2015
Summary report
Contents
Our Partners
4
Overview
5
Strategic Plan
5
Strategic Plan 2015 – 2018
6
Executive Manager Report
7
Chairman Report
8
MSF Board
9 - 11
Our Staff and Structure
12
Our projects:
Key messages from 2014 trials
13 - 14
2014 – 2015 Projects
15 - 17
Financial reports
18 - 28
Statement by Members of the Board
29
Independent Audit Report
30
MSF would like to thank the following investors, research partners and collaborators for their
support.
4
Overview
Strategic Plan
Mallee Sustainable Farming Inc. (MSF) is a farmer driven
organisation delivering research and extension services
to the less than 350mm rainfall Mallee cropping regions
of New South Wales, Victoria and South Australia. MSF
operates within a region of over four million hectares,
extending beyond Balranald (NSW) in the east to Murray
Bridge (SA) in the west.
Our Vision
Our mission: To provide excellence in research,
development and extension initiatives for the dryland
Mallee of South Eastern Australia.
Principal Purpose
Our 18 Year Legacy
Our Values
MSF was formed in 1997 in response to a recognition that
conservation farming practices had not been widely
adopted across the region. There was a need to identify
the issues restricting the adoption of technology that
would enhance the development of profitable and
sustainable farming systems.
During its first 18 years of operation, MSF has achieved a
great deal in partnership with Mallee farmers. Increases
in farm profitability have been observed as a result of
activities undertaken in conjunction with industry
scientists and advisers, along with environmental and
social gains.
Dynamic, profitable and sustainable farming.
Our Mission
Provide excellence in research, development and
extension initiatives for the dryland Mallee of South
Eastern Australia.
To protect and enhance the natural environment by the
encouragement of sustainable dryland farming practices.
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Creativity and Innovation
Honesty and Integrity
Professionalism
Collaboration
Credibility
Accountability
Dignity and Respect
Fairness and Impartiality
MSF continues to strive to be relevant to farmers’
information needs, whether in the sphere of cereal
cropping or livestock management, supporting farmers
to increase their knowledge and skills to meet continually
changing production, environmental, climate and market
challenges.
Our Members
The Mallee has approximately 2000 dryland farming
families whose farming activities include cropping
(wheat, barley, vetch, lupins and canola) and livestock
(sheep for wool, lambs and cattle for meat).
MSF activities are open to all farmers with a
strengthening membership base receiving new and
timely information on research, best management
practices and practical solutions. Such activities include
fact sheets, farm walks, trial sites, field days, farmer
groups and research compendium publications.
5
Strategic Plan 2015 - 2018
Our Stakeholders
Our Goals
We will:
Our Strategies
We will:
1. OUR FARMING
COMMUNITIES
1.1 To engage with and
listen to our farming
communities.
1.1.1
We will value and
support our farming
communities through
excellence in RD&E
activities and dynamic
communications
1.1.2
1.1.3
1.1.4
1.1 To ensure high quality
R&D is conducted in our
region.
1.2 To ensure that relevant
research findings are
delivered to Mallee
farmers.
1.3 To build capacity in our
farming communities.
1.1.1
1.1.2
1.2.1
1.2.2
1.3.1
1.3.2
2. THE ENVIRONMENT
We will strive to protect
our dryland farming
natural resources.
3. OUR PARTNERS AND
FUNDERS
2.1 To enhance our
environment by the
encouragement of
sustainable dryland
farming practices.
3.1 To be a partner of
choice.
2.1.1
2.1.2
3.1.1
3.1.2
We will be a professional
organization that
delivers value to our
funders and partners.
3.1.3
3.1.4
3.1.5
4. OUR ORGANISATION
We will operate our
business in a manner
that best represents the
interests of Mallee
dryland farmers.
4.1 To be responsive,
strategic, accountable
and financially viable.
4.2
To be known and
respected as a
professional
organization, worthy of
investment and
membership.
4.1.1
4.1.2
4.1.3
4.1.4
4.2.1
4.2.2
4.2.3
Develop and implement a process to determine our farming
community needs, including enhanced interaction with State
Reference Groups.
Undertake a detailed analysis of MSF membership database
to inform future planning and promotion.
Implement a proactive membership communication and
data capture process.
Investigate and develop a framework to measure MSF
impacts on our farming communities.
Ensure quality control and risk management assessment on
all research and programs.
Partner with R&D providers with demonstrable track record.
Review, develop and implement an efficient, effective and
targeted extension program.
Develop a process for identifying and extending relevant
research outside our MSF projects.
Respond to demonstrated need for community capacity
building initiatives where MSF is best placed to deliver
outcomes.
Identify farming industry practices which will foster
increased investment and viability in our farming
communities.
Develop and demonstrate the use of NRM principles in
project design.
Develop the potential of MSF as a registered environmental
organisation and the Mallee Sustainable Farming public
fund.
Develop an attractive value proposition for funders and
partners.
Provide proactive, collaborative leadership in dryland
farming across regional zones.
Identify, develop and manage strategic partnerships which
demonstrate specific and measurable benefits for MSF
Demonstrate excellence in compliance and project
management
Ensure that our funders are aware of project progress and
regional issues.
Strategically grow the MSF business by incorporating new
activities, building strategic alliances, applying economic
efficiencies and diversifying the revenue base.
Maintain sound governance policies and practices.
Review the MSF records management system.
Develop and implement a MSF Communication Plan
Increase MSF brand awareness and profile.
Maintain best practice human resources management.
Review the MSF regional footprint and links with other
regional farming organisations.
6
Executive Manager’s Report
This year has seen some
significant change at Mallee
Sustainable Farming with three
new people joining the team. This
includes myself, Jen Bond, our
Program manager, and Kath Burt,
our Administration Manager. It
has been a fantastic experience
blending this new team with MSF
finance stalwart Donna Robertson
and our contract agronomy team
at Moodie Agronomy, Michael
Moodie and Todd McDonald.
In September 2014 Mallee Sustainable Farming won the
National Landcare People’s Choice Award which recognised
MSF at a national level, for its innovative approach in assisting
farmers to achieve economic, environmental and social
sustainability for current and future generations. The Award
highlighted the relevance of Mallee Sustainable Farming’s
work across the Tri-State region, undertaking collaborative
projects to demonstrate advanced farming practices for low
rainfall dryland farmers.
