THE LUCERNE LEADER...THE LUCERNE LEADER ISSUE 39 DECEMBER 2015 PAGE 3 Contract prices for both...

THE LUCERNE LEADER ISSUE 38 SEPTEMBER 2015 PAGE 1

THE LUCERNE LEADER

Issue 39 DECEMBER 2015

The world’s leading specialist in food and agribusiness banking

2016 Lucerne Australian Tour to the USA

In this issue:

USA Field Tour 1

An American Growers Perspective from the USA 2

Seed Market Reports 4

Agronomy Report 7

Increasing yield through hybrid breeding 7

Golden Dodder Update 8

Bee Industry Update 9

Drought Concessional Loans 11

Fertiliser Trial Update 11

Potential Land & Water Rate Changes 12

Seed Distributors Field Tour 13

Executive Committee Members 14

THE LUCERNE LEADER ISSUE 39 DECEMBER 2015 PAGE 1

Good people to know

By Charlie Hilton, Executive Committee Member

We are developing a ten-day, comprehensive and informative field tour to lucerne seed growing areas of the USA in July 2016, and we encourage your participation.

You will increase your practical farming knowledge and management skills, understand the current agricultural landscape in the USA and gain the greatest impact by discussing and sharing what you learn with fellow growers in a small group environment.

This tour will provide you with a great experience and new agricultural knowledge.

Successful, innovative businesses within the lucerne seed industry – and other industry sectors – will be visited to inspire, encourage and assist you add-value to your business.

Details: • Dates: Tuesday 26th July to Thursday 4th August 2016• Commencing: 6am on Tuesday 26th July, departing LA, California• Concluding: 3pm on Thursday 4th August, at Boise, Idaho• Duration of tour: Ten days inclusive

We will travel to California’s Imperial Valley, to Fresno and Sacramento, then onto Idaho. Visits include businesses in the lucerne seed industry and other sectors such as cropping, livestock and horticulture.

It will be an all-inclusive 10-day visit. Flights to-and-from Australia to the USA will be the responsibility of individual participants, with support from LA. You will be required to be in Los Angeles by the evening of Monday, 25th July.

We are currently finalising the program and this will formally be launched and distributed to all our members prior to Christmas with registrations open in January-February. Don’t miss what promises to be a fascinating and enjoyable tour!

THE LUCERNE LEADER ISSUE 38 SEPTEMBER 2015 PAGE 2 THE LUCERNE LEADER ISSUE 39 DECEMBER 2015 PAGE 2

An American Grower’s Perspective from the USABy Growers, Mark and Sharla Wagoner, Washington State, USA

“Whiskey is for drinking, water is for fighting.”

This quote is attributed to Mark Twain, but has been repeated many times in the history of the arid parts of the western United States. Here in Touchet, we get about six-to-eight inches of rain annually. It takes 30 inches per year to get a good alfalfa seed crop, so we must irrigate to make up the difference.

Irrigating in Touchet, WA

We get most of our irrigation water from snow in the Blue Mountains, 80 miles away. It melts during the spring and summer and flows into the Walla Walla River. It is then diverted from the Walla Walla into a canal that travels 12 miles before it reaches the pumping stations on our farm.

The Blue Mountains are not high enough to have a substantial amount of snowfall and the water in the Walla Walla River has many diversions before it gets to our canal, so we are always short of water.

We have no summer water from the canal. It typically dries up the on 1st July and we can begin diverting it again on 1st October. Thanks to our deep rich soil, and the tough, long roots of alfalfa, we put on the additional water needed for an alfalfa seed crop 12 inches in the spring and 12 inches in the fall, 48 hours at a time. All our irrigation in the field is done with 40 foot aluminium pipes.

In 2000, the Federal Government, in response to pressure from the local Native American tribes, enacted the Endangered Species Act, to protect the bull trout and steelhead in the Walla Walla River.

We are now required to leave 18 per cent of our former water rights in the river. While we used to finish our fall watering by the end of November, we now hope to be finished by Christmas.

As soon as we finished harvesting our alfalfa seed the end of August this fall, we began starting to put the water for next years’ crop on the newly harvested fields using the limited wells we have. It gives us a jump on the fall watering, but we cannot begin to water all the acres with our wells. We must wait for the water from our canal for the majority of the irrigation water.

Due to low snowfall last winter, and very little rain so far this fall, water in the Walla Walla River this year is especially low. By the end of November we are just now getting all the water we can use. Colder weather has arrived as well, so pipes are moved in icy and cold conditions.

All our irrigation in the field is done with 40 foot aluminium pipes.

We are now required to leave 18 per cent of our former water rights in the river.

Transform was targeted and a judge has pulled it from the market.

Our pumping station

Ice on sprinklers

Changing Irrigation Pipes in November

Stacking the leafcutter bee boards in the cooler


Contract prices for both conventional and Roundup Ready seed are strong.

Bees

One of the first jobs after harvest is to pick the leafcutter bee boards up out of the shelters in the field and put them back in the cooler, where they are gradually cooled to 40 degrees F. They are stored at that temperature until they are incubated next May before they are put back out in the field.

