PAGE 40 - “THE STAR”, Tuesday, August 20, 2013
Farming Insight Finance the key for young farmers
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do not have that connection to the land and I think that’s a terrific stat,” he said. “However it costs a lot of money and I think we can do it better than that.” It was in North America however where Damian’s big find came, when he discovered a loan program from Farm Credit Canada called Transition Loans. “How it works is when a young farmer buys a property, Farm Credit Canada will go as guarantor for the money that’s outstanding to the existing owner of the farm,” he said. So over five years, Farm Credit Canada will guarantee the owner will get his money for that asset. If it’s a $500,000 farm, they will get paid $100,000 each year from Farm Credit Canada. “Now the advantage to me as a start-up farmer is I only pay principal and interest on the amount outstanding to the owner. So in the first year the owner gets $100,000 of his $500,000 and as the young farmer I’m only paying principle and interest on that $100,000,” Damian said. “That helps a huge amount with cash flow and that’s what is really key to a young farmer, just protecting that cash flow situation.” Damian believes a bank should take on this transition program in Australia, but also sees merit in setting up a co-financing program where money from agriculture is invested back into agriculture to assist young farmers with equity requirements. “I mean get into agriculture and progress through, so I’m talking stock, lease agreements, machinery – anything that’s fairly manoeuvrable right through to land purchases. Wherever the young farmer wants to go I’d like to see them supported and encouraged with finance if that’s where they want to go,” Damian said. After travelling around the
Way around it: Damian Murphy advocates the benefits of a Canadian scheme to helping young farmers. world on his Nuffield scholarship, he holds grave concerns for the future of Australian agriculture without a viable entry system for young people. “I think what you’re going to find, and what I found through my research in the EU, is they’ve got such an old ag population that it’s really going to hinder them in the next 10-15 years if it’s not hampering them now,” Damian said. “We’re in the same situation. Something is going to have to happen with young farmers coming through in the next 10-15 years or we’re going to end up with a very old farmer population. The Geoffrey Gardiner Dairy
Foundation supported Damian’s scholarship. Nuffield Australia is an organisation which provides opportunities to Australian farmers between the ages of 28 and 40 to travel the globe investigating a research topic important to them and Australian agriculture. Recipients of the 2014 Nuffield Scholarships will be announced in Perth at the national conference on September 19. To keep up to date with the very latest from Nuffield, connect at www.nuffield.com.au, on twitter @nuffieldaust or on Nuffield Australia’s Facebook page.
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Dairy farmer Damian Murphy from Dumbalk North believes that thanks to a Nuffield scholarship, he may have found the solution. “I’ve seen people come into the industry and they’ve just found it so hard to get finance for things that would allow them to grow their asset and progress in the industry. It is becoming a real hurdle, and almost exclusive,” he said. “It was almost a case of you could only get a start and continue in agriculture if you had the family farm or the family connection to keep on going through and I’d like to see that change.” Damian set off on his scholarship in 2012 to investigate what young farmer finance schemes exist around the world, particularly in places where land is more tightly held than in Australia. “That’s one of the key things we had to look at – if we don’t have that manoeuvrability, how do young people keep on coming through?” he said. “They might start on a share and progress through onto a lease and maybe a marginal farm or something like that. In places like Ireland and France they don’t have that option, whereas in Australia we’re lucky we still have that option.” Perhaps surprisingly Damian found in France that unlike Australia, a significant percentage of farmers previously did not have a connection to the farm - in other words they were start-up farmers. “They do have a very different system to us, and yeah a lot of money flows in from the EU. When I sat down with the French young farmer group and asked them, the answer was 30 per cent
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Heifers top trade sale THERE were approximately 700 steers and bullocks which contained some excellent quality for a winter yarding, 500 cows and 250 young cattle penned.
The usual buying group attended a mixed market. Demand for trade cattle held firm although the heifer portion sold a little dearer on the back of a better quality offering. A larger and better quality penning of grown steers and bullocks sold 1c to 3c dearer on most sales, while the Friesian
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IT’S an ever-present issue – how to deal with the ageing farming population and make it possible for young enthusiastic farmers to enter the sector.
