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Tomorrow marks the first day of Summer. I'm looking forward to the continued warmth and sunshine, along with a bit of festive spirit, (which started a little early for us here at Smith Shearer as we enjoyed our Christmas function this weekend just gone).
From what I’ve heard, most of our Esperance farmers are just over halfway with their harvest. Yields are still consistently strong with the CBH Grain Report reporting both Esperance Port and Grass Patch breaking daily records at 37,150 tonnes and 15,730 tonnes respectively on 16th November.
With the news of disruptions to fertiliser supply coming into 2022, some of our agribusiness clients report feeling uncertain about how to tackle the issue. Having spoken with local Farm Management Consultant Ben Curtis, (Farmanco), Ben notes that because fertiliser prices are really high, people are feeling anxious about what to do.
Ben’s advice regarding the global fertiliser shortage is clear and simple. The bigger risk is not having fertiliser, rather than paying a high price for it. It’s vital to ensure certainty in your fertiliser supply heading into 2022.
Look at the economics of fertiliser supply in the scheme of the bigger picture, Ben suggests. In following on from this year’s harvest, as long as your crop grows next year, you’ll be able to market your grain at a profitable price. Ben recommends that a good strategy is heading for grain sales by forward pricing.
I encourage you to have an early conversation with your farm advisor / agronomist to help better forecast what fertiliser input you’ll require in 2022 as part of your overall agribusiness planning. Next week, we’ll start looking how undertaking early interims will assist you in predicting your cashflow for next year.
All the best,
30th November 2021
Disruptions to the agricultural supply chain are expected to have an ongoing impact on fertiliser production
Experts believe farmers may ration use of fertiliser, leading to lower yield and higher global food prices
With sky high prices, above average yields and high oil content, Western Australia is looking at its best-ever year for canola.
Farewell Sandra
Last week Sandra finished up with Smith Shearer, as she moves to Perth city to embark upon a new journey with her family. Sandra has been a valuable asset to the Smith Shearer team, sharing her love of technical research and taxation expertise with our small business and agribusiness clients. It's also been a pleasure to mentor Sandra in undertaking her Chartered Accountant Certification.
If you have any questions for me, or would like me to address a topic specifically, please email me directly at melissa@smithshearer.com.au. Alternatively, complete the form below and I'll be in contact.
If you find this newsletter valuable, please forward it on to your agribusiness contacts.
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