Mallee Sustainable Farming 1 2011 Annual Report 2011 Annual
Report
Mallee Sustainable Farming 2 2011 Annual Report MSF would like to thank the following sponsors for their support Platinum partner Gold partners Silver partners Bronze partner Mallee Sustainable Farming 3 2011 Annual Report Contents OVERVIEW Strategic Plan 2010‐11 4 4 CHAIRPERSON’S REPORT 6 EXECUTIVE MANAGER’S REPORT 7 MSF BOARD 8 MSF STAFF 11 MSF structure 11 PROJECT OVERVIEWS 12 SAMS (Sustainable Agriculture in the Mallee of South Australia) 12 Water Use Efficiency 12 Soil Carbon and Ground Cover 12 Strengthening Our Communities 13 Tractor Exhaust 13 Mallee Dryland Soil Health Monitoring Program 14 Training and Demonstration of Precision Agriculture in Practice 14 EverCrop and EverCrop Decide 14 FINANCIAL STATEMENTS 15 This publication has been prepared by Mallee Sustainable Farming (MSF) Inc. on the basis of information available at the date of publication without any independent verification. Neither MSF Inc. or its editors, nor any contributor to this publication represents that the contents of this publication are true or accurate or complete; nor does MSF Inc. accept any responsibility for errors or omissions in the contents, however they may arise. Readers who act on this information do so at their own risk as soils and environment across the Mallee can vary significantly and information presented in this publication should be viewed in consideration of local conditions. Mallee Sustainable Farming 4 2011 Annual Report Overview Mallee Sustainable Farming (MSF) Inc. is a farmer driven organisation servicing the < 350mm rainfall Mallee cropping regions of New South Wales, Victoria and South Australia. MSF operates within a region of over 7 million hectares, extending beyond Balranald in the east to Murray Bridge in the west. The Mallee has approximately 1500 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 delivers research and extension services for low rainfall dryland farmers. MSF was established in 1997 to investigate and assist farmers in implementing technological advances towards best management practice. Since then, the profitability of dryland farming in the Mallee has also increased significantly as have the environmental and social gains. OUR VISION Dynamic, profitable and sustainable farming OUR MISSION Provide excellence in research, development and extension initiatives for the dryland Mallee of South Eastern Australia PRINCIPAL PURPOSE To protect and enhance the natural environment by the encouragement of sustainable dryland farming practices OUR VALUES Strategic Plan 2010-11
MSF developed the current Strategic Plan (Figure 1) in 2009. During the past 12 months, MSF directors and staff have been committed to working towards the goals and implementing the identified strategies outlined in the Plan. During the latter part of 2009 MSF directors and staff undertook a review of its strategic plan, vision & mission statements and values. Research projects in the MSF region Creativity and Innovation •
Honesty and Integrity •
Professionalism •
Collaboration •
Credibility •
Accountability •
Dignity and Respect •
Fairness and Impartiality •
Mallee Sustainable Farming 5 2011 Annual Report Figure 1 OUR STAKEHOLDERS
1.
Farmers and their
communities
OUR GOALS
We will:
1.1 Promote proven innovation and
build community capacity
1.2 Research improved dryland farming
systems
2.
The Environment
2.1 Be an environmentally responsible
organisation
3.
Our Partners and Funders
3.1 Be a professional organisation that
delivers value to our partners, funders
and members
4.