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manufacturing steers slipped 2c/kg. A typical winter yarding of cows sold 1c to 6c dearer, with the leaner grades of heavy weights averaging 315c carcass weight to a top of 334c/kg. A larger and better offering of heavy weight bulls saw demand from processors strengthen, with prices lifting 9c to 12c/kg. Trade steers sold firm from 200c to 205c, with the secondary lines from 175c to 199c/kg. The heifer portion made between 170c and 202c lifting 6c/ kg in the heavy weight category. C muscle grown steers sold between 199c and 204c lifting 2c, with the secondary D muscle lines between 185c and 196c slipping 2c/kg. Bullocks made from 187c to 200c lifting 1c to 3c/kg. Most grown heifers sold from
154c to 178c/kg. Friesian manufacturing steers made between 157c and 170c slipping 2c/kg. Heavy weight crossbred manufacturing steers sold firm between 168c and 189c/kg. Light weight dairy cows made from 108c to 139c lifting 2c/kg. Heavy weight dairy cows sold from 125c to 157c lifting 1c to 3c/kg. Light weight beef cows made between 115c and 140c lifting 3c/kg. Heavy weight beef cows sold between 126c and 164c lifting 4c to 6c/kg. Heavy weight C and B muscle bulls made from 152c to 169c after a top of 182c lifting 9c to 10c, with the dairy lines from 136c to 158c lifting 12c/kg. The next sale draw - August 21 & 22: 1. Landmark, 2. Rodwells, 3. Elders, 4. SEJ, 5. Alex Scott, 6. David Phelan.
Wednesday, August 14 BULLOCKS 6 C.T. Ferguson, Longford 19 O’Loughlin Bros, Meeniyan 12 D.J. & S.A. Bruce, Leongatha 13 B. Woodward, Hazelwood North 13 R.J. & C.M. McGill, Kongwak 12 D.P. & C.M. Brown, Mirboo North STEERS 8 C.T. Ferguson, Longford 4 C. Wilson, Middle Tarwin 2 D. Goodwin, Wulla Wullock 10 Kilbar Nominees, Leongatha 1 R.J. & J.C. Davies, Yarram 3 E.L. & A.M. Deppeler, Yinnar South COWS 1 A. Leiper, Devon North 9 N. Uren, Tarwin Lower 2 Eau De Cale Nom P/L, Glen Forbes 1 R. & P. Davis, Leongatha 1 I.M. & V.I. Wilson, Bena 1 K.H. MacPhail, Hedley HEIFERS 1 H. Enter, Koonwarra 1 P.D. & T. Vidamour, Toora 1 R. & P. Davis, Leongatha 2 C. Wilson, Middle Tarwin 1 F.M. Schellekens, Bass 1 S.R. & M.K. Greaves, Nerrena BULLS 1 P.C., D.E., B.P. & I.M. Gale, Waratah Nth 1 G. & W. Lucas, Hedley 1 K. & F. Whelan, Outtrim 1 H. Enter, Stony Creek 1 Melaleuca Pastoral, Meeniyan 1 K. Trotman, Buffalo
550kg 640kg 590kg 630kg 595kg 703kg
205.0 202.0 202.0 200.2 200.0 200.0
$1129 $1293 $1193 $1260 $1191 $1406
527kg 343kg 507kg 538kg 540kg 540kg
205.0 204.6 203.6 200.0 198.6 198.6
$1081 $703 $1033 $1076 $1072 $1072
530kg 505kg 617kg 640kg 640kg 615kg
164.0 $869 164.0 $829 162.0 $1000 162.0 $1036 162.0 $1036 161.6 $993
340kg 375kg 370kg 307kg 355kg 320kg
205.6 205.0 202.2 195.0 191.6 190.0
$699 $768 $748 $599 $680 $608
1225kg 725kg 670kg 825kg 1035kg 870kg
182.0 169.0 166.2 166.0 165.0 165.0
$2229 $1225 $1113 $1369 $1707 $1435
Published on Aug 20, 2013