is that Australia has to become more self-dependent on a lot of the essential items, like fuel, fertiliser and machinery. We need to be ready for shortages and not depend on other countries.
We’ve allowed ourselves to become too dependent on Russia and Chine for fertiliser and other goods. It’s very clear now that we need to subsidise the industry in Australia, because that’s a better option then not being able to get stuff, or not being able to grow food.
If we run out of diesel, suddenly the shop shelves are bare because there’s no road transport, and that’s a life-threatening situation for the whole population. Because we import nearly all our fuel now, if we had a hiccup in the system… there’s a scenario where we could run out of diesel, and not be able to sow, or harvest crops.
Had international demand benefitted local farmers?
It’s supply and demand, and there’s a couple of major producers in the world that have had a dry year, floods, or conditions that affect production. So the supply has a question mark above it and as soon as that happens, the price goes through the roof. Covid has also had a big effect as well.
What challenges are you expecting in 2022?
It looks like it will be relatively straightforward, because the forward pricing on most of the grains we grow still looks good. The price for canola and wheat particularly looks good, and we’re hoping lentils will hold in there again.
We know that livestock is booming as well.
If some people haven’t got their fertiliser, or haven’t ordered it, they might not get it. Fertiliser is definitely going to be in short supply. The price has doubled. Last year we were paying $700 per tonne, and if you’re ordering it now it’s probably going to be $1300 or $1400 per tonne.
Any advice for fellow farmers at this stage?
Stay positive and try and sow this coming crop with as many new varieties as possible. We’ve got a couple of new varieties of wheat that are performing really well.
The new varieties of canola in particular have some real yield potential, and I think it’s the first time I’ve seen canola that is really adapted to Australian conditions. We’re seeing some really good, high yields in canola now that we hadn’t been able to achieve.
Most of the farmer’s profit margin is in the last half-tonne you grow, so if you can get an extra half-tonne, that’s pretty much all profit.
I’m fairly confident that for the next year, we’re going to be okay.