GPSA survey outlines grower gains and pains

These were some of the findings of Grain Producers SA's annual survey, which heard the views of 300 growers from across the state.

The record number of respondents were largely positive about the state of play, with 94 per cent considering their enterprises profitable and sustainable, and 76pc positive about the future of the SA grain industry.

Drought preparedness received a big tick, with 78pc saying they felt more prepared for drought than prior to the last big dry.

A third of respondents said adopting more on-farm technology was where they saw their biggest opportunity moving forward.

When it came to the challenges of running a successful grain business, 67pc listed operating costs like fertiliser, fuel and machinery as their biggest hurdle, while 48pc said they did not have reliable connectivity and 40pc listed finding and retaining staff as an issue.

Climate stress was also listed as a growing problem, with 20pc placing it in their top three concerns.

"Despite the challenges posed by high input costs and climate stress, most respondents reported a profitable year for their farming operations in 2023, buoyed by three consecutive strong harvests in most areas of the state," GPSA chief executive officer Brad Perry said.

Growers said policy areas it would like GPSA to focus on in the coming year included roads, operating costs, the fire danger index, connectivity, access to weather stations, the reduction of red tape and administrative burden, spray drift and chemical stewardship.

The advocacy body itself received favourable feedback, with 95pc of respondents saying GPSA had been somewhat to extremely effective in representing them on industry issues.

Episode 3 agri markets analyst Andrew Whitelaw said the risks to the grains industry of a "cost price squeeze" had been a talking point for some time.

He said two years of good harvests and good grain prices had largely shielded growers from the impact of rising operating costs, but he warned that wouldn't always be the case.

"There will be a time when (grain) supply is strong globally and we will potentially not see the high prices we've been accustomed to in the past two years," he said.

"We've had a couple of years of stratospheric increasing costs across everything.

"If we look at the big costs that drive farming - especially cropping - machinery and insurance costs have increased significantly.

"Fertiliser is back to more normal levels but in the last two years, the war in Ukraine pushed it up to near record levels."

Mr Whitelaw said diesel, which sat at about $1.95 a litre, had averaged $1.30/L from 2011 to 2021.

Episode 3's analysis of ABARES data showed the average cost of cropping insurance grew from $32,000 in 2020 to $62,000 in 2022.

The average cost of putting a crop in increased from $380,000 in 1990, to $1.15 million in 2021 and spiked to $1.7m by 2023.

Urea pricing was relatively stable around $400 a tonne from 2012 to 2021, but spiked to $1300/t in early 2022 and now sits at $600/t.

Mr Whitelaw said rising costs were likely to lead to an increased focus on strategically managing inputs.

"As an industry, we have spent a long time focused heavily on the price of outputs like livestock, wool and grain," he said.

"I think we need to think strategically about inputs just as much as we think about outputs."

Mallee grower opinions on the biggest strengths of the grains sector, as well as its biggest challenges, were reflective of GPSA's survey results.

Lameroo farmer Lynton Barrett said connectivity remained an ongoing challenge for his family's business.

Located only six kilometres from the Mallee Highway, Mr Barrett said phone service was extremely inconsistent, which created all manner of problems.

"Sometimes you can make a phone call, sometimes you can't, and in the event of a fire or accident, it has the potential to be a really bad outcome," he said.

The Barretts have forked out more than $10,000 to install receivers on two houses, a sprayer and their seeding tractor - a cost Mr Barrett believes farmers shouldn't have to incur to ensure phone service.

"Communication within our farming group is so important because we're spread over 10,000 acres (4000 hectares) and farming over a fair area," he said.

"You have to organise grain, chemicals and diesel, which is ongoing. Harvest is also a big problem when you're organising carriers and giving directions.

"I just don't think it's good enough in today's age."

On the grain sector's reasons to be optimistic, Mr Barrett said the leaps and bounds his business had made, thanks to technology, machinery advancements and practices like moisture conservation, "were enormous" and had allowed their legume phase to be a profitable part of their rotation.

He also said the area's farmers were undoubtedly more equipped to deal with drought than ever before.

"In the Mallee we have to accept we're going to have dry years," Mr Barrett said.

"About 25 years ago there'd be years we'd get our seed back and that was about it, but you rarely see that happening anymore.

"We can make a profit every year, ranging to a very good profit."

At Parilla, Pye Group broadacre manager Martin de Winnaar said technology gains had been integral in managing a close to 10,000ha cropping program.

He is able to pre-plan seeding, spreading and spraying tasks in great detail, with the seeding rates and variable spreading rates programmed instantaneously into tractors and sprayers to make the task easier for drivers.

"The technology allows me to get other jobs done, knowing that tasks like seeding are being done right," he said.

Mr de Winnaar said there was great reason to be positive about the future of the grains industry, saying ongoing global demand created opportunity and necessity.

But, he said one of the ongoing challenges in the region was finding enough staff to keep farms operating as efficiently as possible.

The GPSA survey Insight Report is available at grainproducerssa.com.au