We have also been trying to add on to our bee beds, giving our native pollinator – the ground nesting alkali bee – more room for nesting next summer.

We own and manage our own bees so pollinator safety is of paramount importance.

One of the bright spots this summer was a new pesticide from Dow called Transform. It has been well-tested by our entomologist from Washington State University. Applied at night, it is very safe on foraging bees the next day.

Honeybees and colony collapse disorder are the new focus of environmental groups in the United States. As part of their efforts, Transform was targeted and a judge has pulled it from the market.

The pesticides at the heart of the current controversy of colony collapse disorder are called neonicotinoids, or “neonics” for short. They became popular in the 1990s, replacing other types of pesticides that appeared to have possibly adverse effects on birds and mammals.

There have been claims that neonics cause “colony-collapse disorder”—a phenomenon in which entire colonies of honeybees suddenly die. The proof behind this claim is weak. Last year, the Washington State Department of Agriculture said that lack of forage and a parasite called the varroa mite pose much bigger threats to honeybee populations.

As it happens, the global population of honeybees has been increasing for decades. In the United States, where it has suffered fluctuations, we’ve also seen improvements in recent years. We would like a more research on bee safety and that includes bee safe pesticides like Transform.

Chalcid Fly

Alfalfa seed in the United States is a non-food crop so rather than grazing our fields after harvest, we typically burn our fields in January to get rid of residue. It also gets rid of a lot of pests and weed seeds. Chalcid fly is not a pest we have problems with here. I think the burning of the residue and cultivation of the fields when it is cold in the winter are both detrimental to chalcid fly.

Lucerne Hay Market in the USA

Currently here in the western United States, the hay market is soft. There was a longshoremen strike at the ports on the west coast from October 2014 to March 2015. Over this period, very little hay was exported to Asia. There is still a hay backlog keeping the market depressed.

Lucerne Seed Market in the USA

The alfalfa seed market is robust. Contract prices for both conventional and Roundup Ready seed are strong. And there is a big demand for the new traits.

This fall we planted seed with the Roundup Ready trait, along with Reduced Lignin. Reduced Lignin improves the digestibility of alfalfa and is especially appealing for the dairy industry. We received premium contracts for planting this new combination of traits. That is the good news! The bad news is the seed companies are recruiting new seed growers and are aggressively increasing acres to meet the demand. We expect an over production in three to four years and once again the price will drop in the contracts for alfalfa seed.

Merry Christmas

As we finish up this newsletter, it is cold and foggy, the days are short and we are expecting to shut all the irrigation off for four days because it will not get above freezing. We are thinking of how beautiful and warm it was in Keith when we were there in November 2013 for the GM Symposium, and are envious of you at the start of your farming year. We send our best wishes for a Merry Christmas and a healthy and prosperous New Year.

Roundup Low Lignin Alfalfa - planted in August 2015 in 22 inch rows

Stacking the leafcutter bee boards in the cooler Taking the bee shelters out of the field during harvest


Seedmark and Heritage Seeds Market ReportBy Craig Myall, International Business Manager, Ph: 0407 620 580

Since our last report in September, demand has continued to outweigh available supply in regards to the international lucerne market.

With industry available stocks now virtually exhausted, sales have slowed. However, shipments have continued to motor along with a further 3,254mt sailing in the recent July to September quarter. This now brings our 2015 calendar year figure to a massive 9,301mt with the final three months to transact and there is likely to be another 1,500 - 2,000mt occur during this period.

There is little doubt that the exported 2015 tonnage will be the largest over the previous decade, which coupled with historical high prices paid to grower and marketer, makes the lucerne industry a good one to be part of at present. Let’s hope it continues….

So why are we seeing such good demand for our seed? I see the major factors being;

• Saudi Arabia (our consistently largest market) is having a large planting year which follows a large wheat planting year in 2014 (rotation driven). There are also some concerns that future imports may be regulated (not as yet proven however).

• The USA had little carryover from its 2014 harvest and the 2015 harvest was below expectations.

• Europe had reduced supply following lower than expected yields in major seed producing countries such as France and Italy.

• The $AUD has weakened against most major currencies over the last 12 months.

All of these factors have supported purchases of lucerne from Australia.

The recent rainfall experienced in the south-east was not ideal for many small seed producers, but I did note a smile on the face of many lucerne seed producers, and certainly some dryland growers at our recent grower nights!

All the best for the festive season. I wish you and your families a safe and prosperous summer, and look forward to updating you early in the New Year.

Craig Myall International Business Manager 0407 620 580

Nathan Smith Seed Production Manager 0408 655 220

Tom Botterill Procurement “Publics” Manager 0439 384 375

Jeremy Gittins National Production Manager 0417 338 078

Naracoorte Seeds Market ReportBy Joshua Rasheed, Seed Production Manager/Pasture Advisor, Ph: 08 8762 1944

The cereal, oil and small seed harvest has started in the south-east with average to poor yields at best, unless irrigated, and arguably the earliest start to a harvest season.

The once drought proof region is proving to be anything but drought proof. Yet through necessity we adapt and become better farmers, irrigators, pasture and livestock managers and seed marketers.

