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 66pc of SA farmers don't have a business plan 

66pc of SA farmers don't have a business plan

12/07/2008 7:30:00 AM
New research has revealed that two thirds of SA grain growers do not have a business plan and 50pc have not undertaken any grain marketing training, prompting a new educational campaign from the State Government.

South Australia’s primary producers will soon be able to improve their knowledge of grain marketing, risk management and business planning through an educational lift-out called ‘Looking Ahead – a toolkit to better manage your farm business’.

State Agriculture Minister, Rory McEwen, said the lift-out was developed in response to a survey of more than 300 grain growers from across the State, which revealed the startling statistics.

The survey conducted by the Lucas Group in April 2008 aimed to investigate South Australia's grain growers' capabilities to implement risk management strategies and successfully market and sell their grain.

“I understand drought conditions and the deregulation of the grain industry have put our farmers under enormous pressure, but understanding fully how to market your grain and manage your business risks should be a priority,” Mr McEwen said.

“While training might be seen by some as a waste of time or not a priority when money is tight, this study shows that if farmers have a better understanding of grain marketing and risk management, they have a greater chance of having a profitable future.

“This lift-out was a key recommendation from the survey, which will enable farmers to up-skill and better manage their business in a way that’s suitable for them.”

The survey, supported by PIRSA, the Department of Agriculture, Fisheries and Forestry and the South Australian Farmers' Federation also found:

* 83pc of survey respondents relied on themselves and their own knowledge when making decisions about marketing their grain;

* around 15pc of growers did not read and understand either their written or verbal contract; and

* on average, 15pc of growers could not meet the terms of their contract.

The Mallee region seemed to be the worst affected last year from a grain marketing perspective with nearly double the proportion of respondents indicating they could not meet the terms of their contract.

Growers who had attended training were more confident in using the non-physical methods of grain trading.

Around 50pc of growers indicated they would not be attending training in the near future due to lack of time, location and cost.

* A copy of the survey and the lift out is available from www.pir.sa.gov.au.

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Comments


Date: Newest first | Oldest first
Farmers skilled in punting with hedging and forward selling aren't going to make marketing in the new "coorporate communist" lanscape any different to punting with horse racing. Heads we lose tails we can't win.

The fact of the matter is farmers are the bottom of the food chain, the most exposed to climate, market abuse, runaway input inflation.

It would be good to see all the department academics that think farmers are so uneducated and stupid have their incomes deregulated, maybe they could issue subscriptions to the general public for their wages then hedge and forward buy with a wages futures market.

Posted by Hunger the new world order on 13/07/2008 1:06:07 PM
If the other 34% were honest, they might say the plans they have no longer make any sense. As costs go up daily my farm bugets look like fiction. Farmers are generaly all-rounders, the skills mentioned above are specialised. As not many lawyers grow wheat or accountants shear sheep, i wonder how many grain traders have had oat itch down their pin-striped necks. So i guess the world will have to rely on us retarded red-necks.
Posted by THE FARMER on 13/07/2008 9:14:23 PM
80% of Australian Wheat Growers have a business plan that is based on common sense and experience and that is to market their wheat through a collective single desk marketing system. They have been treated with contempt and will continue to be until the industry collapses and the hollow people who are running this country are forced to face up to the chaos that they have created. Meanwhile the only chance of maintaining any order is to maintain ownership and control of our grower marketer AWB Ltd.
Posted by Jock on 14/07/2008 6:10:46 AM
What a load of horses**t. Business plans have no relevance in the storm-tossed farming world.

A lot of my "smart" neighbours are loading out wheat now at £75 /ton , sold forward 2 yrs ago.

Mine all went off the header at £200 in september.

Posted by haggis on 15/07/2008 8:58:16 AM

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Q: How do you rate the effectiveness of the current exceptional circumstances drought assistance program?

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Total Votes: 344
Poll Date: 6/07/2008

21/11/2008 | AWI's new board can only succeed in old battles by fighting in new ways.
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