Another highlight for the year was the Mallee Sustainable
Farming field day program with MSF and partners working to
bring the latest research into our Mallee backyard. Together
we delivered events at Ouyen, Murrayville, Mildura, Karoonda,
Kyalite and Trentham Cliffs with over 400 attendances across
all events. These events are just one of the ways Mallee
Sustainable Farming showcased over a million dollars of
research into Mallee farming systems delivered by both MSF
and our extensive range of partners.
A quick glance across the partnership page of this report
reveals the extensive and impressive network of partners that
Mallee Sustainable Farming has been working with during
2014-15. Without their funding, research and extension
collaboration with MSF much of this region would be devoid of
quality farming system research as government agencies have
reduced services across the region. Mallee Sustainable
Farming see this collaborative network as the key to
maintaining the necessary research and extension critical mass
in the region to underpin future efficiency, productivity and
environmental gains by farmers.
The List of 2014-15 projects undertaken by Mallee Sustainable
Farming in this report demonstrates the breadth of issues and
locations that MSF is working on, and in, to support Mallee
famers in South Australia, Victoria and New South Wales.
Looking towards the future Mallee Sustainable Farming has
identified five key areas for work as a guide for investment in
research and extension in this region;
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Supporting the adoption of break crops
Supporting improved Farm Management
Supporting adoption of Integrated Weed
management
Dealing with Variable Soils
Strengthening the Extension environment
This year saw the conclusion of the Strengthening
Communities project which has been a highlight running
through Mallee Sustainable Farming for the past six years
with funding from the Australian Government’s Department
of Social Services. This project has been overwhelmingly
beneficial for the Tri-State Mallee region where communities
have endured environmental, social and financial hardship
over the past few decades. The project has supported small
community projects in over 35 locations across our region
including places such as; Geranium, Lameroo, Nandaly,
Tooleybuc, Hatfield, Pooncarie, Werrimull and Wunkar. A
personal highlight was attending the “Hatfield Happenings”,
an event supported by Mallee Sustainable Farming through
this project. This event drew over 100 women from up to
400km to a remote community hall in Hatfield for a day
focused on a range of health and personal development
discussions. Only when you attend one of these events do
you understand the enormous positive impact that they have
on communities.
This year the Mallee Sustainable Farming Tri State Forum was
delivered in both Pinnaroo and Red Cliffs to better meet the
need of our geographically diverse region. The stand out
issues of interest for participants at these events were the
opportunities to improve crop sequencing in the farming
systems, how pulse varieties may fit into Mallee farming and
the management of Rhizoctonia.
During the year we moved office to much brighter and more
cost-effective location just out of Mildura in Irymple. The
new office has proved to be a huge advantage, with all of the
team now in the one area making for a much more
collaborative and efficient work place. We also took the time
to update our logo, making it easier to see, particularly when
looking for field day signs when traveling at highway speeds,
and giving it a more up-to-date look. We hope you like it.
2014-15 has been a year of change and success for Mallee
Sustainable Farming and as a small team we look forward to
the challenges the future brings and the opportunities we
can take to help Mallee farmers develop more dynamic,
profitable and sustainable farming systems.
Stuart Putland, Executive Manager
7
Chairman’s Report
This AGM signifies the completion of
another successful year for Mallee
Sustainable Farming – MSF.
Through the year we have had some
staff renewal in the form of Stuart
Putland taking the reins as EM. He
then filled two vacant positions with
Jen & Kath, all of whom joined
Donna to make a very capable
resource for MSF.
I thank them all for their valuable contribution.
We continue to have very good agronomic capability provided
through our preferred contractor, Moodie Agronomy. With
Michael Moodie and his offsider Todd McDonald providing
outstanding service to the MSF region on MSF’s behalf. I
would also like to thank Glen Hornsby who very capably
provides us with accounting expertise.
During this year Mallee Sustainable farming has directed just
over $900,000 into farming systems research and extension.
MSF has worked to direct this investment into meeting the
specific needs of farming in the Mallee regions of Victoria,
South Australia and New South Wales. For a small organisation
with the equivalent of two and a half full time staff this
represents exceptional value for our region.
The MSF Board was pleased with the interest in the inaugural
year of the David Roget Award, and happy to present the
Award to Michael Moodie who we believe is a very deserving
recipient. Michael also has David’s passion for helping Mallee
farmers to be more environmentally and financially
sustainable.
One of our next areas of focus is going to be improving the
productivity and profitability of our sandy soils (sand hills)
which are currently seen as high input cost and low return.
This makes up a significant area of our dryland Mallee
region and improving the returns from this area will be a
very important outcome.
In Stuart’s report he talks about the number of field days
that we have run and the farmers and advisors that attend
these days. I would also like to note that this would not be
possible without the significant support that we receive
from those farmers who allow us to have trial sites and
field days on their properties.
Some of those farmers give up substantial areas of their
farm and tolerate quite an amount of interruption and
disturbance to their program – so that our region can
benefit from the outcomes of these trial sites. On behalf of
the entire MSF region I would like to recognise that
contribution and thank those farmers very much.
I finish off with a big thank you to the Board and staff and
all who contribute to the success of MSF.
Ian Hastings
I am very proud to be chairman of the MSF board which has
two farmer representatives from each of the three states who
are very passionate about ensuring that our focus is on
growing the productivity of our farming systems in a way that
is both sustainable and profitable. The Board’s capacity is
enhanced by the addition of our 4 specialist directors who
bring additional skills to our Board table. All together we make
up a Board that is very capable and therefore an enjoyable &
rewarding place to be. Thank you to all members of the MSF
Board.
In the past MSF’s work has contributed substantially to the
adoption of farming practices that have lessened dust and
wind erosion – and led to fewer bare ground paddocks, which
in turn has increased the productivity of our region. More
recently we are having an impact on the uptake of pulse and
legume crops which again is leading to increased productivity.
8
MSF Board
Ian Hastings
Ron Hards
Chairman, Victorian Farmer.