Some positive signs for season 2016:

• World seed stocks are at all-time lows (including lucerne)

• The Australian dollar has stabilised around the 0.68 – 0.75 mark making our produce very competitive globally

• Strong livestock pricing has confidence for farmers to buy seed at very strong levels

• Prices in some seed commodities have risen sharply in recent times

the exported 2015 tonnage will be the largest over the previous decade.


PGG Wrightson Seeds Market ReportBy Daniel Steadman, International Trading Manager, Ph: 0408 838 687

Where has the year gone? We are nearly at Christmas and not long after then lucerne harvest will be upon us again. We have seen huge volumes of tonnages move off our shores on the back of issues in the USA and also the currency moving in our favour which has all helped for good prices.

We have seen good recent rains on the dryland areas which is a welcome sign for the growers that have missed out in recent years. This additional supply will help build our inventories that have been sold this year and also allow us to capitalise on the increased demand that is expected.

We have recently returned from trips to Saudi Arabia, Argentina and Uruguay to meet with new and existing customers, agents and brokers who all have a positive view of the lucerne outlook, as well as the varieties we are currently supplying.

We are seeing the recent beef price improvement having a large amount of land in South America switch from corn and soya back to pasture-based systems giving us more demand for our Argentinian bred lucernes.

We are expanding our existing relationship with customers for our other seeds to market lucerne into new countries and new markets for all dormancies. To fill this demand, we are currently looking for additional hectares to fulfil these needs with market priced contracts that have guaranteed minimum payments and terms to suit your needs.

There is mixed reports out of the US for the coming season, on the back of their fodder demand and how many hectares will be locked up for seed as opposed to being cut for hay. There is no doubt they will still require uncertified Australian seed in 2016 and with our currency being at current levels, it allows for the value to be shared across the growers, marketers and buyers but it is one to keep an eye on, particularly in the latter half of next year.

There has been large tonnage of seed move out of the Keith shed in the past month with the remaining tonnage to be shipped before the end of the year. There will be ample room for new crop to come in. We are continuing to develop and improve the capability of the Keith facility to best service the lucerne growers.

The team at PGG Wrightson Seeds wishes everyone a safe and happy Christmas and we are looking forward to a successful lucerne harvest in the New Year.

We have returned from trips to saudi arabia, argentina and uruguay.

We are continuing to develop and improve the capability of the Keith facility to best service

the lucerne growers.

What does this mean for lucerne?

Lucerne (Alfalfa) is truly a remarkable plant! Lucerne, if managed, can last for many years, be grazed, cut for hay/silage, used as a fire break, harvested for seed, as well as a valuable source of fixing nitrogen.

Water resources in the major production regions are under pressure and with world seed stocks at historic lows we may finally be seeing the true value of the lucerne plant being unlocked.

Forward selling of lucerne seed has again been very active this season with many growers taking up the opportunity to lock away some, or all, of their potential 2016 harvest at historically very high prices.

Forward selling might not suit all but I strongly believe, coupled with the strong demand, it has helped push grower prices to record levels over the past two seasons. Forward selling opportunities and/or strong demand are not always going to be there, but while they are it is nice to see growers can benefit. Now we just need favourable seed yielding conditions.

Naracoorte Seeds are a very active marketer of public lucerne seed and will continue going forward. So, if you are looking to sell your public lucerne seed please feel free to give me a call on 0427 790 655.

Naracoorte Seeds would like to wish you all a safe and enjoyable Christmas and here’s hoping that the New Year brings positive results for your lucerne seed harvest!

Water Resources in the major production regions are under pressure.

Forward selling of lucerne seed has again been very active this season.

Naracoorte Seeds Market Report cont.By Joshua Rasheed, Seed Production Manager/Pasture Advisor, Ph: 08 8762 1944

THE LUCERNE LEADER ISSUE 39 DECEMBER 2015 PAGE 6 THE LUCERNE LEADER ISSUE 39 DECEMBER 2015 PAGE 6

Lucerne Export Statistics from Australia - January 2011 to September 2015Courtesy of Teague Australia

We thank Teague Australia, an associate member of Lucerne Australia, for supplying these figures.

Month 2011 2012 2013 2014 2015

Year to date Difference

2014 & 2015January 501,139 310,144 245,741 687,172 698,895 +11,723February 317,070 445,793 118,025 518,553 1,099,252 +592,422March 479,471 130,625 269,091 334,033 582,929 +841,318April 183,775 385,262 424,057 171,816 549,340 +1,218,842May 51,539 594,069 647,509 495,472 940,000 +1,663,370June 271,574 721,122 1,509,605 1,029,000 2,176,805 +2,811,175July 503,509 951,685 1,510,278 1,260,782 1,649,080 +3,199,473August 568,791 430,924 1,482,357 1,217,121 834,178 +2,816,530September 482,668 726,310 811,667 1,516,965 770,857 +2,070,422October 433,397 509,447 719,882 1,356,922November 300,364 169,450 363,877 810,704December 330,326 483,832 379,122 829,293Total 4,423,623 5,858,663 8,481,211 10,227,833 9,301,336

Lucerne Exports Statistics from AustraliaJanuary 2011 to September 2015

Quantities below are in kg

This summary was produced using data supplied by the Australian Bureau of Statistics.

