Hurt farmers tighten belts

This year could be a make or break season for many grain growers in the Great Southern after two tough years in a row.

Frost and a dry finish left many growers with poor yielding crops and the question now is - what are growers planning to do in 2010?

Last year's average loss is estimated to be $400,000 in a range from $200,000 to $800,000.

Farm adviser David McCarthy, of Farmanco, Narrogin, said that unfortunately not many growers broke even.

His clients are budgeting for similar cropping programs minus high risk paddocks.

To reduce expenditure, growers are matching inputs more closely with average yields that have declined over the last five years by selecting cheaper nutrients and compound fertilisers with lower application rates.

"Growers are choosing a very cautious approach to the season and a very aggressive approach to cost cutting to limit the risk following losses in 2009," Mr McCarthy said.

"Any unnecessary item in the budget is getting trimmed out."

While many businesses are extending lending requirements to put in this year's crop, fewer machinery changeovers and new purchases are on the cards. Growers may also opt for less lime and gypsum applications and cut back on fertilising pasture paddocks to help pull their budget back in line.

Many growers are adopting low risk options, according to Garren Knell, an agronomist with Consult- AG, Narrogin.

Growers are looking to plant less high risk crops like oilseeds as well as lupins and field peas and replacing them with more reliable crops such as wheat and barley.

"It's a juggling act between canola and cereals because growers without sheep need to consider their weed management options," he said.

Before making any decisions, Neil Findlay, NAB head of agribusiness for southern and western Australia, said farmers should talk to their banker and farm advisers.

Instead of self diagnosing, Mr Findlay said they needed to get a clear picture of their financial position and understand the impact on cash flow.

He said it was significant that growers might need to divest assets or surplus machinery.

Keith Devenish, district manager for the Department of Agriculture and Food in Narrogin, said that if there was another late break he expected growers would drop some paddocks off, even those who cropped all their farm.

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