The Farmers Club Newsletter

The “Club Notes” for Wednesday the 31st of January 2024.

By Dwain Duxson

If you can, please get your family, friends and colleagues to sign up. See the website link here.

Building something big

Building something in Agriculture takes time. Building something big in Ag also takes time, but more often than not, you are invariably putting the proverbials on the line, risking it all. Scott Summers started out on his Export Hay manufacturing journey 6 years ago. Before that, he was (and still is) an Export Hay producer. He has had a number of years in the industry, and when I spoke to him yesterday, he said he is still learning and probably won't stop. The Export Hay industry is not for the faint-hearted. Just managing a transaction in different currencies can be a nightmare on its own. Scott and his team are in the throws of building a state-of-the-art Export Hay facility on the edge of his hometown of Warracknabeal. The facility will work 5 × 24 24-hour shifts, be capable of storing 35,000 tonnes of Hay and employ 60 people, not to mention all the local businesses that benefit from building the facility. All the best to Scott and the crew. This is what the Aussie have-a-go spirit is all about. Manufacturing is starting to return to the bush, and that's exciting. See the front page of the Warracknebeal Herald below in the image section. Reply to [email protected]

One of the best inventions

I reckon one of the best inventions for around the Farm has been the Ratchet Strap. I remember we used to have a Sheep crate that went on the back of the Ute tray. It was a heavy, cumbersome thing, and you always seemed to be on your own when you wanted to attach it. But the worst bit was lining up the bolt holes and getting them tight. Now they just through a couple of Ratchet Straps over the top and head off to the Ram sale to buy the Rams. Also, for things like Carting Hay they have been a game changer. For those carting Hay, I recommend attaching the Load Looper, as they can make the process of getting the Strap over the Bales much easier. Of course, the Ratchet Strap replaced the ropes, which served us well for a long time. What do you use Ratchet Straps for? Reply to [email protected]

Their downturn is our opportunity perhaps

Someone told me a month or so ago that New Zealand Farmers were doing it tough right now. I saw one of those Rabobank confidence reports, and it's saying the sentiment is very low at the moment due to a combination of things. In another article I read, a leading rural Accounting and a Consultant both reported that it hasn't been this tough in the Farming game in New Zealand for 60 years. I heard a talk from Liam Leneghan, who runs goFARM Australia, a couple of months ago, and he indicated then that they were employing New Zealanders as many were keen to get a new start in Australia because things were so depressing over there. Their downturn is our opportunity, perhaps, because they are very clever people. Would you consider employing someone from New Zealand? 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:

• “Hi Dwayne, well, yes, it costs us a fortune.In 2023 we had a storm through here and wiped out 2 silos, a car shed and a shed with 8 sliding doors. 95k later all covered and replaced. It’s expensive but necessary, in my opinion”. - In reply to our story on Insurance in the Farm Tender Daily. See the story here.

• “My Dad always said, only insure what you can’t afford to lose”. - An Insurance reply.

• “Our Crop insurance had doubled last year but I’ve started only insuring enough Crop paddocks in value to cover putting in next year’s Crop”. - Interesting way to use Crop Insurance.

• “I won’t insure for a large amount without having a VERY GOOD AND ACTIVE BROKER who will stand for you when it really counts”. - This lady says to make sure you find a really good Broker.

• “Our farm pack insurance went from $60,000 to $80,000 per annum last year, and our financial advisor has been suggesting we self insure”. - We wrote a follow-up story about self-insuring in last night’s Farm Tender Daily. Take a read here.

• “You must shop around. Insurance companies are not loyal to their customers”. - Another Insurance comment.

• “The main issue here is flooding; I’ve been working on resilience for that over the past 20 years; one can never have enough Hay, Silage, Flood mounds or Shedding. 20, 21, and 22 were years of mud here. Hardly any income at all, but glad I had built Farm resilience and prior preparation; otherwise, it would have been a total loss”. - This Farmer created infrastructure insurance of sorts.

• “Insurance is sure getting out of hand. It would be in the top 4-5 biggest expenses for us. To the point a lot of Farmers are considering not doing Crop Insurance”. - Would you consider not doing Crop Insurance?

• “Farm Insurance has also got to the point where we pick and choose what we insure or not. Or what we drop the value on. One of my biggest annoyances has been the old “insured value or market value - whichever is lower” clause. It’s a joke”. - Many are picking and choosing now.

• “Talking about Sam Kekovich, and what he has done for the lamb industry is exceptional”. - A vote for big Sam.

End of message.

Dwain Duxson
0427 011 900

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