Our Organisation
4.1 Be responsive, accountable and
financially viable
OUR STRATEGIES
We will:
1.1.1 Implement a program to
reinvigorate state reference committees
1.1.2 Ensure quality control and risk
management assessment on all research
projects and programs
1.1.3 Implement a proactive extension
and information plan
1.1.4 Build MSF’s agronomic capacity
and profile
1.1.5 Respond to a demonstrated need
for community capacity building
initiatives where MSF is able to deliver
outcomes
1.2.1 Generate increased opportunities
for farmer directed participation in MSF
R, D & E projects
1.2.2 Investigate farming system options
to address issues in sustainable farming
2.1.1 Investigate farm management
options to tackle the environmental
challenges for sustainable dryland
farming
2.1.2 Provide credible representation of
dryland farming issues
2.1.3 Build our capacity to be a credible
information and referral source on
environmental and natural resource
management issues relevant to Mallee
dryland farming
2.1.4 Pursue Environmental
Organisation Registration
2.1.5 Develop and implement an MSF
Environmental Management System
3.1.1 Identify and develop strategic
alliances which demonstrate specific
and measurable benefits for Mallee
farmers
3.1.2 Demonstrate excellence in
compliance and project management
systems
3.1.3 Develop and implement a
stakeholder engagement strategy
4.1.1 Grow the MSF business by
incorporating new activities, building
alliances and applying economic
efficiencies
4.1.2 Implement and maintain sound
governance, policy and risk
management practices
4.1.3 Review resource arrangements for
research, development and extension
delivery
Mallee Sustainable Farming 6 2011 Annual Report Chairperson’s report MSF has come through a tight financial period and is now entering what I believe is a growth opportunity for us. We have expanded our board and in doing so increased the skill set, which I believe will allow MSF to have a broader view, of how we can make a difference in the way our farmers go about their business. For MSF to justify its existence, it must be seen by the farmers in the dryland region of the three states, to be helping the development of new and innovative ways to increase production and profitability in a sustainable way. To do this successfully, we must ensure we are easily accessible and prepared to listen to and then act on ideas and concerns raised by our members, ‐ sometimes this may be as simple as passing on information already available or perhaps a small trial to ground truth some existing research in our geographical zone. Sometimes however it might be a much larger issue of a lack of confidence by our members in some research result ‐ that will require a much larger demonstration of the merits of adopting the outcome of that research in this area. This is an area where I believe MSF will have an increasing role to play. It is easy to sit back and lament the decreasing role that state departments play in research and development ‐ but what that has done, is allow groups like ours to look more broadly at ideas that may be beneficial to the farm businesses in our area. By this I mean that we are looking beyond just agronomic constraints. With the support and direction of the very progressive and innovative business managers who farm this unique dryland mallee region, we can become involved in development and extension of any new ideas that may be valuable to this area. There were two examples of these discussed at a recent R, D and E committee meeting. The first one being the use of microwave technology to kill weed seeds, both on the ground surface and within the soil profile down to a depth of 50mm. If proven to be viable and practical, would be a huge step forward for this low rainfall region ‐where we have less alternate crops available to allow us to control winter and spring weed problems in crop. The other idea discussed was the use of a steam wand to kill weeds and weed seeds. There are a number of other innovative ideas out there that probably would not have featured in the work programs of State Departments of Agriculture but will certainly be of interest to us, and our challenge is to be in a position where we can explore these. Then if we see any value in an idea, be able to facilitate required research and development aimed at an outcome, which will be useful in our farming systems. I would like to take this opportunity to thank Mike Mooney for the time he spent with us and congratulate him for the guidance he provided in helping us to refocus and restructure the way we do business. This led to MSF being in a much stronger position financially and therefore more capable of achieving our goals. This is also an opportunity to welcome our new executive manager Gemma Walker to M S F. I am confident that Gemma will bring new enthusiasm to our group with her youth and previous experience in a similar role! A special thank you also to the rest of our staff and all who work with and help us, through the year. The board of MSF is a diverse and capable group of people who have the very best of intentions for the farm businesses of our region, so I thank them all. Ian Hastings Chairperson Mallee Sustainable Farming 7 2011 Annual Report Executive Manager’s report A very contrasting year indeed for both MSF and the Mallee farmers it serves. A big turnaround in both