Making More from Sheep Australian Wool Innovation Limited Meat & Livestock Australia
MODULE 1: Plan for Success
Tool 1.12
Previous Index Next

The Sustainable Grazing Systems program (SGS) aimed to increase enterprise productivity at the same time as improving the environment across Southern Australia’s high rainfall zone. One of the many SGS outputs was the planning framework (below). The framework draws on your existing knowledge and aspirations to assess the benefits, potential flow-on effects and implementation challenges of any change you’re considering.

MLA publication “Towards Sustainable Grazing – the professional producer's guide”

Step 1 — deciding the options and priorities

Where am I now?

Where do I want to get to?

This is where you describe your current situation, and perhaps why you are not satisfied with what you are    doing, or the results you are getting.

This is where you describe your vision, where you are heading, or what you want to achieve. It is important that this section highlights as specifically as possible what you want to see or achieve from any changes you plan.

What are my options?

What is the highest priority?

Can I modify my enterprise mix? Is there a pasture management solution? Are there offfarm options?
There are often many different options or approaches
to achieving your vision of where you want to be. List
as many as you can.

From the list of options, select the one that you think is most appropriate/the best option for you. This may require some further information seeking, and/or discussion with others (advisers or codecision makers)

 

Step 2 — planning the change

Possible impacts on the farm

Possible impacts off the farm

What are the likely impacts on (for example):
Pastures and animals
Finances
You and your family
Soils and nutrients
Native or remnant vegetation

What are the likely impacts on (for example):
Your customers
Your community
Catchment priorities for natural resources

Likely impact on profitability

Overall assessment

Profitability
What is the expected impact on profitability and
where will it come from? Reduced costs? Increased returns?   How sure is thegain
from year to year?

Other key considerations

What other issues have to be considered? Some examples might include:
Are extra skills needed?
How will the change be financed?
Are additional animals required?
How long before the change breaks even?
How committed am I to the change?

Main advantages
What are the key advantages (small number only) you expect from the change?

Main disadvantages/risks
What are the most critical potential downsides and risks to be considered and managed? How will you know if things are not going according to plan?

Conclusion/implementation
Final, and individual decision and steps for implementation

 

Example – “I want to increase pasture production and animal output”


Step 1 — deciding the options and priorities

Where am I now?

Where do I want to get to?

I don’t have a lot of spare winter feed, but my current stock numbers
(12.5 DSE/ha) are not high enough to generate the income I’m going        to need over the next few years. I’ve been rotationally grazing for several years, and I have a reasonable paddock layout to handle more stock. Rotational grazing allowed me to increase my stock numbers and cut fertiliser but I seem to have hit a barrier. I’ve seen demonstrations that improved pastures can boost feed supply by 50% or more.

I think I need to increase my stocking rate by about 20% over the next 2 years in order to increase my income, but my facilities could handle an even larger increase. However, I want to make sure that as I increase my stock numbers, I do it in a sustainable way. My property has some quite steep sections that, if overgrazed, may start to erode. I would like to reduce grazing in these areas and possibly use them for NRM objectives such as trees.

What are my options?

What is the highest priority?

Try to manage my rotational grazing better to increase utilisation
Increase subdivision for more intensive grazing
Increase fertiliser use on existing pastures Re-sow
some under-performing pastures with some of the latest
perennial grasses and clovers
Seek higher paying markets
Buy additional land or install irrigation

My soil tests are moderately low, but I don’t have the species in some paddocks to respond to extra fertiliser. Buying additional land is always at the back of my mind, but optimising production at home comes first.
Resowing and fertilising a couple of paddocks seems the best option, so long as I graze them correctly and increase stocking rate to utilise the extra production.

 

Step 2 — planning the change

Possible impacts on the farm

Possible impacts off the farm

There will be extra pressure on other paddocks so some overgrazing is likely Contract labour will be needed
Direct drilling should avoid any erosion risk Should
not be any impacts on water use or on any remnant
vegetation. Highly productive pastures will be beneficial
for soil structure and increase organic matter
Will need capital to fund both the new pastures
and more stock

The paddocks are already pasture, so additional impacts should be minimal
Extra fertiliser may pollute run-off water
Profitable farms are important for my community

Likely impact on profitability

Overall assessment

Profitability
At an average gross margin of $20/DSE, a 30% increase in stocking rate will yield about $70 more per ha. About $15      extra fertiliser is needed per year.
Given $250/ha establishment costs and say 12–15 years pasture life, the annual cost of the improvement is about
$25/ha, leaving me $30/ha profit per year

Other key considerations
What is the best mixture of species for my place?
Is my lambing time matched to the increased feed?
How will I finance the development? Natural increase,
buy or agist?
Are there additional pasture pests I’ll need to watch?
Are there additional market opportunities if I have better
quality pastures?

Main advantages
Increase total feed supply and quality
Economies of scale within my existing farm
Fits my existing management skills
Allows increased profit and NRM objectives

Main disadvantages/risks
Sowing pastures has a high capital cost
Extra pressure on other paddocks, but my feed planning/monitoring systems will help avoid this
Significant risks including, establishment failure, falling stock prices, and the fact that the extra production may not cover the costs.

Conclusion/implementation
Careful planning will be needed, but on balance it looks profitable, and will increase the overall sustainability of the farm operation. First step is to identify the two paddocks I will re-sow.