Director since 2009.
Treasurer, Victorian Farmer.
Director since 2009
Ian Hastings is a fourth generation
farmer operating 4,000 ha in a
family business around the Ouyen
area. He has been active in many
agricultural
organisations
including as a past President of
the Victorian Ground Sprayers Association and past
President of the VFF Grains Group (2003-2007) and
served on the VFF Board of Management from 2003 2007. From 2002-2009, Ian was a member of the
Grains Council of Australia and served as Deputy
Chair from 2005-2009. Ian is also a member of the
National Variety Trials Mallee Advisory Committee.
Ian contributes substantially to his local community
holding positions such as President of the local RSL
sub-branch.
Ian was an inaugural Board Member of Mallee
Sustainable Farming Inc. in 1998 and remained a
Victorian farmers’ representative until 2002. He rejoined the Board in 2008 becoming Vice Chair in 2009,
appointed Chair in 2011.
Ian is also a member of the MSF Executive (Chair),
Finance and Audit, and Remuneration and Human
Resources sub committees.
Tim O’Halloran
Deputy Chair, NSW Farmer
Director since 2007.
Tim runs a mixed farm business
at Tylden with his family, 30km
north east of Balranald, NSW.
Until
1980,
Tylden
was
predominately a grazing farm but
has changed to Poll Merinos and
grain growing. In more recent years Tim has adopted
biological farming methods.
Tim is an active member of the Homebush and
Balranald communities, serving as a Life Member of
the Homebush Recreational Reserve Trust and as Fire
Captain of the Homebush Bushfire Brigade for 30
years.
Tim is also a member of the Executive, Finance and
Audit and, Communication and Membership,
subcommittees.
Ron Hards farms 3800ha with his
son Nick at Yarrara in the Millewa
area of North West Victoria.
Ron has been associated with
many organisations such as the
Millewa Carwarp Landcare Group
where he held the role of President for 6 years from
1987-1994. From 1989–2006 Ron was involved with
the VFF Grains Council. From 1999–2003 Ron held
the position of President of the VFF Grains Council and
was also on the Farrer House Board for 4 years and
during this period held various roles on the Grains
Council of Australia, including Vice President and
Treasurer.
From 2004 to 2006 Ron was a member of the Grain
Corp Board and Audit Committee. He also has been
involved with the Grain Growers Association for 2
years, 1 year as President in 2005/06.
In October 2009 Ron was appointed Treasurer. Ron is
also a member of the MSF Finance and Audit (Chair),
Executive, and Research, Development and Extension
subcommittees.
Paula Gordon
Invited Specialist Director
Director since 2001.
Paula Gordon was invited onto
the MSF Board as a specialist
with experience in education,
communications,
rural
community, capacity building,
corporate governance and policy development. Paula
brings to the Board extensive experience at a regional
(Mallee), State, Tri-State and Commonwealth level. A
teacher and sociologist by training, Paula has held
positions largely in the Victorian Public Service in
areas such as community services, agriculture and
natural resource management. Paula has an interest
and experience in risk management and building
farmer capacity and resilience, having been involved
with the establishment of the first Rural Financial
Counselling Service in Australia and then later with the
Mallee Crisis Committee Victoria.
Paula is currently retired, operating a vine and almond
nursery in a family business at Trentham Cliffs, NSW.
Paula is also a member of the Executive, and
Remuneration and Human Resources (Chair) sub
committees
9
Robert Pocock
Ron Storey
South Australian Farmer.
Invited Specials Director.
Director since 2009.
Director since 2010.
Robert currently farms at
Lameroo in the southern
Mallee of South Australia. He
manages
the
Lameroo
properties with his parents
Bruce and Gaylia. The farm “Lampata” is 2,650 ha in
area. With his parents they run a poll merino stud with
1650 breeding ewes. The business has generally been
managed as a mixed farm and is roughly a 50/50 mix
between livestock and grain production.
Robert also runs a contract seeding and harvesting
business where they plant and harvest approximately
1,000 – 1,800 ha annually. Robert finished school in
Adelaide in 2002 and then returned home to the farm.
Once home he completed a Diploma in Agriculture, a
graduate Certificate in Rural Business Management
and also participated in the Rabobank Farm Managers
Program in 2009 in New Zealand. Rob has also been
involved with some young farmer groups and other
organisations such as SPAA, MSF and his local Ag
Bureau. From his involvement with these groups he
has been able to host trials. Robert has a high level of
knowledge of modern farming technologies and
equipment, along with sheep breeding.
Robert is also a member of the MSF Research
Development and Extension (Chair) subcommittee.
Rick Llewellyn
Invited Specialist Director.
Director since 2006.
Rick was invited to the MSF
Board as an agricultural systems
scientific specialist.
He is
currently a research group leader
with
CSIRO’s
Agricultural
Systems Program. Rick attained
a Bachelor of Agricultural Science from the University
of Adelaide, followed by a PhD from the University of
Western Australia.
Rick previously worked at the University of Western
Australia in Agricultural Systems where he also
conducted research into weed and herbicide
resistance management. Rick sits on the GRDC
Southern Regional Cropping Solutions Network.
Rick has been with the CSIRO since 2005 working as
a Senior Research Scientist in Farming Systems
based at the Waite Campus in SA. He currently leads
a range of farming systems research projects and has
continuing research developing strategies for greater
adoption of farming systems innovations. Rick is also
a member of the Research Development and
Extension subcommittee.
Ron has spent over 35 years in
the grains and agribusiness
sectors, with over 25 years in
international and domestic grain
marketing. He was General
Manager - Marketing with AWB Ltd for almost 20 years
and was involved in many changes introduced over
that time: deregulation of the domestic market in 1989,
a new trading business in the early 1990’s, and
offshore investments in 1996-2000.
In 2000, Ron established his own consulting business,
Storey Marketing Services, which continues today.
Ron owned Australian Crop Forecasters (ACF) from
2005 – 2010 before its sale to NZX. Ron remains as a
consultant to NZX (which owns Clear Grain Exchange,
ACF and Profarmer). Ron is Chairman of Australian
Grain Technologies P/L and a Director of Pulse
Australia Limited.
