2010 Waikerie Field Day “Farming flexibility – taking opportunities” Waikerie Field Day 2010 Mallee Sustainable Farming would like to thank the following sponsors for supporting the Waikerie Field Day MSF Corporate Sponsors Gold Sponsor Silver Sponsor Bronze Sponsor Waikerie Field Day sponsors www.msfp.org.au 2 Waikerie Field Day 2010 Contents Site plan 4 Program 5 Variable rate in the Mallee 6 Durum wheat varieties 8 Management of Rhizoctonia 10 Pasture and no-kill cropping 12 Enrich – better shrub based grazing systems 15 Defining yield potential and managing soil and season 17 Grain marketing and risk management 21 Lice update and control 25 Alternative fertilizers – is it muck, mystery or the new horizon? 27 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 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. www.msfp.org.au 3 Waikerie Field Day 2010 Site map www.msfp.org.au 4 Waikerie Field Day 2010 Program Time 8.45 9.30 10.00 – 10.50 11.00 – 11.50 12.00 – 1.00 1.00 – 1.50 2.00 – 2.50 Main tent Tent 1 Tent 2 Tent 3 REGISTRATION Welcome – Mike Mooney (Mallee Sustainable Farming) Opening speaker – Tim Whetstone, MP, Member for Chaffey Project report, SA MSF Committee update, Project awards Locusts and Alternate Fertilisers Water Use Grain other insects and Soil Moisture Efficiency and Marketing Ken Henry, Meters Rhizoctonia Darren Arney, SARDI Greg Butler, SANTFA Management Arney Anthony Consulting Whitbread, Gupta, CSIRO Barry Mudge, RSSA Locusts and Alternate Fertilisers Water Use Grain Marketing other insects and Soil Moisture Efficiency and Darren Arney, Ken Henry, Meters Rhizoctonia Arney SARDI Greg Butler, SANTFA Management Consulting Anthony Whitbread, Gupta, CSIRO Barry Mudge, RSSA LUNCH – available at the Cooks Tent Trials walk and demonstration Farm Trials Perennials/Evercrop Livestock Crop Varieties using PA Jason Emms, SARDI Daniel Tony Rathjen, Peter Treloar George King, Schuppan, University of Michael Wells MMLAP RSSA Adelaide Amelia Bartlett, Colin PIRSA Edmondson, LRPB 3.00 – 3.50 Farm Trials using PA Peter Treloar Michael Wells 4.00 – 4.30 Field Day wrap up and evaluation – Mike Mooney www.msfp.org.au Perennials/Evercrop Jason Emms, SARDI George King, MMLAP Livestock Daniel Schuppan, RSSA Amelia Bartlett, PIRSA Crop Varieties Tony Rathjen, University of Adelaide Colin Edmondson, LRPB 5 Waikerie Field Day 2010 Variable rate in the Mallee Peter Treloar, Vision Ag Network Variable Rate (VR) allows farmers to maximise their returns from various inputs, including seed, fertiliser and chemicals, by targeting inputs to areas of maximum potential. Once farmers have variable rate capable equipment the next step is to create management zones. This is one of the biggest parts of Precision Ag (PA) as it is a key driver of profitability, the other being how the individual zones are managed. Where Do I Begin? Yield Mapping is often the first experience farmers have with PA. Yield Maps are essential for analysing on farm trials or they can influence VR. They are also used for creating management zones but can also be misleading. Farmers with Yield Mapping but without VR capable equipment, can still assess the potential benefits of adopting VR by sowing test strips which can then be analysed using Yield Data. Making Zones Farmer drawn zones are the easiest way to create management zones, often using yield maps as a guide. This can be very effective way of beginning variable rate, especially where the yield maps are relatively stable and variation carries across seasons. Variable Rate in the Mallee The Mallee has several advantages over other regions to implement VR. Firstly the dominant landscape of dune-swale has two extremes of soil type with heavy clay soils in the flats and deep sands on the hills, this lends itself to www.msfp.org.au farmer drawn management zones based on soil type. Secondly the Mallee Sustainable Farming project has identified subsoil constraints and their influence on soil water as a major driver of yield potential. Work by Rural Solutions SA through the project has further shown how EM38 soil surveying can accurately map the variation in subsoil constraints. By creating zones based on stable long term factors such as subsoil constraints and plant available water the benefits can be spread over multiple seasons and taken into consideration over a range of issues. These include crop selection, input rates at seeding and the risks / rewards for applying in season nitrogen for each zone. Risk management plays a large part in the potential benefits of VR, particularly in the Mallee. For example at seeding a heavy soil will be unlikely to benefit from extra N, while the sandy soil will require reasonable levels of starter N but if the season has above average rainfall the zone most likely to benefit from extra N will trend from the lighter to the heavier soil, following the higher levels of available water. On Farm Trials There is a range of methods for creating management zones and just as many agronomic options. It can be overwhelming when first using VR but when combined with Yield Mapping farmers can run on farm trials to assess the benefits of using VR. On farm trials are also a good way of monitoring any changes made under VR such as long term reduced fertiliser in poor zones. 6 Waikerie Field Day 2010 This will help improve farmers understanding of nutrient availability and requirements per zone for different seasons. It is important to know where treatments are placed so trials can be analysed using Yield Data. This can be either done within the VR monitor or manually by noting the run number or marking it on the fence. Further tips for on farm trials include • • • • • Make any trials a reasonable size Place test strips across a range of zones Use multiple test strips, very useful where it is difficult to cover all zones Repeat test strips either side of any trial Keep good records – don’t rely too much on technology Further information Peter Treloar, Minlaton Ph: 0427 427 238 Michael Wells, Crystal Brook Ph: 0428 362 474 Felicity Turner, Meningie Ph: 0400 299 087 www.msfp.org.au 7 Waikerie Field Day Are Durum wheat varieties less risky for the Mallee now than 15 years ago? A J Rathjen, Waite Research Institute I was asked to write about whether or not it was time to re-try Durums in the Mallee. The simple and correct answer is that I do not know. There has been startling progress in breeding Durums for improved adaptability to our drier cereal growing districts but whether this is yet sufficient to ensure that the crop is profitable is not clear. The breeding program has advanced far greater than I would have expected on the basis of my experience with Bread Wheat that I feel like a bystander watching changes which I had never anticipated. We started out with the opinion that Crown Rot was the dominant constraint and the knowledge that the growth of the fungus in the stem bases was enhanced by water stress. There seems to be useful progress in this regard with the newer lines being nowhere near