Mecardo Blog

In this series of blog articles, we’re taking a look back at the year that was for agricultural commodities and provide our insight for the year ahead.

This installment highlights 2018’s key movements in grain markets and what to keep your eye on in 2019.

As a serious professional farmer in 2019 it is well understood that “best practice” means you take care of your land, you take care of your animals/crops and you are economically astute. 

Despite that it doesn't matter what you or the industry believes is appropriate. We live in an era of ‘Social Licence’ where the opinion of the ill or under informed has the capacity to determine the future of your farm and its practices.

In this article I take a look at some risks related to the pursuit of social licence.

We inhabit a world of outrage, which has only been amplified by the ability to generate considerable 'noise' on social media. It can seem like agriculture is under constant threat from campaigners with various outrages or causes. 

In this opinion piece we look at the data on public (not activist) interest in several controversial agricultural topics and we will provide some ideas on how we should use the fickle nature of public opinion.

Up, down, up, down, down, down & up. Farming is one of the most variable occupations in the world. Our profitability is determined by several factors including drought, pricing & government intervention. Australia is lucky to have access to farm management deposit (FMD) accounts to mitigate the impact of seasonal conditions. In this update we look at the state of FMD accounts at present during the drought.

In many areas of the country the outlook for the crop looks bleak. There are many farmers out there who have forward sold grain and will not have the production to deliver.

Washing out a forward sold grain contract is a stressful action. In this short article, we will look at washouts and rollovers - and why it is so important to look at it early. 

In recent years overseas travel has become cheaper and easier and people are travelling to more exotic and ‘unusual’ destinations.

This travel brings with it the risk of disease spread on the feet of travellers, the worst of which is the dreaded foot and mouth disease. 

This is an astonishing comment from a leading South African politician. If you have been following the news in recent days, you would likely be aware of the deteriorating situation facing South African farmers. In 2017, 82 farmers were killed, in 423 attacks on farms. So far in 2018 there have been 15 murders and 109 attacks.

What is going on, what is likely to be the impact of these actions, and should they learn some lessons from neighbouring Zimbabwe?

South Australia is the only major crop producing area in Australia which does not allow the commercial production of GM crops. We were tasked by the industry with answering the question:

”Does the GM moratorium, provide a premium price to South Australian farmers?”

Protests in steak restaurants, sheep vigils, monuments to fallen chicken & attacking fictional cartoon characters. These are areas which animal rights activists have campaigned in the past month.

In the modern world of social media, and instant communication, it can be easy to spread a message. How should the industry respond to these stunts? 

Anyone who has worked in Australian agriculture for more than a couple of days will have heard one of the above, albeit most likely with stronger adjectives.

If there is one guarantee for farmers in Australia it’s that we are at the mercy of the gods when it comes to weather. In such a big country, there will always be an area where something will be going wrong with the weather.

Many of you will have heard about multiperil crop insurance, but what about weather insurance & derivatives. Are these a suitable risk management option for protecting against the weather?