Needed like never before

Extracted from the Farm Tender weekly Newsletter - Sign up and get the email every Wednesday morning before 6 am. www.farmtender.com.au

By Dwain Duxson.

If Agriculture was put into the spotlight during covid, then brace yourself for something extra as the world turns to our Farmers to ensure people don't run out of food.

With Russia and Ukraine out of the Agriculture picture for the short to medium term, everything is going to have to go pretty right elsewhere.

Wheat, a basic food commodity, is in low supply, and panic could set in if we have a drought in any of the Wheat growing countries going forward.

And this is just one Commodity story.

I am sure there have been times in history when Farmers have been needed more than today, but in the modern era of Farming (say the last 30 years), I suggest Farming or Agriculture, in general, has never been so important.

Farming in Australia has been pretty good post-drought, but could it all go to the next level in what could be our biggest ever Farming boom. Perhaps bigger than the "pound a pound" Wool days in the '50s when a lot of Australia's wealth was created.

However....

We have to counterbalance that with what will probably be the highest prices for Farm inputs we have ever seen. Already Diesel has marched to $2 a litre, and Urea hit $1400 a tonne. There are many more examples.

Supply chain issues could hurt also. Not being able to access the latest John Deere Tractor for 12 to 18 months could have an effect on Farm productivity. Think of it collectively, if every Farmers can't get the things that lead to greater productivity, then there will be a lag there.

So with that in mind, I think I should curb my biggest ever Ag boom prediction and replace it with the biggest ever period of volatility. And in that lies opportunity, but at higher risk than normal.

Getting back to the story headline, I truly believe the world will need Farmers and the service providers that surround Farmers like never before.

And that's just to feed and clothe the world.

Side story. This article by Peter McMeekin gives a good rundown on the current demand and supply of Grain worldwide.

The other thing that Agriculture has to lug on its shoulder is to carbon neutralise the planet. Businesses and Governments are looking at Agriculture to play a major part here. I won't rattle on further about this only to say that 80 percent of the community have made their mind up that the world needs saving. So all these carbon neutralising initiatives are coming whether we like it or not.

Let's hope all this Farmer focus doesn't lead to one of those silly "thank a Farmer" campaigns.

I am not into those "thank a Farmer for your next meal" statements. If my neighbour Farmer lent me their Tractor for a small job or helped to fix a  fence, I would thank them for that. Like you would thank your wife, husband, mother or father if they cooked dinner. I think most Farmers are embarrassed by these statements, and I don't think it's great from an industry perspective either. Small rant over.

It's an exciting time splattered with trepidation. Seize those opportunities that present, as they will present in numbers.

It's a new world.

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