Farmers vow to look forward

IMPROVING conditions and positive commodity prices are keeping Victorian farmers’ optimism levels high, according to the latest Rabobank Rural Confidence Survey released recently.
Overall, of the Victorian farmers expecting conditions to improve over the coming 12 months, 43 per cent cited commodity prices as the reason for their optimism – the majority dairy farmers.
Leongatha North dairy farmers John and Linda Fiddelaers are enjoying the current season, with Mr Fiddelaers pronouncing it as the best they have had in years.
“The price (for milk) has also lifted, which we hope will continue for this season and hopefully into the next,” he said.
“We have had a really good hay season so far and have still got some to do. We have managed a second cut this year; some farmers have managed three.”
The Fiddelaers had to buy in hay last season, which was a big expense, but Mr Fiddelaers said this year fodder reserves are back on track.
“We have got more hay and silage than we have had for a couple of years. Unless we have an exceptionally bad season, we should be good,” he said.
“Many farmers are still getting over last year’s summer/autumn period, but the feeling seems to be we are having the best season we have had in a long time.
“The price always plays a part, but the season plays a big part as well.”
Mr Fiddelaers said the increase in positivity among dairy farmers was likely to have a positive flow on effect on the town as well.
“Now is a big opportunity for farmers to make improvements on farm they haven’t been able to do for years,” he said.
Mrs Fiddelaers said farmers are optimistic, helped by the improving season as well as the increase in farmgate prices.
“We are now being paid the price we should be getting paid for milk,” she said.
“Hopefully this season is not just a one off, which will help the confidence in the industry to continue.”
Nerrena dairy farmer Michael Holloway said while farm gate prices are getting better, the costs associated with dairy farming continue to rise.
“I have been in the industry all my life and have seen enormous changes throughout that time,” he said.
“We are established farmers, so for us we can ride out the tough times, but for younger farmers with a lot of debt to manage, I believe there is still a fair bit of catching up to do.”
Mr Holloway said enticing young people into dairy farming today was one of the big issues facing the industry going forward.
“Many years ago, you could go share farming and get enough equity and put a good deposit on a farm but that is near impossible today,” he said.
“The costs of our industry, like power and fuel, are one of the major things we have got to battle against, as well as the weather and the export market.
“When the prices keep going up, it is hard to absorb the costs all the time. That is the hardest thing now.”
Rabobank state manager for Victoria Todd Charteris said confidence was highest amongst those in the dairy sector – with 52 per cent of dairy farmers expecting conditions to improve.
“After emerging from a tough period, cash flows are still tight for many dairy farming businesses, but this should be alleviated in the short to medium-term on the back of improved market dynamics,” he said.
“All the global fundamentals are positive, particularly in relation to China – with their domestic market restrained by production issues while demand continues to increase.
“This has translated into expectations farmgate milk prices will be 30 per cent up on last season, and we have already seen some positive step-up in prices since opening prices were announced.”

On the up: John and Linda Fiddelaers are positive about the outlook for dairy farming, helped by higher farmgate prices and improved seasonal conditions.

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Posted by Sarah Vella on Jan 7 2014. Filed under Featured, Rural News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry