Biggest cotton and rice crops in years expected in Australia

Rice and cotton planting areas have had a sharp increase on last year due to high water allocations. Here’s what the crops are expected to yield this summer.

Cotton crop planting area has more than doubled this summer.

SUMMER cropping has bounced back from a horror few seasons with the biggest rice and cotton plantings in several years.

High water allocations have boosted summer crop plantings with rice plantings 10 times bigger than last year and cotton more than doubling its area.

This summer’s rice crop is expected to produce 450,000 tonnes, the biggest since 2018 after two tiny production years of 45,000 tonnes and 54,000 tonnes.

SunRice chairman Laurie Arthur said the desire for southern irrigators to grow rice was clear when an early fixed price offer of $475/tonne in August was over subscribed in just three days.

With additional water allocations since then, SunRice opened a pool with an estimated return of $390-$450/tonne which was enough to encourage a lift in plantings.

While prices hit $750/tonne last year, few growers were able to benefit with just 54,000 tonnes grown, the third smallest crop ever.

Mr Arthur said the past few years had been tough “for all irrigators and all crops” and the return to more normal rice production levels was welcomed.

“We know that irrigators love to grow rice and there is loyalty there, but the returns from growing rice need to be able to compete in a gross margin analysis,” Mr Arthur said.

“It was extremely difficult for irrigators to make money when water costs were so high in the past couple of years so we are happy that the rice industry will be able to grow a crop which may not be huge but is still a decent size.

“Unfortunately, the past two decades of water reform have negatively impacted all irrigators in the (Murray Darling) basin, including rice growers. The outcome of the water reform process is that irrigators in the basin are now high-cost producers.”

Meanwhile an audit of cotton plantings last week showed 49,000ha had been sown in southern NSW with 31,700ha in the Murrumbidgee Valley, 4000ha in the Lachlan Valley and 3200ha in the Murray Valley.

Cotton Info southern NSW regional extension officer Kieran O’Keeffe said this season saw a significant lift from the 2019/20 cotton crop where just 15,000-16,000ha was planted.

Adding to the positive news for the cotton industry was one of the best starts to the season in 20 years with crops “steaming away”, he said.

And while the lift in cotton production is welcome, Mr O’Keeffe said a wet summer could see even more planted next year.

“I’d like to think the big year could be next season (2021/22),” he said.

“But we are really optimistic about this year and if the season goes with us, it will be good for everyone.”

MORE

DECEMBER DOWNPOUR HINDERS HARVEST

HOW HARVEST IS SHAPING UP IN VICTORIA

GIPPSLAND GROWER’S SOGGY START TO SEASON