The Farmers Club

No 164 - Monday's Club Notes

Dwain Duxson
March 25, 2024

The “Club Notes” for Monday, the 25th of March, 2024.

By Dwain Duxson

Are forward contracts killing competition

Have a quick read of the 3rd post down in articles and images, it's the one by Robert Fraser. He outlines how the popular forward contract for selling Lambs to the processors is killing competition within the Lamb industry. Do you agree? As he stated below, forward contracts were best practice years ago but have now become so popular with some processors that it makes up most of their kill for the week. Therefore, they are not frequenting the Saleyards to top up the weekly kill. With less competition at the Saleyards, we then struggle to get a decent price, and the indicators are set on those Saleyard prices, so then the processors can set lower forward contract prices, and the Farmers then miss out on both selling methods. This model works well for the processors when abundant numbers are around. Is this scenario outlined by Rob affecting prices in the Lamb market? Reply to [email protected]

Best possible outcome

We have come a long way with reproduction in the Sheep and Cattle industries. I will focus on Sheep because I know a bit more about them than Cattle. Please chime in on your experience with Cattle. The most diligent Sheep Breeders are now going to the nth degree to make sure they give their Ewes the absolute best chance possible to get in Lamb and then have that/those Lambs survive right through to weaning time. There is alot of work and monitoring that goes into it now. See below in articles and images the Kerin Poll post at some of the targets they have met pre-joining for their Ewe Lambs and some of the things they have done, like teasing them twice with Vasectomised Rams. These leaders in reproduction have been experimenting over the years and have come up with a formula that will give them the best possible outcome. Mother nature still chimes in, and you can do the same thing every year and get a different result each time. But those who are strategical and disciplined as to how they go about it usually get the best results. What are some of the lengths you go to to get the best result you can in Farming? Reply to [email protected]

Many hands make light work

We wrote a Note about how some Towns are getting population growth but are struggling to get people involved in community things, yet other towns are thriving in this area. I think it depends on how far out of a capital City you are. I'm sure they still happen, but the humble working bee was the cornerstone of how to get things done at the Footy, Cricket, Golf or Tennis Club over the years. Everyone right through to the kids would gather to tick a number of boxes off so the club or organisation could operate at any given time. People would bring personal tools and equipment, and the old adage of many hands makes light work applied. It's like building a fence; there is nothing more satisfying than looking around to see what you have achieved at the end of the day. And the best part is a couple of beers or wines after and maybe even a BBQ. That's where communities can get together, relax, and chew the fat. You can't put a price on that stuff. Do you still get involved in working bees, and if so, do you enjoy that period when all the jobs are finished and you can relax? Reply to [email protected]

Your replies

Below are snippets from some of the replies you sent in. All quotes will remain nameless. See a few current ones below:

“Keeping up to date with financials in any business is paramount, but as you say, most Farmers are busy, busy, busy, and the last thing they want to do is bookwork”. - In reply to our Note about what Accounting Software you use on the Farm.
“I find Xero is a great program, but of course, not solely set up for Farming”. - Xero is very popular.
“They spend money in the little town – fuel, food etc and a meal at the pub. This sort of financial input to our economy is vital, given it is only for about 7 months of the year. Good on them for getting out and seeing our great, big, beautiful country. Of course, you often hear about some of the negativity about them, but hey, you can’t please everyone”. - In reply to our Note on the Grey Nomads and how they keep many Rural Communities going.
“Hi Dwain, Firstly, can I throw a spanner in the works and call it a Star Post? Haha”. - In reply to our Note about Steel Post and what people call them.
“I live in Lockhart, NSW, and the population has increased since Covid. As a young person, you used to know everyone, but not anymore. I don’t think the town has become better or worse”. - In regard to our if your Town/Area has improved over the years or not.
“We are our own worst enemy; we buy out the neighbour to get bigger to become more efficient. Work day and night (not like our Grandads who didn’t have lights on a Tractor), then wonder why we can fill a Cricket or Football side”. - It’s a battle many Towns are facing.
“My dad, a South Australian, called them Droppers”. - Another name for the Steel Post.
“I love the attitude of our locals who are proud of our little town and welcome visitors. I live where Don Bradman was born, and this is one of our tourist attractions. We keep on growing and supporting, no matter what our state Government feels about the wasteland west of the Blue Mountains - they seriously need to get out here and spend more than a fly in fly out hour or two, to see how the rural/remote folks actually LIVE”. - A Farmer pumping up her home Town, Cootamundra.
“As a Fencing Contractor, I call them Steel Posts as opposed to Steel Pickets ... because a Post goes into the ground, and a Picket stays above the ground ... as in a Picket Fence”. - A Fencing Contractor explaining how it works.
“The township of Henty used to consist of mainly retired Farmers. When their two banks closed, the locals formed Henty Community Bank, backed by Bendigo Bank and it is thriving, the profits go back into the community. When the hospital closed, locals made sure they built a new one with a retirement home as well. In recent years funds have been raised in a short space of time to build a lovely Respite Care Unit. There are two Gyms, a Hotel, a B&B, a Chemist, a Supermarket, as well as many craft Stores, a Medical centre and an Undertaker. This community now has many families with young children moving in to raise their kids in a safe, country environment where they can ride bikes to school. Many of these people are Tradies. Great town. It has much more than mentioned here”. - A Farmer pumping up her Home Town, Henty.
“Interestingly, in the Eyre Peninsula, the nicknames seem to have no connection to the person’s name (perhaps they are more imaginative over there). I know a Tige, Roo dog, Gorby, and a Stav”. - In reply to our Daryl Duxson Note and how people get nicknames.
“Morning Dwain, always has been a Star Post for my 60 years. This Picket thing has come in the last 15 to 20 years and possibly originated by all the Townies flooding 5-acre hobby Farms. Lots of our words have been mongrelised away from what we have known, often for the lazy Yanky words, e.g., math for maths”. - A Farmer having his say on how they are called Star Posts. I am with him on the maths/math one.
“Hi Dwain, In a similar vein to consultants, I had put together an advisory board for our Farm. It was during the initial stages of the transition period of succession. One of the best commercial decisions I have made (as well as the succession plan). The boys with this advisory board grew in confidence; it helped them feel like an equal (or better) than I. The professionalism we have gained with the running of the business was great, and the feedback we receive between meetings of our production figures, etc, shows a genuine interest. Their thoughts vary which gives us more choices to think about. The elected advisors have changed as we or they felt their used-by date was up, and that is what should happen with any consultant. The advisory board has been in place now for over 10 years and still plays an important role in decision-making and the professionalism of our Farming enterprise”. - A Farmer outlining how an advisory board works for their Farming operation. Good one.
“Yep, the Star Picket is a great invention; as we replace old timber Fences with new, I can't help but have great respect for the work that went into them. Holes dug every 15 or 20 paces by hand, then wire holes hand bored. I feel a bit guilty when I drive up with the 4in1 Bucket and pull them out with the pull of a lever”. - A Farmer paying respect to how our Forefathers built Fences and how much easier it is today.
“Hi Dwain, I forgot to mention we use Cashbook Plus from practical systems in Armidale; I suppose it's been said before, but the introduction of GST has improved most Farmers bookkeeping skills immensely”. - The GST did alot to lift the importance of getting the Farm Books done on time.
“A group of locals and ex-locals have just bought the Patchewollock (Vic) Pub freehold. Good little spot, and want it to continue that way. If it closes, the town goes with it”. - How community members have reached into their own pockets to save the Local Pub from closing. Well done.
“Hi Dwain, re roads..... Driving to a nearby town the other day ....two stop/go people, 3 utes, one truck, 7 "men" removing a couple of tree branches from the side of the road. No wonder the Shire is going broke.” - Someone observing how many people it took to remove a couple fo tree branches.
“Dwain, my home town of Canowindra, NSW has changed a lot over the years, new faces coming in with fresh ideas, in the main very positive with shops and services that would have been unthinkable decades ago. It does take some newcomers time to understand our country's culture, though”. - One Farmer outlining how things have progressed in Canowindra. Make sure you pronounce it right, though…..
“Dwain, I still call them Steel Posts. I'm sure as a kid I can remember them being called Iron Posts as well”. - In reply to our Steel Post Note.
“An interesting reply from one person was that the town mentioned now has what he calls “sleepers”. It refers to rural living types where they go to the city to work and come back to town to sleep. The next day, back to the city”. - In reply to what happens when your Town is close to a Capital City.
“Your Farm Tender and The Farmers Club emails are the only emails that I read religiously every day. They give a great insight into what the real grass roots Farming industry thinks and hold very relevant information. Thanks again for telling Farmers stories and continuing your support to the industry”. - A Farmer who is appreciative of what we do. Thank you.
“Our margins at the moment are the worst that we have encountered in my 34 years of Farming and our Farming profit has been tested even further by business expansion in the last few years”. - A Livestock Farmer who is hoping things pick up soon.