Australian agri-business set to do well in the current economic conditions.

[bob10]

The only draw back? Machinery , spare parts, and agricultural chemicals have to be imported, in the main.


Australian agribusiness bucking trends as economic predictions grow gloomier amid COVID-19 pandemic (https://www.msn.com/en-au/money/markets/australian-agribusiness-is-bucking-the-trend-as-economic-predictions-grow-gloomier-amid-covid-19-pandemic/ar-BB13rkAp?ocid=spartanntp)

[Tote]

Wool prices not so much at the moment

160399

Regards,
Tote

[Pickles2]

We have friends in the Mallee. An average holding will save $9K in fuel costs for sewing this season. They have had very very good rain, and the ground is looking in better shape than some have ever seen it.
But crikey, these guys work so hard all year, every year, in all sorts of conditions, they deserve it.
Pickles.

[JDNSW]

Both wool and cotton are forecast to look pretty ordinary over the next year or two, and as for those agribusinesses that produce high value specialty foods for restaurants or, worse, export by air..........

[NavyDiver]

The only draw back? Machinery , spare parts, and agricultural chemicals have to be imported, in the main.


Australian agribusiness bucking trends as economic predictions grow gloomier amid COVID-19 pandemic (https://www.msn.com/en-au/money/markets/australian-agribusiness-is-bucking-the-trend-as-economic-predictions-grow-gloomier-amid-covid-19-pandemic/ar-BB13rkAp?ocid=spartanntp)

Several people I know were 24hours a day plowing before the rains hit this week. Best Spring break for years[thumbsupbig]

[JDNSW]

The other issue of course is that after years of drought, many farmers have maxxed out their lines of credit, and are scratching to find the money to sow. Not to mention the problems finding seed.

[bob10]

Wool prices not so much at the moment

160399

Regards,
Tote

Wool & cotton not so good.
Fibre demand slack
Nearly three quarters of Australia's raw wool supply is sold to China, and half of that is consumed there.The rest is bought in Europe and the United States where soaring unemployment will mean less demand for woollen garments.Domestically, the fashion industry has also taken a massive hit (http://www.abc.net.au/news/2020-04-28/coronavirus-covid19-australia-fashion-industry-adapts/12189924).
"When you see retail sales in the US and Europe collapse in the space of a month, that's concerning for our industry which is so reliant on retail," said Fox and Lille wool broker, Eamon Timms.

That uncertainty has seen woolgrowers holding bales back from auction.Which, in turn, means the raw supply of wool is growing, as demand drops off, weighing further on prices."It'll be a difficult readjustment for those farmers," Eamon Timms.Cotton prices are also sliding, with ANZ noting, "concerns growing over the impact on global economic growth of COVID-19 have cooled business sentiment, particularly in China".

[Bigbjorn]

The only draw back? Machinery , spare parts, and agricultural chemicals have to be imported, in the main.


Australian agribusiness bucking trends as economic predictions grow gloomier amid COVID-19 pandemic (https://www.msn.com/en-au/money/markets/australian-agribusiness-is-bucking-the-trend-as-economic-predictions-grow-gloomier-amid-covid-19-pandemic/ar-BB13rkAp?ocid=spartanntp)

A number of makes of farm machinery were once made in Australia. Others were assembled here. Most decent size country towns had several tractor and machinery dealers, new and used. Now there are many country towns without a machinery dealer, indeed, without a car and truck dealer. No tractors are made here nowadays. A lot of reasons for this. One was farmers giving their canary impression "cheap, cheap, cheap" and buying on price equipment from Asia and the Soviet Union. A number of profitably trading co-ops were brought undone by supplier/shareholders robbing them blind or taking their thirty pieces of silver and selling to a multi-national corporation.

[Pickles2]

The other issue of course is that after years of drought, many farmers have maxxed out their lines of credit, and are scratching to find the money to sow. Not to mention the problems finding seed.
I can't speak for individuals, and everyone has a different scenario,...but until a couple of years ago, the Mallee had suffered a few bad years, & most were doing it tough, but last year was very good, so most, around the Wyche area have had a bit of a recovery last year, & with this year looking good, many are very excited.
Pickles.

