Final Report (22/10/2018) 1

GRAIN & GRAZE

Final Report

for

Avon Region

Western Australia

Executive Summary

The Grain and Graze Project was an innovative multi-source funded project, resulting in collaboration from Australian Wool Innovation (AWI), Grains Research & Development Corporation (GRDC), Meat and Livestock Australia (MLA) and Land and Water Australia (LWA) to run over 5 years (2003-2008).

This experimental project, directed at mixed farming across Australia, wanted to get across key productivity messages, whilst addressing social and environmental outcomes at the same time. This triple bottom line approach brought a new dimension to those involved, who often had to extend themselves beyond their normal comfort zone.

Across the mixed farming zones of Australia, there were nine Regional projects set up to contribute to the Grain and Graze goal of a 10% increase in livestock profitability and a 5% increase in grain profitability. The Avon Region, based on the AvonRiver catchment in WA and administered by Department of Agriculture and Food WA (DAFWA), aimed to improve the profitability as above while maintaining or improving the resource condition of mixed farming enterprises. This was to be done through creating an improved understanding of pastures and their management to allow an increase in stocking rate, by maintaining existing sheep numbers on a smaller area.

The Avon project started some 18 months later than the others, in February 2005. A range of activities, examined in more detail in this report and appendices, set out to make joint gains in the livestock and grain enterprises principally through increasing the stocking rate on more productive pastures, managed more effectively, allowing an increase of land available for cropping.

This was achieved through providing farmers with an improved understanding of where to make the greatest gains in their system, increasing their awareness of innovative sheep management tools to save time and effort in a usually labour-intensive enterprise and demonstration of improved pasture management options.

Many activities in 2005 were directed towards achieving a better understanding of the situation to help assess where future investment would be most effective. These efforts were able to highlight that some of the planned activities (e.g. lucerne/perennials) would not result in the adoption and changes that would be required to deliver the outcomes. This helped to shape the project to more streamlined, focused activities in 2006 and 2007.

Unfortunately, both 2006 and 2007 turned out to be very dry seasons (approx. 50% of average growing season rainfall)over a majority of the catchment and this has meant that evaluation against the original goals is not possible in a meaningful way. These seasons and a major shift in the relative profitability between sheep and cropping have reduced the enthusiasm of growers towards their livestock enterprises and a major sell-off of sheep from the area was experienced in the first half of 2008.

Final Report (22/10/2018) 1

Regional Description

Physical/Environmental

The AvonRiver catchment extends east from the coastal plain to Dalwallinu in the north, to the east almost to Coolgardie, and to the south beyond Pingrup and LakeKing. The AvonRiver catchment has an area of 120,713 square kilometres, almost twice as large as the State of Tasmania and half the size of the State of Victoria.

The map on the following page depicts the AvonRiver catchment; showing the catchment boundary and the major tributaries to the AvonRiver. The catchment has mostly been cleared for agriculture (73,870 km2 or 62%) except for the eastern half of the Yilgarn catchment.

Geographically, the AvonRiver is unusual, in that it arises in its extremities from broad, flat, geologically ancient valleys, and for most of its length has a very low gradient. Long chains of naturally saline lakes are prominent along the watercourses through this ancient landscape. During extremely wet seasons, the salt lakes canlink up and discharge into the AvonRiver. As it proceeds to the north and west, the waterexits the areas of ancient drainage and flows through areas of mature, then rejuvenated landscape and the river valley becomes steeper, narrower and more rugged as it exits through the Darling escarpment onto the Swan Coastal Plain.

The climate has principally been of Mediterranean type, characterised by dry summers and winter rainfall, although the eastern parts can often be affected by “tails” of cyclones during the summer period. Average annual rainfall across the region increases from 275mm in eastern parts to above 700mm towards the western parts and catchment outflow.

Economic

Grains (wheat, barley, canola) & mixed farming. Industry (flour mill, feedlots, export hay) (Stats from ABS)

Social

Main towns (Stats from ABS)

Final Report (22/10/2018) 1

Final Report (22/10/2018) 1

1. PROJECT RATIONALE:WHY DID WE DO IT?

Project Summary

The Grain and Graze project activities in the Avon Region attempted to identify change management triggers. The aim was to provide mixed farming systems with new, whole farm knowledge, tools and capacity to adopt management changes that would increase production of crops, pastures and animals while maintaining, or enhancing biodiversity and catchment resources.

Overall the project considered the issues concerned with the drivers that influence change and build confidence levels of landholders so that they would make changes to the management of their system and/or adopt specific technologies.

For the business aspects of the system, management refers to options like;

  • more time on business management,
  • specialise in one area of the enterprise (and leasing or sharing others),
  • make more effective use of management time or
  • have enterprise mangers who specialise in certain aspects.

For the production aspects of the systems, management refers to options such as;

  • intensify the enterprise by growing more per hectare,
  • change the relationship between phases of rotations or
  • increase inputs.

