Whole Farm Report

Sustainable Resource Management

Whole Farm Planning

Toby Campbell

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Whole Farm Report

Executive Summary‘Lynton’ is a 1500 acre property situated in the border town of Tocumwal NSW apart of the Riverina rice country. The property is ran by Michael McGrath and his family, the property consists of 24 eco shelter sheds turning over 24 000 pigs annually, this is a low input operation and low labor intensity. The property also has a 1000 head feedlot set up with steel cattle yards and feed bunkers with a mixing system to make up specific feed rations. ‘Lynton’ is held under 2 titles, ‘Lynton’ being the original 400 acres and ‘Avalon Park’ which was purchased in the recent 6 years, Avalon Park has developed rice paddies available, along with the further 12 pig sheds, homestead and shed facilities which have been converted into a worm and compost production sight.

The intensive industries only take up a very small percentage of the property 20%, where the rest is prime grazing country which is used for lucerne production and prime lamb production. Over the past 26 years the property has been owned by Michael McGrath it has had an excess of $120 000 spent on converting the property into good quality irrigation lasered country, which when the water allocation is available. A map is attached showing in further detail the outlay of the property and the irrigation system.

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Whole Farm Report

Table of contents

ContentsExecutive Summary............................................................................................................5

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Whole Farm Report

Table of contents...............................................................................................................6

List of figures......................................................................................................................7

List of Tables......................................................................................................................7

Introduction.......................................................................................................................8

History................................................................................................................................8

Location..........................................................................................................................9

Climate.............................................................................................................................10

Rainfall.........................................................................................................................10

Temperature................................................................................................................10

Area and tenure...........................................................................................................10

.....................................................................................................................................11

Enterprise structure.....................................................................................................11

Irrigation......................................................................................................................11

Piggery.........................................................................................................................12

Feedlot.........................................................................................................................12

Grazing.........................................................................................................................12

Worms and Compost...................................................................................................12

Pasture Varieties..............................................................................................................13

Weeds pest and diseases.............................................................................................13

Soil Types.........................................................................................................................13

Improvements..................................................................................................................13

Threats.............................................................................................................................13

Ariel View.........................................................................................................................14

.....................................................................................................................................14

.....................................................................................................................................14

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SWOT Analysis..................................................................................................................15

Strengths......................................................................................................................15

Weaknesses.................................................................................................................15

Opportunities...............................................................................................................15

Threats.........................................................................................................................15

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Whole Farm Report

Conclusion........................................................................................................................16

References.......................................................................................................................16

List of figuresFigure 1 Tocumwal Rainfall data........................................................................................9Figure 2 Mean Maximum temperature..............................................................................9Figure 3 Annual highest temperatures...............................................................................9Figure 4 Annual lowest temperatures..............................................................................10

List of TablesTable 1Loaction table.........................................................................................................8

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IntroductionThe McGrath Family property is located in Tocumwal NSW, in the Riverina an agricultural region in south western NSW, the area is distinguished by its combination of flat plains, hot climate and what used to be an abundance of water for irrigation. These 3 demographics have allowed the area to become one of the most productive areas agriculturally in Australia. Like many other young farmers these 3 factors gave Michael McGrath and his young family at the time the confidence to invest in buying 400 acres of undeveloped farming country 25 years ago, with the water security he thought it would be the best place to get a head start for his family. The choice to buy land in Tocumwal has since paid off significantly for the now 54 year old man with a family of 6 and a multi-million dollar empire on which he built from scratch. He has proved to himself, his family and many other people in the district what a lot of hard work and a few gambles can achieve.

HistoryThe family property was purchased in 1988 by Michael and Michelle McGrath, they both originated from farming background in the high country townships of Tumbarumba and Holbrook, Michael was a shearer by trade and Michelle an aged care nurse, they first settled in Condobolin where they started their family but with 2 girls under 2 and a third baby on the way Michael decided the move to the Riverina where there was an opportunity to buy into the irrigation country and it was country known for sheep farming which in turn meant constant work for him.

The property was brought completely undeveloped and was a huge challenge, Michael continued to shear with his money going into developing the country as it was all completely tax deductible to laser grade the property.

Sheep was always the main enterprise being ran on the property until 13 years later a 12 shed piggery grower operation was set up and that is when the entire game changed for the McGrath family, now with 6 kids and the beginning of Australia worst drought looming Michael was given a huge opportunity and a blessing in disguise. Over the next 12 years while the farming community halved due to the drought Michael brought an additional 3 properties, built a successful trade cattle feedlot and mill, and took his once small 400 acre sheep operation into a now 1500 acre property with 24 pig sheds a feedlot capable of running 1000 head of cattle grazing country able to stock up to 3000 head of sheep 3 shearing sheds and a compost business.

By taking a risk an investing into something completely different and way out of his comfort zone he created an empire.

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LocationThe McGrath family farm ‘Lynton’ is located approximately 10km out of Tocumwal and 10km out of Finley, 3km off the newel highway, it is one of the 4 towns in the Berrigan shire, in the NSW Riverina. It is in a central location and all needs for the business.

Table 1Loaction table

Town & Population Distance Facilities Business relevanceFinley 10km Local schools, sporting facilities and

supermarkets, banks, sale yards, stock and station agents

Finley is where sheep are bought and sold, it is also where the family have invested a lot of money into another business, the myotherapy health clinic ran by the eldest daughterThe primary school and local high school attended by 2 of the daughters.

Shepparton 80km Major city, private hospitals, large shopping centers, machinery manufactures, sale yards

Where machinery is brought and farm supplies when possible as it is cheaper.Worms are transported here to sell to a local buyer.

Albury 160km A major rural city with all facilities needed for the farm and also for private use

The farm business consultant is located at the ANZ bank in Albury

Melbourne 260km Major city, airport, major hospitals, universities, manufacturing dealerships, abattoirs, ports

The airport is used frequently by the family, some pig loads are sent to the abattoirs in Melbourne

Corowa 100km The base for the Riverlea pork company, all basic facilities

All pigs are received from Corowa they are also slaughtered there, and all business concerning Riverlea is done through from Corowa.Shearing supplies are brought from Troy Briggs shearing supplies in Corowa

Tocumwal 10km Local town, supermarket, sporting facilities.

All mail is sent and received here

Deniliquin 65km All facilities available here, vehicle manufacturers, supermarkets, medical requirements

Tractors are brought from here and serviced by mechanics from the Deniliquin base

Cobram 25km All facilities, large shopping centers, medical centers, sporting facilities, sale yards, transport needs

Sale yards ae used here, stock and station agents from here have also been used, worms are packaged and put on transport in Cobram regularly

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Climate

Rainfall

Figure 1 Tocumwal Rainfall data

Temperature

Figure 2 Mean Maximum temperature

Area and

tenure

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Figure 3 Annual highest temperatures

Figure

4 Annual lowest temperatures

As the above graphs show, the climate experienced by the McGrath business is varying, going from extreme heat waves in the summer and freezing nights and experiencing large frosts towards the end of winter, it has a climate very typical experienced by most of NSW, due to its flat plains it is known to experience high winds at any time throughout the year. (BOM 2014)

The above climate only effects a small proportion of the business, Michael only decides to do cropping with no real plan to harvest exceptionally yielding crops in the summer, while he agrees that is a bonus if possible but he is not willing to spend large inputs when it is not the main profit driver for the business, if the crops fail due to climate, they are used as extra grazing and cattle can be taken out of the feedlot to eat the crops instead and the sheep are fattened quickly and turned over. Climate is not a huge issue when it comes to keeping the farm afloat hence why the business has flourished as it has taken the biggest variable out of the production risk and gross margins.

Enterprise structureThere are a number of enterprises running from the ‘Lynton’ property base

24 shelter piggery with 24 000 pigs turned over annually 1000 head feedlot, with milling facilities 1200 head flock of crossbred ewes, prime lamb production Compost worm business Small fodder crop production (Lucerne) Michaels shearing contract business

IrrigationThe entire property has the available facilities to be flooding irrigated, mostly used for Lucerne production if water allocations are available.

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The property originally came installed with a waterwheel and some irrigation channels developed, but over he following 10 years the rest of the property had irrigation channels and laser grading implemented costing an average of $1000 an acre.

Piggery Developed in 2002 Started as a single 12 shed contracts, until in 2008 our neighbor who went into

the same contract sold his property and contract to us. $300 000 dollar input cost Automatic feed system $20 000 monthly rate plus the weaner bonus (low death rate bonus $2/head for

a death rate under 1%) Receive pigs from Corowa at 4 weeks of age Trucked out again at 20 weeks old or 90kg

Feedlot Licensed to hold 1000 head $300 000 initial setup cost, including steel yards, grain bunkers, mixing system

and silos. Originally built for a contract with John Griffith and Jerry Harvey to grow their

Wagyu cattle Changed from Wagyu cattle to trade cattle, which was very labor reliant and

intense work Currently not operating

Grazing 1200 crossbred ewes, for prime lamb production Black Suffolk terminal sires 110% weaning rate December joining Shearing in October Minimal input for sheep heath, as Michael and son do all the shearing

themselves

Worms and Compost Pig manure is put into windrows, and compost worms are harvested from them They are fed a mixture of wet pig pellets and coffee, wand on a drip system for

water. Harvested when an order comes through which is almost daily except during the

winter time Order sizes up to 100kg at varying prices between $40-100/kg

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Pasture VarietiesPhalaris, sub clover, ryegrass, native grasses.

