WA farmers set for record $8b grain harvest after ideal season and strong prices

WA grain farmers will pump a record $8 billion into the WA economy this year after an exceptional season and soaring prices. Buoyed by high crop yields and ideal seasonal conditions this year’s crop is on track to be worth more than $8b - the highest value crop on record. The past record was $6.5b, achieved in 2018-2019. Farmers planted a record 9.2 million hectares across the State and a 21.2m tonne forecast for the WA winter crop was released on Tuesday. Grain Industry Association of WA spokesman Mike Lamond agreed a 21m plus tonne crop was on the cards - an upgrade on its November forecast of 20.57mt as farmers are finding yields are coming in bigger and better than expected as their harvests progress. That would smash the last WA production record of 18.1m tonnes in 2016-17 and the five year average of 15.64mt. David Falconer, farm consultant at BusinessAg, said some of his clients were saying it was the best conditions in a lifetime, some of whom had been farming 50 years. “The combination of high yields and strong commodity prices means its’ a very profitable year for grain producers. Some are looking at 70 per cent higher profits than they were budgeting on at the start of the year,” he said. CBH Group acting chief executive Ben Macnamara said the high prices were driven by strong international demand, driven partly by the disruption to production in some global grain growing regions in the northern hemisphere. And farmers are elated. They were expecting good yields at the start of harvest, but after getting headers into their crops - yields are coming in even bigger than expected. “Pre-harvest estimates were pointing to yields higher than anyone ever thought could be achieved. No matter how you measured it, what metrics you used, potential yields were looking off the scale so a lot of people remained conservative,” Mr Lamond said. “But those off-the-scale yields are shaping up to be correct. It’s good over a huge area, and when you add that up across the whole state, that’s a lot of grain.” York farmer Andrew Keeble said it was his best season in 12 years, and his father Peter’s best season in 40 years. He said yields were about 20 per cent higher than he had predicted at the start of his harvest. “Coupled with strong prices it’s by far our best year in terms of tonnes and profits,” he said. The season has not been without its challenges, Mr Lamond said adverse seasonal events including winds, hail and frosts affected some properties. There was also a dry spring when crops where finishing, but the cool temperatures helped negate the impact. Mr Falconer said farmers would use the extra cash from this year’s harvest to pay down debt, but it could put increased pressure on farmland values as cashed up farmers looked to expand. There would also be significant off farm investment, he said. CBH was expecting to have 10m tonnes of grain already in the bins by Wednesday evening.