Tararua Monitor Farm

Meat & Wool New Zealand Tararua Monitor Farm

Programme

Final Public Field Day

22 February 2007

Welcome to the Final Public Field Day at Garth and Wesley Coleman’s

Our sincere thanks go to Meat & Wool New Zealand for funding this programme through your levies

Rural Services Bank

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Contents Page Introduction 3 Background Information 4 Vision Statement 5 Achievements 6 Performance Summary 7 Lessons Learnt 8 Soil Fertility & Fertiliser 9 Livestock Policies 10 Financial Performance – Year Ended June 2007 (forecast)

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Financial Summary provided by Profit Check 13 Physical Summary provided by Profit Check 15 Productivity Analysis provided by Profit Check 17 2006/07 EFS Flow Diagram 19 Total Soil Water Management 20 Feedbudget 2006/07 23 Pasture Profile 24 Pasture Supply & Demand 224 Lamb Growth Calculation 25 R2yr Bull Growth Rates 26 R1yr Bull Growth Rates 26 Rainfall 1999 - 2006 27 Sponsors 28

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Introduction On behalf of Garth, Wesley and the Meat and Wool New Zealand Tararua Monitor Farm Community Group, welcome to our final field day. The objective of this field day is to recap on the goals established at the start of the programme, review the plan implemented and the results achieved. Lamb prices have again not reached target levels and although this has impacted on business profitability, farm productivity shows a marked increase from when the programme started. Garth and Wesley remain focussed on maximising the opportunities sheep and beef farming has to offer, and are still seeking to streamline the system and lift productivity and profit. The theme for the field day is:

“The Business of Farming in the Next 5 years” Our guest speaker is:

• Bill English, National Party Finance spokesman Technical Speakers:

• Warren Woodger, Digimap Ltd • Trevor Cook, Manawatu Vet Services

Technical Specialists

• Technical support has been regularly provided to the Tararua Monitor Farm by Trevor Cook, Manawatu Vet Services and Alec McKay, AgResearch. Their involvement has been sponsored by Rabobank and PPCS

Facilitator

• Greg Sheppard, Farm Management Consultant, Sheppard Agriculture Ltd, Dannevirke

HEALTH & SAFETY IN EMPLOYMENT ACT, (1992) Garth and Wesley Coleman wish to point out to all visitors to this property to take extreme care when travelling over the property in vehicles, moving around yards and facilities and in handling stock.

All practicable steps have been taken to ensure your visit to the property is a safe and enjoyable one.

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Background Information Monitor Farmers: Garth and Wesley Coleman Property Description: The farm business is comprised of 740ha (700 ha eff) of flat to medium hill

country and is best described as an intensive breeding and finishing unit. Ownership: The business is farmed in partnership between Garth and Wesley. Of the

effective area, 154 ha is owned by a family trust and the remaining 546 ha is leased from three neighbours.

Management: Policy decisions are made by Garth and Wesley with input from their Stock

Manager (Des Snook). For 10 weeks in winter Garth leaves general management up to Des while he pregnancy scans ewes.

Staff: Garth and Des are the two full time labour units on the property with

assistance from Wesley, and Garth’s father Ben. Last year a permanent part time employee was added to the team, making a total of 3 labour units.

Climate: The properties receive an annual average rainfall of 1030mm. Rainfall is

highest in winter and spring months with the prevailing wind being westerly. Often the properties experience a dry period through February and March.

Subdivision: The farm currently has over 300 paddocks, which range in size from .5ha to

11ha. Fencing is comprised of conventional types and 1 and 2 wire electrics on the bull blocks.

Water: A reticulated water scheme is in place to all paddocks.

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Vision Statement Our farm business is a profitable operation that realises the full potential of the farm, providing sustainable business growth and a lifestyle that has a good balance between work, family and leisure. Our sheep pregnancy scanning business complements the farm business. Personal Goals • To have family holidays annually (3 weeks) • To be able to meet the educational needs of the children. Boarding school started last year • To have regular time out from the farm on a monthly basis (weekends free) • For Garth to continue to pursue a sport or recreational activity Business Goals • To realise financial security through farming. This relates to growing the equity level of the

business, maintaining a reasonable level of drawings, and ensuring debt servicing costs can be met sustainably

• To improve farm profitability to an Economic Farm Surplus of $585/ha by 2006. • To reduce term debt by $120,000 by 2006 • To operate an effective staff management policy involving ongoing upskilling in human resource

management • To win the Tararua Farmer of the Year competition after the completion of the Monitor Farm

Programme and be regarded as one of the top 10% of farmers in the region • To grow the equity of the business as quickly as possible (15 – 20% per year growth) • To manage the property as well as any farmer in the top 10 % • To improve farm productivity levels to realise the potential of the properties farmed. This is

estimated to be 530kgM&F/ha. This is only a target provided that in realising it a higher profit can be generated

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Monitor Farm Achievements

• Expanded the business from 4564su to 9193su (+4629su) through leasing more land. • Capital development invested into one long term lease block.

• Lambing percentage is now consistently in the 130’s after being at 120% in 2003.

• Sustained a high stocking rate throughout the programme at greater than 13su/ha

(919su/ha adjusted for feed consumed).

• Cultivated and regrassed over 30ha annually.

• Established that we can achieve a 26:1 response to Nitrogen from late winter application.

• Established a wide range of financial and productivity benchmarks.

• Were able to expand successfully using systemised livestock and grazing policies.

• Implemented the NZ FarmSure quality assurance programme.

• Achieved a 44kg mating weight in the ewe hoggets.

• Implemented a low cost animal health policy through integrated and complementary grazing with bulls and sheep.

• Achieved bull growth rates of 0.9 kg/day in the R2yr and R1yr cattle.

• Involvement with the Wise Use of Nitrogen on Hill Country project.

• Continued to improve the robustness of the farm operating system.

• Had a wide range of quest speakers involved in the programme including Ken Ring (the

moon man), Tim Mordant (Property Brokers), Melonie Sheppard (Managing Great Staff), Greg Mourice (Managing Leases), Kris August (NZ FarmSure) Grant Mourice (Worm Resistance & Resiliance), Julie Everett-Hinks (Lamb Survival) to name but a few.