2011 2012 2013 2014 2015January 501,139 310,144 245,741 687,172 698,895February 317,070 445,793 118,025 518,553 1,099,252March 479,471 130,625 269,091 334,033 582,929April 183,775 385,262 424,057 171,816 549,340May 51,539 594,069 647,509 495,472 940,000June 271,574 721,122 1,509,605 1,029,000 2,176,805July 503,509 951,685 1,510,278 1,260,782 1,649,080August 568,791 430,924 1,482,357 1,217,121 834,178September 482,668 726,310 811,667 1,516,965 770,857October 433,397 509,447 719,882 1,356,922November 300,364 169,450 363,877 810,704December 330,326 483,832 379,122 829,293

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Lucerne Exports Statistics from Australia 2011-2015

2011

2012

2013

2014

2015


Increasing yield through hybrid breedingBy Dr David Nation, Executive Officer, Dairy Futures CRC

Dairy Futures CRC is well-advanced in work to develop hybrid ryegrass breeding programs. This work has the potential to deliver more than ten years of breeding progress in a single breeding step. We selected yield as the initial focus trait.

Hybrid breeding combines different plant genetics to breed plants that significantly out-perform each of their parents. To unlock this ‘hybrid vigour’, parental pools must be created that have sufficient genetic diversity from each other to capture the gains.

Hybrid breeding is well-established in other crops, such as maize, rice and tomatoes. In ryegrass breeding, the challenge has been to develop gene markers that can separate different plants into diverse parental breeding lines and construct practical commercial breeding programs.

Having previously identified the genes responsible for determining whether different plants are able to pollinate each other, we have now used this knowledge to control plant crossing to create the first set of parental breeding lines.

We have also conducted initial field trials in plots. The trials have confirmed that hybrid breeding could lift ryegrass yield by 20 per cent, which is comparable to hybrid vigour observed in other crops.

Work will progress to deliver commercially relevant breeding lines to our commercial partner in 2016.

To find out more about this and other Dairy Futures CRC work to improve dairy pastures, please visit our website at www.dairyfuturescrc.com.au

Trials have confirmed that hybrid breeding

could lift ryegrass yield by 20 percent.

Breeding parental lines at the Victorian Government’s

Hamilton research centre.

Agronomy ReportBy Steve Manning, Cox Rural, Tintinara

With potential record lucerne seed prices around this season, growers are looking to do whatever they can to maximise seed yields.

Dryland areas are still incredibly low but with the rainfall that occurred in early November many are still hoping for a follow-up rain to try and secure some dryland area.

Subsoil moisture levels are still extremely low and without further rainfall will be gone completely very quickly. Potential yields in dryland areas that have been shut-up are expected to be low due to a lack of vegetative growth in the paddocks, but seed set so far appears to be extremely pleasing.

Irrigation paddocks are being shut up considerably earlier than normal due to the concern of seed wasp. However, the outlook and population increases are still a greatly unknown. All growers can do is stick to their management plans, monitor regularly and

Subsoil moisture levels are extremely low.

Insect pressure early in the season had a small spike, particularly Heliothis.

manage paddocks surrounding those closed for seed as best as possible. Without any further summer rain, lucerne paddocks set aside for grazing should not grow a lot more and most flowers and early seed pods should be consumed with grazing. Hopefully wasp numbers do not increase greatly and are not a problem this season.

Hay yields from irrigation have been very good, with the rain and high humidity in early November providing great conditions. Regrowth has been quick after hay cuts and caution should be taken when applying phenoxy herbicides to control broadleaf weeds, slashing the paddock again prior to an application could be hugely beneficial and prevent any damage going into the seed phase. Insect pressure early in the season had a small spike, particularly Heliothis, but has been reasonably low for the last few weeks and allowed many beneficial insects to build up numbers.


Project Update: Creating a sustainable export and domestic market for Australian temperate pasture legume planting seed

By Nicola Raymond, Executive Officer

Lucerne Australia is currently supporting a project that is identifying opportunities and strategies to create new opportunities and consolidate existing domestic and export markets for temperate pasture legume planting seed.

This support has been instigated by you, our members, who stressed in our last bi-annual grower member survey in 2013 that price fluctuations, price stability, markets, longevity of our markets, market share and the high Australian dollar were the biggest issues facing lucerne seed growers.

This led Lucerne Australia to support this project, which is being conducted by David Hudson from SGA Solutions Pty Ltd, who addressed members at our Business Forum in June 2014.

Background

The Australian temperate pasture legume market, which comprises seven major species, is estimated to produce on average 20k tonne of planting seed a year at a value of AUD $107.2 million.

Lucerne is the major contributor followed by sub-clover, perennial clovers, medics and annual clover.

The industry has been in decline due to the boom and bust nature of demand and supply for planting seed and the corresponding loss of value in domestic and export markets. This has led to a loss of capability and capacity.

The industry would like to alleviate the fluctuation in demand for planting seed by identifying opportunities and strategies to create new opportunities and consolidate existing domestic and export markets. Underpinning the development of the strategies will be research which identifies and evaluates the barriers which will need to be addressed for this to be successful.