grain production and prices compared to the previous season certainly brought renewed optimism back to the industry. Plague locusts threatened to hatch in record numbers during spring and if it were not for the many hours of spotting and spraying by farmers and agencies alike, their impact could have been much worse. While the final harvest result in many cases did not realise the yield and quality potential they initially promised, due to record summer rains in the region, it was a far better year than many recent ones for most. A better year also for MSF compared to the last. Some tough decisions taken early in 2010 by the board and staff began to bear fruit with a strengthened balance sheet, increased membership and new corporate partners ‐ just some of the signs of a growing MSF at the end of this financial year. With genuine sadness I write this last Executive Manager’s report as the next chapter of my working career commences. The board has recruited an outstanding replacement in Gemma Walker, whose knowledge, passion and energy for the dryland farming sector will be a great asset to MSF and Mallee farmers in the coming years. My thanks to all that have helped MSF over the last two years punch above its weight and continue to be an important and relevant farming systems group. If you are reading this as an existing MSF member, thank you for your support. If you are not already a member then please get on board and help make a difference. Mike Mooney Executive Manager We started some new methods of communicating RD&E information to our members and broader stakeholders with an improved e‐Update newsletter format and launching our Facebook page and YouTube channel to start the journey along the emerging social networking path. Annual results compendium articles have been published individually on our refreshed website as have regular Yield Profit crop reports for Water Use Efficiency project focus paddocks. We continue to print the annual results compendium and post it out to members. Additional demonstration sites have been established in all states thanks to successful funding applications from both federal and state agencies, the hard work of our fine agronomist Michael Moodie, the Rural Solutions SA team and people like Leighton Pearce from the SAMDBNRM board and many others. The board members – past and present, have worked extremely hard to guide MSF into clearer waters through a changing environment that is making it tougher for a not for profit organisation to survive and grow. Two new board members were added this year in Geoff Thomas and Ron Storey. Both bring years of industry and commercial experience and expertise and under the guidance of Chair Ian Hastings and the rest of the board there is a bright and positive future for MSF. Mallee Sustainable Farming 8 2011 Annual Report MSF Board Current Directors deputy chair in 2010. He is a member of the Executive, Finance & Audit and Membership & Communications committees. Ian Hastings (Chairperson) Appointed: 2008 Ron Hards (Treasurer) Ian Hastings is a fourth generation farmer operating 4,000ha in a family business around the Ouyen area (Victorian Mallee). He has been active in many agricultural organisations including being the current president of the Victoria Groundsprayers Association. Appointed: 2009 Ian also contributes substantially to the local community holding positions such as President of the Local RSL sub‐
branch and Ouyen Farmers Festival Committee member. He is a past Chairman of the VFF Grains Group 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 was an inaugural Board Member of Mallee Sustainable Farming Inc in 1998 and remained a Victorian farmers’ representative until 2002. He re‐joined the Board in 2008 becoming Vice Chair in 2009 and is a member of the Executive, Finance & Audit and RD&E committees. Tim O’Halloran (Deputy chairperson) Appointed: 2007 Ron Hards began share farming in the Millewa area of North West Victoria in 1978. In 1988 Ron bought his first farm at Yarrara, Victoria, where he began spray fallowing and reduced tillage practices. In 1998 Ron’s son Nick, under took a farm apprenticeship at Longerenong College and joined Ron in farming at Yarrara. In 2001 Ron bought his second farm next door to the farm at Yarrara. In 2002 Ron and Nick began converting their plant from reduced tillage to no till. In 2006 Ron bought their third farm bringing the total to 2,800ha. 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 member of its Audit committee during that time. He also has been involved with the Grain Growers Association for 2 years, 1 year as President in 2005/06. Tim O’Halloran runs a mixed farm business at Tylden, 30km north east of Balranald, NSW. Tylden has been in the O’Halloran family since 1925. Until 1980, Tylden was predominately a grazing farm but since then a gradual transformation to Poll Merinos and grain growing has occurred. In more recent years Tim has adopted biological farming methods. In October 2009 Ron joined the Board of Mallee Sustainable Farming Inc taking on the role as Treasurer and Chair of the Finance and Audit Committee. Ron is also a member of the Executive and RD&E committees. Tim has been an active member of the community for many years including Captain of the local Rural Fire Service for over 20 years, member of the NSW Farmers Federation for over 30 