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Hi all,
Our 21
st update is here.
If you’d like to re-visit any past editions you can find them on the website here.

Andrew Bomm

 
Check Them Out Here

Temp prices coming off

Recent rain and some cause for optimism on allocations has tempered buyer enthusiasm. NSW Murray above choke is around $110-115, and about $130 below the choke and in the Murrumbidgee. This is despite the very conservative allocation outlooks NSW DPI put out two weeks ago, of which the market seems to take less notice nowadays.

These prices are close to break even for rice growers on a budget of around $350/tonne, and this will be contributing to the current limited trading activity. 


Zone 10 an island
Prices continue to be discounted in the NSW Murray above the choke (zone 10), as movement of that water to below the choke (including the Bidgee) remains restricted. If it’s not IVT it’s the choke. I managed to get in touch with Water NSW about the justification for the Bidgee being considered below choke trade, despite water sold into there not needing to be delivered through the choke. I was told the reason, but because it’s ‘unofficial’ I can’t convey it here. What a system.
 

Aither market report
Aither’s annual water market report is due out later today (29 August). This is the best market information getting around – complex issues conveyed simply. Keep an eye out here.

 
Keep An Eye Out Here
Transparency from the BOM?
Weather forecasting is difficult but the BOM could communicate their forecasts better. It would be great to see them come out each month and explain what weather patterns affected the reliability of the previous forecast. It would help us all learn more about climate and forecasting for our businesses. Unfortunately, major revisions like the recent outlook are glossed over without good explanation. Farmers are now reading private forecasters regularly, and the delay in BOM communications about the outlook is frustrating.
 
Drought policy
On both sides of the fence, Australian politics has failed to reach a sustainable policy on assisting farmers to manage drought. We’re still stuck in the ‘drought relief’ mindset that neither party wants, and nor do farmers who already plan for periodic drought and would prefer market forces to prevail. The current policy setting reduces the potential demand for products like multi-peril crop insurance, which in turn limits the viability of it in the market without substantial government subsidy. Farm business innovator John Gladigau has been putting his mind to this issue and is calling for input from the farming community. You can read John’s suggestions from his 23 August post and reach him here.
 
Read Here
Private investment in farm businesses
Younger farmers are increasingly looking at joint venture arrangements to have access to the farming scale they’re after. The Conversation article below covers the issue well, although the study quoted is a bit dodgy.

Interestingly, some banks are willing to facilitate these deals to secure new debt finance clients. ANZ Bank has been having discussions with the sector about how external funding might work for large family farms and Will Rayner, Chief Financial Officer at Rural Bank, has also done a Churchill Scholarship investigating this question. 

 
Check It Out Here
AFL money for jam
The Western Bulldogs have missed the eight, which would have earned investors smashing returns when recommended here. I won’t name those who jeered but you know who you are!

Sydney at $4.50 are good value for the flag.

 
Boredom is good for us
Here’s an interesting podcast on why boredom, that thing that used to happen to us before smartphones, is good for us.
 
Listen Here
Stock Journal
Stock Journal is putting out some interesting content on Facebook, including a farm forum series in video format. Here’s a link to the fourth episode, a discussion with Nuffield Scholar Andrew Baldock about succession planning.
Watch Here
Vale Drew Morphett
Drew Morphett has died suddenly and that makes it a good time to remember his work from the 70s.
Watch Here
Henty Field Days
The Henty Field Days are on September 19-21. Look forward to seeing some of you there.
 
Follow @progressiveagri on Twitter
Our mailing address is:
andrew@progressiveagriculture.com.au

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Progressive Agriculture · 13/120 Fitzmaurice Street · Wagga Wagga, NSW 2650 · Australia

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