The Farmers Club Newsletter

The “Club Notes” for Thursday the 8th of February 2024.

By Dwain Duxson

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

22 Days to go - Our FarmTender2024 - Entrepreneurs in Farming event is not far away. Click here for more info.

Change the category

Check out the 1st video in the random and associated Ag section below. I hope it works for you because it outlines something important. And make sure you turn up the volume. Apparently, the US adopted these EU specifications for Vehicle Engines a couple of decades ago and gave the Car companies 30 years to transition over. Our Government is proposing between 2 and 6 years, depending on which article you read. As NFF President David Jochinke said in this podcast, "the supply chain couldn't be adapted quickly enough to support such a rapid change because all our Farming Vehicle use diesel, and we would have to transition to petrol or electric to comply". But what the American Car companies did was change the classification of their Utes (Pick Ups) to the light Truck category, which meant they didn't have to change a thing. And as you see now there are plenty of those gas guzzlers in the US. Our Utes are much smaller and much more efficient than theirs. So, to keep our Utes, we need the Car companies to classify them as light Trucks; that's the go. Reply to [email protected]

Going 2nd hand

I spoke to a Machinery Dealer sales guy yesterday, and he said some of his customers are giving up on buying new Machinery and will just focus on second-hand Gear for any upgrades. He just said that the prices for new Equipment is out of reach for them now. I have heard this a few times in the last 12 months. It's an interesting scenario because, as I say to our people at Farm Tender, we need the Dealers to be selling new stuff so that we get the opportunity to sell it second-hand. Without that cycle, the system breaks down. I don't think that is going to happen anytime soon as there are still plenty buying the new Gear, but if enough did it then it could change the dynamic a little. It would be like if the Cattle or Sheep industry had a drought and everyone sold all their Breeder; the supply chain couldn't handle it, I know, but if everyone was a trader and we had no one to breed, then there would be nothing to trade anyway. So, we need breeders to breed so that traders can trade. Is the cost of new Machinery out of your reach? Reply to [email protected]

A $44,000 onlooker

We get plenty of replies about the Governments Renewable Energy push, and most are against the aggressive nature of their push. One guy wrote in, and he and his Farmer neighbours opposed a Wind Farm being on their property 10 years back. But it went ahead because there were enough Farmers to support it. One Farmer who doesn't have the Turbines on the place but is just over the fence negotiated an annual fee of $44,000 from the Wind Tower company just because he had to look at them every time he walked out his back door. The person relaying the information said it was "recent legislation introduced for Wind Farm neighbours". I'm sure most wouldn't bother, but it's something you might want to look into if you have them close handy. Have you heard of this type of compensation/fee before? 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:

• “This concept will be trashed now in many cases with so many farmers holding land in Superannuation funds worth more than $3m who will now have to come up with cash in order to pay their tax liability, which will be assessed on the increased capital value for each given period. This liability will be payable even though the asset has not been sold”. - In reply to our Note on how Farmers get rich slowly.

• “He will be paid 44k annually to look at them, recent legislation introduced for windfarm neighbours”. - See the note above.

• “Interesting subject: the Council that I pay the largest rates to is in a financial world of pain and requesting a 40% INCREASE IN RATES PAYMENTS PA. That’s only 3 years after the last big increase. Admin staff at the last count was around 800”. - In reply to our Note on Councils and Shires and how they should be getting back to basics.

• “2 months ago, they tried to put up rates by 54%. They only had 1 “consultation” meeting of the 6 planned with the public, as the ratepayers there, about 200 in a small village, were so angry they had to call the police. They claim they are short of cash”. - In reply to our Councils/Shires Note.

• “Our local Council say they no longer have funding to repair our notorious small, narrow and dangerous road. However, they do 'patch it up' occasionally, which is expensive and lasts only a few days. What have Council used the money for, which is there for road maintenance? We don't get an answer on that”. - Another reply on the Council/Shire subject.

• “The energy story is far from black and white. As Australia is closing coal-fired power stations, many other countries are building new ones and, in some cases, not just one but more than 10. - On the Renewable Energy push from the Governement.

• “You will have a full-time job writing commentary on this subject alone for many years to come, and the answers will still be in debate”. - Somone pointing out that this renewable Energy argy bargy will go on for years.

• “Yep, it certainly is, I farm by myself, 2200 sheep and 1500 acres of crop, no employees and have been working my absolute arse off to try and get ahead for the last 20+ years, sacrificing so so much time I could be spending with family etc. Only to have to spend so much of my hard-earned on rates, insurance and tax… - A Farmer who hasn’t got an overly big Farm and pays $58,000 in rates but finds it hard to make ends meet with the increase in costs.

End of message.

Dwain Duxson
0427 011 900

Random and associated Ag articles and images.