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Performance Summary

2002 2003 2004 2005 2006 2007SU 4056 6123 6457 9109 9358 9193SU/ha 11.9 12.7 13.3 13 13.4 13.1Lambing % 124 133 120 139 130 134Lamb Wn Lwt 26.5 27 29 29 28 28.1Lamb Lwt/ha 261 279 266.9 318.7 274.4 311R1yr Bull kg/d 0.91 0.82 0.9 1.03R2yr Bull kg/d 1.01 0.92 0.89 0.91kgMF/ha 364 397 332 333

2002 2003 2004 2005 2006 2007GFI $/ha 1081 1041 977 1129 872 926FWE $/ha 434 377 476 710 461 424FWE/GFI % 40 36 49 63 53 46EFS/ha $ 488 483 355 275 282 380EFS/GFI % 45 46 37.4 24.4 32.3 41EFS/kgMF $ 0.97 0.69 0.84 1.14EFS/kgDM $ 0.04 0.03 0.02 0.04

In respect to the Goals:

• Have improved financial security. • Fallen short of the $585/ha EFS goal. • There is more debt on the farm now. • Human Resource skills continue to develop. • Employment agreement and job descriptions are in place. • Quality staff are employed on the farm. • The equity of the business has grown substantially. • Performance levels achieved are in the top 10% level for the Tararua Region. • 530kgM&F remains a target.

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Monitor Farm Lessons Learnt

• Systemisation leads to profitability. • It requires a balance between stocking rate and animal performance to maximise profits. • Make development investment up front. • Ability to manage livestock policies and grazing management to minimise the worm

challenge and minimise expenditure. • Quality staff contribute enormously to the success of the business. • Regular, good quality communication between everyone involved in the business is vital. • Understanding the land resource and operating livestock and grazing policies to realise the

potential of each land management unit is very important. • Monitoring and benchmarking the key performance drivers of the farm which allows

accurate and timely decisions to be made. • From June to October, 35ha of flats is only producing 50% of the pasture it could if drainage

was improved. • Market prices change regularly and highlight the importance of regular policy reviews. • To achieve an EFS of $585/ha, we need an income of $3.40/kgM&F produced (based on

current productivity levels).

• Technology and our understanding of the farm resource, business and livestock continues to evolve. To maintain profitability and capture the benefits of this, management knowledge and skills must also evolve.

• At the present time 530kgM&F/ha remains a distant target. A much more intensive system

would need to implemented to achieve it and at the present time such a system appears uneconomic.

• For long term sustainability of the farm business, management must consider and address

the following:

Effective lamb management (productivity & environmental). Balancing stock performance with per hectare productivity. Market prices and the influence on various livestock policies and cost structure (cost

of production). Advances in technology and the need for continual upskilling of human resources. Effective management of the financial resource. Finding the balance between business/work and family.

• The key driver to sheep profitability is the liveweight of lamb weaned per hectare. This is

influenced by stocking rate, lambing percentage and lamb weaning weight.

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Soil Fertility and Fertiliser Table One: Soil Fertility Trends

Home Date Feb-03 Mar-04 Mar-05 Mar-06 Feb-07 pH 5.3 5.8 5.7 5.7 5.6 Olsen P 17 21 16 24 27 Resin P 48 60 46 73 66 Sulphate S 10.5 5.5 8.5 9.5 8.5 Organic S 7.5 11 7.2 9 9 Potassium 7.5 10 15 13 Southgate Date Feb-03 Mar-04 Mar-05 Mar-06 Feb-07 pH 5.4 5.6 5.9 5.9 5.8 Olsen P 30 20 25 24 20 Resin P 67 53 70 71 60 Sulphate S 13.3 10 15.5 9 7 Organic S 7.5 13 7.9 9 8 Potassium 11.8 12 9.5 12 Swanney Date Feb-03 Mar-04 Mar-05 Mar-06 Feb-07 pH 5.2 5.6 5.5 5.5 5.5 Olsen P 10.5 23 13 12 20 Resin P 26 61 33.5 32.5 42 Sulphate S 6 5 7.5 4.5 5 Organic S 7.3 13 7.8 7.5 9 Potassium 8 9.5 8 10 Wrights Date Mar-05 Mar-06 Feb-07 pH 5.2 5.3 5.2 Olsen P 16 18 18 Resin P 29 35 33 Sulphate S 11.5 9 8 Organic S 5.5 7 7 Potassium 6 6 8

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Table Two: Fertiliser Policy 2006/07 2005/06

Livestock Policies

Sheep – As established at the beginning of the monitor farm programme Production Objectives

• We aim to lift the lambing performance to 160% in the MA ewes and have 100% of the replacement two tooth ewes having reared a lamb as a ewe hogget

• To realise a ewe efficiency level of 0.75 from the MA ewes. This is defined as:

Ewe efficiency = Lambing % X Ave lamb weaning weight (ewe tupping wt + wean wt)/2

• To realise an average lamb sale weight of 16.5 kg carcass weight

Sheep Policy • Aiming for 5100 ewes and 1300 hogget’s that are ¼ Finn ¾ Romney (Kelso composite)

Mating to Lambing

• MA ewes to Composite ram 5th April at a target of 63kg

• Hogget’s to Terminal sire ram 1st May at a target of 45kg

• Ewes are rotated in mobs. At scanning triplets are separated and fed accordingly. Remaining ewes are kept mobbed up until the twins are taken off a month before lambing increasing their intake. Ewes are set stocked around 10 days prior to lambing date. Singles are set stocked at 16/ha, twins at 12/ha and triplets at 8/ha

• The hogget’s are treated the same except they are mated in two smaller mobs

Docking to Weaning

• At docking only the light ewes are drenched. FEC samples are taken from the hogget’s and management decisions are then made. Lambs receive no drench at docking

Fertiliser Product N P K S Fertiliser Product N P K S 140T Double 13s 0 26.9 0 26.9 121T Double 13s 0 23 0 23 21T Urea 13.8 18T DAP 4.7 5 0 0.3 29T Urea 19 0 0 0 Total Nutrients/ha 13.8 26.9 0 26.9 Total Nutrient/ha 23.7 28 0 23.4

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Weaning to Mating

• Lambs receive a drench at weaning and are then grazed on either cattle country or summer crops to maximising growth rates and minimising, manage internal parasite levels and minimise the use of drench

• Surplus lambs are sold from weaning at an average of 16.5kg • Focus on realising the optimum ewe body condition and feeding programme. Priority feeding

of the lighter ewes occurs to ensure production is not limited by a tail end Shearing Policy

• Lambs are shorn soon after weaning in January • MA ewes are shorn in January after weaning and then again in June • 2 tooth’s are shorn in November with lambs at foot and again in June • Hogget’s are shorn in August and then February as 2 tooth’s

Table Three: Ewe flock performance summary

Cattle – As established at the beginning of the monitor farm programme Production Objectives

• To have all yearling bulls sold at an average of 270 kg carcass weight and 2 year old bulls at 330 kg carcass weight.