so susceptible but this change is difficult to quantify in view of the very large environmental effect in predisposing plants to the disease i.e. time of onset of the stress in relation to maturity, plant and tiller density, fertilizer rates, and presence of other constraints such as tolerance to microelement deficiencies and toxicities (including boron, zinc and pH). All of these confound Crown Rot assessment for resistance. The most important constraint now is related to Crown Rot – the relatively poor yields of Durum in ‘Hard Finishes’. Over the last two years, two of the three Durum lines in the NVT have, on average, out yielded Yitpi but in the lower yielding, harder circumstances they were still behind. An interesting explanation www.msfp.org.au 2010 for this may lie with the salt uptake which is much higher in Durums than Bread Wheat and which would be associated with increased osmotic pressure and therefore, maybe, more rapid exploitation of soil water. Occasionally I have observed a Durum crop initially appearing fresher than a neighbouring Bread Wheat only to see, later, that the Bread Wheat had finished the better. Alternatively, the root architecture of two species appears to be somewhat different and we know that the Durums are less tolerant of high pH subsoils. In a number of other characteristics there have been distinct changes so that the more recent lines have: • • • • • • much higher frequency of tolerance to boron darker blue/green leaf colour more erect, shorter leaves much improved grain yields good processing colour (bright yellow pasta) more vigorous early growth. Along the way we have learnt much about breeding. Most of our advanced lines originate from wide crosses, usually involving bread wheat. However it is not clear that the subsequent selections include introgression from this source or that the genetic variation has its origin in transposons or other genetic responses. It must be remembered that we are still amazingly ignorant in regards to genetics at the genome level and we remain a little better at understanding the environment as it affects plants. Don’t believe some of the extravagant claims that appear in the media! So back to the question – You will have to make up your own mind whether or not to try Durum. However with another round or two of crossing and selection, we can anticipate a substantial acreage of Durum in this district. 8 Waikerie Field Day www.msfp.org.au 2010 9 Waikerie Field Day Management of Rhizoctonia disease risk in cereals – Karoonda and Waikerie field trials Gupta, V.V.S.R.1, A. Mckay2 and K. Ophel-Keller2, R. Llewellyn1, R., A. Whitbread1 W. Davoren1 and D. Roget 1 CSIRO, Adelaide and 2 SARDI, Adelaide Rhizoctonia bare patch is a disease of seedlings caused by Rhizoctonia solani Kühn AG-8. It decreases root length resulting in reduced plant growth and yield losses. Recent estimates indicate that it causes significant losses in wheat, $59 million pa across southern Australia (Murray and Brennan, 2009). Although this disease is considered more of a problem in lower rainfall regions (<350mm) and in lighter soils it occurs across the entire southern Australian wheat belt. The adoption of minimum tillage practices has resulted in an increase in Rhizoctonia in wider range of cropping environments. This fungus grows on soil organic matter and produces a hyphal network in the surface soil. While previous research has found the risk of yield loss can be reduced by management practices that increase seedling vigour, it remains a difficult disease to predict and control. Currently there are no effective chemical or biological control measures and limited or no plant genetic resistance against Rhizoctonia disease. The incidence of Rhizoctonia bare patch has increased in recent years due to the higher frequency of drought years and in particular below average rainfall in spring and summer. This has resulted in higher inoculum levels before sowing. The overall lower level of microbial activity for long periods during and www.msfp.org.au 2010 following dry periods favour the growth of the Rhizoctonia fungi. The incidence and severity of Rhizoctonia bare patch depends on the amount of Rhizoctonia inoculum, composition and activity of the soil biology community (inherent suppressive activity), available soil N levels over summer and at seeding as well as constraints to root growth. The complex relationship makes this a difficult disease to predict and manage. Developments in DNAbased (inoculum and communities) and biochemical (catabolic diversity) techniques help us better measure and link the various factors to disease incidence. As part of a GRDC funded project on Rhizoctonia (CSE00048) and the MSF project, we investigated the changes in inoculum, especially over summer, as influenced by environmental factors and soil biological activity under different rotation and tillage systems. This work aims to develop better prediction and management options based on a better understanding of the changes in inoculum levels especially over summer and its interaction with soil microbial community and crop. What we found Inoculum and disease development field trials at Karoonda and Waikerie, in the SA Murray Mallee revealed that: • rotation affects Rhizoctonia inoculum levels i. At Waikerie, levels were lowest after canola, medic pasture and fallow and highest after wheat. Soil microbial activity also increased during summer following canola. These differences were correlated with the amount of disease in the following wheat crop during 2009. 10 Waikerie Field Day 2010 ii. At Karoonda, levels were lowest after mustard compared to wheat, pasture and cereal rye both in mid slopes and flats. Inoculum levels were generally higher in soils from flats. • reduced inoculum levels following canola, medic pasture and fallow were associated with increased yield on Eyre Peninsula but not in the Mallee. • control summer weeds to stop buildup of inoculums • encourage early seedling vigour, sow early • cultivate deep and sow shallow (avoid disc seeders) • canola can help reduce inoculum for a following wheat crop cultivation prior to sowing reduced inoculum levels but the inoculum levels in the Waikerie trial levels were still in the high disease risk category. • barley and wheat are the most intolerant crops • Minimise N deficiency at seeding by deep banding N and minimise stubble incorporation at seeding, particularly if summer rainfall has been low. • • inoculum levels are reduced by summer rainfall in weed free plots, but can increase during long dry periods. Further information • the reduction in inoculum over summer was also observed in grower paddocks. • microbially mediated disease suppressive activity in intensive crop rotations is clearly important in avoiding major crop loss. Gupta Vadakattu, CSIRO Adelaide Ph: (08) 8303 8579 GRDC Factsheet March 2008 [http://www.grdc.com.au/uploads/document s/GRDC_FS_rhizo.pdf ] Seedling assessments revealed sowing early reduced damage to the seminal roots however the crown