As each day passes the extent of the damage caused by the frost is really hitting home. There are situations where the only option is to cut and others where the crop has taken a hit but still may produce some grain.
Click on this link to access our Hay or Grain – Basic Financial Analysis Tool to provide some assistance in decision making. Note the figures in the sheet don’t represent actual values, please enter your own assumptions. It’s in Excel so you can make changes to suit your scenario. Hay may provide a better financial outcome (and a clean paddock for next year) but a big problem at the moment is working out where to sell the hay. It can be expensive to make and at this stage the market is still trying to clean out last season's stockpile. But that can all change if you are in a position where the hay can be stored. There is an expectation that grain prices will rise. This will be due to supply and demand. The reality is a decision to cut or not to cut needs to be made quickly and a big limitation is being physically able to get the work done. For many is will be cutting the worst affected areas and hoping what’s left produces some grain.
The important thing to understand is you are not alone in this decision making process with support and assistance from agronomists, agri consultants like us and agri bankers. We have partnered with Xero to keep the financial management of your farm under control and provide clarity in decision making. Although yield, quality and price is unknown, re-forecasting helps to clearly understand the financial impact and allow informed decisions to be made. We can then collaborate with your banker to keep them informed and show you are on the front foot dealing with the challenge ahead. Contact us to discuss this further.
Rachael Trickey is a Partner and Agribusiness Consultant at Mulcahy & Co Agri Solutions and can be contacted on 0401 645 968 or firstname.lastname@example.org
Bronte Gorringe is an Agribusiness Consultant at Mulcahy & Co Agri Solutions and can be contacted on 0401 882 374 or email@example.com