Farmanco Facts - December 2025

tnankivell
6 days ago
3 min read

There are some great articles in the December edition of Farmanco Facts.

Number 1: David Ward has been with Farmanco for 25 years—and to celebrate, our CEO undertook a very entertaining Q&A with Wardy.

Thanks to Farmanco team members—Chris Robinson and Mark Lawrence (Kojonup) Rob Sands (Rivervale) Sonya Harcourt Smith (Rivervale) and the aforementioned David Ward (Dowerin) for contributing to Farmanco Facts.

25 Years of Consulting: A Conversation with David Ward (Wardy)

Amanda Bogunovich, CEO and David Ward (Farm Management Consultant)

From early banking days to becoming a trusted adviser to multi-generational farming families, David Ward reflects on the highs, the hard lessons and the changes reshaping Australian agriculture.

Nutritional Cost of a Good Year

Chris Robinson (Agronomy Consultant)

Higher 2025 yields will remove a lot of nutrients.
2026 budgets will be tight due to high fertiliser prices.
Be tactical with fertiliser applications in 2026.
If you aren’t already, now is the time to get serious about implementing precision ag technologies.

It’s being reported that Western Australia is about to harvest a record crop of 26.5 million tonne. There has also been a dramatic increase in global fertiliser prices forecast for 2026, making the nutrient replacement of the 2025 crop very expensive.

Grain Prices and Potential Profit for 2025

David Ward (Farm Management Consultant)

Higher input prices and the likelihood of having maintained or increased your planned crop nutrition, mean variations in production can have a considerable impact on your production costs.
Higher input costs per hectare do not necessarily imply higher costs per tonne.
Above average canola yields, and current prices will provide good profitability.
Good to above average yields in cereals will allow profit at current pricing.

Because of generally higher yields in WA and northern NSW, the probability of returning a profit on your dollars spent last year is looking good. Conversely, like southern NSW this year, there will always be areas that have not finished as well, so management must be adapted in response to your individual circumstances.

Profitability of Canola: How New Open Pollinated Line Stacks Up

Mark Lawrence (Agronomy Consultant)

OP (open pollinated) canola offers lower cost up-front and a new variety seems to be narrowing yield gap with hybrids.
Profitability of canola depends on yield, input costs, and price. Cost ratios should be monitored.
If moving away from glyphosate-tolerant lines, have a clear agronomic strategy for weed control.
Future OP glyphosate-tolerant lines may boost adoption if yield and disease resistance are consistent.

As the adoption of hybrid canola continues to grow, there’s still the occasional conversation about retaining hybrid seed for replanting— either alone or blended with purchased seed.

Current Machinery Costs: Good Control Needed

Rob Sands (Farm Management Consultant)

Machinery costs have been rising.
Incomes have been stronger than usual to insulate us from this sharply rising cost.
Be disciplined in considering all machinery purchases. One day the seasons won’t be so favourable.
The top 25% have lower machinery investment per hectare and machinery as a percentage of income.
You need to have a preventative maintenance strategy for all gear.
Consider secondhand machinery as a part of your strategy to keep costs down. Pick your moment to get the best value on the depreciation curve.
New gear may still be the most profitable long-term option for some items, particularly where it allows you to improve your productivity. Do your numbers!

There have been a lot of conversations around the high price of machinery, the cost of repairs and maintenance of that machinery and what impact that has on a farm business’s profitability.

Xero Transition for Farming Businesses

Sonya Harcourt Smith (Farmanco)

Changing software packages can be challenging for businesses.
Consider the priorities of your business before choosing alternative software.
Get to know the opportunities for improved reporting in Xero.
Do some initial training to get started.
Keep the Chart of Accounts as simple as possible.

Many Farmanco clients have transitioned their financial software to Xero. The change has created some challenges, as often previous software was cashflow based and Xero is a fully integrated accounting system. Clients have been approaching Farmanco for support and questions about the best way to implement Xero.

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