years, has been a part of the Rangelands Management Action Plan committee for 3 years as well as a life member and Secretary of the Homebush Recreational Reserve Trust. Tim also has skills as a professional Wool Classer and is a Justice of the Peace. (Invited specialist) Tim has been a NSW farmer representative on the Mallee Sustainable Farming Inc Board since 2007 and became Paula Gordon (Secretary) Appointed: 2001 Paula Gordon was invited onto the Mallee Sustainable Farming Inc Board in 2001 as a specialist with experience in communications, rural community development and policy. Paula brings to the Board extensive experience in rural community development, rural policy and communications at a regional (Mallee), State, tri‐state and Commonwealth level. Mallee Sustainable Farming 9 2011 Annual Report A teacher and sociologist by training, Paula has held positions largely in the Victoria public service in such areas as community services, and agriculture and natural resource management. Paula has an interest and experience in risk management and building farmer resilience in times of change 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 nursery and citrus property in a family partnership at Trentham Cliffs, NSW, and applying biological farming methods. Paula is a member of a number of industry organisations associated with sustainable farming in the Mallee including the Vine Industry Nursery Association, Sun Cancer Resources Committee and Mallee Catchment Management Authority Drought Coordinating Committee. Paula is a Director of the Murray Valley Citrus Board, President of the Trentham Cliffs Landcare Group and a Director of the Mallee Catchment Management Authority. Glynn Schmidt (Director) Appointed: 2006 Glynn Schmidt has been farming at Low‐Bank near Waikerie in South Australia since 1962. Low‐Bank is predominantly a sheep and cereal property of 9,200 hectares. Glynn has been involved with the Murray Mallee Soil Board, the Board of Management of the Wanbi Research Centre and the South Australian No Till Farming Association. He is a life member of the Low‐Bank and Districts Agricultural Bureau having been Chair of this group for a number of years. Glynn joined the Mallee Sustainable Farming Board as SA director in 2006 and is a member of the RD&E committee. taking over the 900ha property, including a 50 sow piggery, 40km SW of Loxton (Caliph) on his own. Between 1995 and 2007 the land under crop grew to over 3000ha and now runs at 2500ha. Dean was a director of MSF from 2000 – 2006, being treasurer for 4 of those years. Dean is a member of the local Ag Bureau, Country Fire Service brigade & SANTFA. Gavin Howley (Director) Appointed: 2010 Shortly after obtaining a degree in agriculture from the University of Adelaide in 2000, Gavin returned home to the family farm near Kyalite in NSW. A 4th generation farmer, he runs a no‐till cropping enterprise with his father based mainly on wheat and some barley. The original part of the farm was taken up in 1910 by his great grandfather and today the farm covers 6000ha including red gum forests and the Wakool – Murray River junction. As a relatively new member of Mallee Sustainable Farming, Gavin was elected to join the board in 2010. He is an active member of the Kyalite and district community and is looking forward to the opportunities, and overcoming the farming challenges, that lie ahead. Gavin is a member of the Membership & Communications and RD&E committees Jim Maynard (Invited specialist) Appointed: 2004 Appointed: 2010 Jim Maynard has spent his working life developing Kerribee Station, NSW, a family owned property, which was begun by his father in 1932. During Jim’s time, Kerribee has evolved from being a sheep station to producing sheep, beef and wheat. Jim and his son also have a property at Manangatang, Victoria. The knowledge Jim has gained from being involved with MSF has been applied to his properties. Dean worked the family farm in partnership with his father and brother for 12 years before Jim has been active in many organisations including the Rural Lands Protection Board, the Lower Murray Darling Catchment Management Authority, the Rangeland Retiring South Australian Director 2006 ‐ 2011 Dean Wormald (Director) Mallee Sustainable Farming 10 2011 Annual Report Management Action Plan and the Western Lands Advisory Council. He is currently the Region Chairman of the Westerns Division of the NSW Farmers Association. Geoff Thomas In 2001 Jim was invited to join the Board of Mallee Sustainable Farming and became Chair in 2005, is a member of the Finance & Audit, RD&E and Communication & Membership committees. Appointed: 2011 In 2001 Jim was invited to join the Board of Mallee Sustainable Farming, was Vice Chair from 2002 to 2003 then became Chair in 2004 until 2010. Jim is a member of the Executive, Finance & Audit, RD&E and Communication & Membership committees. Rick Llewellyn (Invited specialist) Appointed: 2006 Rick Llewellyn was invited to the Mallee Sustainable Farming Inc Board as an invited specialist and provides scientific expertise to Mallee Sustainable Farming. Rick has been a Director since 2006. 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 as a lecturer in Agricultural Systems and Extension where he also conducted research into weed and herbicide management. He was also on the management committees of two Western Australia‐based grower group networks aimed at developing links between scientists and grower groups. 