Objectives

1. To undertake a quantitative and qualitative analysis of the current Australian domestic and export temperate legume domestic and export market. Including discussion with current export customers and their view of Australian temperate pasture legume seed as it relates to all aspects of supply

2. Identify current competitors for Australian temperate legume pasture seed in export markets including strategies implemented to compete with Australian sourced pasture seed.

3. Identify, evaluate (SWOT analysis) of Australian temperate legume planting seed industry.

David has completed a series of interviews globally, and returned to Australia from the USA in early-November. He will conduct a second round of interviews with a variety of persons integral to the Australian pasture seed industry in the next few weeks, and a draft report in expected in February 2016. This report is expected to include a number of observations and recommendations for the industry to consider.

Dodder UpdateBy Guy Cunningham, Chairman

Lucerne Australia represents the lucerne seed industry across all sectors of the supply chain. A major industry initiative has been to preserve our product as free from golden dodder.

LA, in conjunction with Dr Alan McKay, Science Leader, Soil Biology and Diagnostics at SARDI, developed a ‘quantitative polymerase chain reaction’ (PCR) test about five years ago.

It works by amplifying a small fragment of DNA specific to a target organism (in this case golden dodder). This PCR test can detect small amounts of DNA from golden dodder in large lots of lucerne seed, even if golden dodder seed is not found.

The PCR test is an important advance in the early detection of golden dodder which improves the chance of plant eradication from the paddock. Lucerne seed contaminated with golden dodder cannot be moved or sold.

Industry has been PCR testing for three years, with great success. However, there has been a loophole in the current system which doesn’t enable the test result to automatically be sent to the grower (and marketer).

Notifying of Test Results

Lucerne Australia has had an increasing number of enquiries from growers and marketers to receive a formal notification of the test result. The present system only informs growers if a test is positive.

Therefore, are currently working with cleaning sheds and SARDI to develop a system to automatically, electronically, notify the grower and marketer of the test result prior to the 2016 harvest.

Further information about this new system will be available in due course.


Update from the Australian Honey Bee Industry CouncilCourtesty of Trevor Weatherhead, Executive Director

Exports and Imports

For the financial year ended 30 June, 2015 Australia exported 4,189 tonnes of honey. The top five (5) destinations were China, Malaysia, Philippines, United Kingdom and Hong Kong.

During the same period Australia imported 8,813 tonnes of honey with the top five (5) countries being China, New Zealand, Argentina, Mexico and Brazil.

BeeConnected Update

BeeConnected was launched on 25th September 2014 to enable easy and private communication to protect bees. Australian farmers, contractors and beekeepers are using the application (app) to communicate and collaborate with other users to ensure best-practice pollinator protection.

Users receive real-time information about nearby beekeeper presence or crop protection application activity and are able to instantly message other users to help keep Australia’s honeybees healthy while also maintaining their privacy, all from their smartphone device or computer.

AHBIC has been a keen supporter of this initiative.

Recently, BeeConnected, as part of CropLife Australia’s Pollinator Protector Initiative, was awarded the Best Stewardship Program at the prestigious international Agrow Awards in London.

After the success of BeeConnected in Australia, CropLife Australia is now launching BeeConnected globally, in five different languages for sister organisations and industry alliances, helping to protect the health of honeybees around the world.

Visit: www.beeconnected.org.au

Beeswax to Japan

Under the free trade agreement with Japan there is a gradual reduction of tariffs on honey and beeswax. The current tariff is 10.5%, down from 12.8 % pre the free trade agreement. The tariff gradually reduces over the coming years until 1 April 2024 when it will be zero.

Review of the National Bee Pest Surveillance Program

The following press release was received by AHBIC.

A review is underway into the system protecting Australia’s honey and pollination industries, to ensure it continues to employ the latest technology and place its resources in a strategic way.

The National Bee Pest Surveillance Program (NBPSP) is a world-leading initiative designed to ensure early detection of a range of exotic pests and diseases such as Varroa mite.

NBPSP facilitator Sam Malfroy, from Plant Health Australia, says regular, effective surveillance is vital.

“We need to have as many eyes, as often as possible, in the right places to provide reassurance that no new threats have arrived in the country, and to let us respond as quickly as possible if one is found,” Mr Malfroy said.

“For eradication to work, we need to identify a new pest or disease close to where it has entered the country, before it has had a chance to spread into a large number of bee colonies.

“This review will look at different scenarios around an incursion, and investigate how long it would take us to detect a pest via various surveillance methods, how far it is likely to get from a port, and our chances of containing an outbreak.

“The final report will provide a cost benefit analysis that outlines ideal methods, locations and frequency of surveillance, as well as the costs of not detecting something like Varroa early enough, so we can continue to adjust our procedures”, he said.

The NBPSP is a partnership between industry and government, with funding from the honey bee industry, pollination-reliant plant industries and the Federal Government, with in-kind support from State and Territory governments.

The Federal Department of Agriculture called for a review of its effectiveness ahead of a new funding agreement, after the 2014 Senate inquiry into the Future of the beekeeping and pollination service industries in Australia recommended the government ‘confirm, and consider enlarging, its commitment’ to the NBPSP.