Cattle Policy

• Bulls are purchased either in October/November as 100kg weaner’s or in autumn at 180-220kg.

• Aim to winter 445 R1yr and 150 R2yr bulls

Ewe Mating weight

(kg)

Ewe Scanning Potential

(%)

Ewe Lambing

Percentage (% STS)

Hogget Lambing

Percentage (% STS)

Lamb Weaning

weight (kg)

Lamb Growth rate

(g/d)

2001 63 146 124 56 26.5 225

2002 63 163 133 78 27 234

2003 56 152 120 66 29 250

2004 64 178 139 80 29 227

2005 62 166 130 70 28 206

2006 63 172 134 58 28.1 248

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Grazing policy

• Bulls are grazed on sheep pastures through to the autumn to limit worm burden, and pasture contamination. This helps to reduce animal health expenditure and ensure the bulls realise their targeted growth pattern

• In late autumn/early winter the weaner bulls are put onto the bull block and intensively

grazed on daily shifts through winter. As pasture growth rates accelerate in the spring, the rotation length is shortened to 15 days. This normally occurs in September

• Two year old cattle generally do some pasture maintenance work over the autumn period.

They go onto specified blocks in winter and are targeted to be finished by December

• All weaner bulls are Quarantine drenched onto the farm. They also receive a Copper bullet and 5 in 1 vaccine. FEC samples are monitored with bulls drenched accordingly. All bulls get a pre winter drench before going onto winter blocks. R2yr bulls receive Copper injection at the same time. Bulls are drenched again in September when coming out of bull blocks.

The following table highlights the changes in stock numbers that have occurred over the past few years as a result of increased stocking rates and effective area farmed. Table Four: Livestock numbers – Actual and expected

Stock Class Actual Forecast Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun- 07 MA Ewes 1460 2416 2553 3165 3676 3660 2 Tooths 880 800 866 1340 1437 1313 Ewe hoggets 810 925 889 1307 1382 1500 Ram/Wether hoggets 30 20 12 773 27 0 Rams 32 32 53 43 56 55 Sheep Stock Units 3139 3903 4075 6003 6314 6068 R2yr Bulls 60 140 72 235 238 130 R1yr Bulls 193 220 447 429 412 550 R2yr Steers 45 106 0 0 0 0 Cattle Stock Units 918 2220 2382 3106 3044 3125 Total Stock Units 4056 6123 6457 9109 9358 9193 Stocking Rate (su/ha) 11.9 12.7 13.3 13 13.4 13.1 Sheep:Cattle Ratio 77:23 68:32 63:37 66:347 67:33 66:34

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Financial Performance – Year Ended June 2006 The drop in lamb prices over the last two years has had a significant impact on the profitability of the business not to mention the realisation of goals set 4 years ago. In response to the expectation of a similar lamb market to last year, lambs were weaned earlier enabling earlier sales at better prices. The cattle market remains stronger than last year which to some extent offsets the drop in lamb price. The average lamb price budgeted this year is $55/hd. Overall, we have a forecast GFI and EFS of $926/ha and $380/ha respectively for 2006/07. If achieved, it will represent a lift in EFS of almost 4100/ha.

Financial Summary provided by Profit Check • A GFI/ssu of $63.37 is expected this year. Although slightly higher than last year, it is $22/ssu

below the peak in 2004/05. • Wool income represents only 14% of sheep income. In 2003/04 it was 20%. • We expect cattle income to lift to $81.21/csu this year on the back of strong export prices. • Overall the GFI for 2006/07 is expected to lift to $926/ha (up 5% on 2005/06). • Animal health expenditure is expected to be just $1.74/su this year. • Total Farm Working Expenditure (FWE) is expected to be $37/ha less than last year at

$424/ha. As a percentage of GFI, FWE drops to 46% indicating a high efficiency level for profit generation.

• The Economic Farm Surplus (EFS) is expected to be $380/ha this year (up from $282/ha last year), and is 41% of GFI (last year it was 32.3% of GFI).

• The Return on Capital (ROC) and Return on Equity (ROE) are expected to be 2.7% and 0.4% respectively.

2003/04 2004/05 2005/06 2006/07

Forecast Income Sheep Sheep Income $/SSU $59.05 $24.84 $45.03 $58.18 Wool Income $/SSU $15.84 $15.63 $10.77 $9.13 Adjusted Sheep GFI/SU $80.32 $84.41 $62.73 $63.37 Cattle Cattle Income $/CSU $75.25 $31.20 $76.33 $88.83 Adjusted Cattle GFI/CSU $71.41 $84.79 $74.45 $81.21 Other $619 $739 $2,723 $586 Total Adjusted Income $/SU $77 $85 $67.02 $69.24 Total Adjusted Income $/ha $977 $1,129 $872 $926

Expenditure per SU Admin and Standing Charges $4.49 $5.62 $3.93 $4.08 Animal Health & Breeding $2.92 $3.08 $2.22 $1.74 Development $8.17 $3.87 $1.04 $0.00 Fertiliser P, S & Lime $11.97 $11.68 $6.85 $4.59 Nitrogen $3.27 $7.72 $3.75 $1.50 R&M $3.12 $3.40 $1.02 $1.14 Shearing ($/SSU) $4.91 $8.23 $7.64 $5.72 Vehicle $2.14 $2.15 $2.14 $2.03 Wages $6.88 $7.71 $6.62 $7.48 Total Adjusted FWE/SU $37.63 $53.20 $35.39 $31.73

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2003/04 2004/05 2005/06 2006/07