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 several farming systems research projects including the Mallee GRDC Water Use Efficiency project, the CRC Future Farm Industries EverCrop and Adaptability projects and has continuing research developing strategies for greater adoption of key farming systems innovations. Invited as a specialist director in 2006 Rick is a member of the RD&E committee. (Invited specialist) Geoff is a graduate of Adelaide and Melbourne Universities and spent much of his career in the public sector, mostly in senior management of regional services and extension. Since 1999 Geoff has run his own consulting business as Thomas Project Services in which he manages a range of programs including the SA Grain Industry Trust and the Low Rainfall Collaboration Program for GRDC, as well as servicing smaller individual clients. Geoff has been National President and Board Chairman of the Australian Institute of Agricultural Science and Technology since 1998. Geoff is a member of the Membership & Communications and RD&E committees. Ron Storey (Invited specialist) Appointed: 2011 Ron has spent over 35 years in the grains and agribusiness sectors, holds a Bachelor of Economics degree from Monash University and runs an agribusiness consultancy, Storey Marketing Services. He owned Australian Crop Forecasters (ACF) from 2005 – 2010 before selling it to NSX and remains as a part time consultant to NSX, ACF and Profarmer. Ron is Chair of AGT and has been a director of the Pulse Australia board since 1998. He was a senior executive with AWB Limited for almost 20 years and was a key figure in the deregulation of the domestic market in 1989. Ron established AWB’s new trading business in early 1990’s, managed the Trading Division 1996‐2000 in the lead‐up to AWB’s privatization. Ron comes from a grain and sheep farm at Wycheproof in the Victorian Mallee, where he retains farming interests and is married with five children. Mallee Sustainable Farming 11 2011 Annual Report MSF staff Mike Mooney Executive Manager Todd McDonald Project Extension Previous MSF staff during 2010‐11 Ian Ballantyne Acting Executive Manager – until July 2011 Donna Robertson Finance/Admin Michael Moodie Agronomist Kathryn Kenny Project Extension – until November 2010 MSF structure
*Six elected (2 from each State) and up to four invited specialist directors **Executive, Finance and Audit, Communications and Membership, R&D Mallee Sustainable Farming 12 2011 Annual Report Project overviews SAMS (Sustainable Agriculture in the Mallee of South Australia) Increasing adoption of sustainable farming and risk management in the SA Mallee Locations: Loxton, Pinnaroo, Geranium, Cambrai, Wanbi, Waikerie, Karoonda, Swan Reach, Nildottie It targets two major avenues to further improve future average whole‐farm water use efficiency across the Mallee: 1. address challenges to sustainability i.e. grass weed problems, disease, high fertiliser costs; 2. develop and adapt new strategies for improved water use efficiency for a wider range of soils and farming systems. Funding Bodies: National Landcare Program/Caring For Our Country Research/Extension Partners: SA Dept. of Water, Land and Biodiversity Conservation, Rural Solutions SA, SA MDB NRM Board, SA No‐Till Farmers Association and CSIRO Sustainable Ecosystems, Urrbrae This project is building on the previously NLP funded ‘Building the capacity of land managers to improve dryland farming practices and enhance agricultural sustainability in the SA Mallee’. It focuses on implementation of new findings and issues, targeting specific areas of poor participation and tackling farm business risk management dealing with seasonal variation and climate change. A major component of the project is the spatially designed on‐farm field trials. These trials aim to test the water use efficiency, productivity and risk of a range of continuous cereal systems, and the decisions around inputs, timing, agronomy and potential break crop options across soils of differing potentials. To add value to the field trials, simulation modeling (APSIM & Yield Prophet) will be used to test strategies and recommendations for longer‐term and broader ranging scenarios. Soil Carbon and Ground Cover Improving knowledge of soil carbon levels and ground cover in the Victorian Mallee Locations: Water Use Efficiency 30 farm properties across the Victorian Mallee. Ouyen and Werrimull trial sites. Water use efficient farming systems for the Mallee Funding Bodies: Locations: Mallee Catchment Management Authority Karoonda, Waikerie, Ouyen, Natya, Merbein, Chinkapook, Cowangie, Loxton, Paringa, Lameroo. Research/Extension Partners: Vic DPI, CSIRO, Mallee Focus Funding Bodies: GRDC, CSIRO, VIC DPI Research/Extension Partners: CSIRO Sustainable Ecosystems – Urrbrae, Rural Solutions SA, Vic DPI, Mallee Focus. This project aims to improve whole‐farm water use efficiency and profitability across 7 million hectares of the Victorian, South Australian and NSW Mallee region. This project has two parts covering:‐ a) the quantifying and classifying of soil carbon in Mallee soils, and b) improved cereal variety options for increased ground cover. Part a) will measure the quantity and type of soil carbon that is present in Mallee soils, in two management practices over a large area. The dataset will assist the CMA, landholders, researches and farm consultants to determine if improved farm management practices are improving soil health. Mallee Sustainable Farming 13 2011 Annual Report The data will help landholders and consultants make better nutrient management decisions leading to improved soil health and reduced erosion. •
