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.

Dairy

There has been a notable increase in pre-succession planning support whilst business planning and cash flow assessment and management remain other major activities. Costs associated with crop and pasture preparation have increased the pressure on cash flow for some clients.

Some dairy farmers who fail to produce premium-quality milk risk losing 12 – 32% of milk income. Add this to a 20% drop in milk price for Northern Victoria dairy farmers and it is not surprising cash flow is tight.

Cropping/Sheep

Summer weeds continue to be a major challenge for croppers. Burning off last year’s stubble and summer weeds is now in full swing.

Predictions of below-average rainfall between April and June are denting croppers’ confidence. The abundance of hay is evident, with haysheds full and overflows stacked nearby or remaining in paddocks. The tight margins for hay suppliers have been exacerbated by slow or non-paying customers.

Horticulture

Fruit growers are attributing the wet spring and milder summer for a later than normal harvest, with fruit slow to colour and low in sugar.

Beef

Local cattle sales have weakened as hot weather continues throughout March. The outlook for a dry autumn and winter have seen a lessening of demand for beef cattle, although floods may have spiked local markets in the last week because Northern NSW and QLD are under water.

Irrigation

The storage level in Lake Eildon is at 67% against 34% last year. The Hume is holding 64% (against 25% LY) and Dartmouth 78% (against 44% LY). (GMW resources storage levels website.)

Temporary Market water prices averaged $45 for March. High Reliability Water shares have fallen slightly; $2,600 for March. Low Reliability shares traded for $275 in February (Refer Vic Water Register).