Many people are now increasing their sheep numbers – or at least thinking about it. The Grain & Graze project has shown that, while intensive cropping is very profitable in good times, in a poor run of years like we have had they lose money. It has higher risk than a balance of crop and stock.

The ideal balance of crop to pasture will be different for each farm depending on; personal preference, investment in machinery, level of ryegrass resistance, disease levels and soil types. The balance will also change as grain, wool, and meat prices change. Many people have forgotten that sheep prices about doubled in 2000 and have stayed there. Grain prices are now also very high.

It’s not easy to work out the best balance. Workshops run by the Grain & Graze project are helping.

The best balance will also be influenced by how productive your sheep enterprise is. Do you get good return from your sheep compared to others, or are you below average? This will influence your decision.

Last year, as part of the Grain & Graze project, we collected some simple information from farmers about their sheep enterprise. This data was entered onto a spreadsheet and some graphs and conclusions were made. A summary was in the EP Farming Systems booklet.

This year we want to repeat the analysis, but collect information from more people and send a final report to all those involved.

The aim is to find out the average, and top, performance of sheep flocks in different rainfall areas of Eyre Peninsula. We will calculate things like; Gross Margin per ha, Gross Margin per DSE, percent of income from wool, wool cut per ha, lambing percent, stocking rate, etc. We will then work out how these key indicators affect each other.

People who participate in this survey will get a report showing how they rank for these indicators. They will see how they compare to other people for these key profit indicators. This will help people budget and plan their stock management. It will give them some targets for the key profit drivers of the enterprise.

This is not a detailed sheep flock analysis – to do that we would need a lot more information. We have to make some short cuts and assumptions. However, the figures are a starting point to improve your sheep enterprise.
 
If you want to participate, ring PIRSA at Port Lincoln on 8688 3400 for the one page form. Fill it out as best you can and fax it back to me on 8688 3407. If you have any queries let me know.

Use the figures directly from you 2006/7 tax year. Remember, this does not have to be exact but near the mark.

The more we monitor how our enterprise is going, the better decisions we will be able to make.

AUTHOR:  Brian Ashton, Senior Livestock Consultant, Rural Solutions SA.

CONTACT: Brian Ashton, Rural Solutions SA Pt Lincoln Office, Telephone (08) 8688 3403, Email ashton.brian@saugov.sa.gov.au