All farmers know that dry seasons and fluctuating prices have meant that farming has always been a risky business.  However, the increasing cost of inputs (particularly for cropping) has raised the stakes to levels not seen previously.

Studies conducted through the Grain and Graze project have identified that there has been a major increase in risk in intensive cropping systems due to the run of dry years.  Also that even “average” rainfall years are not necessarily delivering profits.   Another major finding is that reducing risk can be achieved without reducing return on investment.  The question is how do you get there?

There is an opportunity to sow crops with low levels of inputs initially and apply fertilisers later in the season depending on how the season is progressing.  However, some nutrients (such as phosphorus) may need to go up front and disease and weed management needs to be carefully considered.  Also, some soil types require more nutritional input than others and flexible fertiliser programs need to be developed.

There may also be some changes to landuse required.  Why keep cropping paddocks or areas of paddocks that do not provide reliable returns?  Also, soils that are particularly impacted by dry years (heavier or shallow soils) may need to be either made into permanent pastures or sown with cereals for grazing and only treated as a crop if it is a good season.  This raises the question “what is the best mix of crop and livestock for my farm”?  The example of a farm in a lower rainfall zone detailed in the graph below indicates that in below average rainfall years livestock may be a “safer” option than cropping.

Continuous cropping (System 1) vs. All livestock (System 2)

(Livestock based on self-replacing merino and prime lamb enterprise)

This balance will vary depending on rainfall zone, soil type access to market etc and a methodology incorporating these variables into a suitable process needs to be developed.  “FARMING TO MANAGE RISK” is a program to support farmers to identify strategies to minimise risk and incorporate these into a farm planning framework.  This project is an initiative of the Advisory Board of Agriculture and is funded through the National Landcare Program. 

Initially being run as a one year pilot program the project is looking to work with 6 groups of farmers across Eyre Peninsula and the Northern and Yorke district to:
• Identify, trial and assess newly developed tools and protocols to support improved risk management.  The issues addressed will include; financial implications, enterprise mix and next generation property management systems.
• Incorporate risk management tools to a farm planning structure based on land capability. 
• Assess landholder adoption through working with a number of grower groups based on Eyre Peninsula and Northern and Yorke Regions.

Further information regarding the project can be obtained from the Advisory Board of Agriculture or your local Rural Solutions SA office.

AUTHOR: David Davenport, Soil and Land Management Consultant, Rural Solutions SA

CONTACT: David Davenport, Rural Solutions SA Pt Lincoln Office, Telephone 8688 3404, Mobile 0427 201 956, davenport.david@saugov.sa.gov.au