Forecast Expenditure per ha Development $103 $52 $14 $0 Fertiliser P, S & Lime $151 $156 $89 $61 Nitrogen $41 $103 $49 $20 R&M $40 $45 $13 $15 Wages $87 $103 $86 $100 Total Adjusted FWE $/ha $476 $710 $461 $424 FWE/GFI % 49 63 53 46

Economic Farm Surplus (EFS)

Farm Operating Surplus (EBIT) $242,226 $203,145 $288,084 $351,019

Change in Livestock Value $12,694 $306,681 $35,718 -$48,100 Less Depreciation $25,406 $25,200 $30,704 $25,200 Less Wage to Mgmt $45,000 $45,000 $60,000 $60,000 EFS/SU $28.06 $20.59 $21.67 $28.40 EFS/ha $355 $275 $282 $380 EFS/GFI % 37.4 24.4 32.3 41

Return on Capital Land and Buildings (Est) $3,544,000 $4,575,000 $7,100,000 $8,550,000 Livestock (Herd) $587,734 $695,908 $1,002,589 $1,054,685

Plant & Machinery (Book value) $97,834 $106,874 $135,537 $150,000

Total Capital $4,229,577 $5,377,782 $8,239,126 $9,754,685 Return on Capital % 4.1 2.5 2.4 2.7 Return on Equity % 0.9 -2.2 -3.4 0.4 Change in Equity % 16.9 21.1 0 0.4

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Physical Summary provided by Profit Check • Only half as much Nitrogen was utilised this year (14kgN/ha) with similar Phosphate

29.7kg/ha. • Overall the carrying capacity is expected to drop by 165su as more ewe hoggets are kept to

improve the quality of the ewe flock. In addition, only half as many R2yr cattle will be wintered this year (130 versus 238). Extra weaner bulls will be purchased.

• Sheep deaths and losses remain high (budget 97.% this year). By improving the age structure of the ewe flock it is hoped we can decrease this wastage rate.

• Ewe breeding efficiency (based on ewe mating weight and lamb weaning weight) was assessed to be 59% this year (up from 57.8% last year).

• Although the lambing percentage in the MA ewes was up on last year (at 134%), ewe hogget performance dropped to 58% (from 70%). Overall the flock lambing percentage increased 1% to 118% (lambs born to all females wintered).

• The lactational growth rate of lambs improved this year to 278g/d. In combination with more lambs born, the lamb liveweight weaned was 311kg/ha, (up from 274kg last year – plus 11%).

• The post weaning growth rate of ewe lambs is expected to be 70g/d this year. Only 1/3 of ewe hoggets will be mated.

• The growth rate of R2yr bulls was 0.91kg/d from 1 July. This is a good result given the winter and spring conditions.

• The growth rate of R1yr bulls is expected to be up on that achieved last year (at 1.03kg/d). A fantastic achievement given the winter and spring.

2003/04 2004/05 2005/06 2006/07 forecast

Opening Grazing Area 484 484 700 700 Livestock Detail Opening Sheep SU 3903 4075 6003 6314 Opening Cattle SU 2220 2382 3106 3044 Total Opening SU 6123 6457 9109 9358 Total Closing SU 6457 9109 9358 9193 Opening SU/ha 12.7 13.3 13.0 13.4 Opening Sheep:Cattle 64:36 63:37 66:34 67:33

Production Sheep Hogget lambing % 65.6 80.0 70.2 57.9 MA lambing % 120 139 130.2 136.2 Flock lambing % 108.1 126.8 116.9 118.1 Wool kg/su 4.6 5.9 4.5 3.1 Death/missing % 12.8 14.7 13.9 9.7 Cattle Death/missing % 2.2 4.0 3.6 2.5

Fertiliser kgN/ha 71.5 75.9 (52) 23.7 13.8 kgP/ha 45.9 44.6 (30.8) 27.6 26.9 kgK/ha 6.1 0 0 0 kgS/ha 35.8 39.1 (27) 22.7 26.9

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2003/04 2004/05 2005/06 2006/07

Forecast Sheep Reproduction Reproductive Index MA Ewes 62.1 63.4 57.8 59 Hogget’s 50.8 58.0 45.6 34.9 MA Ewes Scanning % 168 176 166 171 Conception % 97 97 92 96 Dry % 3 3 8 4 Lambing % 120 139 130 134 Lamb wastage % 29 21 22 22 Ewe wastage % 2 8 5 2 Hogget’s Scanning % 92 111 127 98 Conception % 76 84 87 82 Dry % 24 16 13 18 Lambing % 66 80 70 58 Lamb wastage % 29 28 45 41 Ewe wastage % 35 16 13 21 Flock Scanning % 151 163 157 156 Conception % 93 94 91 93 Dry % 7 6 9 7 Lambing % 108 127 117 118 Lamb wastage % 29 22 26 24 Ewe wastage % 9 9 7 6

Sheep Lactational Growth Rate MA Ewes Ave days to weaning 110 108 113 96 Lact growth rate (g/day) 222.7 226.9 208.0 251.0 Av lamb weaning weight (kg) 29.0 29.0 28.0 28.6 Hogget’s Ave days to weaning 92 96 119 90 Lact growth rate (g/day) 266.3 255.2 197.5 227.8 Av lamb weaning weight (kg) 29.0 29.0 28.0 25.0 Flock Ave days to weaning 107 106 113 95 Lact growth rate (g/day) 228.4 230.1 206.6 247.7 Ave lamb weaning weight (k) 29.0 29.0 28.0 28.1 kg Lamb weaned/ha 266.9 318.7 274.4 311.0

Sheep Post Weaning Average days to sale 79 78 97 81

Ewe hogget post wean growth rate 92.4 88.7 134.5 69.1

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Productivity Analysis provided by Profit Check

• Sheep Meat & Fibre (M&F) for the year is expected to be 187.7kg/ha and cattle M&F, 145.4kg/ha giving a total M&F production level of 333.2 kg/ha.

• Meat production efficiency (M&F/Opening Liveweight) is estimated to be 0.38 (rate that liveweight is converted to meat and fibre)

• Feed conversion efficiency this year has improved to 32kgDM/kg M&F produced • The average value of M&F produced is expected to be $2.78/kg (up 19c/kg on last year). • The EFS/kg of M&F and DM has been calculated to be $1.14 and $0.04 respectively (both

showing an improvement on last year).

