Farmers Urged to Review Budgets as Fuel and Fertiliser Prices Rise

That's the advice from respected Waikato-based farm consultant, James Allen, AgFirst.

He says not only should they be doing some serious budgeting but also looking at ways they can be more efficient with fuel and fertiliser.

"With good prices there is a risk that people get a bit complacent, but I would be encouraging people to think about ways they can utilise their existing nutrient levels in their soils and to be really focused on and smart on using what they have got," he told Rural News.

Soil Testing Can Help Reduce Fertiliser Costs

Allen says one way of doing this is to increase the amount of soil testing on their farms and focus on individual paddocks rather than across big blocks.

He says understanding the precise fertility of the farm may take a bit more time, but it is probably money well spent.

"Keeping things simple and harvesting as much pasture as you can is important," he says.

Farmers Encouraged to Review Cropping Systems

In some areas of the central North Island it is noticeable that large areas of land have been planted in winter forage crops and Allen believes this is because some farms are recent dairy conversions and still need some development work.

He says cropping seems to work well in that region where there tends to be colder winters and getting a good yield from maize can be challenging at times.

"What this highlights is that there is a need for people to evaluate their farm systems going into the season ahead. What I mean by that is cropping can have an effective place in the farm system, but it does depend quite a bit on yield. And if you're not getting a good maize yield, maybe you are better to buy it in. And equally if you are not getting a good yield from the forage crop, don't grow it," he says.

Palm Kernel Prices Expected to Rise Further

Allen says the other issue in the mix is the cost of palm kernel.

He says now it's about $400 a tonne but believes it is more likely to go up in price rather than drop.

He also suspects that the cost of producing maize will rise as that crop relies on fuel and fertiliser.

He says a dairy farmer can grow quite a good maize crop quite effectively with a lower level of fertiliser than people generally apply on an efficient paddock.

"So, the key message is good budgeting and thinking more about how to get very efficient fertiliser use and nutrient management," he says.