Beautification of public areas •
Improved sport and recreation •
Health Part b) will demonstrate to landholders how cereal cultivars with short and long growing seasons respond when grown over different lengths of the growing season, and how these varieties can be managed to enhance production and protect the soil from erosion. The adoption of improved intensive cereal rotations will reduce the incidence of wind erosion through more reliable biomass production and therefore more consistent groundcover. Locations: Tractor Exhaust The impacts of tractor exhaust injection on wheat growth and yield in South Western New South Wales Trentham Cliffs, NSW Funding Bodies: Strengthening Our Communities To form partnerships to tackle local problems and formulate local initiatives, identify and deliver local projects Locations: 11 small communities across the tri‐state Mallee region Funding Bodies: Department of Families, Housing, Community Services and Indigenous Affairs Research/Extension Partners: Lower Murray Darling Catchment Management Authority Research/Extension Partners: NSW Department of Industry & Investment, Vic DPI, Mallee Focus, Daniel & Ian Linklater After an initial demonstration project in 2008 this project was implemented in 2009 to more rigorously investigate the effect of tractor exhaust injection on the growth of cereal crops in the Mallee region of southern New South Wales. A paddock scale, replicated experiment was established to test four treatments. The treatments were: Focus Consulting This project has been designed to build on local ingenuity and partnerships to tackle local issues and formulate positive local initiatives which will support the individual, the family and the wider farming community. Small communities were identified across the Mallee with most having fewer than 500 inhabitants. Meetings, workshops and lunches were organised whereby the facilitator explained the program and helped the group to develop a community plan of action with the allocation of resources of up to $5,000 to implement the activities. In this third year of funding, 11 community clusters were funded along with a regional farming workshop on drought and climate change, and a South Australian project to enhance the skills of farmers to handle soil and drought conditions. The activities can be summarized across six broad categories: •
Skill development /improving farming •
Celebration, community events, and networking •
Improving community infrastructure ‐ meeting places, halls etc •
Control ‐ No fertiliser and no exhaust •
No fertiliser and exhaust injected •
Fertiliser applied and no exhaust •
Fertiliser applied and exhaust injected Each treatment was replicated six times in a randomised block design. The trial showed that the injection of exhaust did not improve or compromise crop production relative to the control. However, injecting exhaust while simultaneously applying fertiliser did initially reduce crop growth. In this season and on this soil, the crop was unresponsive to the application of fertiliser except for a small, significant increase in grain protein. Mallee Sustainable Farming 14 2011 Annual Report Establish benchmarks of current soil health indicators to report against trends. The objective of this project is to increase the level of adoption of PA beyond guidance by broadacre grain growers. Specifically it aims to increase the level of adoption of variable rate by growers in the project by 30% by 2013. Locations: Benchmark sites at Cowangie and Chinkapook, 80 focus sites across the North West Victorian Mallee. EverCrop and EverCrop Decide Mallee Dryland Soil Health Monitoring Program Funding Bodies: Mallee Catchment Management Authority Research/Extension Partners: Vic DPI, Mallee CMA The intended outcomes of this project will improve knowledge on soil health indicators and interactions with Land Management Plans. The outcomes of this project will provide the Victorian dryland Mallee with soil health information on which to develop and report against benchmarks and targets. Data will also be used to inform the region in the proposed development of the Mallee Soil Health Strategy. Training and Demonstration of Precision Agriculture in Practice Locations: Ouyen, Merbein South, Paringa, Loxton, Natya & Lameroo Funding Bodies: GRDC, SPAA Locations: Werrimull and Waikerie Funding Bodies: Future Farm Industries CRC & CSIRO Research/Extension Partners: CSIRO, Rural Solutions SA, SAMDBNRM Board, Vic DPI. The EverCrop is a Future Farm Industries CRC project investigating the roles that perennials can play to address some of the current and future production and sustainability challenges in the cropping‐based zones of southern Australia. EverCrop has established a unique R, D & E approach that has integrated field experimentation, on‐farm trialling, farmer participatory research, farm case studies, soil‐plant‐climate biophysical modelling and whole‐farm bio‐economic analysis. EverCrop