2003/04 2004/05 2005/06 2006/07

Forecast Sheep Meat & Fibre Productivity

Opening sheep liveweight (kg/ha) 478.6 540.8 537.9 578.8

Closing sheep liveweight (kg/ha) 540.8 804.6 578.8 561.1

Adj meat production (kg/ha) 158.4 186.6 143.4 159.8 Wool production (kg/ha) 37 49 38 28

Adj sheep meat & fibre (kg/SSU) 24.2 28.0 21.2 20.8

Adj sheep meat & fibre (kg/ha) 195.5 235.9 181.7 187.7

Meat production efficiency 0.41 0.44 0.34 0.32

Adj sheep GFI per kg Sheep M&F $3.31 $3.01 $2.96 $3.04

Cattle Meat Productivity

Opening cattle liveweight (kg/ha) 343.3 293.6 330.5 305.1

Closing cattle liveweight (kg/ha) 293.6 478.0 293.3 295.7

Adj cattle meat production (kg/ha) 168.9 161.4 150.9 145.4

Adj cattle meat production (kg/CSU) 36.8 32.8 34.0 33.4

Meat production efficiency 0.49 0.55 0.46 0.50

Adj cattle GFI per kg Cattle M&F $1.94 $2.58 $2.19 $2.43

Total Meat & Fibre Productivity Opening liveweight (kg/ha) 821.9 834.3 868.4 872.1 Closing liveweight (kg/ha) 834.3 1282.6 872.1 856.8 Adj meat production (kg/ha) 327.2 348 294.3 305.2 Wool production (kg/ha) 37.1 49.3 38.3 28.0

Adj meat & fibre production (kg/ha) 364.4 397.3 332.6 333.2

Adj meat & fibre production (kg/SU) 28.8 29.8 25.6 24.9

Meat production efficiency 0.44 0.48 0.38 0.38

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2003/04 2004/05 2005/06 2006/07

Forecast Key Efficiency Ratios Production kg DM consumed/kg M&F 24.7 23.8 34.0 32 Return from Production Adj stock GFI/kg M&F($/kg) $2.68 $2.84 $2.60 $2.70 Adj stock GFI/kg DM ($/kg) $0.11 $0.12 $0.08 $0.09 Cost of Production Adj FWE/kg M&F ($/kg) $1.31 $1.79 $1.38 $1.27 Adj FWE/kg DM ($/kg) $0.05 $0.08 $0.04 $0.04 Profitability of Production Adj stock EFS/kg M&F ($/kg) $0.97 $0.69 $0.84 $1.14 Adj stock EFS/kg DM ($/kg) $0.04 $0.03 $0.02 $0.04

2006/07 EFS Flow Diagram

Profit Check Accounts Analysis

EFS $/ha $368 (40.2% of GFI)

Feed Conversion Eff. kgDM/kgM&F

Overall: 32.6 Sheep: 40.5 Cattle: 22.1

Income/kg Product Ave: $2.80 Sheep: $3.06 Cattle: $2.46

GFI $/ha

$914

Net Product kgM&F/ha Sheep 183kg Cattle 143.3kg

326.5kg/ha

Total Feed Consumed kgDM/ha

10643kg

FWE $/ha $424 (46% of GFI)

Net Product kgCWt/su Overall: 24.4 Sheep: 20.9 Cattle: 33

Income c/kgDM Overall: 8.6 Sheep: 7.6 Cattle: 11.1

Feed Consumed as % of Total

Sheep: 70 Cattle: 30

Stock Related FEW $/su

An. Health $1.74 Shearing $5.72 Wages $7.48

Farm Related FEW $/ha

Fertiliser $61 Nitrogen $20 R & M $15 Vehicle $27 Admin $54.50

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Total Soil Water Management Total water management plan for the flats on the Home block of the Tararua monitor farm

Background: The water content of the wet soils on the flats of the Home block farm was above field capacity from May through October in 2004. At that water content plant growth is reduced by > 50%. Removal of that excess water through an intensive drainage system would result in not only increase pasture growth, but improved pasture utilisation, permit a greater range of sustainable livestock uses, improve the ground conditions for lambing ewes in the spring and lift the long-term productive and sustainable use of what is the most value land resource on the farm. On the same farm the soil water deficit in February, March and April limits forage production each year. This places limits on the aggressiveness of the late spring and summer finishing programme and puts pressure on the breeding ewes and hoggets in the months leading up to mating. Recycling drainage water collected in the winter and spring months and/or harvesting rainfall directly offers an option for managing rather than accepting the impact of short-term seasonal water deficits (summer) or surpluses (winter) on the farm business. Harvest water run-off also creates the opportunity to capture sediment and nutrients within the farm boundary and has the added benefit of not requiring a resource consent. FITT Project: Examine the feasibility of an integrated water management plan that includes

• drainage for increasing winter production • harvesting rainfall and captures of drainage water for summer irrigation to increase the

amount and reliability of summer feed supply and • increasing the retention of sediment and recycling of nutrients within the farm boundary

Design specifications for the drainage installations. The area being considered for drainage is approx 35 of the 75 ha of flats. There are 31 ha of free draining stony flats on the farm. The only solution to draining soils with perched water table is pipe and mole drains. The contours on the map indicated a smooth gradient, in a general south to north direction, for mole drainage. The design is a scheme with pipes at 40 m spacing’s with mole drains at 2 m spacing’s (5000 m of mole drains per ha). A grassed runway would be installed in the open drain from the roadside dam to the culvert crossing. The grassed runway system is for a pipe to be installed in the drain, and then the open drain sides pushed in to form a shape that can be driven over, grazed, melding as part of the paddock. The theory is that the pipe in the bottom of the drain is not to take the drain water but to keep the drain bottom dry. In times of heavy rainfall surface water can still flow down the newly shaped watercourse.

