PLANNING for the 2016 harvest, driving profits, managing inputs and land value trends were among the topics discussed at a Grains Research and Development Farm Business Update in Horsham.
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The event, on Wednesday, was designed to help growers improve their knowledge and understanding of the business issues around crop production and inform decisions to maintain or improve profits.
Speakers included GeoCommodities’ Brad Knight, who discussed grain markets, AgProfit’s Matt Bryant, who discussed profit drivers, and Rural Bank and Rural Finance regional agribusiness manager Greg Kuchel, who discussed land value trends.
Mr Kuchel said land values had been going up in the past few years.
“Over the past 20 years, farm land values have grown by 5.8 per cent a year,” he said.
“In Victoria, it’s five per cent a year, in the Wimmera it’s 6.3 per cent and in Horsham it’s 6.4 per cent.
“So there has been really strong and consistent growth.
“There have been challenges in the region during that time, with things like drought, but there has still been steady growth.”
Mr Kuchel said the underlying message was that farm land was still a farmer’s biggest asset. “And it’s a growing asset,” he said.
Mr Kuchel said the presentation on Wednesday gave growers an insight into something that was tangible.
“People can get caught up in the hype when they hear about good sales, but not all farm land is worth the big auction prices,” he said.
“Land values vary significantly, depending on soil types, locations and farming operations.”
Mr Kuchel said about 70 people attended the seminar.
”It was a great turnout given it was a good spraying day,” he said. “There was some great topics discussed, such as the analysis of farm businesses and information about changing over machinery, which is always interesting.
“Overall, it was a well-received morning.”
GRDC southern regional panel member Kate Wilson, of Hopetoun, said the Farm Business Update was of enormous value to growers from throughout the Wimmera and Mallee.
“The 2016 cropping season is looking very positive for Wimmera growers, which means they have much to consider in terms of marketing their grain, investing in their businesses and planning for the future,” she said.
“The GRDC Farm Business Update in Horsham offered growers and their advisers an opportunity to hear from a range of experts on these important topics relevant to their farm enterprises.”
