top of page

Farmanco Facts - June 2024

The June edition of Farmanco Facts takes a look at The Impact of Funds on Grain Prices, Sharefarming or Lease, and Variable Rate Nitrogen Application Decisions.


Contributors this month are Mae Connelly (Esperance), David Ward (Dowerin) Blake O’Meagher (Beverley).


Pestbook 2024 is at the printers and Profit Series 2024 is being compiled with an expected publication date of late July / early August.


If you’re interested in contributing data and benchmarking yourself against other Australian Farm Business, visit


Contact your nearest Farmanco Consultant if you’re looking to engage a professional adviser for your business.


Subscribe to emailed or printed Farmanco Facts, though our website store or by calling our Perth office (08) 9295 0940 or emailing



The Impact of Funds on Grain Prices

Mae Connelly (Grain Marketing Consultant)

  • Funds are often mentioned in market wires to explain market movements.

  • Their activity can be monitored using the weekly Commitment of Traders report.

  • Funds can help prices move higher when they rally markets further than fundamentals suggest they should go.

  • Funds can also work against us, for example, when they have a technical sell-off.

  • Pricing opportunities provided by fund activity are often short-lived.

When discussing grain price movements, we often mention the funds. This article explains what funds are and how their participation in futures markets impacts grain prices.



Sharefarming or Lease

(consider all the essential elements)

David Ward (Farm Management Consultant)

  • Share farm and lease agreements have key essential elements.

  • Get accounting and legal advice to protect yourself.

  • Share farming is shared risk. The landowner does worse in a poor year but better in a good year.

  • Landowners need to consider the tax consequences of lease agreements, particularly CGT.

  • Tenants and share farmers need to understand the impacts of a mortgage on subject land.


Over the past 20 years, most of our clients have increased their economies of scale via the leasing or share farming of nearby properties.



Variable Rate Nitrogen Application Decisions In-Season

Blake O’Meagher (Agronomist)

  • Identify paddock production variability for targeted VR nitrogen applications.

  • Use Data Management processes to measure and validate paddock performances.

  • Use satellite imagery to build variable rate nitrogen applications.

Nitrogen is a key nutrient required to achieve targeted yields and lends itself to variable rate application. This will help improve overall crop yields and reduce waste, therefore reducing the environmental impact of fertiliser application.



Farmanco Facts for iOS in the App Store.



bottom of page