activities are located around three major zones: Uniform Rainfall (based in southern NSW); Medium Rainfall (based in the WA northern wheatbelt); Low Rainfall (based in the Mallee region of SA and Victoria). In the Mallee, MSF is working with EverCrop to investigate the potential for new forage shrub‐based options, perennial grasses and the potential for pasture cropping. Major field sites are at Waikerie, Karoonda and Hopetoun. Research/Extension Partners: Rural Solutions SA Increasing costs of inputs including phosphorus and nitrogen fertiliser, fuel and some herbicides has increased growers’ focus on more efficient use of these inputs to reduce costs. Precision Agriculture (PA) tools have been identified as a method for achieving these improvements in efficiency. PA tools may also deliver productivity gains to the grains industry by targeting inputs to areas of greatest need and the targeted amelioration of some soil constraints. Despite this, the adoption of PA beyond guidance has been low, at less than 10% of growers. Mallee Sustainable Farming 15 2011 Annual Report Financial statements Income statement for the year ended 30 June 2011 Revenue from Ordinary Activities Less: Expenditure on Ordinary Activities Research, development and extension expenses Employee expenses Other expenditure on Ordinary Activities Depreciation expense Surplus from ordinary activities before income tax Income tax expense relating to ordinary activities Net surplus/(deficit) from ordinary activities after income tax expense attributable to the association Note 2011 $ 2 3 3 3 3 1(g) 903,518 (576,451) (142,417) (123,111) (14,149) 47,390 ‐ 47,390 2010 $ 734,282 (576,394) (217,917) (199,035) (20,915) (279,979) ‐ (279,979) Mallee Sustainable Farming 16 2011 Annual Report Balance sheet for the year ended 30 June 2011 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 TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Employee benefits TOTAL NON CURRENT LIABILITIES TOTAL LIABILITIES Note 2011 $ 462,941 60,597 6,822 530,360 17,435 17,435 547,795 260,838 137,586 3,110 401,534 4 5 6 7 1(f) 8 9 2010 $ 252,469 28,370 6,320 287,159 31,303 31,303 318,462 169,951 45,488 4,152 219,591 ‐ ‐ 401,534 NET ASSETS 146,261 98,871 EQUITY Retained surplus General reserve 126,261 20,000 78,871 20,000 146,261 98,871 10 1(h) TOTAL EQUITY ‐ ‐ 219,591 Mallee Sustainable Farming 17 2011 Annual Report Statement of changes in equity for the year ended 30 June 2011 Not
e Balance, at beginning of year Surplus (deficit) from ordinary activities Transfer to (from) reserves Balance, at end of year 1(h) Retained Surplus Retained Surplus General Reserve General Reserve Total Total 2011 2010 2011 2010 2011 2010 $ $ $ $ 98,871 47,390 ‐ 146,261 378,850 (279,979) ‐ 98,871 $ $ 78,871 308,850 47,390 (279,979) ‐ 126,261 The above Statement of Changes in Equity should be read in conjunction with the notes to and forming part of these financial statements. 50,000 78,871 20,000 ‐ 70,000 ‐ ‐ (50,000) 20,000 20,000 Mallee Sustainable Farming 18 2011 Annual Report Cash flow statement for the year ended 30 June 2011 CASH FLOW FROM OPERATING ACTIVITIES Operating grants received Receipts from sponsorship and other Interest received GST Refunded Payments to suppliers & employees GST Paid Net cash (used in) provided by operating activities CASH FLOW FROM INVESTING ACTIVITIES Payment for plant & equipment Net cash used in investing activities Net (decrease) increase in cash held for the year Cash at beginning of year Cash at end of year Note 16(b) 16(a) 2011 $ 976,047 68,897 12,614 ‐ (826,925) (19,880) 210,753 (281) (281) 210,472 252,469 462,941 2010 $ 790,388 33,873 6,701 33,384 (1,083,587) ‐ (219,241) (12,445) (12,445) (231,686) 484,155 252,469 Mallee Sustainable Farming 19 2011 Annual Report Notes to the financial statements for the year ended 30 June 2011 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 Act (Vic). The Board has determined that the association is not a reporting entity. The financial report has been prepared in accordance with the requirements of the Associations Incorporation Act (Vic) 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, Urgent Issues Group Consensus Views or other alternative pronouncements of the Australian Accounting Standards Board have been applied. This financial report is prepared on an accruals basis and is based on historic costs and does not take into account changing money values or, except where specifically stated, current valuations of non‐current assets. 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. (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 Balance Sheet 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. Mallee Sustainable Farming 20 2011 Annual Report Notes to the financial statements for the year ended 30 June 2011 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (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, 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 deficits 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 (h) Mallee Sustainable Farming Inc. is a not for profit community based organisation which is exempt from income tax . 