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Table 1 Estimate of the cost of materials and services for installation of the drainage plan

Materials

150mm Plastic Drainage Pipe 800 metres @ $4.6/m 3680

100mm Plastic Drainage Pipe 7700 metres @ $2.10/m 16170

Junctions 150mm*100mm – 40 @ $30 each 1200

Outlet Pipes 30 @ $20 each 800

Washed Stone supply and cart 850m3 @ $32/m3 27200

49050

Services

Mastenbroek Trencher (includes pegging backfilling and labour)

8500 metres @ $4.0/m 34000

Excavator junctions say 20 hours @ $115/hr 2300

Loading and gravel in trench 8500 metres @ $1.40/m 11900

Mole Drainage say 35 hectares @ $200/ha 7000

Cartage three trips @ $250/trip 750

55950

Subtotal 105000

GST 13125

Total $118125

The estimate includes washed stone backfill; it is expensive but adds three important features. It effectively increases the size of the pipe which in turn lifts the drainage coefficient; it provides efficient hydraulic conductivity between all the plastic drainage pipe slots emptying the mole drains quicker and negates the need to spear the mole drains to the pipe when remoling. When looking at the total cost of the job it is important to note that the work could be done in stages. Installation on the Home Block could easily be divided into 3 or 4 stages.

Options for water harvesting of rainfall and drainage water The obvious site for a water harvesting dam would be at the second culvert down from the road on the wet flats being considered for drainage. The water storage area available within that block at the moment is too small and would require major earthworks to achieve a large enough volume of water to undertake irrigation for a long period. From some preliminary analysis two dams with a total surface area of 1 ha, with an average 2 meters depth of storage capacity, could be built. Further down the watercourse where volumes could be achieved without earthworks the base rock is exposed and keying of the dam wall could be difficult. The water yield from the tile and mole systems (i.e. moles 2 metres apart 5000mole channel/ha) would be not less than 25% (The early winter yields would be low as little as 1% increasing to 80% during mid seasons) of annual rainfall. Assuming an annual rainfall of 1000 mm, it would require the

- - 22 - -

collection of drainage water from 8 ha of the wet flats (2500m3 water/ha) to fill the two (0.43 and 0.57 ha) dams located below the second culvert. In a preliminary analysis of a site off the flats below the house, a 1 ha dam with on average 3 meter depth of storage capacity could be built to collect surface run-off from the surrounding catchment. In considering this site the following factors were considered:

• the size and distance of the dam from the irrigation block, • its head, shape, and contour of the valley floor to minimise dam height, • stability of the landscape and suitability of material for dam building, • the size of the receiving catchment and the potential amount of sediment and nutrient

captured Analysis (Cost/benefits) of total water management 1. Cost benefit of drainage The production benefits from drainage are well known. The standout benefits include:

• Increased utilisation of feed grown. Ability to change farming practices, for example to go into cash cropping. The improved drainage system not only ameliorates the soil making it more suitable for cropping but allows for earlier timing of cultivation practices. This is especially important in areas with a short period to get the crop in and out.

• Limited areas of flats that are split by watercourses it is important to have them operating at 100%.

On the monitor farm an additional benefit might be increased lamb survival through the provision of dry, warm ground conditions for lamb in the spring. Subsurface drainage on its own won’t earn you more dollars but it’s the cornerstone of all the other husbandry techniques that can happen once the soil is drained and healthy. The return on investment from drainage ranges from 3-5 years. 2. Cost benefits of Irrigation The jury is still out The 50,000 m3 stored in the two dams would provide sufficient water to irrigate approx. 20 ha of pasture assuming that the water deficit from Dec-April was

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Name: G & W Coleman Garths version 2006/07 Date: Feb- Month 1st of month July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Number of days 31 31 30 31 30 31 31 28 31 30 31 30 Area (effective) 700 700 700 699 673 673 673 673 673 673 673 700 (A) Starting Cover (KgDM/ha) 1380 1317 1309 1308 1344 1393 1403 1450 1223 1157 1284 1404 Pasture Growth Rate (kgDM/ha/d) 13.8 20 30.5 39.7 45.2 44.5 39.6 15 24 30 25 18 Supplements (Total kg/month): Crop 60000 75500 Nitrogen 20000 19000 38360 38360 18400 (B) Total Feed Supply (kgDM/ha/d) 14.7 20.9 32.3 41.5 46.1 44.5 42.5 19.0 24.0 30.0 25.0 18.0 FEED DEMAND: Ewes Number 3690 3596 3585 3550 3500 3480 3480 3700 3700 3680 3680 3660 Intake (KgDM/hd/d) 1.1 1.5 2.7 3.3 3.0 2.7 2.3 1.2 1.4 1.7 1.4 1.3 Intake (KgDM/ha/d) 5.8 7.7 14.0 16.9 15.7 13.8 11.7 6.6 7.9 9.3 7.4 6.7 2 tooths Number 1437 1344 1335 1325 1300 1300 1300 1313 1313 1313 1313 1313 Intake (KgDM/hd/d) 1.1 1.5 2.7 3.3 3.0 2.6 2.0 1.7 1.8 1.7 1.3 1.2 Intake (KgDM/ha/d) 2.3 2.8 5.2 6.3 5.8 5.1 3.9 3.3 3.6 3.2 2.6 2.3 Ewe Hoggets Number 1380 1380 1376 1370 1313 1313 1313 1500 1500 1500 1500 1500 Intake (KgDM/hd/d) 1.1 1.2 1.6 2.3 2.5 2.7 2.2 1.1 1.1 1.1 1.1 1.2 Intake (KgDM/ha/d) 2.2 2.3 3.2 4.5 4.9 5.2 4.4 2.5 2.4 2.4 2.5 2.5

Lambs Number 7650 7644 7640 6800 4800 2800 1000 500

Intake (KgDM/hd/d) 1.1 1.3 1.5 0.2 0.5 0.8 1.1 1.0 1.0 1.0 1.0 1.1

Liveweight (kg) 34.5 38 42 10 18 25 31 31 32 33 36 38

Intake (KgDM/ha/d) 0.0 0.0 0.0 2.2 5.7 9.1 11.0 7.3 4.3 1.5 0.8 0.0

Rams Number 56 56 54 56 53 70 60 60 58 60 60 55

Intake (KgDM/hd/d) 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5

Intake (KgDM/ha/d) 0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.1 0.1 0.1 0.1 (C) Total Sheep Demand (kgDM/ha/d) 10.3 12.9 22.4 30.0 32.2 33.3 31.2 19.8 18.3 16.6 13.4 11.6

