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

RFCs report many dairy farming client continue to experience cash flow difficulty as a consequence of high water and feed prices. Clients who own no or limited water have indicated current prices, in excess of $600, make dairying unviable despite record milk prices.
Some farmers are opting to buy in fodder rather than irrigate due to the high price of temporary water. There is growing optimism with falling new season fodder prices, increasing pasture growth and record milk prices.
RFCs in the west of our region are reporting that a number of farms are considering transitioning out of dairy and approximately 70 have already exited from the surrounding Numurkah area. Murray Dairy estimates 150 northern Victoria dairy farmers ceased production in the 2018/19 year.

Structural adjustment is continuing, as farmers continue to weigh up the predicted costs of production versus potential returns. Farms with high debt and high monthly commitments are finding it very difficult for the numbers to stack up.

Cropping

Crops currently look good but will require finishing spring rain. Silage production has commenced with above average yields recorded. The dry conditions are limiting grain yield potential. Subsoil moisture is building, however further large rainfall events are needed in the coming months to secure good grain yields.

Sheep

Prices have declined as new season lambs come to market. The wool price continued to decline due to international trade uncertainty. The national EMI was at 1,375c/kg, the lowest in almost 3 years (Weekly Times 4/9/19). Livestock farmers continue to seek the service as a consequence of high fodder costs and poor cash flow.

Beef

Livestock prices remain buoyant.

Irrigation

G-M Water reported that flows into storages are below average for this time of year.

 

Source: https://nvrm.net.au/seasonal-determinations/current