SA farmers reap huge profits despite average yields

It’s been a tough year for South Australia’s grain farmers but despite the trying conditions, many are looking forward to tallying up sizeable rewards.

Huge grain prices amid global shortages will help farmers stave off the effects of smaller harvests this year, brought by a lack of rain – or too much of it at the wrong time.

Latest crop data from the federal agriculture department shows the state’s winter crop production is forecast to fall 4 per cent in 2021-22, to just over 8 million tonnes.

But many of the state’s farmers will still reap big rewards for their toils, amid very strong prices for canola, wheat and lentils.

“It’s a tale of two stories – anyone who has average to slightly above average yields is getting paid very well for their harvest,” said Grain Producers SA chairman Adrian McCabe.

“But because it was such a dry year, not everyone will reap the benefit of that.”

At Hamley Bridge, west of Kapunda, Mr McCabe said strong winds and rain during November left some grain lying on the ground.

The harvest underway at Bulla Bulla. Picture: Jannette Fulham/ Riverland Commercial Photography

“In the last 30 days we’ve had 75mm and our November rainfall average is about 35mm,” he said.

It also hampered the harvest, with farmers in many regions having to put off reaping because it was too wet.

The Mallee was experiencing a very tough year, Mr McCabe said, following very little rain, and farmers were reaping just one tonne of grain per hectare, compared to an average 2.5-3 tonnes.

In October, Primary Industries and Regions SA predicted skyrocketing grain prices would push this year’s harvest to $2.8bn – the most valuable one on record.

Some regions are closing in on the end of their harvest work, while others in the South-East are yet to begin.

At Loxton, John Gladigau said a 3000ha area of his farm was hit by hail in late October, affecting between 20-80 per cent of the crops on various parts of that land.

“There were lots of people that has loss up to 100 per cent, so it was pretty devastating,” Mr Gladigau said. “We had golf ball-sized hail – it was quite amazing and it absolutely decimated the crops.”

Bulla Bulla owners John Gladigau and Robin Schaefer. Picture: Jannette Fulham/Riverland Commercial Photography

Mr Gladigau, who grows grain including wheat, barley, chickpeas, field peas and lentils, said his losses were covered by insurance during a year also hampered by the farm receiving only about two thirds of its usual rainfall.

“Remarkably, our crops are nearly average on that low rainfall, which is absolute testament to modern farming practices that we were able to maximise the moisture we had,” he said.

“With where grain prices are, it means it will probably come out to be an average result.”

Grain handler, Viterra, says its first export shipment of this year’s SA grain crop – a 60,000 tonne cargo of barley – is on its way to Saudi Arabia.