R1 yr Bulls Number 412 412 412 412 412 421 400 300 250 200 0 550

Intake (KgDM/hd/d) 6.4 8.5 9.8 9.7 10.3 10.6 10.7 9.7 9.7 10.7 3.9 6.9

Liveweight (kg) 250 269 300 336 460 490 500 500 500 500 0 297

Liveweight gain (kg/d) 0.6 1 1.2 1.1 1 1 1 0.8 0.8 1 0.8 0.6

Intake (KgDM/ha/d) 3.8 5.0 5.8 5.7 6.3 6.6 6.4 4.3 3.6 3.2 0.0 5.4 R2yr Bulls Number 238 237 235 238 150 50 15 0 0 130 130

Intake (KgDM/hd/d) 7.8 9.4 12.5 13.4 14.0 16.5 16.5 13.2 7.2 7.2 7.9 7.2

Liveweight (kg) 450 466 490 532 602 620 620 620 656 656 400 430

Liveweight gain (g/d) 0.5 0.8 1.4 1.5 1.5 2 2 1.3 0 0 0.6 0.4

Intake (KgDM/ha/d) 2.7 3.2 4.2 4.6 3.1 1.2 0.4 0.0 0.0 0.0 1.5 1.3

Wnr Bulls Number 318 318 318 318 400 550 550 0

Intake (KgDM/hd/d) 0.0 0.0 0.0 5.7 6.0 6.3 6.6 6.4 7.1 7.3 7.6 6.9

Liveweight (kg) 0.0 0 0 105 130 154 179 204 223 248 272 297

Liveweight gain (g/d) 0 0 0 0.8 0.8 0.8 0.8 0.7 0.8 0.8 0.8 0.6

Intake (KgDM/ha/d) 0.0 0.0 0.0 0.0 2.8 3.0 3.1 3.0 4.2 6.0 6.2 0.0 (D) Total Cattle Demand (kgDM/ha/d) 6.4 8.2 10.0 10.2 12.3 10.8 9.8 7.3 7.8 9.2 7.7 6.7

(E) TOTAL DEMAND (KgDM/ha/d) 16.8 21.1 32.4 40.3 44.5 44.2 41.0 27.1 26.1 25.8 21.1 18.3

(E = C+D)

(F) Surplus/Deficit (kgDM/ha/d) -2.0 -0.2 -0.1 1.2 1.6 0.3 1.5 -8.1 -2.1 4.2 3.9 -0.3

(F = B-E) (G) Monthly Cover Change (kgDM/ha)

(G = F * No. Days) -63.4 -7.5 -1.5 36.9 48.8 10.2 46.3 -226.5 -66.3 126.6 120.3 -8.3 (H) MONTH END COVER (KgDM/ha)

(H = A+G) 1317 1309 1308 1344 1393 1403 1450 1223 1157 1284 1404 1396

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Pasture Cover

0

200

400

600

800

1000

1200

1400

1600

Month

kgD

M/h

a

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Cover 1317 1309 1308 1344 1393 1403 1450 1223 1157 1284 1404 1396

Supply 14.7 20.9 32.3 41.5 46.1 44.5 42.5 19.0 24.0 30.0 25.0 18.0

Demand 16.8 21.1 32.4 40.3 44.5 44.2 41.0 27.1 26.1 25.8 21.1 18.3

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Feed Supply and Demand

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Month

kgD

M/h

a/d

(B) Total Feed Supply (kgDM/ha/d) 14.7 20.9 32.3 41.5 46.1 44.5 42.5 19.0 24.0 30.0 25.0 18.0

(C) Total Sheep Demand (kgDM/ha/d) 10.3 12.9 22.4 30.0 32.2 33.3 31.2 19.8 18.3 16.6 13.4 11.6

(D) Total Cattle Demand (kgDM/ha/d) 6.4 8.2 10.0 10.2 12.3 10.8 9.8 7.3 7.8 9.2 7.7 6.7

(E) TOTAL DEMAND (KgDM/ha/d) 16.8 21.1 32.4 40.3 44.5 44.2 41.0 27.1 26.1 25.8 21.1 18.3

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Pasture Profile

Pasture Supply and Demand

Lamb Growth Calculation Farm: Coleman's Year: 2006/07 Carry Over Lambs Balance Date: 1/07/2006 Start Weight: 33 kg Sale date Days from Weaning Number sold Grazing Days Feed Consumption Store Lwt (kg) C/c Weight (kg) Total Lwt 24/07/2006 23 94 2162 1.17 18 4126.8 29/09/2006 90 80 7200 1.17 16.2 3161.0 25/10/2006 116 90 10440 1.17 16.7 3665.9 20/07/2006 19 1 19 1.17 16 39.0 20/07/2006 19 3 57 1.17 33 13.5 99.0 Total N/A 268 19878 0 17.0 11091.7 Note: The dressing out percentage used is 41%. Ave LWt 41.4 Weight/ha(kg) 6.50 15.85 Average Number of days to sale: 74 days 13/09/2006 Average Growth Rate 113 (g/day) Sale Lambs Only Weaning date: 16/12/2006 Weaning Weight: 28.1 kg Sale date Days from Weaning Number sold Grazing Days Feed Consumption Store Lwt (kg) C/c Weight (kg) Total Lwt 16/12/2006 0 202 0 1.11 16.3 8030.7 19/12/2006 3 71 213 1.11 15.4 2666.8 20/12/2006 4 48 192 1.11 15.5 1814.6 27/12/2006 11 134 1474 1.11 16.3 5327.3 5/01/2007 20 29 580 1.11 15.1 1068.0 6/01/2007 21 18 378 1.11 14.8 649.8 7/01/2007 22 206 4532 1.11 15.1 7586.8 9/01/2007 24 198 4752 1.11 15.4 7437.1 17/01/2007 32 158 5056 1.11 14.6 5626.3 10/01/2007 25 500 12500 1.11 25.5 10.5 12750.0 16/02/2007 62 1619 100378 1.11 16.0 63180.5 23/03/2007 97 1210 117370 1.11 16.0 47219.5 3/04/2007 108 700 75600 1.11 16.0 27317.1 13/05/2007 148 687 101676 1.11 16.0 26809.8 19/04/2007 124 62 7688 1.11 16.0 2419.5 25/05/2007 160 260 41600 1.11 30 12.3 7800.0 -39067 0 1.11 0.0 -39067 0 1.11 0.0 -39067 0 1.11 0.0 -39067 0 1.11 0.0 -39067 0 1.11 0.0 -39067 0 1.11 0.0 -39067 0 1.11 0.0 Total N/A 6102 473989 526784 15.3 227703.9 Note: The dressing out percentage used is 41%. Ave LWt 37.3 Weight/ha(kg) 133.37 325.29 Average Number of days to sale: 78 days 3/03/2007 Average Growth Rate 119 (g/day)