Visit www.nbpsp.planthealthaustralia.com.au

This review will look at different scenarios around an incursion.


Lucerne Australia supports Pollination ProjectBy Nicola Raymond, Executive Officer

Funding is currently being sought for a new pollination project through Round Two of the R&D for Profit Program, launched by Agriculture Minister Barnaby Joyce MP on 23rd September 2015. Lucerne Australia has offered in-kind support to this project.

The “Securing Pollination for More Productive Agriculture” project seeks to increase the profitability and security of pollinator dependent crops by improving the health, diversity and abundance of pollinating bees on farms.

It will do so by: (a) Managing and improving natural resources, in particular critical food resources to support managed and wild crop pollinating bees; and (b) Managing the biosecurity risk posed by the Varroa mite.

Partners in this project include RIRDC, Horticulture Innovation Australia and the University of Adelaide, with support from Lucerne Australia, Apple and Pear Growers Australia, the Almond Board of Australia, Primary Industries and Resources SA (PIRSA), Department of Environment Water and Natural Resources SA (DEWNR), Terrestrial Ecosystem Research Network, SA Apiarists and NRM Boards.

With the establishment of Varroa mite in Australia considered ‘likely’, the focus is on mitigating the impact of this by improving the ability to support native pollinators (which are immune to Varroa), and hived honeybees (which can be managed to reduce the impact of Varroa).

Revegetation of habitat that supports pollinators has been shown to enhance crop pollination and is an embedded cropping strategies in major horticultural regions in Europe and the USA (e.g. Syngenta’s Good Growth Plan), but not yet Australia.

Native pollinators alone have been estimated to contribute 10-15% of total crop pollinations in Australia, valued at $2.5B in present terms (RIRDC report), and increasing native bee pollination services will lead to higher returns.

Other industries supporting this project are almonds, apples, pears, berries, mangos, melons and canola grower associations.

The project will put in place demonstration projects that provide farmer-oriented solutions. In addition, it will develop guidelines for vegetation management and revegetation that are tailor-made for different crops and regions, and practices that work at larger scales by supporting the health of managed honeybees that can move from crop to crop.

The project will use advanced technologies in the form of environmental metabarcoding and bee RFID tagging.

Lucerne Australia has offered in-kind support to this project.

New report now availableUndertaken by SARDI, supported by RIRDC

If successful in obtaining funding, the research findings will be disseminated to facilitate uptake of knowledge and tools to increase farm productivity and profits.

This project focuses on high-value Australian crops that are rapidly increasing in commercial importance, and which are pollination dependent or significantly increase yield in the presence of pollinators.

On-ground revegetation activities will be focused on South Australian crops where there are partnerships with local NRM bodies and revegetation practitioners to support the on ground works. These trials will establish practices that can then be rolled out in other agricultural zones.

Revegetation of habitat that supports pollinators has been shown to enhance crop

pollination.

The project focuses on high-value australian crops that are rapidly increasing in

commercialimportance.

A report is now available, following a survey of lucerne (Medicago sativa) root damage and pathogen occurrence in lucerne roots and soils collected from south-east South Australia. This project was undertaken by SARDI.

Outcome

A survey of south-east South Australian lucerne paddocks that had been sown for seed production was undertaken to assess the impact of soil borne disease.

Root damage was common on young lucerne plants. For seedlings, the mean level of damage was moderate to severe for 39% of lucerne samples. Several fungal pathogens and the nematode Pratylenchus neglectus were short listed as significant in explaining variation in root damage. This study shows that soil borne disease is affecting the root health of lucerne seedlings and also established lucerne plants.

Recommendation

Shorter term, work to assist growers would best be targeted at understanding the opportunities to manage pathogen levels in the soil (noting that soil texture was significant to root damage) and the exploration of seed treatment options.

Contact us to request a copy of the report: [email protected]


Details of Drought Concessional LoansBy Nicola Raymond, Executive Officer

Drought Concessional Loans are now available to assist farm businesses in South Australia recover from and prepare for future droughts and return to viability in the longer term.

Under the scheme, the Australian Government will provide South Australia with $10 million for the provision of Drought Concessional Loans in 2015-16.

Key features

Eligible farm businesses can use the loans for restructuring existing eligible debt, providing new debt for operating expenses or drought recovery and preparedness activities, or a combination of these.

Other features include:

• A maximum loan term of five years;

• Loan amounts will be up to 50% of the total eligible debt to a maximum of $1 million;

• A variable concessional interest rate initially set at 3.05% (effective 1 August 2015);

• A concessional interest period of five years; and

• Interest only payments are available for the loan term.

At the end of the loan term, the farm business must repay or refinance the remaining loan balance.

The availability of loans is subject to funds being available. The scheme will close on 30th June 2016, or earlier if funds are fully committed.

Visit: http://www.pir.sa.gov.au/

PIRSA’s Prudential and Rural Financial Services staff will be available at Tintinara and Bordertown to meet with individual farm businesses to discuss the Drought Concessional Loans Scheme on the following dates:

Tuesday 8 December – Coorong District Council Office, 37 Becker St, Tintinara 9.00 am to 5.00 pm.

