Regional Round-up is a monthly newsletter providing an overview into the environmental and business conditions affecting farmers and rural businesses in the Goulburn Valley and North East Victoria.

Some spring rainfall events this month were generally too late to benefit crop growth in the GMID, with crops already turning in northern areas. However areas south of the Hume freeway are largely still vegetative and crops and pasture still able to respond to the rainfall in October.
The October rainfall was significant for many areas south east of the Hume freeway—and has provided very welcome soil moisture for rapidly drying paddocks. These rainfall events will enable pastures to hang on for at least until December with green feed.

Dairy

Goulburn Valley dairy farmers are facing a very dry outlook with pastures rapidly turning.
Large amounts of silage and hay have been cut this month, significantly more than last year for most areas. This will help boost fodder reserves and reduce reliance on bought in fodder.
The price of temporary irrigation water is now said to be too high for the majority of dairy farmers to purchase for irrigation of pastures or fodder crops. Those dairy farmers are expected to purchase fodder either in standing crops or already baled up. RFCs have reported farmers will be selling some water (allocation and carryover) to fund this.
RFCs have reported some farmers that have done budgets to work out what they need to buy in, as far as fodder requirements go, and are finding they will have cash flow shortfall.
The ongoing drying conditions, combined with water access and input costs is expected to cause GMID dairy farmers to reassess their businesses, if they have not already, and will likely see more dairy farmers take steps to exit the industry.

Cropping

In the NE valleys there is still an exceptional volume of grass given the prolonged dry conditions.
Many farmers have cut for hay, with some unwilling to sell due to low prices. Low soil moisture generally will limit yield potential.
In other areas there is a mix of crops being cut for hay/silage, with many canola crops continuing through to grain harvest.

Sheep

Sheep and lamb prices remain solid, with a strong outlook as well. This is currently the industry to be in. Producers have experienced reasonable seasonal conditions that are supporting good pasture swards.

Beef

Prices remain quite good, but with the continuing dry conditions any feed on the dry country will disappear quite rapidly. Farmers will have to start sourcing hay and grain to keep going.

Horticulture

Orchardist have identified the rising cost of temporary water and unfulfilled water allocations will place pressure on profit margins for fruit growers purchasing water this season.

Irrigation

The Goulburn system continues to track at average to dry season scenario which will challenge further allocations. The Weighted Average Price for allocation water traded in the Goulburn for the month of October was $547 and peaked at $572 at the end of the month.