Farmers purchasing holdings in different geographies is a common method of risk management and diversification. However, it is not always apparent or obvious that moving location will necessarily diversify climate drivers and reduce seasonal risk. Managing logistics, absentee ownership and timeliness of operations can be deterrents for climate diversification away from a farm base. In this example, two farms have located either side of the Great Dividing Range, only 110km apart - each with very different climate drivers and contrast among farm enterprises. Hamish shares his families story of how this approach evolved and has since withstood the test of time.

Location snapshot

Catchment:   Upper Namoi Valley and Hastings Valley NSW

Altitude:        1000-1200 m

Enterprise:    Stud Merino Rams, Commercial Merinos (west), Beef cattle breeding and fattening enterprises (west and east)

Rainfall:       West - Wet season (Oct-Mar): 63% rainfall
Cool-season (Apr-Sep): 37% rainfall

East - Wet season (Oct-Mar): 65% rainfall
Cool-season (Apr-Sep): 35% rainfall

Location: New England Tablelands, NSW

Climate drivers are diversified among seasons and locations. The one to watch is ENSO Modoki, due to its influence at key decision times. The below chart shows rainfall reliability alters between east and west, shifting the peak production window across a number of months during the calendar year. December is the leading month for rain in the west and February in the east (bottom table).

When did your family settle in the region?

It was 1963 when grandparents, Jack and Poppy bought Nerstane and moved up from Sydney.

What was the rationale behind purchasing another farm 110km east away from the home bock, instead of adding on the original farm at Nerstane?

In the 1970s, my grandfather Jack used to drive between the Yarras timber mill he owned, and in doing so, noticed it was always green and raining through Yarrowitch. Jack was a keen mathematician and must have worked out the two locations were inverse or had opposing climates. He thought it would be a safe bet to have a farm in the east and west, to then move stock between the two as the seasons changed. Looking back then, there was no internet or rainfall statistics available, so this was very forward-thinking at the time. He paid $90 acre back then for Forest Lodge and converted it to freehold for $10 / acre.

How are the two farms complementary from a climate risk perspective?

Nerstane (west) is a slightly drier climate and is better suited to wool production than Forest lodge (east) and its far better to run the Merino stud where we live due to the higher management requirements and record keeping. Being able to value-add our poll Hereford cow/calf operation has been worthwhile. Instead of selling store CFA cows, we can ship them east into a “grass feedlot” and sell them fat. The cow/calf works well with the sheep, as they can utilise the long grass in the paddock rotation with the sheep coming in behind. The higher rainfall in the east is better suited to dry cattle that can achieve great weight gain performance.

With the highly variable climate we live in, and knowing livestock need a constant source of nutrition, has the system ever been exposed or forced you to shut down your business and wait for rain?

There have been some very testing years in the last decade, although we have never had to mothball the business. Towards the end of 2019, we were feeling the pinch, although we retained our numbers of both sheep and cattle. Overall the complimentary climate and enterprises have served the business very well. There are more families in this district diversifying their operations with eastern fall country - to hedge climate risk from western fall country. More frequent droughts have forced grazing operations to adapt and find ways to manage climate risks. Feeding stock for long periods is no fun!

What has been one of the key management levers of managing periods of dry weather in livestock production? (i.e. early weaning, lot feeding, selling dry stock early, new pasture varieties, sheep/cattle balance, agistment contacts to call on)

We have done all of those! The better pasture varieties have been the main winner. They allow livestock to do better and turnover quicker which speeds the system up and reduces risk. The new varieties also hold on better during dry times. All of those things are part of the solution when things turn for the worst.

Where are your go-to sources of climate/weather information?

Before the 2019 drought, the ABC news was the main go-to or any weather App. we could find! Farmer Forecast looks interesting and we have to get better educated on this topic for sure.

Do you have a climate risk-taking success or failure story? (e.g. speculative purchase of stock or grain in anticipation of drought/wet)

We fed our 450 cows through 2001-02 and said we’d never do it again, but did it again in2018 and 2019 but probably don’t regret it like last time. The market has been phenomenal since the drought broke so that’s been a climate success story! We have bought poor conditioned cows in droughts too and fattened them which has been a good earner as well.

What’s your season looking like at the moment on both places?

The season at Nerstane is the best in 40 years and Forest Lodge is well above average too.

Have a farming climate story to share? Please contact us.