roots were often severely affected, especially in no-till systems. This is probably due to the crown roots emerging into cold soil and hyphal re-establishment following soil disturbance at seeding. Implications An improved understanding of the factors influencing Rhizoctonia inoculum levels will assist growers and advisers to better utilise diagnostic information to select options and requirements for improved management of Rhizoctonia disease. To reduce risk of yield loss caused by Rhizoctonia bare patch disease: www.msfp.org.au 11 Waikerie Field Day Pasture and no-kill cropping George King, Murray Mallee LAP Both Colin Seis and Bruce Maynard operate family farms in moderate rainfall areas of NSW. The principals that they have applied to rescue their land and family enterprises from collapse have been used with similar success in other climates. After a fire devastated his merino/cropping property in the early nineties, Colin Seis was faced with a serious rebuilding effort. Colin reflected on the conventional farming practices with which his family had been managing the property for generations. He changed his management based on the fact that “high inputs were sending them broke”. Modern agriculture was decimating his grasslands and soils, creating conditions for weeds. His farm was not profitable, had no summer pasture and required increasing fertiliser rates. So he changed his management. He began by carefully managing grazing on the native pastures which regenerated after the fire. After three or four years “natural” succession led to a productive perennial pasture. After a couple more years his pasture productivity had increased over his neighbour’s (his elder brother) who uses conventional farming systems, and he had reduced his DAP application by 70%. Colin is rebuilding his soils, and increasing the soil organic carbon and water holding capacity. By scrapping the plow he has allowed the good soil biota to recover, making more nutrients and moisture available to plants. What really flies in the face of conventional farming is that Colin has built these pastures in his cropping paddocks as well. Yes there was a production “dip” but it was just a dip. The benefits of maintaining a healthy www.msfp.org.au 2010 grassland ecosystem include greater productivity. The summer active grasses are shaded and out-competed by the winter crop. Six weeks after harvest Colin’s stock has rich pasture to graze. He also points out that “pasture cropping into winter active pastures doesn’t produce as much of a competition issue as you might think. The more diverse and dense our grassland is the more productive our crop is”. To the consternation of local agronomists, Colin stopped using insecticides and fungicides over ten years ago. He hasn’t had a crop pathogen problem or any disease damage in over ten years. Financially, Colin has vastly decreased input costs and increased pasture area and productivity balanced against the initial decrease in yield. Now, Colin has less costs and more productivity (including crop yield) than comparable farms. He is also building his fundamental capital asset – healthy soil and ecology. Colin spent $5/hd to feed his sheep in 2009. His elder brother over the fence (a traditional best practice cropping/grazing property) spent $40/hd. How does this system work in the Mallee? With half the rainfall that Colin receives what impact would this have on competition and productivity? Many Mallee farmers have been successfully growing crops over medics for years. Growing canola with wheat has also been shown to work very well. EverCrop has begun extensive trials in Western Australia but the early focus has been in the 350500mm rainfall areas on deep pale sands. The results have certainly been encouraging. Trial sites in lower rainfall districts are being developed. Speaking at a course in Berri, EverCrop WA Project leader David Ferris explained that 12 Waikerie Field Day their focus was to test the viability, quantify performance and develop informed decision making tools for land managers. David said that growers were attracted to the Pasture Cropping examples because they wanted to improve soil health, grow more summer feed and increase the potential for income through livestock. An interesting result from the initial trial data was that more soil moisture was recorded where a seeder had inadvertently sown the crop into the pasture furrow. In these instances, ridge moisture was 9% whilst furrow moisture was 14%. Over-all both the quality and yield penalties were low (14%). Yield penalty was higher at 80 N over 50 N. David explained that the most interest is coming from managers with mixed farming systems, meat dominant systems and or with large areas of poor sand. Bruce Maynard started thinking along the same lines as Colin for similar reasons. His crisis wasn’t the result of a devastating fire. Financial and family issues demanded that Bruce change his management practices or go broke. He was spending money on farm inputs that weren’t producing. Bruce tells us that he decided to manage his family business for “profit not productivity”. It’s worth noting that Bruce’s farm is more productive now than it was when he was using best practice conventional farming and he has time for his family and other interests. Under a conventional farming system his farm required four to five full-time labour units. Bruce has tripled production and his farm requires half a labour unit. As a lad Colin remembers his dad looking at successfully established paddocks of sown pasture and commenting that it was a shame that they had to remove it to grow their crop. After educating himself about ecology and soil health, Bruce started thinking along similar www.msfp.org.au 2010 lines. Bruce decided to manage healthy grassland for livestock and crop production. Conventional farming systems do the opposite. He developed principals that enabled him to grow a productive crop into pasture, eliminate annual weeds, reduce fertiliser input and stop spraying herbicides and pesticides altogether. Like Colin and many others, Bruce hasn’t had a disease problem since establishing ecologically sound grasslands. Bruce’s input costs are $5-$7/acre and he gets a high return. He reasons that traditional wisdom dictates that more yield translates to more profit, (e.g. 12 bags to the acre with 8 bags input leaves 4 bags profit which is better than 10 bags from 8 leaving 2 profit) yet what if you put in a bit less to get a bit less but got more profit and better pasture underneath? Bruce, Colin and many others have proved that they can spend less to achieve better profits on their farms. What about yields? I had to ask. “Food security” is a vital concern. Given the rising global population and depleting soil resource, can the market afford even a temporary dip in production that may result from a move away from conventional farming? Colin made the point that pasture cropping represents a greatly reduced erosion risk, enabling growers to reap crops from land classes