Wednesday 9 December – Tatiara Council Office, 43 Woolshed Street, Bordertown 9.00 am to 5.00 pm.

The meetings will be conducted one on one with PIRSA Officers allowing farmers to have a discrete and confidential conversation regarding their loan proposal.

Call toll free on 1800 182 235 to arrange an appointment time.

the Austrlian Government will provide South Australia with $10 million for the provision of

Drought Concessional Loans in 2015-16.

The RIRDC-funded lucerne fertiliser trial commenced in 2012 and has been extended to include year four (2015/16) and year five (2016/17) growing seasons at the irrigated site, based at Brecon Proprietors, near Keith.

Fertiliser treatments are the same throughout the duration of trial to maintain continuity between seasons. Activities and time of application of treatments also remain the same over the duration of the trial.

For the 2015/16 season, the agreed activities have been performed according to milestone dates:

• Nine autumn fertiliser applications were made on 15th May 2015, including composted products.

Fertiliser Trial UpdateBy Lisa Charlton-Fatchen, Executive Committee Member

• Twenty-four fertiliser treatments were applied in spring on 9th September 2015. Liquid fertilisers were applied by boom spray and granular fertilisers applied by hand to enable targeted application of products.

• Applications proposed at post hay cut are as planned in early-December, with hay cutting and baling at the trial site occurring mid-November.

After three years of targeted fertiliser applications over the trial, significant differences in seed yield were reported between treatments in the 2014/15 season.

Significant yield differences showed the lowest yield recorded was 358 kg/ha, compared to the highest yield of 620 kg/ha. Yield variances in 2014/15 show some fertiliser programs will provide higher profit margins than others.

Significant yield differences showed the lowest yield recorded was 358 kg/ha, compared to the

highest yield of 620 kg/ha.


Grower Member SurveyBy Nicola Raymond, Executive Officer

Thank you to all grower members who agreed to be interviewed by telephone as part of our bi-annual grower member survey.

The information we obtain as part of this process is extremely valuable as it provides us with a clear understanding of what the issues, challenges and opportunities are within the industry at the present time. This assists us when reviewing our Strategic Plan and considering what industry needs are in the short to medium term.

We are currently compiling and analysing the results. A summary report will be available for members in early-2016 and will form part of our organisation’s wider strategic review, which is due in 2016.

Thanks again for your assistance with this process.

Lucerne Australia representatives attended a meeting hosted by the SE NRM Board in mid-October, with the purpose of hearing potential changes to the SE NRM 2016-17 to 2018-19 Business Plan that could potentially affect rates for both land and water levies.

Background

The 2015/16 State Budget (Treasury) included recovery of Government’s Water Planning and Management costs via NRM Board levies e.g. looking to go full cost-recovery with a “user pays” system.

NRM Boards will need to cover an additional $3.5M of Water Planning and Management costs in 2015/16, $6.7M in 2016/17, and it to be indexed in future years. Specifically in the South-East, users will be responsible for 33.42% of the Water Planning and Management costs which equates to $1.17 million in 2015/16 and $2.239 million in 2016-17.

Potential Changes

The SE NRM Board has assessed income requirements for 16/17 and is proposing a NRM levy funded budget quantum of $8.9M (Water levies $4.05M and Land levies $4.85M).

Current arrangements see the land levy on a flat rate per rateable assessment and Water levy based on allocation.

Proposals

SE NRM Board is considering three options for the basis of the land levy:

• Flat rate (current basis)

• Capital Value

• Purpose and area

SE NRM Board is considering two options for the basis of the water levy:

• Allocation only (rate/ ML)

• Fixed rate plus allocation (rate/ ML)

In the south-east, the rate is currently $2.75 per ML, which may see it increase to $3.32/ML with this new proposal.

Questions for the NRM

• Of the 3 land based options, which do you believe best aligns to the principles of equity and beneficiary pays?

• Of the 2 water based options, which do you believe best aligns

to the principles of equity and beneficiary pays?

• What are the important issues that the Board will need to consider in relation to how the land and water levy is raised?

According to our sources, this new revenue requirement has been requested from Treasury and can’t really be attributed to the NRM business plan. We also understand that the additional revenue will not necessarily be returned to the south-east.

The SE NRM Board is currently drafting levy options and there will be a full, public consultation period in early-2016. Lucerne Australia will draft a submission. We encourage you to have your say on this matter as well.

If you have any questions, please call me on 0429 875 422

In the South-East, the rate is currently $2.75 per ML, which may see it increase to $3.32/ML.

Potential Land and Water Rate ChangesBy Guy Cunningham, Chairman

We will draft a submission. We encourage you to have your say on this matter.


Seed Distributors Field Tour SummaryBy Nicola Raymond, Executive Officer

Members of Lucerne Australia had a very informative visit to Seed Distributors research station at Virginia, SA, on Thursday 24th September 2015. This event was kindly and generously supported by Landmark and ANZ Bank.

James Holland, General Manager Seed Production, and the team welcomed the group warmly. There were inspections of their latest trials including the four-year NSW DPI & IP Australia lucerne grazing trial, lucerne weight gain trial, lucerne varieties as part of their extensive breeding program and updates on future varieties, including a lucerne acid tolerant program.

