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| As part of the sugar cane producers’ surveys in 2007 and 2008, ABARE asked a range of supplementary questions to gather detailed information on sugar cane management practices and producers’ production intentions and information sources. Some of the key results are highlighted in this section. | ||
| Farm management plan | ||
| In 2007-08, an estimated 30 per cent of sugar cane producers had a written farm management plan (table 9), with nearly all producers’ plans containing information on production activities, natural resource management and business activities. Of the farms with management plans, the proportion with a plan containing information on people management and succession planning fell from 47 per cent in 2006-07 to 39 per cent in 2007-08. However, as was observed in 2006-07, the proportion of farms with plans including people management and succession planning increased significantly with sugar cane production, reflecting the greater reliance of larger producers on hired labour. Between 2006-07 and 2007-08 a greater proportion of producers indicated that a severe downturn in sugar cane prices, disease management and a sharp increase in input prices were of critical importance to their farm planning. In 2007-08, the proportion of producers who considered themselves unprepared for a downturn in sugar cane prices or rise in input prices doubled to 32 per cent and 45 per cent respectively. Drought management is critical to one-third of sugar cane growers but many of these producers consider themselves to be under prepared to deal with the impact of drought on their business. |
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less than 7.5 kt |
7.5 - 15 kt |
more than 15kt |
average |
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2006-07 |
2007-08 |
2006-07 |
2007-08 |
2006-07 |
2007-08 |
2006-07 |
2007-08 |
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| Proportion of farms with a plan | 28 |
25 |
41 |
33 |
42 |
47 |
45 |
45 |
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| Proportion of farms with plans including | ||||||||||
| – production activities | 100 |
99 |
100 |
97 |
88 |
89 |
93 |
100 |
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| – management of natural resources | 85 |
78 |
75 |
78 |
69 |
58 |
90 |
100 |
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| – business activities | 88 |
83 |
93 |
95 |
92 |
89 |
84 |
100 |
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| – people management/succession plan | 41 |
32 |
51 |
44 |
56 |
55 |
58 |
50 |
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30 kt to 50 kt |
more than 50 kt |
average |
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2006-07 |
2007-08 |
2006-07 |
2007-08 |
2006-07 |
2007-08 |
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| Proportion of farms with a plan | 24 |
37 |
43 |
73 |
32 |
30 |
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| Proportion of farms with plans including | ||||||||||
| – production activities | 100 |
100 |
100 |
100 |
99 |
97 |
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| – management of natural resources | 72 |
38 |
100 |
73 |
81 |
76 |
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| – business activities | 100 |
70 |
71 |
81 |
89 |
87 |
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| – people management/succession plan | 71 |
0 |
100 |
73 |
47 |
39 |
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| Production intentions |
| The proportion of sugar cane producers intending to expand sugar cane production fell from just less than 20 per cent in 2007 to 13 per cent in 2007-08. In contrast, the proportion of producers intending to reduce sugar cane production increased from 16 per cent to 17 per cent during the same period (figure l). In 2007-08, the sentiment of many producers of all scales of sugar cane production swung strongly away from expanding sugar cane production. Many of these producers indicated an intention to either maintain the current enterprise mix or reduce sugar cane production and diversify into other agricultural industries, or reduce their involvement in agriculture over the next three years. In 2007-08, between 20 and 30 per cent of sugar cane producers in the southern Queensland, Bundaberg and far north Queensland regions indicated they intended to reduce their area planted to sugar cane (figure m). These were the least profitable sugar cane producing regions in 2007-08 (table 8). In contrast, in the Herbert River (one of the most profitable sugar cane producing regions), only 4 per cent of producers indicated an intention to reduce their sugar cane area over the next three years. |
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| The most significant impediments to producers expanding their farming business in 2006-07 and 2007-08 are the sugar industry’s outlook, the availability of suitable land and producers’ financial resources. Many producers also indicated they did not intend to expand because their current scale of production suited their lifestyle or they lacked the interest to expand (figure n). |
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| Irrigation management |
| Irrigation is an important input into sugar cane production, with around 60 per cent of farms irrigating crops at least once in 2006-07 and 2007-08. The most common source of irrigation water used by sugar cane producers was from an irrigation scheme (figure o). However, in the Herbert River and the Burdekin regions, unregulated bores and wells were the dominant source of irrigation water. As part of the survey, producers were asked what changes they would make in the event of a reduction in irrigation water availability or increased water prices. At the national level, around one-quarter of producers indicated they would reduce sugar cane production, and 20 per cent of producers indicated they would change to a more efficient irrigation water application method (figure p). Many producers also indicated they would invest in water re-use systems and expand their on-farm water storage capacity. |
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| In the regions where the use of irrigation water is more common, being Bundaberg, Burdekin and Mackay, more than 70 per cent of crops are irrigated at least once. In the Bundaberg and Burdekin regions, many producers indicated they would respond to reduced water availability or higher water prices by reducing sugar cane production. Only one-quarter of producers in the Mackay region indicated they would also reduce sugar cane production, compared to 50 per cent and 81 per cent in Bundaberg and Burdekin respectively. One possible reason for this is that a larger proportion of these producers source their irrigation water from unregulated on-farm water sources. As a result, farmers in this region are not as exposed to regulatory changes that affect water availability or price. |
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| Information sources |
| The survey results show that sugar cane producers have actively sought information to better manage their farms. More than 80 per cent of growers obtained information from the media and industry organisations such as cane growers associations (figure q). Between 2006-07 and 2007-08 there was a large increase in the use of the internet as a source of information, and an equally large reduction in the use of production groups and state government sources. In addition to the varied information sources, a large proportion of sugar cane producers reported they participated in educational events to improve their farm management and technical skills. In 2006-07 and 2007-08, field days and workshops were identified as the most important educational events attended by producers (figure r). |
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