For the environmental aspects of the system, management refers to options such as;

  • manage biodiversity rather than just let it exist,
  • work towards clearly defined environmental goals or
  • work with and encourage biological diversity as management options (e.g. insects and bird as predators or crop pests).

Three focus sites within the project were to be case studies of options to address the question “what are the drivers of social, environmental, economic profit (SEE Profit) in mixed systems?”

This vital question was to be addressed using 3 approaches focused on

  1. perennial systems,
  2. extended pasture phases, and
  3. the transition from operational to strategic management

The project aimed to answer the following questions:

  • Do perennial-based pasture systems have a higher SEE-profitability?
  • How can cropping best be incorporated with perennial pastures?
  • Do extended pasture-livestock phases produce a higher SEE-profitability?
  • Will adoption of cutting-edge technology increase SEE-profitability?
  • Will a higher level of inputs (physical and human) increase SEE-profitability?
  • Can an integrated biodiversity number be used as a single indicator of robust systems?
  • How can we best measure SEE-profitability of mixed farming systems?

The Avon Grain and Graze project intended to build on and utilise existing research and development activities. The project sought to integrate component research into mixed systems. It also attempted to identify important gaps in knowledge that could be filled either by the project or future R&D activities.

Approach 1: Perennial approach

Researchable question: Is it possible to maintain crop profitability in a crop/grazing rotation based on perennials?

The spread of dry-land salinity is one of the most important environmental problems currently affecting the sustainability and profitability of Western Australian farming systems, particularly in the Avon. The problem is caused by an increase in the level of the underground watertable (recharge) as a result of replacing deep-rooted native vegetation with shallow-rooted annual crop and pasture rotations. As the watertable rises, it dissolves stored salt deposits at depth until saline water enters the root zone of plants. Decline and loss of productivity of agricultural land and also of remnant native vegetation are the two main issues associated with this increase in salinity.

It was proposed to set up a study, in collaboration with farmers, to produce knowledge on practices that form the basis of new, profitable broad-acre crop/pasture systems with reduced groundwater recharge than existing systems. The study’s participative R&D activities rested on two fundamental technical assumptions that managing recharge would have an impact on the spread of salinity and that perennial pastures use more water than annual pastures. The opportunity to minimise the impact of salinity in the current farming system was to increase the introduction of perennial pastures, like lucerne, to increase water use

Examples were provided (Appendix 1) to show that the introduction of lucerne to reduce groundwater recharge of annual crop/pasture systems had the potential to improve sheep production. The biological benefits of this modification to the traditional farming system required further evaluation under different environments, also the economic benefits needed to be evaluated in the context of the whole farming system. Grain and Graze was going to concentrate on the integration, farm management, economics and environmental issues to ensure that the new systems might fulfil their potential.

Approach 2: Extended Pastures Phases approach

Researchable question: Can a longer pasture phase in an annual pasture/crop system increase profitability and can we lift animal production without cutting crop gross margin?

Many Avon farmers were not ready to embrace wide scale planting of perennial pastures. At thecommencement of the project there was great interest in new profitable grazing systems in response to improved opportunities for sheep meat production and weaker grain prices. The project set up to concentrate on an integrated whole farm approach at boosting pasture production and animal production while maintaining or improving crop profitability and the environmental situation. The project examined lengthening of both the pasture and cropping phases, as pasture densities suffer in short rotations.

The study was set up in collaboration with farmers, from the Facey Group, to expand current thinking about rotational practices. 70 - 80% of farmers in the Facey Group practice year in year out rotations. Rotations wereset up to enhance crop yields on the assumption that wheat is the most profitable enterprise in the farming system. Awareness existed to the fact that in order to continue to increase profits, stocking rate would be the key profit driver for productivity.

Farmer’s interested in increasing flock numbers, sheep live weight and woolknow that dry matter is essential for production and performance but needed to examine how to lift animal production without cutting crop gross margin..

The Lifetimewool project developed guidelines for the optimal feeding of ewe flocks. The guidelines use suggested annual live-weight (LW) and condition score (CS) profiles that can be managed by tactical measurement of a sub-sample of the flock used in combination with “feed on offer” (FOO) feed-budgeting.

The “Pastures from space” program estimates pasture growth rate (PGR; kg/ha/d) of established annual pastures at the paddock scale using satellite images with a pixel size of 6 ha. It calculates a greenness index and uses historical ground-truthing to develop estimates of PGR and FOO for individual paddocks. ‘Pasture Watch’ – is commercially available to delivercurrent and forecast estimates of weekly PGR allowingcumulative PGR estimates to be used to estimate total biomass production and hence, estimate potential carrying capacity. Pastures from space looked at being able to deliver FOO fortnightly. At the commencement of the Grain & Graze projectit could measure FOO available within ±10%,worked best with established pastures,and stubble and/or pasture residues interfered with ratings in year of establishment. The system required more ground-truthing to better develop the algorithms and adecision was made that this would be a useful area for co-investment with G&G.

