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What price next year's crop?

09 Jul, 2008 03:28 PM
A critical industry meeting held in Perth has examined the long-term implications of rising farm input costs - and its immediate impact on the future of farming profitability.

WAFarmers president, Mike Norton, said the meeting was convened to help farmers and local industry members understand from where the cost pressures were coming in an effort to find a solution.

He said the meeting was necessary to analyse how high the costs could go and for how long they would be sustained.

Some of the solutions offered during the workshop were technology-driven methods for reducing crop waste, such as global positioning systems, and detailed soil analysis of paddocks level.

There could also be a revision of crop rotation programs to consider the value of natural nitrogen production, it was suggested.

Mr Norton said the meeting was held because WAFarmers had been getting an unusually high number of phone calls recently from growers "seriously concerned" about the rising costs of inputs.

That concern was propelled by grave fears over the high cost of planting next year's crop, he said.

That fear escalated again last week, as grain prices declined on the back of more positive harvest reports for wheat and corn crops in the US.

Mr Norton said "huge" fertiliser costs were forcing some farmers to the brink of financial ruin while other inputs such as chemical and fuel were adding to the financial pressure.

"Some fertiliser costs have increased by $1000 a tonne, diesel prices have swelled, and key chemicals such as Glyphosate have risen from $80 to $240 per 20-litre drum in just 18 months," Mr Norton said.

He said he was also concerned that local fertiliser companies were looking to take money off farmers for next year's crop when this year's plants had not been harvested.

Representative of about 35 industry goups were at the meeting including those from WAFarmers, the Pastoralists and Graziers Association (PGA), farm consultants and Agriculture Department senior staff, including director-general Ian Longson, and executive director of industry and rural services, Roger O'Dwyer.

"We need to get our head around the extent of this issue," Mr Norton said.

"How long is it going to go on for and how high can these costs go?

"There are many questions that need to be asked and that is essentially why we met."

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Date: Newest first | Oldest first
Fertilizer costs! IPL has not had a dramatic increse in costs such as the one farmers are having to bear. As evidenced by their share price, they are gouging their customers. If there is a downturn in sales, their latest acqusition, the US based explosives company Dyna Nobel, will ensure there is a market for their products.
Posted by Gippslander, 10/07/2008 9:54:29 AM
Fertilizer, fuel, chemical, machinery and wages along with the uncertainty of the weather are more than any normal person can stand. If a normal person were in a job where it was costing him more to do the job than he was getting from it, he would leave. Here they are saying that they must keep food costs down but what incentive is that to farmers!
Posted by Esme, 10/07/2008 11:25:08 AM
After 8 years of ongoing drought my wife, friends and myself are emotionally, physically and financially exhausted. Advice from our "industry experts" during this time have been - become even more productive; you'll never see wheat below $350 p/tonne again; forward contract a proportion of your crop; store on farm as prices will rise; good spring rain forecast for next growing season; pasture cropping more profitable; etc, etc...ALL WRONG. We still have the same grain marketing system as in ancient Egypt, surely by regulating ALL soft commodities at a fair and sustainable prices (it isn't like we're producing beaver skin hats) we can sustain our grain industry better than the current debacle.
Posted by Bluey, 25/07/2009 8:38:52 PM

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