It has been an extraordinary year of meteorological events.
Winter rains across the country have helped many pre-harvest farming areas so it is very disappointing to see what is happening for many farming communities in Queensland and New South Wales who are now seeing their yields washed away. downstream.
This is a difficult end to the season and it means we expect a drop in quality and a drop in production year over year in NSW.
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Nationally, the winter harvest will always be higher than what we have seen in the recent past, according to the latest forecast from ABARES.
This is a cold comfort for farmers who have to contend with the current weather conditions.
It has been a volatile year and it is a challenge to put all the different components of the global agricultural market together to predict what might happen next.
But one thing is certain: the fundamentals of global agriculture are strong, and therefore the outlook for Australian producers is good.
Even as East Coast farmers manage and recover from the current flooding, they will look to their next move.
Australian farmers find themselves in a unique time of great opportunity but limited cash flow.
There have been major supply chain disruptions and price increases in all categories of inputs on which producers depend (seeds, crop chemicals, nutrition, fertilizers), which has further magnified the need quick and intelligent decision-making.
However, we are optimistic about the prices producers will continue to receive for their commodities, especially grains and livestock, and the incentive that remains for producers to plant big next year based on a seasonal outlook. solid.
Globally, supply struggles to meet demand for a wide range of agricultural products.
The good back-to-back seasons have enabled Australian producers to take advantage of this, enabling them to consolidate farm incomes and build resilience for the future. In the past 12 months alone, domestic prices for young cattle have increased by 40 percent, lamb by 11 pc and canola by 50 pc, providing producers with exceptional opportunities to make a profit. Globally, food prices have reached 10-year highs.
One of the main drivers was the rise in the prices of grains and vegetable oils.
And here’s the catch: Supply chain volatility leads to uncertainty about the availability and price of inputs.
At the same time, farmers will be looking to make quick decisions on what to do next season.
The start of La Nina can mean rain and cooler conditions for Australian farmers and has devastating effects for some growers as they scramble to get the harvest they can, with many farmers struggling with income cereal crops reduced or delayed this year.
However, on the other hand, the rain will leave a strong humidity profile, preparing grain farmers for a good season next year.
Much of the east coast is already at 100pc of soil moisture saturation in the root zone.
This is where a grower’s ability to access the capital needed to grow up to the season, and not their current cash flow, is vital.
Farmers have some of the lumpiest cash flows of any industry on the planet.
The timing of crop applications is critical to optimizing next season’s harvest and this means they may need the inputs before they have the money to pay for them.
As all farmers know, timing is everything in farming.
With a presence across Australia, our company feels the great obligation and privilege to stand with farmers through tough times and use the assets we have to ensure they can access the cash they need to get the most out of every season.
The certainty of supply and the flexibility to pay later when their cash flow is right are key to managing irregular cash flows and dealing with the vagaries that weather conditions will place on every producer during their stay on the farm. .
This approach aims to support sustained growth over the long term – to see the big picture when chips are low, knowing that farmers will recover and dive into the next season.
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The story Supporting Farming Through Farming Ups and Downs first appeared on Farm Online.