planning of operations, investment in yards, fencing and water and if they have scale employing a full-time stockman. Just as some producers stayed with sheep because that was their preference, some producers are committed to cropping and will not re-enter the sheep industry under any circumstances. In conclusion, while the historical margins and land use give little encouragement for expansion of the sheep industry, the current price relativity between sheep/wool and grain means that sheep can match or exceed crop margins in the H4 and parts of the M4 regions. In the L4 region, cropping is still favoured although the significant frost events of 2016 may have some people questioning this. Both financial and practical hurdles mean it is unlikely we will see many croppers re-entering the sheep industry. What expansion does occur is likely to come from existing sheep producers who have maintained their sheep infrastructure and have the labour and interest to expand. What did the producer survey tell us? The main findings from the survey of top producers revealed that; They have only modest plans to grow their sheep enterprise with 53% of respondents indicating growth of only 5% over the next five years. If these intentions hold across the wider population there is little prospect of a rapid increase in sheep numbers. Most saw the sheep enterprise as complimentary to the cropping enterprise with the major reasons for being in sheep given as 1) ability to use non-arable land, 2) weed control and nitrogen for cropping and 3) spreading the financial risk of the business. As a cropping used 59% of arable land so was the major enterprise. there was no strong indication of expansion of the sheep enterprise, there was a clear message that these producers wanted to improve productivity by producing more by better use of current resources. As a group, they saw potential to lift production and profits in their own sheep enterprise. The key profit drivers that they focus on to lift productivity are; Pasture production driving stocking rate Ewe management and weaned per ha They were not big users of technology. Positive and interested in what is available but waiting to see the impact on profit margins before committing. Over 80% of this group rated their yards, laneways and shearing shed as good or above average however the majority had invested little capital in the enterprise in the past five years.
planning of operations, investment in yards, fencing and water and if they have scale employing a full-time stockman. Just as some producers stayed with sheep because that was their preference, some producers are committed to cropping and will not re-enter the sheep industry under any circumstances. In conclusion, while the historical margins and land use give little encouragement for expansion of the sheep industry, the current price relativity between sheep/wool and grain means that sheep can match or exceed crop margins in the H4 and parts of the M4 regions. In the L4 region, cropping is still favoured although the significant frost events of 2016 may have some people questioning this. Both financial and practical hurdles mean it is unlikely we will see many croppers re-entering the sheep industry. What expansion does occur is likely to come from existing sheep producers who have maintained their sheep infrastructure and have the labour and interest to expand. What did the producer survey tell us? The main findings from the survey of top producers revealed that; They have only modest plans to grow their sheep enterprise with 53% of respondents indicating growth of only 5% over the next five years. If these intentions hold across the wider population there is little prospect of a rapid increase in sheep numbers. Most saw the sheep enterprise as complimentary to the cropping enterprise with the major reasons for being in sheep given as 1) ability to use non-arable land, 2) weed control and nitrogen for cropping and 3) spreading the financial risk of the business. As a cropping used 59% of arable land so was the major enterprise. there was no strong indication of expansion of the sheep enterprise, there was a clear message that these producers wanted to improve productivity by producing more by better use of current resources. As a group, they saw potential to lift production and profits in their own sheep enterprise. The key profit drivers that they focus on to lift productivity are; Pasture production driving stocking rate Ewe management and weaned per ha They were not big users of technology. Positive and interested in what is available but waiting to see the impact on profit margins before committing. Over 80% of this group rated their yards, laneways and shearing shed as good or above average however the majority had invested little capital in the enterprise in the past five years.