Farmanco Facts - March 2025 Edition

Farmanco wishes all our farming clients and communities a successful 2025 season. We’re all hoping for rain – bring it on!

Articles contributed to Farmanco Facts for March from our consultant teams include:

Is Land Value too High to Make Purchasing Viable?

Ben Curtis (Farm Management Consultant)

Land values have increased by more than 10% per annum over the last 20 years.
Land values are expected to continue to grow.
High rainfall farms generally grow in value at a faster rate than lower rainfall farms.
Productive agricultural land is expected to continue to be in high demand in the future.
Higher interest rates have made it harder to justify purchasing land for many growers.

With the rapid increase in land prices, many growers are starting to question how sustainable these increases are and indeed if there is any sense in paying these high prices.

Victrato® Available in 2025 for Crown Rot

David Cameron (Agronomy Consultant)

Victrato has been registered as a seed dressing for the management of crown-rot.
Activity on root lesion nematodes is significant, but this pest has not been included in this initial registration

Victrato® provides a step change for crown rot control compared to the existing options.

Wheat Grade Spread Trends

Mae Connelly (Grain Marketing Consultant)

The ASW1 spread (to APW1) usually widens over harvest but narrows post-harvest, with the best spreads typically after harvest.
The H2 spread (to APW1) is generally the best at harvest and can be volatile post-harvest. The best time to sell high quality/protein grades may be over harvest.
Locking in some grade spreads on forward contracts can help to manage grade spread risk.
Short-supplied grades tend to have stronger prices over harvest as traders compete for tonnage.
If holding wheat post-harvest, lower grades (ASW1) usually improve in spread, but absolute price may still fall

Grain marketing is full of clichés, and one that often comes up is: “All wheat becomes wheat after harvest.” This saying suggests that grade spreads tend to narrow post-harvest, but does the data support this?

It’s the Total Interest Rate that Allows You to Know What You are Paying

Ben Curtis (Farm Management Consultant)

It's important to note there is a significant variation in interest rates achieved across the Farmanco client base. When discussing interest rates with your bank, focus on the ‘all up’ interest rate. Don’t allow margin or package information to obscure your discussions, as the ‘all-up’ rate is the crucial metric for accurately comparing interest rates between financial institutions.