[bob10]

A number of makes of farm machinery were once made in Australia. Others were assembled here. Most decent size country towns had several tractor and machinery dealers, new and used. Now there are many country towns without a machinery dealer, indeed, without a car and truck dealer. No tractors are made here nowadays. A lot of reasons for this. One was farmers giving their canary impression "cheap, cheap, cheap" and buying on price equipment from Asia and the Soviet Union. A number of profitably trading co-ops were brought undone by supplier/shareholders robbing them blind or taking their thirty pieces of silver and selling to a multi-national corporation.



Yep, Australia sold its soul to the cheapest bidder. But I guess people buy what they can afford, in the main. I'm sure there are many reasons for that, not everyone is greedy.

[bob10]

NSW farmers may have the best winter crops for years.


NSW farmers optimistic for best winter crops in years as soaking rains fall - ABC News (https://www.abc.net.au/news/2020-04-30/farmers-in-central-west-nsw-rejoice-as-rain-triples-on-last-year/12201222?utm_source=sfmc&utm_medium=email&utm_content=&utm_campaign=%5bnews_sfmc_rural_df_!n1%5d%3a8940&user_id=c17365ab07572ed90614d245ada5ad675f6bc00189 fa766123c70d76d1d7cddf&WT.tsrc=email&WT.mc_id=Email%7c%5bnews_sfmc_rural_df_!n1%5d%7c89 40RuralMail_ArticleLink)

[Graeme]

Last year was off to a good start too but then look at what didn't happen. Wait until late September around here before starting to think that this year might be better then last.

[Konradical]

The Mid North where I work for a Ag dealer had seen 100+mm of rain over the month of April compared to 20mm same time last year.

Some who had scratched in feed, canola and hay in the 1-11/2 weeks leading up to last Friday, have seen growth already. The rain has certainly left a nice wet film on top that hopefully translates to subsurface moisture for winter.

There are a few smiling faces walking through the doors ATM and the general mood is good.

The other positive thing happening in Ag ATM is the $150K instant tax write off. Plenty of machinery getting upgraded. I have been told even our second hand holdings are pretty low.

Hope it keeps up and is a successful year for them, cause if they win, lots of people in those regional areas win.

[JDNSW]

Yep, Australia sold its soul to the cheapest bidder. But I guess people buy what they can afford, in the main. I'm sure there are many reasons for that, not everyone is greedy.

All my life the position of farmers in Australia has gradually worsened, with this trend superimposed on the droughts and good years. Allowing for inflation, almost all primary produce prices have steadily gone down, while input costs have gone up, and red tape has risen to unbelievable levels.

Even fifty years ago it was possible for an individual to start from practically nothing, and be prosperous and having raised a family on the farm, and leave a going concern to his children more often than not. Today, most of the children aren't interested - they can make far more money off the farm without the responsibility and the 7/365 daylight to dark work that is needed today.

Today the 'successful' farm has to have so much money tied up that very few of them ever actually operate at a profit if the cost of capital and a reasonable wage for the farmer is accounted for. Operated by a large corporation, it can work, as a lot of the overhead can be shared.

[V8Ian]

All my life the position of farmers in Australia has gradually worsened, with this trend superimposed on the droughts and good years. Allowing for inflation, almost all primary produce prices have steadily gone down, while input costs have gone up, and red tape has risen to unbelievable levels.

Even fifty years ago it was possible for an individual to start from practically nothing, and be prosperous and having raised a family on the farm, and leave a going concern to his children more often than not. Today, most of the children aren't interested - they can make far more money off the farm without the responsibility and the 7/365 daylight to dark work that is needed today.

Today the 'successful' farm has to have so much money tied up that very few of them ever actually operate at a profit if the cost of capital and a reasonable wage for the farmer is accounted for. Operated by a large corporation, it can work, as a lot of the overhead can be shared.
Sounds like the transport industry, with commonality being they're both price takers.