Approach 3: Operational to Strategic Management approach

Researchable question:Can we use time, labour and management more efficiently to meet profit and quality of life goals?

Many Avon region farmers moved away from livestock production, some totally, due to poor returns, a desire not to be on the farm 365 days a year, and the difficulty of finding labour in a highly competitive market. Farmers continually seek ways of streamlining operations so that they and their families can enjoy a reasonable lifestyle. Fly in/fly out farming has become more common.

Landholders were concerned with long-term sustainability of theirenvironment and community as well as the individual enterprise. They realise that short-term profit should not be the driver. Farm businesses had to develop with the real future in mind so that following generations have options to make career choices.

Farmers should have an understanding of the technologies available to objectively assess crop and livestock production and have systems in place that effectively cope with large quantities of information to enable good decision-making. A systems approach was required for better information transfer and to aid in effective delegation ofresponsibilitythus enabling better outcomes with limited down time.

This project sat at the ‘high risk, high value’ end of the research spectrum and was probably an Australian first, required careful thought and planning. It was envisaged that this project sat at the very heart of Grain and Graze aims. The Grain and Graze Project would help set up methodologies that benefit other regions and other research corporation activities.

Final Report (22/10/2018) 1

2. GOAL:WHAT DID WE INTEND TO ACHIEVE?

The goals for Grain & Graze - Avon were to:

  1. Increase the productivity of sheep by 10% by improving grazing management systems, and
  2. Increase cropping by 5% by improving pasture management systems

Expected Outcome and Outputs

Expected outcomes

Approach 1

  • Producers are able to determine the “value” of perennials to their farming system.
  • Identification of characteristics of what perennials could look like fitted into farming systems in the Avon

Approach 2

  • Increased profit from the pasture component of mixed farming systems from

1. Improved management skills, and

2. Management effort

Approach 3

  • Non specialist producers ableto effectively evaluate new technology with which they have had relatively little or no exposure to previously
  • Ability to repeat positive outcomes and minimise mistakes
  • Effectively identify best practice systems
  • Allow better population of resource, finance and social budgets
  • Systematic approach to perform the operational tasks of the farming enterprise

Outputs

Output 1

Description

  1. Adjustable variable decision aid allowing producers to both determine the value and perennial and understand the relationships between key drivers
  2. Review of the barriers to adoption

Delivery Date 30/06/08

Details

  • Undertake KASA to look at potential benefits (Awareness), understand where it fits ( knowledge), what attitudes are (Aspirations) and how to do it (skills)
  • Define the target audience
  • Link to PPS
  • Feedback annual data to enable modelling scenarios to be tested
  • Establish satellite sites and /or groups – identify and establish participation
  • Ensure mixed farmers in Avon equipped and aware of best fit of perennials in the system
  • Take measurements of management inputs
  • Ensure iterative process between integration, communication and observation
  • Measure biodiversity as determined by Mason et. al.

Target Audience

  • Landholders who currently grow lucerne.
  • Landholders who have grown lucerne but no longer grow lucerne.
  • Landholders interested in perennials in the system

Delivery mechanism

  • Farmer Field days
  • Farmer field walks
  • Organised field day events – Dowerin field day
  • Newsletters
  • Annual Grain and Graze Avon bulletin

Output 2

Description

  1. Management systems that show livestock and crop having same gross margins - $246.ha (8-10 DSE /ha)
  2. Situation statement of current rotational practices
  3. Demonstration of viability of more intensive pastures – field walks, models
  4. Demonstration of treatments in place – field days, confidence

Delivery Date 30/06/08

Details

  • Investigate the gap between current practices and best practice
  • Measure management inputs of each system
  • Measure biodiversity as determined by Mason et. al.

For YIYO practices

  • Compile a stocktake of what is currently being done
  • Undertake an analysis of which farmers in the Facey Group actually practice YIYO, what are the input costs and determine what the average low input package looks like and off-set this with a high production system
  • Design optimum production processes
  • Measure biomass rather than composition

For 2:2 rotation

  • Develop situation statements on current practices
  • Determine rotation by inputs
  • Trial to look at current practices vs optimum practice (Fertiliser input, composition of pasture)

For 4:4 Rotation

  • Explore how we manage a 4 year pasture phase
  • Determine optimum biomass production 60% grass; 40% legume
  • Decide what composition would be of greatest benefit

Target Audience

  • Landholders in Facey group who are mixed farmers.
  • Landholders who are interested in longer phase pastures.
  • Landholders interested mixed farming systems.

Delivery mechanism

  • Farmer Field days
  • Farmer field walks
  • Pastures Forum 2006
  • Organised field day events – Dowerin field day
  • Newsletters
  • Annual Grain and Graze Avon bulletin

Output 3

Description

  1. System to assess management time and evaluate new technology
  2. Guidelines to assess the impact of changes on profitability and lifestyle outcomes

Delivery Date 30/06/08