Slide 1Basil Doonan Macquarie Franklin
“I agree, but…..”
• We need to target best practice – Pasture management – Irrigation management
• Systems approach – With irrigated pastures – “the whole is greater than the sum of the parts”
• Case studies and comparative analysis confirm this
What's that mean
• There are efficiencies beyond just the input- output equation – Higher scanning and marking rates – Higher rates of turn-off – Lower deaths and losses (higher survivability) – Reduction in feed maintenance cost
Case study CA results
• BMP irrigation can be 1.8–2t DM/ML (Freeman, 2008) – 80–100% more than average
• BMP grazing increases: – Pasture grown by 30–50% – Pasture quality by 20–30% – Survivability
BMP irrigation
others” 45 kg DM/ha/day
18 days since grazing
Sprinkler blocked for three days – 31 days before photo taken
BMP pasture
Three systems (same farm)
1. Dryland 600ha average management practice 2. Irrigation 200ha dryland 400ha average
management practice 3. Irrigation 200ha dryland 400ha best
management practice
Pasture production
N/ha
Dryland average 4 t/ha 11 DSE 95% 20% 0 kg
Irrigation average + 4t/ha 22DSE 120% 20% 140 kg
Dryland best 6t/ha 15DSE 130% 20% 0 kg
Irrigation best + 8t/ha 40 DSE 170% 20% 140 kg
Economics — stock
Sheep $3.10 /kgMS $3.10 /kgMS $3.10 /kgMS
1. STOCK NUMBERS Item Dryland Irrg (Average) Irrig (BMP) Ewes lambed 2,500 3,500 5,700
Stock On Hand at Start (no.) (no.) (no.) Marking % 95% 120% 170%
Ewes Joined 95% 2,632 3,684 6,000 Replacements 20% 526 737 1,200 Lambs sold 80.0% 1,900 3,360 7,752
Price
Total Irrigated Area 0 200 200
Dryland Area 600 400 400
1,500 1,500 1,500
Irrigated Pasture 12 8 14 Dryland Pasture 4 4 6
Total Pasture Utilised (tDM) (tDM) (tDM)
Irrigated Pasture 0 1,600 2,800 Dryland Pasture 2,400 1,600 2,400
2,400 3,200 5,200 Total Feed Supply 2,400 3,200 5,200 Sheep flock (No.) (No.) (No.)
Ewes joined 2,632 3,684 6,000 Ewes to lamb 95% 2,500 3,500 5,700 Rams 4% 105 147 240 Lambs sold 90% 2,370 3,320 5,400 Ewe replacements 20% 500 700 1,140
Liveweight sold (kg) (kg) (kg)
Average lamb weight 48 48 48 Total Kg Lwt 65,937 125,912 314,496
Feed Requirements per Head (tDM/hd) (tDM/hd) (tDM/hd)
Ewes to lamb 0.55 0.55 0.55 Rams 0.40 0.40 0.40 Lambs sold 4.0 kgDM/kgLwt) 0.21 0.21 0.21 Ewe replacements 0.56 0.56 0.56
Total Feed Requirements (tDM) (tDM) (tDM)
Ewes to lamb 1,375 1,925 3,135 Rams 42 59 96 Lambs sold 491 687 1,118 Ewe replacements 279 390 635
Total Feed Requirements 2,186 3,061 4,984 Feed Surplus/Deficit 214 139 216
Shows surplus here but potential deficits covered by extra grain or 8.9% 4.3% 4.2%
Economics — capital 3. INVESTMENT
Dryland Irrg (Average) Irrig (BMP) Land & Improvements $m $m $m
Home farm Dryland 1.80 1.20 1.20 Home farm irrigation 0.00 2.40 2.40
Total Land and Improvements 1.80 3.60 3.60
Stock
Rams $1,000/hd $1,000/hd $1,000/hd
Ewes 0.47 0.66 1.08 Rams 0.11 0.15 0.24 Ewe replacements $140/hd
Total Stock 0.58 0.81 1.32
Plant & Machinery 0.10 0.15 0.15 Other Assets Cash/Hay/Silage 0.00 0.00 0.00 Total Assets 2.48 4.56 5.07 Liabilities
Mortgage 1 0.00 0.00 0.00 Mortgage 2 0.00 0.00 0.00 Asset Purchase & Stock Lease 0.00 1.80 1.80
Total Liabilities 0.00 1.80 1.80 Net Worth 2.48 2.76 3.27
Economics — labour
Labour Units (No.) (No.) (No.)
Owner/Manager 1.00 1.00 1.00 Other/Casual 0.00 0.00 0.50 Total Labour Units 1.00 1.00 1.50 DSE per FTE 6,575 8,767 9,498
Economics — net profit 5. BUDGET
Dryland Irrg (Average) Irrig (BMP) Lamb sales
Lambs 283,000 391,000 975,000
Total Income 314,200 434,600 1,045,800 Sheep Stock Purchases
Rams $1,000/hd 26,400 36,900 60,000 Animal costs
$12/ewe 30,000 42,000 68,400 Pasture Costs
132,000 258,000 258,000 Purchased Feed Tractor, Plant & Vehicle Operating
24,450 24,450 24,450 Repairs to Structures & Improvements
22,000 22,000 22,000 Wages/Drawings Including Superannuation
65,000 65,000 87,500 Insurance 1 1 0
7,100 7,100 8,000 Admin & General Overheads
18,200 18,200 18,200 Finance Costs
0 75,600 75,600 Depreciation/Capital ReplacementCapital Purchases
10,000 15,000 15,000 Total Expenses 335,150 564,250 637,150 Net Profit -20,950 -129,650 408,650
Economics — ROA(M)
Dryland (average)
Irrigated (average)
Irrigated (BMP)
Top three take-home messages
2. Exceptional management (best practice) changes the equation
3. Whole-farm system analysis is required where there are major changes to:
a) the farm’s capital base b) The farming system
Tools, resources and training
Thanks
Tom Graesser’s take-home messagesRMU 2016
On average nothing pays….
Economics — stock
Economics — feed
Economics — capital
Economics — labour