[RANDLOVER]

Machinery ad scams targeting farmers leaves them tens of thousands of dollars out of pocket - ABC News (https://www.abc.net.au/news/rural/2020-04-30/machinery-scam-fleeces-farmers/12197502)

Looks like the farmers should be careful spending their hard earned on machinery, as there are scams out there.

"Department of Consumer Protection WA says some WA residents had recently lost up to $45,000 through fraudulent machinery adsScammers operated across various advertising platforms including reputable online trading websites
WA ScamNet suggests not purchasing anything sight unseen and on the word of someone"

[Tote]

Yeah, like buying some brands of tractor....

'''Right to repair''' taken up by the ACCC in farmers''' fight to fix their own tractors - ABC News (https://www.abc.net.au/news/2020-04-19/right-to-repair-tractors-taken-up-by-the-accc/12156196)


Regards,
Tote

[Bigbjorn]

Yeah, like buying some brands of tractor....

'''Right to repair''' taken up by the ACCC in farmers''' fight to fix their own tractors - ABC News (https://www.abc.net.au/news/2020-04-19/right-to-repair-tractors-taken-up-by-the-accc/12156196)


Regards,
Tote

During my career in the motor and machinery industries I came across several makes of luxury car and mining, construction, and earthmoving equipment where "grey market" imports were not uncommon.Some of the OE distributors would ask for the serial no, and engine no. when the owners ordered parts. If your machine was a grey import then they would refuse to sell you parts using the excuse that they did not know the specification of that machine and would not sell parts that may be incorrect. Sometimes the suggestion was made that you should approach the importer for assistance. Maybe the Trade Practices Act has scotched this practice.

[Hogarthde]

Well now Tote, you have introduced a subject I have not previously considered .

As mentioned the humble old noisy Diesel engine with Armstrong gear box is no more.

Yes indeed, who does ‘ own the intellectual property”
Can the farmer “ shift historical data “
Can the farmer “back up old data”

Though it appears the lawyer in the West has a handle on the situation , but the problem still exists regarding warranty repairs and service , although I never was confronted with that ,
a new forage harvester and new offset disc in 1974 , didn’t count then.

Good topic Tote
Dave

[Tote]

Well now Tote, you have introduced a subject I have not previously considered .

As mentioned the humble old noisy Diesel engine with Armstrong gear box is no more.

Yes indeed, who does ‘ own the intellectual property”
Can the farmer “ shift historical data “
Can the farmer “back up old data”

Though it appears the lawyer in the West has a handle on the situation , but the problem still exists regarding warranty repairs and service , although I never was confronted with that ,
a new forage harvester and new offset disc in 1974 , didn’t count then.

Good topic Tote
Dave

I hadn't considered the problem of the onboard electronics and that they may be storing data in proprietary ways that make transfer or saving of the data difficult if not impossible. In the IT world this sort of behavior is not unknown with a large database company honing it to a fine art, although customers are more aware of the lock in and as the equipment does not usually "harvest " the data there are usually (difficult and expensive ) ways to migrate the raw data to an alternate platform. I have heard stories of gearboxes with RFID tags fitted that render the machine unusable if not reprogrammed to accept the new gearbox mated to the engine and ECU. Of course the dealer is happy to come and bless the gearbox swap provided they are paid to travel to site and attach their diagnostic laptop.

My 1980s 100 HP fiat similarly does not have these problems with 5 litres of normally aspirated diesel goodness and the only electric components being the starter, lights, stereo and alternator.

Regards,
Tote

[JDNSW]

......
My 1980s 100 HP fiat similarly does not have these problems with 5 litres of normally aspirated diesel goodness and the only electric components being the starter, lights, stereo and alternator.

Regards,
Tote

Same with my 1960s Chamberlain - less the stereo, and I'm afraid the lights have fallen off.