that shouldn’t be cropped with conventional techniques. Furthermore, pasture cropping and no-kill cropping can help renovate degraded pasture far more quickly than good grazing alone – as long as erosion risk is managed effectively. EverCrop, the Murray Mallee Local Action Planning Association (MMLAP), PIRSA, SAMDBNRM Board and members of the farming community have recently won a small grant to trial pasture cropping and no-kill Cropping in the Murray Mallee. Here’s a thought though, try it on a hectare or an acre 13 Waikerie Field Day 2010 or a quarter acre at your place and see what happens. And then tell us about it. This September we will be establishing some summer-active species under irrigation (to replicate a wet spring - if it doesn’t happen) to compliment the winter-active species we have currently planted. A crop will be sown over the trial sites in Waikerie and Wynarka when ideal in the 2011 season. The CSIRO has agreed to analyse the plots for yield results and feed value. Species trialed include Lucerne (SARDI5, 10 and Jindera (summer active), numerous summer and winter active grass species, Creeping Saltbush and Cullen. A full progress report will be released when results are available. Further information A bus has been booked to visit pasture cropping enterprises in the Upper North on September 16 - 17 and to the Eyre Peninsula on 4 – 8 October with the Mallee Mentors Program. Contact George on (08) 8531 3075 for further details. www.msfp.org.au 14 Waikerie Field Day Enrich – better shrub-based grazing systems Jason Emms, SARDI Bill Davoren, Rick Llewellyn, CSIRO Forage systems based on single species are unlikely to be suitable as a sole feed source. However, there is potential to integrate a mix of suitable plant types together to form a more complete grazing system. A mixture of plant types may be more resilient and also supply a more-balanced livestock diet. It may be more productive to meet all objectives by using a suite of species than searching for a single species that meets all desirable criteria. ‘Enrich’ is a Future Farm Industries CRC (FFI CRC) research project creating more productive and better adapted grazing systems through the incorporation of native woody perennial species. The project has taken a multi-pronged approach to assessing the potential role of forage perennials by: (i) Considering woody perennials in a system with other pasture species being produced as complementary plants either within the shrub block or on nearby paddocks. (ii) Quantifying their potential to improve feed utilisation and health. For example, species are being assessed for their ability to enhance rumen health or control internal parasites. Initial laboratory data suggests that further examination of some species in regard to their anthelmintic and methane reducing potential is warranted. 2010 inclusion in livestock grazing systems. With the support of the EverCrop project, a trial is being undertaken at the MSF Waikerie site to evaluate a shortlist of 15 species based on favourable traits from the data obtained thus far. A similar shortlist of species is also being tested at a further 14 sites across southern Australia. The Waikerie site was planted during June 2009 and measured for the first time in April 2010. With assistance from favourable conditions, survival has been high for most species (Table 1). Early growth of river, creeping and old man saltbush has also been exceptional with around 1t/ha of forage produced. These plants will be continued to be assessed for their local adaptation, productivity and when grazed in 2011, their relative palatability and re-growth ability. Whilst other species are not overly productive in this environment they may still provide a significant role in grazing systems by being superior on other soil types or complementary in other traits such as nutritive value. For example plants that have a low salt or high energy content may be good companions to old man saltbush. Principles for best managing grazing systems containing numerous different species are also being developed in the wider Enrich project. Further information Jason Emms, SARDI, Waite Campus, Adelaide Ph: (08) 8303 9602 Email: [email protected] (iii) Exploring Australian native species more thoroughly. Enrich has identified over 100 Australian woody perennial species with potential for www.msfp.org.au 15 Waikerie Field Day 2010 Table 1: Average establishment at Waikerie and across all Enrich sites Species River saltbush Coastal saltbush Old man saltbush River Murray saltbush Creeping saltbush Tagasaste (tree lucerne) Nitre goosefoot Australian bindweed Ruby saltbush Tar bush Tree medic Fleshy leaved saltbush Mealy saltbush Mallee saltbush Spiny saltbush Waikerie (%) 94 61 96 100 90 92 88 83 93 55 79 58 91 92 98 Across all sites (%) 67 57 80 90 85 57 77 64 88 79 58 67 86 75 75 Figure 1: Estimated edible biomass of species at Waikerie after 10 months of growth 800 E dible biom as s g plant -1 700 600 500 400 300 200 100 st a O Co a Ri ve rs al tb us ls h a ld ltb m Ri us an ve h sa rM l t ur bu r Cr ay s sh ee al t Ta pi ga n g b us sa sa h st e lt b ( tr us ee h N i l uc t re e r Au go n e ) st os ra ef lia oo n bi t n Ru d w ee by sa d ltb us Ta h rb Fl us es Tr h hy ee le m av ed ed ic M sa l tb ea u ly s a sh M lt b a ll us ee h sa Sp ltb us in y sa h ltb us h 0 Species www.msfp.org.au 16 Waikerie Field Day Defining yield potential and managing soil and season Anthony Whitbread, Gupta Vadakattu , Rick Llewellyn and Bill Davoren, Damian Mowat, CSIRO Ben Jones, Mallee Focus Barry Mudge, Rural Solutions The Mallee environment is one of the most challenging regions of the world to farm profitably and sustainably, particularly in the last decade. Despite these challenges, many Mallee farmers show that it is possible to do so with technology and an understanding of the environment. This paper argues that better decisions are made more often through an understanding of soil and season. This understanding can be informed by analysing the long term trends in rainfall and their interaction with soil type and by utilising in-season yield prediction models to assist in seasonal management decisions. Materials and methods Field research has been carried out over several years at various sites across the Mallee as part of the MSF efforts to improve the productivity and sustainability of the region. This includes work done by the GRDC funded Reaping Rewards project on farmers paddocks at Bimbie (NSW), Carwarp and Cowangie (Vic), Pinnaroo and Loxton (SA) and most recently by the Water Use Efficiency (WUE) projects based at a core experimental field sites at Karoonda. Information about soils, weather and crop growth has been collated from these efforts and used to parameterise and validate crop-soil models that are now commonly used to simulate the major processes that occur while crops and pastures grow. These include the nitrogen and carbon dynamics in soil, soil water balance (including evaporation, drainage, leaching and www.msfp.org.au 