Ron grew up on a grain and sheep farm at Wycheproof
in the Victorian Mallee, where he retains a farming
interest. His most valued characteristic in the grain
business - integrity and independence.
Ron is also a member of the MSF Communication and
Membership (Chair) subcommittee
Daniel Linklater
NSW Farmer
Director since 2014.
Daniel runs a no-till cropping
enterprise with his father and
brother at Trentham Cliffs NSW.
The 12,000ha property includes
cropping,
grazing
and
conservation areas. Break crops of canola, chickpeas
and field peas have been introduced over the past four
years to support the continuous cropping system.
Daniel studied commerce at Flinders University (SA)
and then worked for ABB Grain until 2007 when he
returned to the family farm. Daniel has hosted various
trial sites for Mallee Sustainable Farming and values
the direct influence that this has had on his farming
system.
Daniel is committed to the ongoing adoption of
research outcomes and innovation that supports
dryland farming systems.
Daniel is also a member of the MSF Finance and Audit
and Research, Development and Extension
subcommittees.
10
Andrew Biele
Allison McTaggart
SA Farmer
Invited Specialist Director and
Secretary
Director since 2014.
Andrew started his farming
career on the 2,000ha mixed
family farm at New Residence,
west of Loxton SA. Encouraged
to get a trade Andrew qualified
as a mechanic and gained
valuable machinery knowledge, always assisting in
harvest, sowing and shearing during these busy times.
Andrew also has considerable experience in the
Horticulture industry and holds an Advanced Diploma
of Rural Business Management.
Andrew has also worked within SARDI managing field
operations out of Loxton which involved all forms of
research, including grain variety trials and frost
research.
Andrew’s current position is Farm/Operations Manager
at “Bulla Burra”, a collaborative farming business,
based at Loxton in the SA Mallee. They manage
13,000ha of land and their cropping program consists
of 9,000ha of wheat, canola, barley, chickpeas, peas
and lentils.
Having the drive to move forward and always looking
to achieve operations effectively and efficiently, the
passion to “Farm for the Future” is the motto for both
Bulla Burra and Andrew.
Andrew is a member of the MSF Research
Development and Extension, subcommittee
Director since 2014
Allison was invited to the MSF
Board as a specialist with
experience in human resources,
corporate governance, strategic
planning, communication and marketing.
Allison is a Fellow of the Australian Institute of
Company Directors (AICD) and member of the
Australian Human Resource Institute. She holds an
Associate Diploma Animal Production from
Hawkesbury Ag College (NSW) and Bachelor of Arts
(Management Communication) from Deakin
University.
Allison is currently a Director of Mallee Catchment
Management Authority (Vic), Western Murray
Irrigation, and her family earth moving business, GM
Richardson PL. Allison was a former Director of
Lower Murray Water (Vic), Lower Murray Darling
Catchment Management Authority (NSW), Murray
Darling Association, and former chair of the Mildura
Rural City Audit Committee.
Allison is Principal Consultant of Allison McTaggart
and Associates ‘Human Capital Solutions’.
Her professional career has included work with
Australian Table Grape Association, Tandou Limited,
Sunraysia Institute of TAFE and the Department of
Agriculture.
11
Our Staff
Stuart Putland
Executive Manager
Donna Robertson
Finance Officer
Jen Bond
Program Manager
Michael Moodie
Agronomist (Moodie Agronomy)
Kath Burt
Administration Manager
Todd McDonald
Technical Officer (Moodie Agronomy)
MSF Structure
12
Key messages from a selection of 2014 trials
Productive and profitable pulse crops in
the Northern Victorian Mallee
Mildura
Key messages
 Field peas were the stand out crop
in terms of both dry matter
production (5.8-6.5 t/ha) and grain yield (1.7-2.3 t/ha)
 Excellent grain yields were generally achieved for the
other pulse crop options; chickpea (1.5-1.6 t/ha), lentil
(1.5 t/ha), faba bean (1.4 t/ha) and lupins (0.9-1.2).
 Over two seasons at the site, Kabuli chickpea’s have
been the most profitable crop option followed by Desi
chickpeas, and field peas. Lentils were the most
profitable option in 2014.
 There were no significant dry matter differences between
treatments in the Brown Manure trial with all producing
about 4.5 t/ha
Crop sequences address agronomic
constraints in a long term continuous
cereal paddock
Mildura
Key Messages
 Legume
crops
consistently
increased pre-sowing soil nitrogen
in the year following the break.
 Two-year break phases that included a brown manure
vetch phase have generally resulted in the highest presowing soil nitrogen levels in the subsequent wheat crops.
 One- and two-year break phases reduce Rhizoctonia soil
inoculum, however levels increase significantly following
the first cereal crop.
 Two-year break treatments generally reduced brome
grass populations in the cereal phase, however all
rotations relied on Clearfield herbicides for brome grass
control by the second wheat crop following the break.
 The benefits from extra soil water following some break
phases in this trial have been variable and small.
Summer active perennial grasses
influence biological functions in Mallee
soils
Karoonda
Key Messages
 Summer active perennial pasture
grasses add above- and below-ground
carbon inputs that are vital for maintaining and even
enhancing biological functions in cropping soils.
 Perennial grasses significantly increased the microbial
biomass, activity and N mineralization potential in the
surface 20 cm of soil compared to Crop only treatment.
 Rhizosphere and root environments of summer-active
perennial grasses support significant amounts of nonsymbiotic N2 fixation during summer months compared to
cropping soils thus contributing biological N inputs into the
soil N cycle.
 Soil-borne diseases such as rhizoctonia root rot could
compromise the benefits from enhanced nutrient supply in
summer active grass pasture-crop systems.
Two-year breaks profitably reduce
agronomic constraints
Mildura
Key Messages
 Including one- and two-year break
phases in the low rainfall Mallee can
significantly increase the productivity of subsequent wheat
crops.
 Brome grass population in a long term cereal paddock
near Mildura was the most significant driver of the break
benefits in a crop sequencing trial.
 Including a two-year break phase in the rotation was up to
$90/ha/year more profitable than maintaining continuous
wheat over the four year period of the trial.
