The 2015 operation and year

[malleefarmer]

Well as you guys knows I/we bit the bullet and have gone from small operation to medium.

29500 acres plus some contract seeding.

Crops went in in fair time april I think 20th to june 10 optimum window may.

Two sprayers kept up ok weather was kind and one seeder 85ft was ample.

Issues keeping up with fert and seed but we coped travel almost 100 kms between furtherest points again we coped.

A extra man will be needed as the 3 bosses basically didn't get a day off from start to finish except I had one off for a colonoscopy if you call that a break.

3 harvestors and hopefully majority stored on farm avoiding centralized selling system saving us fees charges and freight and buyer out turn charges and other fees.

Financing the operation has been stressful as well as rewarding if that makes any sense.

Got a independent guy to help us with business plan and structure and tenders were sent out to the big four banks here.

Interesting both my partner and his son the 3 bosses actually had same bank and manager so they new us well and they had 14 days to tender we had indicative approval from 2 banks within 48 hours guess what our existing bank didn't even tender, was stunned and they didn't think we would "pull it off" so speak great joy when we told them we did.

Break even is 900kg per ha our average is 1.3/1.4t ha so bit of daylight there poor year is .6 good year 2.3/2.5 tonne to ha.

my role is sprayer operator during seeding full time part time during rest of year and marketing harvest logistics and shared agronomy.

Next box to tick is long term relationships with end users direct and contracts throughout year meaning have prices soon for 2015 harvest so we can deliver straight off combine rather than bag and silo 100% of the crop.

Im all ears listening to you guys and pick up pointers at times.

Need to brush up on when your sitting on unsold tonnes whats the best option stratergy to protect against a falling price if needed.

Harvest here is nov dec and will stretch into jan but weather is rarely a issue been down graded 3 times since 1980 and rarely is it your whole crop.Prices usually sideways after harvest and pick up march april june and then level off again and fall.

I look up to and question the bigger farmers around the place here and they offer nothing but good advice and willing to share there good and bad times most are super down to earth.

[SASKFARMER3]

It is always nice to see a farmer try some new things or new way of doing farming. Lots in Canada could learn from this model. I wish you all the luck in the world with your venture and keep us up to date with how things are going.
This is a farmer taking a farm to the next level. Not a Broad Ass from Calgary or a Oil guy or a Gold guy from Toronto in One Earth.
Good on you.

[malleefarmer]

ps forgot to mention 3 hired hands as well. All top guys and love it as long as they get one day off a week during peak times

Crops grown wheat barley malt and feed and lupins peas oats and hay.

A lot of the big guys 45000 plus keept simple wheat wheat canola or wheat wheat barley fallow and don't stuff around with legumes and oilseeds but for me its spreading risk and varying rotation. We farm in lowish rainfall area but quite reliable.

And we have a few sheep as well but sense they will be phased out eventually but they run on acres deemed not suitable for cropping.

Currently sourcing fert for 2016 phosphates mostly.

Have a meeting next week with a overseas company fert in grain out will be interesting to see what transpires

[TOM4CWB]

Thx Mallee for sharing!

Hope all goes well!

Look after your health...

Hope this farm is what you enjoy doing... would be a big stress for me... hope it is truly fun for you and your family!

All the best!

[farmaholic]

Impressive but no thank you. If the next generation wants to, they can but not thats for me at this stage. Sometimes (too many) I don't even want what I have.

[malleefarmer]

stress is interesting when there 3 of us its a shared stress kinda makes it easier.

Next generation involved already despite still being at school and mad keen on farming another just likes helping out now and then peak times but both paid a good hourly wage so many farmers sons say im going to the city I aint working for shit like you did dad... but still has family farm virtues basically two family farms joined forces and we lease extra land to spread cost of steel its getting ridiculous, and there are somany faremrs here no sons home cant afford machinery upgrades or don't want to hence so many guys with 1200 to 2000 acres have had a gutful, wife sick of working supporting the farm and average of farmers god knows what it is must be close to 61 or 62 may not be same in Canada bit more youth around the place perhaps.
given it a four year plan will review then.
anyone do a search for "bulla burra" similar but slightly different model

anyone on facebook again look at bulla burra

[hobbyfrmr]

Good work. you describe a dynamic that occurred here about 15 years ago. There were many farmers looking to retire rent/sell out. The (now) larger farmers said yes when others (me) were still trying to decide how long I wanted to ride around in the handbasket.
One observation is they buy land as often as possible and rent much land to cash flow the operation. Fast forward a decade, they own a lot of land that has easily doubled some tripled purchase price. One day they will say "all done" , stop farming big and still have accumulated a substantial amount of land assets to sell or rent out for retirement.

[malleefarmer]

thanks for positive feed back this morning wanted to share it but feared I would get howled down.

[hobbyfrmr]

Just give me a chance, i am still ruminating!

[LEP]

Good for you mallee. I have been thinking about doing the same here but when I did the math I am not sure if the calculated reduction in overhead is worth the hassle.

What have you calculated your cost savings at per hectare? My scenario is going from 8000 acres with my brother and I to 16000. Figured savings at between $10 and $20 per acre. The new operation would allow transition for the next generation to a larger footprint. Might be more headache than its worth.

In fact if we ran say a three year trial period with no equipment changes then the benefits were negligible.

[malleefarmer]

Add another 15 on we reckon.

Next step in process for 16 is to replace 2 lower performing farms with better ones but of course there rent or lease money is way less.

30 bushel to the acre wheat country is from 15 to 25 per acre. The $15 is frostier hence lower rent but in absence of frost doesn't yield much different

[MBgrower]

Nice life. Your nearest neighbour must be 25k away. Godd occupation for loners i guess.

[malleefarmer]

lol next door neighbour 800 metres

The above mentioned business plan is really gaining traction call it a machinery sharing syndicate if you like can name about 8 have gone this way In last 5 years and take numerous phone calls each week two niegbours wanting to do same thing sort of looking over fence to see how we get on and maybe replicate it.
agronomists and business advisors are also pushing for this type of structure maybe were just a few years ahead of the pack nothing more nothing less will be first to admit if it doesn't work and as ive mentioned plenty of 20 to 40,000 acre operators in Australia especially in the west.
In the west you could buy 30 bushel wheat country for say $300/500 per acre depending on location. Possibly different scenario than usa and Canada were your land is more productive and expensive don't need so much land.