2010 runoff), crop growth and interactions with daily temperature, radiation and rainfall. At each of these sites, EM38 survey has been used to create EM-based soil classifications corresponding to soils that have low, moderate or severe sub soil constraints. Representative soils within these zones have been characterised for plant available water capacity (PAWC), by determining the drained upper limit (DUL) and the crop lower limit (CLL), as well as chemical analysis for plant available nutrients (mineral N, colwell P, S, exchangeable cations) and chemical constraints such as Boron and salts. Using the crop model APSIM and long term weather records sourced from nearby meteorological stations, wheat growth, using modern varieties and management was simulated in each year for the period 1956 to 2009 at N fertiliser rates of 0, 15, 30, 60, 90 kg/ha. The soil N and organic matter are reset to the same level in April each year so that the effects of season are the only difference between wheat crops. At this reset, the soil mineral N was assumed to be negligible for all soil types and a 1t/ha cover of wheat stubble was present. The effects of rainfall, evaporation, drainage and water extraction by the crops were all calculated by the model. Wheat (cv. Yitpi) was sown between April 25 and June 30 and sowing within this period was triggered by the first rainfall event of 10 mm or more over 5 days. In-crop rainfall The six locations chosen for this analysis represent a range of locations across the 250350 mm rainfall environments of the Mallee. Summing the growing season rainfall from the day of sowing to the day of harvest in each year of the simulations and presenting the median value shows that the recent decade has been the driest for Bimbie, Carwarp and Loxton compared with the 3 decades prior to this (Table 1). The higher rainfall locations of 17 Waikerie Field Day Cowangie, Pinnaroo and Karoonda do not show such dramatic differences in rainfall over the recent history. Growing season rainfall calculated as April to October inclusive results in a similar trend. The simulation of wheat growth over the long term Regardless of locations, the median wheat yield at the highest N rate (chosen to represent water limited yield in most seasons) for the 1956 to 2009 period was consistently highest on the zones representing soils of low constraints followed by the moderate and high sub soil constraints. This reflects the effects of low plant available water capacity caused by sub-soil constraints such as salt and boron as well as the higher clay contents in these soils that may result in higher soil water evaporation losses and less efficient infiltration of rainfall. The probability of achieving low yields (<1 t/ha) was therefore much higher in the high EM zones at all locations (Table 2). Interestingly, when the median simulated yields for each decade from 1970 to 2009 are examined, median yield for the drier sites (Carwarp data only displayed) has declined in almost each decade, with the high EM zones showing the most disturbing trend (Table 3). At Carwarp for example, the probability of achieving <1 t/ha has increased in each decade from 1970. At the locations with higher rainfall, such a pattern is not evident (Table 4 – Karoonda data only displayed). The chance of achieving > 1.5 t/ha on high EM zones in the 1980’s and 1990 was 0.6 (or 60% of seasons) but only 0.3 in the most recent decade and similar to the decade from 1970. Future directions 2010 evidence provided by farmers. Lower growing season rainfall and drier springs results in lower production overall, but particularly on soils with shallow rooting depth and small plant available water capacity (PAWC). In the most recent decade, there were no seasons where the rainfall was sufficient to make the most of the higher nutrition on the high EM zones (heavy flats). In the 1970’s and 1980’s these season-types, that usually involve a wet spring, occurred several times and produced the classic flip-flop effect where heavy flats out-yield other parts of the landscape. The latest MSF Water Use Efficiency project is devising management strategies to better cope with the vagaries of season. In the case of the lower rainfall locations where high EM zone soils so seldom produce economic returns, particularly over the past decade, a change in the system may be warranted. Options may be to continue with a low input annual cereal system and harvest stubble biomass rather than gambling on the returns from grain. On the zones where cropping is highly risky and rarely profitable the alternative may be to change land use by converting the very constrained areas to perennial pasture or shrub based systems. In the locations where the production can more often be economic on high EM zones, making in-season predictions of potential yield can help make robust decisions on options such as harvesting for biomass or grazing in-season. Further information: Dr Anthony Whitbread Ph: (08) 8303 8455 email: [email protected] Dr Rick Llewellyn Ph: (08) 8303 8502 email: [email protected] These observations based on simulated data are backed up by field data and anecdotal www.msfp.org.au 18 Waikerie Field Day 2010 Table 1: Median in-crop rainfall (mm from day of sowing to day of harvest) for all years from 1956 2007 and median of decades from 1970. All Years 1970-1979 1980-1989 1990-1999 2000-2009 2000-2009 as % of all years Bimbie 157 235 172 157 132 Carwarp 162 174 184 168 119 Cowangie 174 175 201 167 170 Loxton 147 165 165 148 123 Pinnaroo 195 229 200 189 186 Karoonda 202 190 200 218 193 84 73 98 84 95 85 Table 2. Median simulated wheat grain yield (1956 to 2009) and probability of yielding less than (<) 1 t/ha or greater (>) than 1.5 t/ha yield. EM38 Median < 1 t/ha > 1.5 t/ha Zone Yield (t/ha) Bimbie Low 2.40 0.16 0.75 Moderate 1.74 0.37 0.57 High 1.04 0.55 0.35 Carwarp Low 1.89 0.20 0.63 Moderate 1.07 0.49 0.45 High 0.66 0.63 0.35 Cowangie Low 1.65 0.20 0.69 Moderate 2.25 0.24 0.69 High 1.23 0.49 0.47 Loxton Low 1.93 0.22 0.65 Moderate 1.62 0.33 0.63 High 0.94 0.59 0.27 Pinnaroo Low 2.18 0.16 0.80 Moderate 1.56 0.35 0.55 High 1.18 0.53 0.41 Karoonda Low 2.43 0.14 0.78 Moderate 1.91 0.29 0.65 High 1.28 0.47 0.45 Note. 90 kg/ha of N available to the crop in soil and fertiliser. www.msfp.org.au 19 Waikerie Field Day 2010 Table 3: Median simulated wheat grain yield at Carwarp for decades from 1970 and probability of yielding less than (<) 1 t/ha or greater (>) than 1.5 t/ha yield. 1970-1979 1980-1989 1990-1999 2000-2009 EM38 Zone Low Moderate High Low Moderate High Low Moderate High Low Moderate High Median Yield (t/ha) 2.92 2.16 1.91 2.37 1.26 0.84 1.60 0.85 0.62 0.75 0.25 0.12 < 1 t/ha > 1.5 t/ha 0.00 0.20 0.30 0.20 0.50 0.60 0.10 0.60 0.70 0.60 0.80 0.90 0.80 0.70 0.60 0.60 0.50 0.30 0.50 0.30 0.20 0.30 0.10 0.10 Table 4: Median simulated wheat grain yield at Karoonda for decades from 1970 and probability of yielding less than (<) 1 t/ha or greater (>) than 1.5 t/ha yield. 