13
Pulse Options for the Northern SA
Mallee
Loxton
Closing Mallee yield gaps using nutrition
and break crops: A summary of 20092013 trials at Karoonda
Karoonda
Key Messages
 Chickpeas were consistently amongst
the highest yielding pulses at this site
across all soil types and EM38 ranges. They produced
the highest gross margins on both the deep sand and
mid-slope soils.
 Vetch produced the highest gross margin on the high
EM38 loamy soils, mainly due to its lower input costs due
to a lower seeding rate. Vetch remains a relatively safe,
easily marketable, versatile break crop option.
 Lentils grew very poorly on the sand and only produced a
positive gross margin on the loamy flats.
Testing on-row and inter-row seeding
across soil types
Karoonda
Key Messages
 There is potential for improved crop
establishment conditions on sandy
soils by on-row (or near-row) seeding
 Prior to sowing in 2014 at Karoonda, topsoil moisture and
soil nitrogen was higher on the previous year’s crop row
 Fusarium and Take-all inoculum levels were lower and
therefore more favourable in the inter-row.
Key Messages
 There is strong support for the use of
soil-specific nitrogen (N) management
to improve profitability and reliability of returns from
fertiliser N on Mallee crop paddocks.
 The highest yielding part of the paddock is not
necessarily where the return on extra N fertiliser is
highest- aim for where returns on each dollar of N
applied are likely to be greatest.
 Whole farm analysis shows that shifting fertiliser inputs
from heavy constrained soils to sandy topsoils can have
significant profit and risk benefits over several years but
nutrient reserves need to be monitored.
 The gross margins of break crops are usually riskier than
for cereals but the effect of a legume-based break on
cumulative wheat yield over the next couple of years has
been relatively reliable.
 Increased N supply could be measured up to two years
following the break and played a key role in the break
effects at Karoonda where the weed burden was low.
 Disease breaks tended to only last for one wheat growing
season.
For more information on the full range of Mallee Sustainable Farming’s research articles please visit:
www.msfp.org.au
14
2014 - 2015 Projects
2014-15 Projects
Mallee Challenge
GRDC Advisors update
2015
Tri-State Forum 2015
Project Purpose
This project engaged farmers across the South Australian Mallee in
embracing new technologies and tackling local issues providing the
opportunity to conduct paddock demonstrations most relevant to them,
their local farmer groups and the wider region. This was a collaborative
project with SAMDB and delivered by Rural Solutions SA.
This project supported the delivery of two Tri-State Forums across the
Mallee to bring relevant research to the Mallee (February 2015).
GRDC Industry
Conference
Support Award
Growing Legumes
The project was designed to assist farmers in the Western Local Land
Services region of New South Wales to better understand the role of
legume break crops in farming systems and the techniques necessary to
grow them successfully in the local environment.
Crop Sequencing
This project has worked towards developing an improved understanding
and implementation of management practices for Brassica, pulse crops,
pastures and other options to reduce the risk of crop failure and improve
whole farm profitability in low rainfall south-east Australia.
Improved crop
establishment through
technological
innovation
Completed
December 2014
GRDC Industry
Development
Award
Strengthening
Communities
Facilitated Groups
South Australia
DAFF -Community
Landcare Grant
This project funded 5 MSF staff, board members and farmers to attend the
2015 GRDC Updates in Adelaide, February 2015.
The project aimed to build capacity by improving access to support
systems and services, and encourage community networks for farmers in
the Mallee region of Victoria, New South Wales and South Australia.
Maintaining Ground
Cover
Funding
Source
This project is designed to quantify livestock (sheep) grazing habits in
large Mallee paddocks with variable soil types. It aims to determine the
factors that may influence livestock grazing habits such as feed quantity,
feed quality and landscape topography. The project seeks to better
understand the impact of stocking pressure on groundcover levels within
the paddock to provide local farmers with more robust guidelines for
maintaining groundcover above critical levels.
This project facilitates broad acre farmer groups across five locations
(Cambrai, Karoonda, Loxton, Lameroo and Browns Well) of the Natural
Resources SA Murray-Darling Basin region, engaging famers and local
industry representatives in a wide range of sustainable farming and NRM
activities. This project is delivered by Rural Solutions SA.
This project demonstrates innovative seeding implement guidance systems
in order to improve crop and pasture establishment and groundcover on
vulnerable soil types on dryland farms. By demonstrating this innovative
technology we will promote the trialling and adoption of such technologies
which will lead to reduced levels of soil erosion by dryland farmers in the
South Australian Mallee.
Department of
Social Services
Completed June
2015
Western Local
Land Service
Completed June
2015
GRDC
Ongoing
Mallee CMA
Ongoing (Dec
2015)
SAMDBNRM
Ongoing (2016)
SAMDBNRM
Ongoing (2016)
2014-15 Projects
Project Purpose
GRDC NRM
Partnership
“Delivering multiple benefit messages – A partnership with NRM” is an
innovative project to bring together grains industry and natural resources
management people to work together in extending sustainable farm
practices on key production issues that have clear environmental
outcomes. The focus for MSF in this project is extending information on the
management of potentially herbicide resistant Brome grass and
management practices suitable for sandy Mallee Soils. This project is a
partnership with the Ag Excellence Alliance.
Overdependence on
Agro-chemicals
A consortium of five low-rainfall farming systems groups in south-eastern
Australia - Central West Farming Systems (CWFS), Mallee Sustainable
Farming (MSF), Birchip Cropping Group (BCG), Upper North Farming
Systems (UNFS) and the Eyre Peninsula Agricultural Research Foundation
(EPARF) – formed a partnership with GRDC and Charles Sturt University,
to explore opportunities to reduce input costs through innovative
management options and to examine the impacts on systems’
sustainability and profitability at the regional level.
Funding
Source
GRDC
Ongoing (2016)
GRDC & CWFS
Ongoing (2017)
Profitable Canola
This research trial in the Victorian Mallee is part of the CSIRO-led, GRDC
funded, Optimised Canola Profitability project. The aim of the MSF
component is to assess risk-based approaches to canola management in
the low rainfall Victorian Mallee. A trial will assess a number of low and
high risk options for the management of canola including variety, sowing
time and timing of nitrogen application.
