The drought is Awful - heartbreaking , terrible .
But - it’s a Big Country .
Many of the farming operations in which RFF has ownership , will also have stored or independent water supply. At least to get crops in & going - a start in spring , heading into summer . If there are shortages , lower production volumes due to drought or weather events - prices for crops and livestock production will increase. Depends on global prices also .
And the Australian dollar value against other partner country’s currencies .
A farm will not risk investing in a significant crop without secured water , profitability planned as far as can be foreseen with contingencies , and contracts to supply .
RFF is also the landlord , rather than the operator as I understand it .
It would be more relevant if income is on a sharefarming basis . Not so relevant if holdings are longterm leased . Returns more fixed .
( ie. ‘Share ‘ , share-farming arrangements- Income is as a base proportion of gross returns , with incremental proportional returns on higher yields ? This is designed to ‘even out ‘ the cost of use of land , allow the rentor windfalls , in a rare bumper year , yet protect in event of bad seasonal years .
Also with agreements of care , inputs back into the ground , standards so that the farm doesn’t get rundown , or ‘flogged ‘ . Environmental standards and land care are primarily important. )
RFF - feedlot operations will be impacted by higher grain input costs . And cost of buying in Stores , livestock .
After rain occurs - farms will hold on to stock to rebuild herds also . There will be a shortage of animals for sale for some time. Feedlot operations oscillate in numbers throughout the year , and years . Less staff and inputs are then required also .
I’m not familiar with the total ownership , and makeup of properties held by Rural Farms .
But a large area is impacted by drought including holdings of RFF .
It is easy to look up a map - from memory , many are located inland , along the east coast - NSW & Qld .
Agriculture , primary industry is a longterm outlook though .
10 - 20 year cycles .
We really need to produce food , populations need to eat .
Food production - food and livestock - is maybe forecast to need to double , by 2050 ?
Just to keep pace with feeding the world’s growing population. It’s an impossible task almost .
This I think is the production goal — into the future, for what is to be produced , from Australian farms.
Australia is a very important food exporting nation , and proudly so
We all need productive farming enterprises , and farmers .
At the moment at least it is good that a wide audience, city people especially who are generally insulated from rural Australia and unaware of the enormous importance and contribution of the country’s farms from day to day - are appreciating and realising these facts .
Usually they don’t see what the landscape looks like , with its implications for farms- beyond the cities and towns .
It is truly good to see everyone reaching out to try to help , or to be concerned to donate .
(20min delay)