1970-1979 1980-1989 1990-1999 2000-2009 EM38 Zone Low Moderate High Low Moderate High Low Moderate High Low Moderate High Median Yield (t/ha) 1.84 1.25 0.45 2.47 2.15 1.71 2.94 2.52 2.20 2.34 1.58 0.78 < 1 t/ha > 1.5 t/ha 0.30 0.30 0.70 0.10 0.10 0.30 0.10 0.20 0.30 0.10 0.40 0.50 0.70 0.30 0.30 0.90 0.90 0.60 0.80 0.70 0.60 0.70 0.50 0.30 This work is part of a CSIRO -Mallee Focus-MSF project. GRDC has funded the Training Growers to Manage Soil Water, Reaping Rewards and MSF Water Use Efficiency projects. The support of the participating farmers at each site is gratefully acknowledged. www.msfp.org.au 20 Waikerie Field Day Grain marketing and risk management Darren Arney, Arney Consulting Pty Ltd Grain marketing plans should be developed based on individual farm business and personal risk as well as business goals. The financial risks that farm businesses face are: 2010 • land lease payments • drawings • depreciation • interest • rates and fees • insurance • price / profit Variable costs include: • cashflow • fertilizer • production / washout • chemical • fuel • repairs and maintenance • contractors These risks can be either reduced or increased depending on the marketing method used. For example: a forward cash contract locks in a price paid per tonne for a set amount of tonnes, eg. 100t of F1 barley at $160/t delivered December. Profit risk and cashflow risk are reduced as the grower knows how much ($16,000) and when they will be paid (January). However production risk is increased as failure to deliver 100t in December may result in financial penalty as the seller has to buy 100t of F1 barley to complete their contract. Farm businesses differ in their exposure to financial risks. Farm owners and managers differ in their risk attitude. Price Risk To enable grain growers to manage price risk, there needs to be an understanding of how much a tonne of grain costs to produce. The cost of production in dollars per tonne can be calculated by dividing the total costs incurred by the total tonnes produced. Costs incurred include fixed costs and variable costs. Fixed costs include: www.msfp.org.au The cost of production varies between farmers and between seasons. During a series of workshops held in South Australia in early 2010, the cost of production, calculated with costs provided by the groups, varied between $177 and $255 per tonne delivered port for APW wheat. Once the cost of production is calculated a profit margin can be added to determine a target price. The profit margin should reflect the reward for taking the risks to grow grain. A farm business with a high equity position could sell grain below the cost of production as the business should be able to access carry on finance for the following year, whereas a neighbouring business with low equity may not be able to sustain a loss as financial reserves have become depleted. Cashflow Risk Historically, wheat and barley growers have sold grain through pools. These pools paid a significant first advance, approximately 80% of the anticipated pool return even though the 21 Waikerie Field Day 2010 pool sales program was likely to be undertaken over the following 12 to 15 months. minimum standard and a fixed or floating price can result in significant financial penalty if tonnage or quality cannot be met. The first advance was usually received by growers approximately 15 days from the end of week of delivery. Therefore growers sold their grain at harvest time (December) and received most of the payment for that crop in January. Table 1 shows the production variability of the mean site yield of the National variety trials for various locations from 2005 to 2009. Grain growers would be best to calculate their own production variability from harvest results and yield predictive models suited to their environment. Additionally cash prices on offer to the grower were either through forward contracts that paid 14 to 30 days after delivery, or spot cash prices which paid 14 to 30 days from delivery. Therefore cash sellers would also receive payment in the January / February period. Given a large sum of cash was to be received in January, grain growers scheduled significant cash expenses in January and February. In deregulated wheat and barley markets, the pool first advances are likely to be lower. Also pools can close before or during harvest and therefore reduce support for cash prices at harvest. However cash prices are likely to be offered post harvest for grain stored on farm or in warehouse. Therefore grain growers need to be aware of the changes to cashflow timings as there is less likely to be large cash receipts January and more likely to be payments received through the year. Grain growers should give consideration to expense timing and look to defer some payments to reduce pressure to sell grain at harvest to generate cash income. Production Risk Grain growing areas throughout Australia vary in there reliability to produce “average yields”. This is primarily due to rainfall variability but may include frost, flooding and heat wave risk. Grain marketing tools which commit growers to deliver a fixed tonnage of grain at a www.msfp.org.au Table 1: National Variety Trial Site Mean Yield 2005 to 2009 (source NVT) National Variety Trail 2005-2009 Town Nunjikompita Mintaro Mitchelville Turretfield Keith Kimba Warramboo Geranium Wanbi Urania Minnipa Streaky Bay Average 1.0 3.8 0.8 3.1 3.0 0.7 1.4 1.3 0.8 2.6 1.7 1.3 Standard Deviation (68%) 1.0 1.0 0.4 1.0 0.5 0.6 1.3 0.6 0.5 1.2 1.9 1.0 varitation variation SD Range SD Range from from (Low) (High) average + average + (t/ha) (t/ha) / - (t) / - (%) 0.5 1.5 0.5 47% 3.3 4.4 0.5 13% 0.6 1.0 0.2 24% 2.6 3.6 0.5 16% 2.8 3.3 0.2 7% 0.4 1.1 0.3 44% 0.7 2.0 0.7 48% 1.0 1.6 0.3 24% 0.6 1.1 0.2 28% 2.0 3.2 0.6 22% 0.8 2.6 0.9 55% 0.8 1.8 0.5 36% Effectively growers in more marginal areas have less certainty of production than growers in reliable areas. This affects the sell a third forward, third harvest and third after strategy as the marginal grower runs significantly higher risk of contract default and financial penalty (whether with swaps or forward contracts). Production variability influences growers personal risk attitude. Growers in marginal areas may be less inclined to price a high percentage of their crop forward (whether with swaps or forward contracts) as they have experienced (or know of) the impact of prices rising and poor crop production resulting in washout costs. The use of put or call options over grain futures contracts is therefore perceived as more beneficial to growers in more variable 22 Waikerie Field Day 2010 production areas compared to more reliable areas of production. Australia is unique in that the average production 1996 to 2009 is approximately 20.2 million tonne. This could equally be split between WA and the Eyre Peninsula to the west and NSW Vic and Eastern SA to the east. However domestic consumption of 7 million tonnes is spilt disproportionably as west 1 million tonnes and to east 6 million tonnes. This impacts significantly on basis in drought years