Demonstrating the
benefits of break crops
in Northern Mallee notill cropping systems.
This project established eight paired paddocks in the Northern Victorian
Mallee where farmers compare rotations that include a one or two year
non-cereal crop phase to the cereal dominated cropping systems that are
currently being implemented. The delivery approach for this project is to
work with farmers to implement commercial scale comparisons of farming
systems with different crop rotations.
Ongoing (2018)
Maintaining profitable
Mallee farming systems
with retained stubble
This project will address the major constraints to maintaining profitable
farming systems with stubble retention and deliver improved options to
grain growers. The project will focus on break crops, soil carbon, seeder
setup, disease, weed management, nutrition, monitoring fallow stubble,
inter-row sowing, summer/autumn herbicide applications and moisture &
erosion.
GRDC
Ongoing (2018)
Adopting Profitable
Crop Sequences in the
South Australian Mallee
This project will provide information to help farmers in the low rainfall
South Australian Mallee to select appropriate break crops that enhance
the productivity and sustainability of their crop sequences to increase the
profitability of their farming businesses.
Sustainable Brome
Grass Management
This project established four paired paddocks in a commercial setting
where farmers compare an Integrated Weed Management (IWM) strategy
to current brome grass management practices in cereal based no-till
cropping systems.
MCMA Break Crops
Agronomic constraints threaten the sustainability of intensive cereal no-till
cropping systems. Local research has shown these constraints can be
managed by diversifying rotations. MSF has established paired paddocks
in the Northern Mallee where farmers are comparing rotations that include
GRDC
Ongoing (2017)
Mallee CMA
SAGIT
Ongoing (2018)
Mallee Catchment
Management
Authority
Ongoing (2018)
Mallee Catchment
Management
Authority
Ongoing (2018)
16
2014-15 Projects
Project Purpose
Funding
Source
non-cereal crop phases to the cereal-dominated cropping systems.
Monitoring is focusing on light and heavy soils within each paddock.
Grain & Graze 3
Controlled Traffic
Farming
National Paddock
Survey Initiative
This project delivers workshops for Mallee farmers to help better manage
the integration of cropping and livestock production. It also incorporates
trials to investigate more reliable and lower cost methods of establishing
productive legumes in a cropping system.
Adoption of Controlled Traffic Farming (CTF) in the Mallee is very low.
This project will use a balanced combination of research and development
(R&D) to answer growers’ questions about CTF and provide the
information they need to make informed decisions about whether to invest
in adopting the system on their farms.
The project will deliver information to grain growers which will improve
understanding of factors limiting production and enable growers to develop
valuable skills in targeting attainable and profitable crop yields.
GRDC & MARF
Ongoing (2016)
ACTFA
Ongoing (2019)
GRDC & BCG
Ongoing (2019)
17
Special Purpose Financial Statements
Mallee Sustainable Farming Incorporated
Statement of Comprehensive Income
For the Year Ended 30 June 2015
Note
2015
2014
$
$
2
1,279,973
1,345,144
Research, development and extension expenses
3
(872,418)
(891,994)
Employee expenses
3
(209,435)
(257,008)
Other expenditure on operational activities
3
(167,071)
(185,189)
Depreciation expense
3
(8,006)
(10,132)
23,043
821
-
-
23,043
821
-
-
23,043
821
Revenue
Less: Expenses
Surplus before income tax for the year
Income tax expense
Net surplus for the year
Other comprehensive income
Total comprehensive income for the year
1(g)
The above Income Statement should be read in conjunction with the notes to and forming part of these financial
statements.
Mallee Sustainable Farming Incorporated
Statement of Financial Position
As At 30 June 2015
Note
CURRENT ASSETS
Cash and cash equivalents
Receivables
Prepayments
TOTAL CURRENT ASSETS
NON CURRENT ASSETS
Plant & equipment
TOTAL NON CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Unrecognised project income
Payables
Employee benefits
Chattel Mortgage (Current)
TOTAL CURRENT LIABILITIES
NON CURRENT LIABILITIES
Employee benefits
Chattel Mortgage (Non-current)
TOTAL NON CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Retained surplus
General reserve
TOTAL EQUITY
2015
$
2014
$
4
5
6
831,130
223,634
4,272
1,059,036
1,028,812
259,081
4,455
1,292,348
7
27,080
27,080
1,086,116
35,086
35,086
1,327,434
8, 1(f)
9
10
11
640,416
146,572
7,960
7,388
802,336
806,964
210,896
37,460
6,804
1,062,124
10
11
2,814
2,814
805,150
280,966
7,387
7,387
1,069,511
257,923
210,966
70,000
280,966
187,923
70,000
257,923
1(h)
The above Income Statement should be read in conjunction with the notes to and forming part of these financial
statements.
19
Special Purpose Financial Statements
Mallee Sustainable Farming Incorporated
Statement of Changes in Equity
For the Year Ended 30 June 2015
Note
Balance at beginning of year
Surplus (deficit) for the year
Transfer to (from) reserves
Balance at end of year
1(h)
Total
Total
Retained
Surplus
Retained
Surplus
General
Reserve
General
Reserve
2015
2014
2015
2014
2015
2014
$
$
$
$
$
$
257,923
257,102
187,923
187,102
70,000
70,000
23,043
821
23,043
821
-
-
280,966
257,923
210,966
187,923
70,000
70,000
The above Income Statement should be read in conjunction with the notes to and forming part of these financial
statements.
20
Mallee Sustainable Farming Incorporated
Statement of Cash Flows
For the Year Ended 30 June 2015
Note
2015
2014
$
$
1,236,740
1,766,851
9,629
3,177
17,797
20,713
CASH FLOW FROM OPERATING ACTIVITIES
Operating grants received
Receipts from sponsorship and other
Interest received
Payments to employees
(238,875)
Payments to contractors and suppliers
GST Paid
Net cash provided by (used in) operating activities
17(b)
(1,202,737)
(1,304,408)
(12,514)
(121,061)
(189,960)
365,272
-
(9,018)
-
9,439
-
421
(7,722)
(7,722)
(7,722)
(7,722)
(197,682)
357,971
1,028,812
670,841
831,130
1,028,812
CASH FLOW FROM INVESTING ACTIVITIES
Payment for plant & equipment
Proceeds from sale of plant & equipment
Net cash used in investing activities
CASH FLOW FROM FINANCING ACTIVITIES
Repayment of chattel mortgage
Net cash used in financing activities
Net (decrease) increase in cash held for the year
Cash at beginning of year
Cash at end of year
17(a)
The above Income Statement should be read in conjunction with the notes to and forming part of these financial
statements.