R2 yr Bull Growth Farm: Coleman's Year: 2006/07 Start Date 1/07/2006 Start Wt: 430 kg Sale date Days from 1 July No. sold Grazing Days LWt (ave) CWt (ave) Total LWt Sale Price 6/11/2006 128 6 768 640 333 3842.3 $1,216.44

14/11/2006 136 31 4216 633 329 19613.5 $1,199.18 30/11/2006 152 3 456 629 327.2 1887.7 $ 1,144.96 30/11/2006 152 7 1064 614 319.1 4295.6 $1,108.36 30/11/2006 152 7 1064 633 329.1 4430.2 $1,152.07 1/12/2006 153 5 765 631 328 3153.8 $1,141.77

10/12/2006 162 30 4860 619 322 18576.9 $1,103.61 14/12/2006 166 35 5810 596 309.8 20853.3 $1,022.20 22/12/2006 174 30 5220 588 306.0 17651.0 $ 977.00 8/01/2007 191 40 7640 534 277.5 21346.2 $839.49

29/01/2007 212 20 4240 517 268.7 10334.6 $804.45 19/01/2007 202 15 3030 543 282.6 8151.9 $858.95

Total N/A 229 39133 585.8 304.6 134136.9 $1,005.19 Note: The dressing out percentage used is 52%.

Average Number of days to sale: 171 days 99.6 191.6 kg/ha Average Growth Rate 0.91 (kg/day) R1 yr Bull Growth Farm: Coleman's Year: 2006/07

Start Date 1/07/2006 Start Wt: 250 kg Sale date Days from 1 July No. sold Grazing Days LWt (ave) CWt (ave) Total LWt Sale Price

22/01/2007 205 15 3075 523.8 272.4 7857.7 $947.40 14/02/2007 228 40 9120 528.8 275 21153.8 $797.50 2/03/2007 244 30 7320 529.0 275.1 15871.2 $797.50

16/03/2007 258 35 9030 541.7 281.7 18960.6 $817.00 22/03/2007 264 35 9240 511.0 265.7 17883.7 $743.96 28/03/2007 270 35 9450 513.5 267 17971.2 $801.00 13/04/2007 286 40 11440 517.5 269.1 20700.0 $807.00 18/05/2007 321 35 11235 538.5 280 18846.2 $812.00 20/06/2007 354 12 4248 538.5 280 6461.5 $812.00

Total N/A 277 74158 526.0 273.5 145705.8 $805.59 Note: The dressing out percentage used is 52%.

Average Number of days to sale: 268 days 108.2 208.2 kg/ha Average Growth Rate 1.03 (kg/day) CWt LWt Total Meat/ha 207.9 399.8

Coleman Rainfall

0

50

100

150

200

250

300

350

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

mm

1999 2000 2001 2002 Averages 2003 2004 2005 2006

Rainfall at 294 Mangahei Road 1999 2000 2001 2002 2003 2004 2005 2006 2007 AveragesJan 88.5 134.5 46 112 38 193 42.5 99.5 94Feb 43 7 63.5 153.5 37 325.5 15.5 28 84Mar 96 49.5 26.5 64 56.5 43 148 124 76Apr 65.5 81 63.5 65 59 32 26 119.5 64May 74 69 98.5 59 87.5 82 103 71 81Jun 24 53 116 74.5 103 91 94.5 162.5 90Jul 66.5 91.5 45.5 195.5 37 132 73 202 105Aug 46.5 49 124 65.5 123.5 143 22 87.5 83Sep 49 96 11.5 78 265 67 87 46 87Oct 34.5 39.5 90.5 72 61 152.5 227.5 152 104Nov 196 86 84.5 80.5 96 32.5 85 62 90Dec 29.5 50.5 177 85.5 70 162 92.5 67 92 813 806.5 947 1105 1033.5 1455.5 1016.5 1221 0 1050

pp Funders: Meat and Wool New Zealand Major Sponsors: Rabobank NZ PPCS Ltd Operating Sponsors: Summit Quinphos – all soil and herbage tests Field Day Sponsors:

Dannevirke Honda Federated Farmers

Elders Primary Wool Co-operative Ancare Sheppard Agriculture Ltd The Community Group would also like to acknowledge the contributions made to the programme by:

• Alec MacKay (AgResearch) • Trevor Cook (Manawatu Vet Services) • Dave McNeur (Summit Quinphos) • Rob Salmon (Wrightson Seeds) • Grant Simpson (Simpson Contracting) for their input over the past year.

For further information on any details provided in the handout or by our guest speakers, please feel free to contact:

Greg Sheppard Farm Management Consultant

Tararua Monitor Farm Facilitator

Sheppard Agriculture, Dannevirke Ph: (06) 374 6199

Email: greg@sheppardagriculture.co.nz Website: www.sheppardagriculture.co.nz

mailto:greg@sheppardagriculture.co.nzhttp://www.sheppardagriculture.co.nz/

Garth & Wesley Coleman along with the Community Group would like to acknowledge

& thank the following:

Meat & Wool New Zealand *

Rabobank *

PPCS Ltd *

Summit Quinphos *

Federated Farmers *

Dannevirke Honda *

Sheppard Agriculture Ltd *

Contents PageHEALTH & SAFETY IN EMPLOYMENT ACT, (1992)

Background InformationVision Statement Monitor Farm AchievementsMonitor Farm Lessons Learnt Soil Fertility and FertiliserLivestock PoliciesSheep – As established at the beginning of the monitor farm programmeProduction Objectives

Financial Performance – Year Ended June 2006 Financial Summary provided by Profit Check Physical Summary provided by Profit Check Productivity Analysis provided by Profit Check 2006/07 EFS Flow DiagramPasture Supply and Demand