After lunch members also inspected pasture legumes and forage cereal trials, and received a demonstration of their Goldstrike seed treatment plant.

We thank Seed Distributors for their generosity during our visit. Grower members at the field tour.

THE LUCERNE LEADER ISSUE 39 DECEMBER 2015 PAGE 14 THE LUCERNE LEADER ISSUE 39 DECEMBER 2015 PAGE 14

Bruce Connor, Deputy Chairman Bruce was born on the family dairy farm at Mt Compass. He relocated to a property at Tintinara

in the late-1970s to grow out replacement heifers. He and his family now farms beef cattle, cropping, dryland and pivot irrigated lucerne for hay and seed.

Contact: 0428 835 310.

Scott Campbell, Grower Member

Scott and his family own and manage 4,100 ha at Keith. They are highly focused on dryland and irrigated lucerne production. There are also 3500 ewes and a winter cropping program. His

family has been involved in the lucerne seed industry for more than 40 years. Contact: 0417 887 562.

Sarah Martin, Associate Member

Sarah is a Senior Rural Manager at Rabobank, responsible for a portfolio of rural clients. She holds a Bachelor of Science (Agriculture) from the University of Adelaide. She resides on a mixed farming operation (lucerne, sheep, cattle and horses) with her family west of Keith.

Contact: 0429 101 840

Charlie Hilton, Grower Member

Charlie’s family moved to Keith in 1970. Their focus is on lucerne hay and seed production, as well as sheep and cattle enterprises. In 2003, Charlie was awarded a Nuffield Scholarship to

study lucerne seed production. He is a strong believer in the future of lucerne and its benefits. Contact: 0412 668 558

DO YOU KNOW THE EXECUTIVE COMMITTEE MEMBERS?

Guy Cunningham, Chairman

Guy farms with his wife Sarah and family near Willalooka. The business comprises a 300-cow stud beef cattle herd, dryland winter cropping and lucerne production, mainly aimed at seed with some hay sold off farm. Contact: 0429 875 422.

Lisa Charlton, Associate Member Lisa has lived and worked as an agronomist in Tintinara for over a decade, specialising in dryland lucerne seed, broad-acre cropping and pasture renovation. Lisa is also involved in transport company Frank Fatchen Pty Ltd at Tintinara. Contact: 0408 856 445.

Adam Desmazures, Grower MemberAdam runs the family-owned business with wife Michelle, a young family and parents. The mixed farm has a self-replacing Merino flock, beef cattle and dryland lucerne for hay and seed, which is south of Tintinara. Contact: 0427 560 091.

Josh Rasheed, Associate MemberJosh was appointed as the Contract Cropping Manager and Pasture Advisor at Naracoorte Seeds in 2011. In his role, lucerne is one of the major crops he is involved with. He was previously a Real Estate Agent at the family business in Meningie. Contact: 0427 790 655.

Nicola Raymond, Executive Officer

Nicola is a communications professional with 16 years’ experience in the agricultural industry in both the UK and Australia. She is a farmers’ daughter from a 3,000 acre farm in Wales. Nicola travelled to Australia in 2007 as part of a Nuffield Farming Scholarship and became an Australian citizen in 2011. She resides with her partner on a property south of Keith. Contact: 0439 538 332.

Got a question for Lucerne Australia? Contact the Executive Officer or any of our Executive Committee Members who will be happy to help.

AJ Cotton & MA McDonald

Alpha Group Consulting

Archards IrrigationAsure Quality

Cox Rural Keith

Crop Monitoring Services

D & M Rural

Dow Agro Sciences Australia

Elders Keith

Farmers Centre

Forage Genetics International

Frank Fatchen Pty Ltd

Gibbs Agricultural Consulting

Associate Members/ Bronze Sponsors:Heritage Seeds/Seedmark

Imperial Valley Milling Company

JJ O’Connor E. Sons Pty Ltd

Jolpac Rural Supplies

Kongal Seeds

Landmark Keith

Lawrie & Co

Mellor Olsson

Momentum Energy

NAS AgribusinessNaracoorte Seeds

Peracto SAPGG Wrightson Seeds

Rabobank Australia

SA Apiarists Association

Seed Distributors

Seed Services Australia

Seed Genetics International

Tatiara Seeds

Teague Australia

Vermeeren Bros Manufacturing

WFI

Wickham Flower

Wise Farm Equipment

Zadow Apiaries

PO Box 505,

KEITH SA 5267

Phone: 0439 538 332

email: [email protected] www.lucerneaustralia.org.au

Twitter: Twitter.com/LucerneAust

ABN: 38 226 068 425

Sponsors:The world’s leading specialist in food and agribusiness banking

RabobankGold sponsor of Lucerne Australia

Seed ServicesSilver sponsor of Lucerne Australia

Murray NankivellProviding financial advice

Welcome to New Members:Stuart & Valerie Adlington

WFIGold sponsor of Lucerne Australia Good people

to know

Wise Farm Equipment Silver sponsor of Lucerne Australia

Mellor OlssonSilver sponsor of Lucerne Australia

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