Improved pastures, lucerne

Only 80 acres of the property are unimproved, on the most recently purchased block.

Weeds pest and diseasesIn pastures the main 3 weeds are Bathurst burr, pattisons cure and doc; these are controlled by spray grazing.

Pests in pastures are earth mites such as red legged especially in in clover and aphis bugs in the lucerne,

When it comes to livestock, foxes are the main pest which is controlled by having alpacas in all flocks of sheep and hunting them. Sheep also struggle with lice occasionally and fluke in winter time.

Soil TypesRed loam sandy soil is the dominant type, which is good for Lucerne production as it takes less moisture to get everything going but dries out quickly.

Grey clay makes up the rest of the property, this is a common type of soil found in the Riverina hence why it is such good quality rice growing country, as it holds moisture for a lot longer

Paddocks have not been divided due to soil types, except for the grey clay country has been built into rice paddies y a previous owner. The paddocks are designed by the irrigation system and ease of water flow.

ImprovementsTo improve more pastures and put in more Lucerne for prime lamb production and hay production

ThreatsLow water allocation, currently we have a low water allocation of 20%, even though the Riverina is having a good season, the Darling River is dry and therefore Adelaide’s water supply has to come from the Murray River meaning farmers do not get adequate water.

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Ariel View

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Piggery site 1

Piggery site 2

Undeveloped swamp country

FeedlotHomestead 1

Homestead 2

Rice paddies (currently unused for rice)

Water wheel

Water wheel

Main irrigation channel

SWOT Analysis

StrengthsThe main strength for the McGrath family property is that there is always going to be a consistent substantial income from the piggery despite what is happening with the climate.The property is ran with very few other laborers, it can be maintained by Michael on his own with the occasional help of contractors to do jobs he doesn’t have time for or the capabilities to do on his own.Minimal input for all outputs, by not making cropping a major enterprise for the family business a lot of input costs have been reduced.

WeaknessesBeing reliant on water allocations for quality pasture production for prime lamb production

Poor organization is the biggest weakness of the business, a lot of money and time is lost due to poor organization in the office, there is no computer program installed and this is a major let down to how efficiently the property could potentially operate.

Poor fencing and facilities, this is a weakness to the business as it causes a lot of extra work and stress on a single operator business.

OpportunitiesImplementing a computer program such as phoenix could improve the efficiency of how the business runs and how accounts are kept.

Livestock schedules could be used and a much more efficient prime lamb production could be instigated to increase profitability and pasture usage.

Hiring an extra hand or manager, as Michaels passion isn’t being at home on the farm, he would personally prefer to spend his time in the shearing sheds and be able to shear full time and still achieve good numbers and a large cash flow for the property from shearing weekly instead of just throughout the spring. Hiring a manger could be a huge opportunity as the farm could run more efficiently by someone who is willing to spend a lot more time on the property itself

ThreatsEPA and MIL industries are a threat as they are constantly auditing industries such as the piggery and the feedlot, and the business has to be on top of any new requirements.

Animal rights activists have become a threat in the last 5 years more so then they ever have been, trying to stop trespassing coming into the piggeries has become a more common occurance, they are a threat as all their material can be twisted and any

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damage done to the piggeries or the industry via their footage would be detrimental for the property

ConclusionThe McGrath family property .a productive business that shows that spreading the risk and investing in more than the one area of agriculture pays off, as the original idea to invest in land at Tocumwal for water security can’t be used as a security blanket anymore, investing into a piggery has been the biggest opportunity for the family and this business and a permanent security blanket in comparison to irrigation.

While the business has a lot of chances for improving production and in turn profitability, it is a huge opportunity for any of Michaels children to return to and continue to build on an empire that he started and persisted with 26 years ago.

References

Bureau of Meteorology 2014, climate outlooks, retrieved 15th of October 2014<http://www.bom.gov.au/climate/ahead/

Michael McGrath, personal conversation retrieved 2014

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