Farmers cut frost-damaged crops

Hit-and-miss frost across southern NSW and Victoria has farmers watching and waiting to see how the grain and hay markets react.

Frost damage to crops in southern NSW and Victoria is expected to cost millions in lost revenue.

Farmers have started cutting and baling damaged crops, and some have described it as the worst frost damage they have seen in seven years.

Vast areas of canola, lentils, faba beans, barley and wheat have been ruined from the September 16 frost, leaving farmers with no choice but to cut crops or open the gate and let livestock graze.

Geelong grain trader Michael Fitzgerald of Melaluka Trading said the frost had been hit-and-miss, and everyone was waiting to see how the market for both hay and grain would react.

“Everyone is keeping a close eye on it. There are more grain traders in cars looking at crops than normal,” he said.

“I think we can expect to see the market react in a week or two,” he said.

Currently, wheat is trending at $354/tonne, canola at $703/tonne and lentils at $910/tonne.

There were also concerns that a large amount of hay would enter the market after farmers cut damaged crops.

Frosty conditions at Lancefield. Picture: Zoe Phillips

The latest Australian Fodder Industry Association hay report is quoting prices as steady in the Goulburn Valley, with cereal hay making $335 to $380/tonne, and in South West Victoria, prices were also steady at $360 to $410/tonne.

Rupanyup farmer and Grain Producers Australia southern director Andrew Weidemann said he had recently assessed crops in the Birchip region, and there was 60 to 80 per cent damage from the recent frosts.

“Canola was most affected ... I saw a canola paddock that was 100 per cent wiped out,” he said.

Mr Weidemann said paddocks with 100 per cent damage soon became a problem because farmers had to make a decision as to what they were going to do.

“It’s about economics, whether or not you can make hay out of it and whether or not the hay market will hold up,” he said.

Mr Weidemann said some people would consider putting livestock onto frost-affected crops in a bid to try and salvage something.

Andrew Weidemann said he had assessed crops near Birchip and there was up to 80 per cent damage. Picture: Supplied

“They don’t want to wear out headers that are worth more than a million dollars simply to salvage something from a damaged crop,” he said.

On the positive side, he said there wasn’t a lot of residual hay around, and that gave scope for farmers to replenish supplies.

He said it was a matter of waiting to see what would happen on the domestic market for both hay prices and grain.

It was expected there would be an impact in the near future.

Unlike hail frost is something that cropping farmers can’t insure for.

“Frost is a risk for the industry, we have been talking about multi-peril crop insurance for a number of years but haven’t been able to get it off the ground,” he said.

Mr Weidemann said the frost was the worst he had seen in seven years.

Across the border in southern NSW Brent Alexander of Annesley Pastoral at Milbrulong said the frost damage was severe.

“The impact around here has been significant,” he said.

“It has really knocked people around.”

Mr Alexander said there would be thousands of acres of frost damaged crops cut for hay.