in the east and needs to be taken into account in grain marketing strategies. Grain Marketing Tools and Risk Management Grain marketing tools and products vary in their ability to manage risk. Forward cash sales provide a known price and payment terms; however a financial penalty can be incurred if contracted tonnage is not delivered. Grain Marketing Product, Risk Management Characteristics Selling Profit Cashflow Production Method Pools poor neutral good Options on Futures Contracts Options are transacted through an exchange or board of trade. Banks and financial institutions also offer over the counter (OTC) option products. A put option enables the owner of the option to choose whether to exercise the option at the strike price anytime between the purchase of the option and expiry. The buyer pays a premium up front for an option. Therefore if futures prices rise, the owner of a put option would not exercise the option but sell at the higher futures value. If futures prices fall the intrinsic value of the put option rises increasing the value of the option and therefore value to the owner. If the futures price towards expiry is similar to the futures price when the put option was purchased then the time value of the put option declines. Value of the Option Premium The amount paid by the buyer of an option depends on a number of factors: • Harvest Cash Sales Post Harvest Sales Forward Cash Sales Futures Contracts / Swaps Options on Futures Contracts poor good good poor good good • • • • • good good poor good good / poor poor good neutral good www.msfp.org.au strike price v the underlying futures price time to expiry of the option the underlying futures price the volatility of the underlying futures price availability of option sellers number of buyers competing for the option Options can be sold prior to expiry. The sales proceeds can offset the purchase price of the option therefore reducing the cost of the option strategy. 23 Waikerie Field Day 2010 Comparison of Wheat Pricing Tools Year 2005 2006 2007 2008 Selling Time / Tool 2009 Average Forward $ 200.00 $ 220.00 $ 220.00 $ 440.00 $ 300.00 $ 276.00 Harvest $ 180.00 $ 280.00 $ 435.00 $ 280.00 $ 220.00 $ 279.00 Put Option (premium buy price April) $ 20.00 $ 22.00 $ 25.00 $ 70.00 $ 30.00 Put Option Result (net of premium) $ 180.00 $ 258.00 $ 410.00 $ 370.00 $ 270.00 $ 297.60 Advantages and Disadvantages of Put Options Put options provide a number of benefits to grain growers. They effectively allow the grower two “bites of the cherry” when it comes to pricing grain. However the disadvantage of options is if prices remain flat then the cost of the put option premium could be greater than the price move. Opportunity Cost Storage Grain value when delivered Wheat $ 220.00 Viterra Graincorp Company Item Cost $/tonne (wheat) Interest Rate (%p.a.) 9% 9% Interest Cost (to June) $ 9.90 $ 9.90 Monthly warehouse fee (to June) $ 3.99 $ 9.66 Opportunity Cost $ 13.89 $ 19.56 A put option can reduce the financial penalty associated with production risk. If prices rally and grain yields are insufficient, then the financial cost is limited to the cost of the option premium. To reduce production risk grain growers may harvest the grain and warehouse it for sale later. This incurs a cost of storage and interest on grain not converted to cash. When an option is purchased, the option is purchased when prices are known. Therefore the grower has set a target “floor price” but still able to take advantage of upside price movement. Warehousing on the other hand is where grain is stored at a known price, for sale later at an unknown price. Further information Darren Arney Arney Consulting Pty Ltd email: [email protected] ph: (08) 8388 0684 www.msfp.org.au 24 Waikerie Field Day 2010 Biosecurity Lice update and control • Amelia Bartlett, Biosecurity, SA In a year when the national sheep flock fell to its lowest number since 1916, sheep lice numbers have been rampant, demonstrated by more detections at saleyards and an increase in reports from stock agents and producers with first time infestations or reinfestations after treatment. The incidence of lice found at saleyards has eclipsed the totals for 2008 with Dublin recording the majority of offences. PIRSA staff inspect the markets, targeting pens of sheep showing signs of rubbing and placard all lice detections. Presenting lousy sheep at the saleyards is an offence under the Livestock Act, 2007 and attracts an expiation fee of $345. Many producers have expressed frustration at trying to control lice within their mob. Infestation occurs for a variety of reasons including the purchase of lousy sheep, straying sheep, ineffective treatment application, failure to treat due to low wool prices, split shearings, poor musters and more recently chemical resistance. There are three important aspects to limiting the spread or acquisition of sheep lice: Monitor • • observe sheep for rubbing and biting and inspect any animals showing evidence of rub even if you suspect grass seeds, burrs or a wool break. if glasses are required for reading, they will be required to see a louse of 1-2mm. www.msfp.org.au • • • • • • assume all introductions are infested and isolate them until certain they are lice free (this could be up to 6 months) - don’t assume wool shedding breeds are lice free. Sheep Health Statements are very important documents, so demand that you receive lice history details in order to make the correct treatment decisions. prevent your own stock straying allowing lousy sheep to stray is an offence with an expiation fee of $345. ensure fence lines are adequate to prevent stock straying onto your property and always inspect stray sheep. In the event of persistent sheep straying onto your property, an Animal Health Officer should be contacted. ensure thorough musters at shearing and treat all sheep including pets, lambs, rams and killers. These animals present a reinfestation risk. avoid split shearings ensure good shed hygiene. Lice have survived up to 16 days on fibres in a shearing shed and up to 10 days on shearers’ moccasins. Treatment • • • • • • always apply chemicals according to the label weigh sheep to determine correct dose rate alternate treatment types and chemicals SP’s are not recommended due to resistance and isolated cases of IGR resistance have been confirmed no product guarantees 100% control in long wool try to work with neighbours and shear and treat at a similar time. 25 Waikerie Field Day 2010 While the level of infestation in SA flocks is undetermined, reports from WA indicated that 76% of that state’s mobs were affected by lice. It is estimated that lice cost the industry up to $120 million per year and at the farm-gate level, lice can reduce wool cut by 1kg per animal and severely reduce wool quality. Options for lice control Wool Length 6 weeks - 6 months 6 - 9 months 9 - 10.5 months > 10.5 months Possible action if lice are detected Unlikely to eradicate but handjetting with a registered IGR, spinosyn or Ivermectin, should reduce the amount