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. Mallee Sustainable Farming 21 2011 Annual Report Notes to the financial statements for the year ended 30 June 2011 NOTE 2: REVENUE Operating activities: ‐ project funding Non‐operating activities ‐ interest received ‐ sponsorship ‐ other revenue 2011 $ Total Revenue NOTES 3: EXPENSES Research, development and extension Employment Expenses 828,287 12,614 44,032 18,585 75,231 2010 $ 694,988 6,701 7,325 25,268 39,294 903,518 576,451 142,417 734,282 576,394 217,917 Communication 12,289 Board Expenses 22,022 Insurance 8,503 Other Administration 80,297 123,111 Total Administration Costs Depreciation Expense 14,149 Remuneration of auditor (included in Other Administration above) ‐ audit or review services 2,120 ‐ other services ‐ Total remuneration 2,120 NOTE 4: CASH AND CASH EQUIVALENTS Cash on Hand 9 Cash at Bank 462,932 Cash on Deposit ‐ 22,968 26,647 7,844 141,576 199,035 20,915 1,500 ‐ 1,500 53 252,416 ‐ 462,941 252,469 NOTE 5: RECEIVABLES Trade Debtors 60,597 28,370 60,597 28,370 Mallee Sustainable Farming 22 2011 Annual Report Notes to the financial statements for the year ended 30 June 2011 NOTE 6: PREPAYMENTS Prepaid Insurance 2011 $ 2010 $ 6,822 6,320 NOTE 7: PLANT & EQUIPMENT Plant & equipment at cost Less accumulated depreciation Motor vehicles at cost Less accumulated depreciation 6,822 6,320 61,438 (50,038) 11,400 26,819 (20,784) 6,035 (a) Movements in carrying amounts Balance, 1 July 2010 Additions Disposals Depreciation expense 17,435 Plant & Equipment $ 17,222 281 (6,103) Balance, 30 June 2011 Balance, 1 July 2009 Additions Depreciation expense 11,400 14,230 12,445 (9,453) 17,222 63,557 (46,335) 17,222 26,819 (12,738) 14,081 31,303 Motor Vehicles $ 14,081 ‐ ‐ (8,046) 6,035 25,543 ‐ (11,462) Balance, 30 June 2010 NOTE 8: PAYABLES Trade creditors and accruals 137,586 45,488 137,586 45,488 2011 $ 14,081 2010 $ Mallee Sustainable Farming 23 2011 Annual Report Notes to the financial statements for the year ended 30 June 2011 NOTE 9: EMPLOYEE BENEFITS ‐ CURRENT Provision for annual leave 2011 $ 2010 $ 3,110 4,152 3,110 4,152 NOTE 10: EMPLOYEE BENEFITS ‐ NON CURRENT Provision for long service leave ‐ ‐ ‐ ‐ As there are no current staff members with more than one years completed service, no provision for long service leave has been made at 30 June 2011. Employment history indicates it is unlikely that current employees will become entitled to long service leave. NOTE 11: CONTINGENT LIABILITIES At 30 June 2011 the Board is unaware of any liability, contingent or otherwise, which has not already been recorded elsewhere in this financial report. NOTE 12: CAPITAL COMMITMENTS At 30 June 2011 the Board is unaware of any capital or leasing commitments which have not already been recorded elsewhere in this financial report. NOTE 13: 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) ‐ Rick Llewellyn ‐ Glynn Schmidt ‐ Paula Gordon (Secretary) ‐ Malcolm (Jim) Maynard ‐ Ron Storey ‐ Ron Hards (Treasurer) ‐ Darren Nitschke ‐ Geoff Thomas ‐ Gavin Howley ‐ Tim O'Halloran ‐ Dean Wormald NOTE 14: ASSOCIATION DETAILS The principal place of business of the association is: Mallee Sustainable Farming Incorporated Suite 2, 152 Pine Avenue Mildura Victoria 3500 NOTE 15: EVENTS OCCURRING AFTER REPORTING DATE Since the date of preparation of this financial report, there have been no events occurring after reporting date which require specific disclosure. Mallee Sustainable Farming 24 2011 Annual Report Notes to the financial statements for the year ended 30 June 2011 NOTE 16: 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: Charges to Provisions Depreciation Changes in Assets & Liabilities: (Increase)/Decrease in receivables (Increase)/Decrease in prepayments (Increase)/Decrease in GST receivable Increase /(Decrease) in creditors & accruals Increase /(Decrease) in GST payable Increase /(Decrease) in unrecognised project income Net cash (used in) provided by operating activities The association has no credit stand‐by or financing facilities in (c) place. 2011 $ 9 462,932 210,753 (219,241) 53 252,416 252,469 (279,979) 47,390 (1,042) 14,149 (32,079) (502) (148) 73,628 18,470 90,887 2010 $ 462,941 (d) There were no non‐cash financing or investing activities during the period. 1,632 20,915 109,761 (1,183) 32,104 (14,216) ‐ (88,275) NOTE 17: 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 2011/12 financial year are that this support is continuing. The entity is continuing to pursue strategies which will diversify its funding base. Mallee Sustainable Farming 25 2011 Annual Report Notes to the financial statements for the year ended 30 June 2011 Statement by members of the Board The Board has determined that Mallee Sustainable Farming Incorporated is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements. In the opinion of the Board the financial report: 1. Presents a true and fair view of the financial position of Mallee Sustainable Farming Incorporated as at 30 June 2011 and its performance for the year ended on that date. 2. At the date of this statement, there are reasonable grounds to believe that Mallee Sustainable Farming Incorporated will be able to pay its debts as and when they fall due. This statement is made in accordance with a resolution of the Board and is signed for and on behalf of the Board by: ……………………………………………. IAN HASTINGS CHAIRMAN …………………………………………. RON HARDS TREASURER Dated at Mildura this 25th day of October, 2011 Mallee Sustainable Farming 26 2011 Annual Report Mallee Sustainable Farming 27 2011 Annual Report Major funding and research partners