[Bigbjorn]

Same with my 1960s Chamberlain - less the stereo, and I'm afraid the lights have fallen off.

I remember about 1975 two brothers came down from the Darling Downs to Leyland Rocklea with a farm truck to pick up a new 2-70 tractor their dad had bought from the local dealer. They were most disturbed to find that lights were standard equipment on the de Luxe model. "Please remove the lights. If Dad sees them he will have us working at night". Cabins and stereos were still a pipe dream. I am not sure if Queensland had legislated ROPS frames by them. I know NSW had earlier as we sold tractors from Brisbane to Cornstalk cockies who would not buy in NSW as they had to pay for the roll bar.

[Graeme]

a new 2-70 tractorWas that a White? My odd-job tractor is a White 2-110 FWA, retired from paddock duties some years ago.

[Bigbjorn]

Was that a White? My odd-job tractor is a White 2-110 FWA, retired from paddock duties some years ago.

No, a Leyland. I always had a liking for the White 2-150 with White's own big inline 6. A hell of a good tractor.

[Graeme]

Mine has the trusty Perkins 354.4 with the pump turned-up a little to around 130 HP which is enough to make the turbo glow all too easily.

[JDNSW]

I remember about 1975 two brothers came down from the Darling Downs to Leyland Rocklea with a farm truck to pick up a new 2-70 tractor their dad had bought from the local dealer. They were most disturbed to find that lights were standard equipment on the de Luxe model. "Please remove the lights. If Dad sees them he will have us working at night". Cabins and stereos were still a pipe dream. I am not sure if Queensland had legislated ROPS frames by them. I know NSW had earlier as we sold tractors from Brisbane to Cornstalk cockies who would not buy in NSW as they had to pay for the roll bar.

Mine did not have a roll bar when I got it, but I fitted both that and a cab after I got it. And it was sold in NSW in 1969. Interesting story - I got it at a clearing sale in about 1995. When I did, my nepohew said "Bloke I used to work for used to have one of them, I'll bet he still has the owners manual, I'll ask him". Next thing I know, the manual turned up in the mail box. And the original owner had written the serial number and the date in the back of it. Same tractor!

[Arapiles]

It's little known but in Victoria you're allowed to drive a tractor and trailer on your Ls. When I finished my HSC exams in the early 80s my father was doing the harvest so I helped out by towing full field bins to the silo in town - with my Ls stuck on the back of the trailer. Got a few odd looks but all legit. Just checked and it's still the case, but no need to display Ls.

[bob10]

Smiling in S.W. Qld.

Perfect rain delivers a lifeline for outback farmers in Queensland'''s south west - ABC News (https://www.abc.net.au/news/2020-05-06/rain-outback-farmers-in-queensland-south-west/12216234?utm_source=sfmc&utm_medium=email&utm_content=&utm_campaign=%5bnews_sfmc_rural_df_!n1%5d%3a8940&user_id=c17365ab07572ed90614d245ada5ad675f6bc00189 fa766123c70d76d1d7cddf&WT.tsrc=email&WT.mc_id=Email%7c%5bnews_sfmc_rural_df_!n1%5d%7c89 40RuralMail_ArticleLink)

[bob10]

NSW farmers smiling.



Central West farmers rejoice in huge rainfall totals after years of drought - ABC News (https://www.abc.net.au/news/rural/2020-05-11/rain-recovery-in-full-swing-for-nsw-farmers/12227436?utm_source=sfmc&utm_medium=email&utm_content=&utm_campaign=%5bnews_sfmc_rural_df_!n1%5d%3a8940&user_id=c17365ab07572ed90614d245ada5ad675f6bc00189 fa766123c70d76d1d7cddf&WT.tsrc=email&WT.mc_id=Email%7c%5bnews_sfmc_rural_df_!n1%5d%7c89 40RuralMail_ArticleLink)

[Bigbjorn]

Does anyone think the cockies may stop whinging?

[AJM]

Does anyone think the cockies may stop whinging?

Why. Do you think it’s all too easy?