21
Notes to Financial Statements
Mallee Sustainable Farming Incorporated
Notes to Financial Statements
For the Year Ended 30 June 2015
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
This financial report is a special purpose financial report prepared in order to satisfy the financial reporting requirements
of the Associations Incorporation Reform Act 2012 and the requirements of Section 60-40 of the Australian Charities and
Not For Profits Commission Regulations 2013. The Board has determined that the association is not a reporting entity.
The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on
historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial
assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.
All amounts are presented in Australian dollars.
The financial report has been prepared in accordance with the requirements of the Associations
Incorporation Reform Act 2012 and the following Australian Accounting Standards:
AASB 101:
Presentation of Financial Statements
AASB 107:
Cash Flow Statement
AASB 108:
Accounting Policies, Changes in Accounting Estimates and Errors
AASB 110:
Events After the Balance Sheet Date
AASB 1031:
Materiality
No other applicable Accounting Standards, Interpretations or other alternative pronouncements of the
Australian Accounting Standards Board have been applied.
The following material accounting policies, which are consistent with the previous period unless otherwise
stated, have been adopted in the preparation of this financial report.
(a)
Plant & Equipment
Each class of plant and equipment is carried at cost. The depreciable amount of fixed assets is
depreciated over their expected useful lives commencing from the time the asset is held ready for use.
(b)
Rounding
Amounts shown in the financial report are in whole dollars unless otherwise stated. Amounts have been
rounded up or down to the nearest dollar.
22
(c)
Goods & Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount
of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the
GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense.
Receivables and payables in the statement of financial position are shown inclusive of GST.
(d)
Cash
For the purposes of the statement of cash flows, cash includes cash on hand and in at call deposits with
banks or financial institutions, investments in money market instruments maturing less than three months,
net of bank overdrafts.
(e)
Employee Benefits
Provision is made for the association's liability for employee benefits arising from services rendered
by employees to reporting date. Employee benefits expected to be settled within one year together
with entitlements arising from wages and salaries and annual leave which will be settled after one
year, have been measured at the amounts expected to be paid when the liability is settled plus
related on costs. Other employee benefits payable later than one year have been measured at the
present value of the estimated future cash outflows to be made for those benefits.
Contributions are made by the association to an employee superannuation fund and are charged as
expenses when incurred.
(f)
Revenue
Project funding which arises from contractual relationships for the provision of agricultural research and
extension and rural community development services is recognised initially as a liability in the statement of
financial position and classified as unrecognised project income. Project funding is then brought to account as
income progressively as services required under project contracts are delivered. Surpluses arising from projects
are recognised when they are reasonably assured, usually near the end of the project, while losses are recognised
as they become apparent.
Revenue from the provision of other services is recognised upon the delivery of those services to customers.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial
assets.
(g)
Income Tax
Mallee Sustainable Farming Inc. is a not for profit community based organisation which is exempt from income
tax.
(h)
General Reserve
The Board has resolved to create a general reserve from the retained surplus to set aside sufficient funds to cover
the costs of a managed winding up Mallee Sustainable Farming Incorporated should that eventuality ever become
necessary. It is the Board's intention that this reserve should be backed by liquid funds or investments at all
times.
23
Notes to Financial Statements Continued
Mallee Sustainable Farming Incorporated
Notes to the Financial Statements
For the Year Ended 30 June 2015
2015
2014
$
$
1,255,515
1,316,009
17,797
20,713
- Sponsorship
4,473
586
- Other Revenue
2,188
7,836
24,458
29,135
1,279,973
1,345,144
Research, development and extension
872,418
891,994
Employment Expenses
209,435
257,008
Communication
10,399
12,166
Board Expenses
42,214
50,444
114,458
122,579
167,071
185,189
8,006
10,132
2,600
3,045
-
-
2,600
3,045
NOTE 2: REVENUE
Operating activities:
- Project Funding
Non-operating activities
- Interest Received
Total Revenue
NOTE 3: EXPENSES
Other Administration
Total Operational costs
Depreciation Expense
Remuneration of auditor (included in Other Administration above)
- audit or review services
- other services
Total remuneration
24
2015
2014
$
$
NOTE 4: CASH AND CASH EQUIVALENTS
Cash on Hand
Cash at Bank
17
17
831,113
1,028,795
831,130
1,028,812
223,634
261,114
-
(2,033)
223,634
259,081
4,272
4,455
4,272
4,455
57,570
57,570
(54,641)
(53,727)
2,929
3,843
38,335
38,335
(14,184)
(7,092)
24,151
31,243
27,080
35,086
NOTE 5: RECEIVABLES
Trade Debtors
Less Provision for Doubtful Debts
NOTE 6: PREPAYMENTS
Prepaid Insurance
NOTE 7: PLANT & EQUIPMENT
Plant & equipment at cost
Less accumulated depreciation
Motor vehicles at cost
Less accumulated depreciation
(a)
Movements in carrying amounts
Plant & Equipment
Motor Vehicles
$
$
Balance, 1 July 2013
4,794
14,759
Additions
2,089
26,929
Disposals
-
(3,353)
(3,040)
(7,092)
3,843
31,243
Depreciation expense
Balance, 30 June 2014
Additions
-
-
Depreciation expense
(914)
(7,092)
Balance, 30 June 2015
2,929
24,151
25
Notes to Financial Statements Continued
Mallee Sustainable Farming Incorporated
Notes to the Financial Statements
For the Year Ended 30 June 2015
NOTE 8: MOVEMENT IN UNSPENT PROJECT FUNDS
$
Balance, 1 July 2013
402,173
Project funding received
1,720,720
Funding brought to account as income
(1,315,930)
Balance, 30 June 2014
806,963
Project funding received
1,082,092
Funding brought to account as income
(1,248,639)
Balance, 30 June 2015
640,416
2015
2014
$
$
144,781
204,305
1,791
6,591
146,572
210,896
7,960
37,460
7,960
37,460
2,814
-
2,814
-
10,774
37,460
NOTE 9: PAYABLES
Unsecured
Trade creditors and accruals
Sundry creditors
NOTE 10: EMPLOYEE BENEFITS
Current Liability
Provision for annual leave
Non-Current Liability
Provision for long service leave
Total Employee Benefits
26
NOTE 11: CHATTEL MORTGAGE
Current Liability
Chattel Mortgage (Current)
7,722
Deferred Finance Charges (Current)
7,722
(334)
(918)
7,388
6,804
Chattel Mortgage (Non-current)
-
7,721
Deferred Finance Charges (Non-Current)
-
(334)
-
7,387
7,388
14,191
Non-Current Liability
Total Employee Benefits
NOTE 12: CONTINGENT LIABILITIES
At 30 June 2015 the Board is unaware of any liability, contingent or otherwise, which has not already
been disclosed elsewhere in the financial statements.