of fleece damage. If a light infestation (less than 2 lice per 10 cm parting), consider no flock treatment. If a medium-heavy (>2–5 lice per 10 cm parting), use a registered long wool product such as Extinosad, Coopers Blowfly and Lice Jetting Fluid or Paramax. Eradication at this time is very unlikely. It is essential an eradication treatment be applied after shearing. If a light infestation, consider no flock treatment. If a medium infestation, use a registered long wool treatment (as listed above). If a heavy infestation, consider premature shearing. An eradication treatment is essential after shearing. Options are to wait until the normal shearing, use a product with a nil wool harvesting interval (Extinosad) or to premature shear. Table derived from Farmnote 274, 2007. For more info, contact a PIRSA Biosecurity Animal Health Officer or visit the comprehensive AWI site: www.liceboss.com.au. Further information Amelia Bartlett, Murray Bridge Ph: (08) 8535 6405 www.msfp.org.au 26 Waikerie Field Day Alternative fertilizers – is it muck, mystery or the new horizon? Greg Butler, SANFA The SANTFA alternative fertiliser demonstration evaluates a number of regimes and these include low input fertiliser, alternative fertiliser and some farming systems choices such as row-spacing and rotation. In 2009, low-input DAP was the most costeffective treatment however it is important to recognise that the biological inputs may provide benefits over-time and that 2009 was a tough finish best-suited to low-input strategies. Biological products are used in many industries, such as yeast in winemaking, and the way we assess and handle biological products in the broad-acre industry is improving. Understanding the difference between dead biological products (such as humate granules) and living biological products is critical because living organisms require a significantly higher duty of care. Of the living biological products, two are of particular interest in this demonstration. 2010 Urea and therefore these products offer an opportunity to reduce the greenhouse emissions embodied in agricultural production. The performance of Twin N is regulated by environmental conditions and thus can integrate well with the ambitions of a good finish whereas they will not ‘cook the crop’ in a poor finish. SANTFA recognises the co-operation of John Norton from Bio-tech Organics and Paul Giles from Neutrog Fertilisers for supporting this demonstration. Soil Moisture Monitoring Soil Moisture Monitoring tools are being used increasingly in broad-acre agriculture and the SA MDB NRM Board has sponsored a series of probes at the MSF field site. Growers can access this information, in addition to sites in the mid and southern mallee, at the website: http://www.adcontelemetry.com.au:8081 Username: samdb Password: mdbuser The probes will be used to assess the soil moisture infiltration characteristics between a ‘stubble retained’ and ‘stubble removed’ farming system. First is TrichoShield™ a talc-based seed dressing containing beneficial Trichoderma fungal species. The main purpose of the Trichoshield in this demonstration is to assess its potential to out compete Rhizoctonia in the early stages of root development. Second is Twin N, a free-living nitrogen-fixing bacteria. Twin N offers two major advantages, particularly under a carbon constrained economy and a variable climate. The carbon foot-print of Twin-N is about 1/70 of that of www.msfp.org.au 27 Waikerie Field Day 1) The probes are permanently installed below seeding depth at around 250mm below ground level, with a further removable probe sensor ‘plugged’ into the top soil layer 2) Sensors at 10cm intervals provide a trace for soil moisture at each depth. 2010 At this time of year this is particularly relevant for managing post-emergent nitrogen applications. 5) At other SA sites, the variance of soil moisture infiltration has been observed between ‘stubble retained’ and ‘stubble removed’ treatments. 6) The application of soil moisture monitoring probes is better realised in each successive season as yields and opening and closing season soil moistures can be compared, in conjunction with logged rainfall records. The infiltration of rainfall events can be tracked through the profile, displaying as independent rainfall episodes at the bottom of the screen. Deeper probes have been used at the Waikerie site. 3) Plant roots extract soil moisture during the day but rest at night, resulting in diurnal stepping on the graph. 4) The growth of roots down the soil profile can be monitored during the growing season. The graphs provide a good indication of the recharge capacity of in season rainfall events and the reserves of deep moisture. 7) Calibrations of probes to actual levels of soil moisture further enable growers to observe the effects of crop transpiration on stored soil moisture as depreciation of mm’s of stored soil moisture. 6) Weather data, which includes daily calculations of reference crop evapotranspiration, is also available for 33 sites within the South Australian Murray Darling Basin region. Of these sites 30 are situated within the Riverland and Mallee region. To access these sites (including the Waikerie MSF core site and the new site at Lowaldie go to: http://www.samdbnrm.sa.gov.au/and click on the weather link then looking at the directory listing next to the map of the Riverland/Mallee Region you can either access the Waikerie MSF core site by selecting Waikerie-Dryland under the ‘Riverland’ listing, or under ‘Mallee’ you can login into any of the 5 nominated sites, with the site at Lowaldie being the newest. Training in the use of the Soil Moisture Monitoring equipment is provided periodically by SANTFA as a FarmReady eligible course for groups of 6 or more growers. For more www.msfp.org.au 28 Waikerie Field Day 2010 details, contact the SANTFA office on 8842 4278 or email [email protected] Training in the use, interpretation and application of the Weather Station Data services is provided by the South Australian Murray Darling Basin NRM Board, contact Jeremy Nelson on 8582 4477, or 0429 845 216 or by email: [email protected] Gladius Wheat, sown on 10/05/2010 1 Nil + Dividend 2 20kg DAP + Dividend C 40Kg DAP + Dividend 3 45kg Undercover + Dividend 4 90kg Undercover + Dividend 5 100kg Rapid Raiser + Dividend 6 100kg Seamungus + Dividend C 40Kg DAP + Dividend 7 20kg DAP (Wide-row) + Dividend 8 40kg DAP (Wide-row) + Dividend 9 20kg DAP + PE Twin N 10 20kg DAP + Trichoshield (paste) seed treatment + PE Twin-N C 11 40Kg DAP + Dividend 20kg DAP + Trichoshield (powder) seed treatment + PE Twin-N 12 13 40kg DAP + PE Twin N 40kg DAP + Trichoshield (paste) seed treatment + PE Twin-N 14 40kg DAP + Trichoshield (powder) seed treatment + PE Twin-N C 40Kg DAP + Dividend www.msfp.org.au 29 Waikerie Field Day www.msfp.org.au 2010 30 Waikerie Field Day www.msfp.org.au 2010 31 MSF would like to acknowledge and thank the above organisations for their on-going support.
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