Tactics to help in dry times

The seminars highlighted the need for long-term planning and not making impulsive quick fixes, with farmers being urged to do a budget and follow it, understand where their herd is now and where they need to get it through this difficult period, get the best value for their spending, and to call for help sooner rather than later if needed.

Speakers urged farmers not to short-change their future by making poor decisions now.

The Camperdown seminar included Rural Financial Counselling Service Victoria West rural financial counsellor Karen Brady; WestVic Dairy extension adviser, animal health and performance, Debbie Twiss; Webber and Chivell agronomist Andrea Roberts; and agribusiness consultant Fiona Smith.

Ms Twiss urged farmers to make sure they effectively spend their money to protect their herd’s health and reproductive ability.

She urged them to develop a feed plan, ensure all animals have access to feed, dry off cows early if they have a body condition score 4-4.5 in late lactation and look out for other diseases such as lameness.

Ms Twiss warned that lower body condition could lead to reduced reproductive output.

Farmers should also review their stocking rate if the dry season continues and look at what historically works on their properties.

Ms Twiss added that “knowledge is power” and recommended farmers ensure their team is trained in heat detection and other vital functions.

Ms Smith said it was a year to focus on basics such as milk solids as a percentage of liveweight, levels of home-grown feed in the diet and the overall costs in the business.

“Are there things that can be put off?” she asked.

“There has been a fair bit of catch-up on repairs and maintenance in recent high-milk price years and in capital improvement. This is the time to look at what we can put off in the business to make sure we can be cash-flow positive at the end of the year.”

However, she warned that while some deferrals could be smart, some could have long-term implications.

“Be careful about cutting feed, nitrogen, animal health, labour and breeding strategies. They just won’t have an impact on this season but over multiple years.

“If you change your breeding strategy this year, you could have four years of possible pain to come. If you pull out feed, it will impact your cash flow this year and years to come.”

Ms Smith said some farm businesses were looking to reduce labour but this could be risky. “That might seem like an easy fix but if you get rid of too many staff, you might not have the time to focus on your business,” she said.

While supporting the overall concept of dairy-beef crosses and retaining animals on-farm, Ms Smith said in areas where rainfall had been an issue, farmers don’t want passengers eating the feed that milkers need. “This isn’t the year to carry them.”

She urged open communication with banks, suppliers and business partners and said good managers would find a system that suits their farm and best balances the natural, financial and people resources.

“Budgets will be crucial and you need to focus on cashflow. It would be worthwhile getting a service provider to help if needed.”

Ms Smith said a high percentage of home-grown feed going into the milkers meant less variability in tighter milk price years.

“You need to make timely and efficient decisions and assess every part of your business. Don’t make rash decisions that will have impacts for years to come.”

Ms Brady urged people to reach out for help earlier rather than later, adding that rural financial counselling is a free and confidential service.

“We know that costs have gone up, the milk price is going down and it is a challenging season. Financial pressures and the other issues we’re seeing can impact on wellbeing and mental health for our farmers.”

The service can help with cashflow budgets, negotiate with lenders, develop a strategy to get farmers through and identify potential income support grants.

“It’s no secret that rural blokes are high up in stats that we don’t like to see,” Ms Brady said.

“Early engagement is always preferred before something becomes a crisis, though it’s better late than not at all.

Farmers can contact wellbeing or financial advisers on 1300 735578.

Cobden farmers Jarrod and Lauren Meade were part of the Camperdown session.

Jarrod, a sixth-generation farmer, is involved with the Profitable Feeding Systems program which instigated the series of Tactics for Dry Times seminars.

“We generally only meet once a year but with the dry we had an extra meeting and this came from that,” he said.

“It has been helpful and hopefully we can get the information out to farmers.”

Jarrod and Lauren are coping okay with the season but are worried about the impact of the milk price drop.

“We’re lucky and have some irrigation and so haven’t had to bring in too much hay,” he said. “The biggest thing going forward will be the drop in milk price.”

Mr Meade said the seminar had emphasised the need to do good budgeting.

“We’ll sit down with our farm consultant and do our budgets and if needed we’ll have a conversation with our bank.”

Tactics for Dry Times was developed by WestVic Dairy and Agriculture Victoria in collaboration with the Industry Leadership Group in response to the dry seasonal conditions.

WestVic Dairy also hosted Tactics for Dry Times seminars in Camperdown, Heywood, Colac, and Koroit.