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CURRENT DOMESTIC FUEL SURCHARGE TASMANIA: 4.51 - 6.93% March 2009

Friday, April 18, 2008

Farms cash in despite big dry

Article from:

NICK CLARK
April 18, 2008 12:00am
TASMANIAN farmers are set to cash in on rising grain and oilseed prices as competition for land grows between agricultural commodities -- despite the drought.A survey by rural lender Rabobank suggests a good outlook for grain prices in the medium term. Tasmanian Farmers and Graziers Association cereals and seed committee chairman Crosby Lyne said cereal crops were increasing. "The drought has meant a lot of people have got rid of their livestock and may plant more cereal crops if the season breaks," he said. "Fertiliser prices have gone up 50 per cent to $1500 a tonne which resulted in farmers planting crops which need less fertiliser." Mr Lyne said there was pressure for acreage. "The poppy growing companies are desperate for more ground in the 2008-09 season," he said. "There are plenty of small seed and grass seed contracts available as well. In these dry years barley has proved to be a pretty versatile crop for malting and as a feed for livestock." "Cascade and ABB, which malt for Boag's, are pretty keen to get more barley." Mr Lyne said the greater upside in potential yield of wheat than barley had prompted some to favour wheat. "Some farmers are growing wheat under irrigation," he said. North-West contractor Greg McDonald said he expected to harvest 4000 tonnes of wheat in 2009 up from 2000 tonnes in 2008. "I've had more inquiries from people wanting to grow wheat than ever before," he said. "There are people growing wheat that had never grown it." He said farmers were "getting screwed by spud factories" and were looking at lower production costs of wheat and grains. "The way fertiliser prices have increased, unless there's a big increase in the price of potatoes they're better off to grow wheat," he said. He said wheat needed less water than vegetables and were "less work". Mr Lyne said there had been an increase in canola crops for stock feed and poppy seed for biodiesel. ABS data shows Tasmania grew just 8000 hectares of both barley and wheat and 1000ha of canola in 2005-06.

1 comment:

Anonymous said...

Keep the grains GM-free and the market will be higher and more profitable for the farmers. People are now concerned about GM, so make sure that the source of the new seeds of grains have not come from a GM source. Buy Tasmanian seed for as long as you can to stay GM-free.

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