Saturday, April 20, 2024

Correcting imbalances

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Jo and Dion Bishell have trimmed their South Taranaki sharemilking business into a lean and mean operation over the past three years of falling payout and are looking forward to improved returns and rebuilding the equity in their business. Fertiliser use has been one plank of driving cost out of the young couple’s business, but open slather cutting back was never on their list of ways to handle the crisis. They run their business around measuring and monitoring and moved to whole-farm testing of soil fertility levels three years ago to get a better picture of what was happening in each paddock on the farm. Local Ravensdown fertiliser rep Julie Roberts set and GPS-recorded a transect in each paddock, with six plugs per line, so she is able to sample from exactly the same area as often as Dion and Jo want to test. While whole-farm sampling cost them $2200, 10 times as much as a regular four-section test of $240, Jo says the saving in fertiliser costs more than paid for the exercise. Based on the test results, which showed elevated levels of some nutrients far in excess of optimum levels, the couple were able to map a plan of differential applications rather than the original 30% potash super at 500kg/ha recipe they were using.
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The differential regime saved their farm owners $10,000 each year in fertiliser and application costs, while not compromising fertility.

They applied differential treatments in 2013-14 and 2014-15, then last season reverted to a blanket dressing of 30% potash super at a rate of 360kg/ha.

“We were due for a repeat of the GPS individual farm soil test, but pushed it out for a season to save costs with the low payout,” Dion says.

“The next soil test scheduled for September will give a good indication of where we are sitting and what to do next.

“We have not noticed any difference in grass growth and based on the pasture walks we do every week, or every four days in the fast-growing spring period, we are still growing lots of grass – except for the three tonnes lost in the last summer drought period. 

“In the end it is expensive maintaining high nutrient levels – if it’s higher than optimum it’s a waste of money.”

Jo, a former DairyNZ consulting officer in south Taranaki, agrees and says she is actively recommending the method to her farmer-clients, who she works with part-time through local consultancy Brendan Attrill Agriculture.

“And it’s paying for itself with the savings we have made over the past two years.”

The only downside to the regime is the extra work and thought needed to manage the different applications in with the grazing round.

“It’s not a big deal, but instead of just following the cows around we are having to pick and choose the areas to do and liaise with the fert truck,” Dion says.

Tracking the application is easy with the GPS and application technology on the fertiliser spreaders and it only takes a bit of checking that they have the paddocks right on the day, he says.

Cost cutting

Jo and Dion have just signed up for their second three-year 50:50 sharemilking contract with farm owners Paul Kalin and Carol Drought.

After riding the high payout for their first 2013-14 season, the Bishells spent the next two seasons trying to maximise production while minimising losses and protecting their eroding equity.

“It’s been a balance between making sure we don’t make huge losses and carrying on the System 3 to make sure we survive and keep our equity intact.”

Dion has been in the industry for many years and sold his house to go into a five-year equity partnership before the couple went sharemilking together in 2013.

He says he learned a lot in the equity partnership and they have just had to knuckle down and ride out the downturn.

“We are lucky we have good relationships with our bankers and other suppliers, as well as our farm owners.”

In order to cut costs on the System 3 farm they put a proposal to Paul and Carol to cut the amount of bought-in feed and instead to better monitor the pasture on the platform and take out more paddocks to grow more maize of their own.

As Table 1 shows, buying in maize and grass silage is expensive so renegotiating the grass silage rate with Paul – who is a coastal silage and feed contractor – and cutting back on bought-in maize silage has saved them $36,000 over the 2015-16 season.

“We are in a unique situation as our owners are quite happy to keep poking the feed in, but it needs to be at the right price to be making a profit for both of us,” Dion says.

“We grow lots of feed and do a lot of monitoring so we managed to not change the system, but shift to growing more supplement ourselves.

“This is good early coastal country, we really don’t stop growing grass even through the winter, but we need to do 60-70% of our production before January as the summer is usually very dry.”

FERTILISER PLAN

  • Aim to maximise grass production with minimal environmental impact
  • Carry out GPS individual paddock soil test bi-annually
  • Keeping fertility levels in optimum range (30-40) and reducing the variances
  • Develop an individual paddock fertiliser plan
  • Change to fertiliser spreader that is Spread Mark certified
  • One annual dressing in spring to minimise cost

FARM FACTS

Sharemilkers  Dion and Jo Bishell
Farm owners  Paul Kalin and Carol Drought
Milking platform  151ha, Manaia, South Taranaki

  • System 3 farm, 30% imported feed, 1.2t DM/cow

Production  (470 cows)

  • 2013-14 – 173,860kg MS
  • 2014-15 – 198,123kg MS, dry-off 19 May
  • 2015-16  171,205kg MS, dryoff April 7, bad drought

Potential target  205,000kg MS
Soils  Egmont brown loam, Hangatahua sandy loam around Kapuni River
Pasture grown  14.2-15.1t DM pasture, 11.5t DM 2015-16 in severe drought
Farm working expenses  Driven down to $2.10, break-even payout: $4.66/kg MS

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