NOTE 13: CAPITAL COMMITMENTS
At 30 June 2015 there are no commitments for capital expenditure.
NOTE 14: RELATED PARTIES
(a)
The following persons held office on the Board during the financial year and up to and including the date
of this report:
- Ian Hastings (President)
- Andrew Biele
(Appointed 24/10/2014)
- Paula Gordon
- Ron Hards (Treasurer)
(b)
- Gavin Howley
(Resigned 24/10/2014)
- Daniel Linklater
(Appointed 24/10/2014)
- Rick Llewellyn
- Allison McTaggart
- Tim O'Halloran
- Robert Pocock
- Ron Storey
- Dean Wormald
(Resigned
24/10/2014)
Transactions with related parties
During the year ended 30 June 2015 the association made payments of $20,000 to a business in which Robert Pocock
has a financial interest. These payments related to project activities undertaken on behalf of the association.
NOTE 15: ASSOCIATION DETAILS
The principal place of business of the association
is:
Mallee Sustainable Farming Incorporated
1/2103 Fifteenth Street
Irymple, Vic, 3498
NOTE 16: EVENTS OCCURRING AFTER REPORTING DATE
Since the date of preparation of this financial report, there have been no events which require specific disclosure.
27
Notes to Financial Statements continued
Mallee Sustainable Farming Incorporated
Notes to the Financial Statements
For the Year Ended 30 June 2015
2015
$
2014
$
17
17
831,113
1,028,795
831,130
1,028,812
23,043
821
8,006
10,132
918
1,913
(2,033)
2,033
NOTE 17: CASH FLOW INFORMATION
(a)
Reconciliation of Cash
Cash on hand
Cash at bank
(b)
Reconciliation of Net Cash provided
by Operating Activities to Result from
Ordinary Activities after Income Tax:
Surplus (deficit) from ordinary activities after income tax
Non Cash Flows in Operating Result:
Depreciation
Chattel Mortgage finance charges
Provision for Doubtful Debts
Profit on sale of plant & equipment
-
(6,087)
Changes in Assets & Liabilities:
Increase(Decrease) in provisions
(Increase)/Decrease in receivables
(Increase)/Decrease in prepayments
(Increase)/Decrease in GST receivable
Increase /(Decrease) in creditors & accruals
Increase /(Decrease) in unrecognised project income
Net cash (used in) provided by operating activities
(26,685)
10,700
37,480
(142,292)
183
350
680
(22,301)
(65,004)
105,211
(166,548)
404,792
(189,960)
365,272
The association has no credit stand-by or financing facilities in place.
There were no non-cash financing or investing activities during the
(d)
period.
NOTE 18: ECONOMIC DEPENDENCE
Mallee Sustainable Farming Incorporated is dependent on agricultural research institutions for the majority of revenue
used to operate the entity. Indications for the 2015/16 financial year are that this support is continuing. The entity is
continuing to pursue strategies which will diversify its funding base.
(c)
28
Statement by Members of the Board
29
Independent Auditor’s Report
INDEPENDENT AUDIT REPORT TO THE MEMBERS OF MALLEE SUSTAINABLE FARMING
INCORPORATED
Report on the Financial Report
The accompanying financial statements, being the special purpose financial statements, of Mallee Sustainable Incorporated (the Association),
which comprises the statement of financial position as at 30 June 2015 for the year then ended, the statement of profit or loss & other
comprehensive income, statement of changes in equity, statement of cash flows, a summary of significant accounting policies, other
explanatory notes and the statement by members of the committee have been audited.
Committee’s Responsibility for the Financial Report
The Committee of the Association is responsible for the preparation and fair presentation of the financial statements and have determined that
the accounting policies described in Note 1 to the financial statements, are consistent with the financial reporting requirements of the
Associations Incorporation Reform Act 2012 (Vic) and are appropriate to meet the needs of the members. The Committee’s responsibilities also
include designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial statements
that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting
policies used, as described in Note 1, are appropriate to meet the needs of the members. We conducted our audit in accordance with
Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Committee, as well as evaluating the
overall presentation of the financial statements.
The financial statements have been prepared for distribution to members for the purpose of fulfilling the Committee’s financial reporting
under the Associations Incorporation Reform Act 2012 (Vic). We disclaim any assumption of responsibility for any reliance on this report or on
the financial statements to which it relates to any person other than the members, or for any purpose other than that for which it was
prepared.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Independence
In conducting the audit, we have complied with the independence requirements of Australian professional ethical pronouncements.
Auditor’s Opinion
In my opinion, the financial statements of Mallee Sustainable Farming Incorporated present fairly, in all material respects the financial position
of Mallee Sustainable Farming Incorporated as of 30 June 2015 and of its financial performance for the year then ended in accordance with the
accounting policies described in Note 1 to the financial statements and the Associations Incorporation Reform Act 2012 (Vic).
Kellie Jane Nulty
Dated this 22nd of September 2015
30