CANFA Comment

Three new machinery releases were a stand-out feature of the 2012 Conservation Agriculture Field Day held at Parkes on 23 February. They were all single disc units - from NDF Disc Planters (NSW), Milne Industries (Qld) and Grizzly Engineering (Vic).

Download a PDF copy of the media release from the day. Below are photos of the new single disc machines demonstrated or shown at the field day.

 I recently was forwarded a very informative report written by Roger Crook, former Manager of ICI. The whole article (http://justgroundsonline.com/group/the/forum/topics/china-the-oecd-and-australian) is worth reading but I bring your attention to a particular part of the report which really grabbed my attention.

In 2010 ABARE funded by the GRDC produced a report called Australian Grains - Financial performance of grains producing farms, 2007–08 to 2009–10.

To the best of my knowledge this report, conducted by a federal government agency and funded by the GRDC, which in turn is funded by grain growers, received no publicity.

The lack of publicity is not surprising when the financial performance of all grain farmers is examined. Over the three years 2007/8, 2008/9, 2009/10 the percentage of growers showing a negative farm business profit is 50%, 60% and 61% respectively.

As far as the holy dollar is concerned the numbers are even more disturbing. Over the same three years all grain farmers showed a farm business profit of minus $1,500, plus $24,500 and minus $15,500.

The year 2009/10 was an estimate based on the average yield over time and the ABARE forecast price. As we all now know Mother Nature interfered with the economists view of the future. WA, our biggest grain-growing state, suffered a drought. For many on the other side of the country too much water at the wrong time played havoc with yields. So the numbers above will probably turn out to have been optimistic.

The OECD represents the 30 most industrialised countries of the world, including Australia, New Zealand and the U.S. and most members of the EU, but not China or Japan.

Farm subsidies in both the EU and the USA amounted to somewhere between 20% and 23% of farm receipts in 2010 according to OECD figures.

There has been little change over the last eighteen years. In the OECD, farm subsidies as a percentage of GDP have remained at about 0.35%.

Dollar values are hard to determine due to currency value fluctuations, but there is a new book out called ‘A Billion Dollars a Day’. So maybe that gives us some idea of what the rest of the world, including China, pays to their farmers to keep them in business. (I have it on order.)

The latest figure available for OECD countries, which is an estimate, is a staggering US$281 billion in agricultural subsidies for 2008. OECD subsidies increased in 2009.

MEDIA RELEASE: 16 February 2012

Several machinery manufacturers and dealers will release updates to their equipment or release new machines at this year’s Conservation Agriculture Field Day at Parkes Racecourse on February 23. However, farmers will need to be thinking ahead if they are to take advantage of new 15 percent conservation tillage tax offsets.

Conservation Agriculture and No-till Farming Association (CANFA) executive officer, Neville Gould believes the Federal Government’s insistence on pushing through the Clean Energy (Consequential Amendments) Bill 2011 amendments to the Income Tax Assessment Act 1997 (ITAA 1997) in its current form will see it underutilised.

“We have attempted to convey the need for some rudimentary and very important changes to this legislation to make it more workable for all involved. Unfortunately, we were unsuccessful in getting these changes made.

“One of the major changes we were calling for was to make the entitlement retrospective to 1 November, 2011, rather than for equipment that goes into use from 1 July this year. If climate change is as big an issue as the Federal Government makes out, then this program needs to kick in now, not in 16 months time when farmers put in their tax returns.

“We also wanted it to include modifications, such as a new disc undercarriage on an old combine, which was a common modification under past incentive schemes.”

CANFA has written to the Minister for Climate Change and Energy Efficiency, The Hon Greg Combet AM MP, and the Shadow Minister for Agriculture and Food Security, The Hon John Cobb MP, seeking further discussion with them on the matter.

Organised by CANFA in conjunction with Central West Farming Systems, FarmLink Research and Central West Lachlan Landcare, the annual conservation agriculture field day is renowned for being one of the few farming events where machinery is still actively demonstrated.

A number of machines will be shown for the first time at the field day which is becoming well known as a launching pad for new designs. Not surprisingly, many of the new machines are disc planters.

Mr Gould said one of the earliest disc planter manufacturers in Australia, Daybreak Equipment, from Dalby (Queensland) will be launching a new model. “Many leading farmers in the district are now running their Duodec Disc Opener, being the first planter to have mechanical face seals. This new release will be lighter and better suited to the softer soils in longer term no-tilled paddocks,” said Mr Gould.

Grizzly Engineering, from Swan Hill (Victoria), whilst being well known for their offset discs, will be launching their new single disc planter. They produced the 2009 Machine of the Year with their Wheel Track Renovator.

Last year’s field day winner of the Best Modified Machine award, Michael Carey, from Golden Valley Implements, Coolamon (NSW), will have his Golden Valley disc planter on display, which is now commercially available.

Many of the other exhibitors will have technology which will be of great interest to attendees, be it new sprayer controllers with full mapping capability on the Hardi sprayers, or new products from Ylad Living Soils and Gaia Consultancy.

Mr Gould said while manufacturers continue to develop and improve equipment in line with the needs of farmers, the new tax rebate would be an issue of some discussion at the field day as farmers attempt to work out what it means to their business and conservation farming practices.

“Tyne machines fitted with minimum tillage points, disc openers and disc/tyne and disc/blade hybrid machines will be eligible for the refundable tax offset,” he said. “However, farmers won’t be able to claim them unless they hold what’s called Research Participation Certificate, showing they’ve participated in research into soil carbon sequestration. The Department of Climate Change and Energy Efficiency has said this will be done by filling out a survey.”

Farmers will be entitled to an refundable tax offset (RTO) of 15 percent of the cost of an eligible asset they held during the income year; they started to use or had installed ready for use during the income year in the course of carrying on a primary production business; and had not previously been used or installed ready for use (that is, the seeder must be new).

The RTO will be available for assets which the taxpayer starts to use or has installed ready for use between 1 July 2012 and 30 June 2015 and will be claimable in the 2012-13, 2013-14 and 2014-15 income years.

The field day is sponsored by the Federal Government Caring For Our Country program, North Parkes Mine, Barrick Gold, Lake Cowal Foundation, Cornish’s, Hutcheon & Pearce, McPherson’s, Lachlan CMA, Central West CMA, Parkes Shire Council, Parkes Jockey Club, Rabobank and The Land newspaper.

The 2012 Conservation Agriculture Field Day gates at Parkes Racecourse open at 8.30am and demonstrations start at 9.30am.

Neville Gould, 0427 452 488 or 02 6845 1044 or email