Presentation by

Jamie Snell

2006 Nuffield Scholar

“What future the family farm?”

Sponsored By:

Merrigum

What future the family farm?

• What are key measures of success?

• How are farmers addressing

succession planning?

• How are young people entering the

Dairy Industry?

Background

• Lifetime dairy background

• 10 years sharefarming Macalister Irrigation District

• Management to herd ownership

• 1996 Property purchase Goulburn Valley

Farm Ownership

• Family Trust Business Structure

• Additional property purchased 2005

• Neighbouring property purchased January 2008

• Currently farming 285 Ha. With 720Ml water right.

Industry Involvement

• United Dairy Farmers of Victoria

• Melbourne University Dairy Liaison

Committee

• Sharefarmer Of the Year Judge

What was the study purpose?

• To investigate what was giving confidence

to other dairying nations

• How are they attracting young people to the

industry?

• How are they measuring success?

• How are they planning succession?

• To investigate the effect of demographic

change on irrigation practices

Environment and Energy

• Two key policies impacting on all

areas of agriculture

• Impact of America mandating biofuels

• Policy of food security and energy

security.

• 4 billion bushels of corn.

Europe

• Alternative energy.

• Biodigestors for methane production.

• Canola utilised in biodiesel.

• Wind turbines.

• Subsidised.

• Over subscribed.

Changing face of UK agriculture

• Land price increase of 20% in twelve

months

• Support payments decoupled

• Tradition/heritage standing in the way

of progress

• Regulation and compliance costs

Options

• Value add in the supply chain

• Diversify

• Low cost business operation

• Proprietary v co-ops

• Redevelop and rent farm buildings.

Supply Management

• $30,000 /kg purchase price

• Mature market

• Difficult for Young Farmers to get a

start

• Close borders with the USA with BSE

• Product leakage

USA

• USDA –FSA joint ranching scheme

• Subsidies

• “When milk is $14 @ 100 the bills

don’t get paid”

• Environmental lobbyists

• Bullet and hook

Irrigation

• Stressed catchments

• Low water allocations

• Subsurface drip irrigation

• Trial work

• First in time, first in right

• “Happy fat and lazy”

Biosecurity

• No standard definition

• What is it?

• Where is it?

• No unique identifier for

premise/transport infrastructure

• Foot and Mouth

China

• A lot is lost in translation

• Everyone has their own China

experience

• China has had its industrial revolution

and needs to have its technological

revolution

• Labour – a competitive advantage?

Shanghai Dairy

• Heat and humidity

• Cow production

• Fertility

• Feed ration

Succession

• Planning

• Communication

• Implementation

• Affirmation

• Duty to be viable

• Y-Gen profile

Measures of Success

• Net worth

• Return on capital

• Benchmarking

• Profit

• Co-operation

Conclusions• Agriculture career of first choice not last

resort

• Government support through research and

development funding

• Strategic and visionary policy

• Embracing new technologies.

• Realistic promotion of Agriculture

Heartfelt Thanks

• My wife Anne who was irreplaceable

• My children Michael, Katherine Xavier and Matthew

• Our wonderful community.

• My very generous sponsor “The Gardiner Foundation”

• Nuffield Australia and Nuffield networks

Recommendations for your industry

• Opportunity.

• Schemes.

• Commercial reason not to.

• Social reasons .

Next generation

• State bodies to administer fund. Eg.

RFC.

• Annual appropriation.

• Scheme 5+5.

• Discounted rate adjusted annually.

• Review at end fourth year.

Australian Nuffield Farming Scholarships

A World Experience

Scholarships exclusively for Australian

primary producers

The mission of the Australian Nuffield Farming

Scholars’ Association is to promote excellence in all

aspects of Australian agricultural production,

distribution and management through the adoption of

local and international best practice and continuous

development of a unique network of industry leaders

and innovators

Further information

Phone: 61 2 6964 6600

Fax: 61 2 6964 1605

Email: enquiries@nuffield.com.au

Further details on Nuffield may be

downloaded from the Nuffield

website: www.nuffield.com.au

What an experience!!