- 20 hours ago
On the first day of AgQuip 2026, The Land editor Elizabeth Anderson speaks with panellists Rebecca Reardon, NSW Farmers; Andy Kidd, Westpac; and Ellie Bennett, Halter, about how to de-risk farming over the next decade.
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00:00Hi, I'm Elizabeth Anderson. I'm the editor at The Land and I am here with New South Wales Farmers
00:05President Rebecca Reardon, Northern New South Wales Regional General Manager Andy Kidd and
00:12Territory Manager B for Halter Ellie Bennett and we're here to talk about de-risking the next
00:18decade of Australian farming. So Bec, we're going to start with you. So producers are facing massive
00:24input cost pressures, regulation shifts, climate variability. What's the single biggest priority
00:30for New South Wales producers in the next three to five years so they can stay profitable?
00:35I don't think there is one single priority. There is so much going on and Abare have come out and
00:41said
00:41that in 26-27 the average broadacre farm is going to lose $16,000 which means about 70% of
00:50broadacre
00:50operations will lose money in 26-27. So that's going to have a huge financial impact on farmers,
00:57their ability, you know, their loans, how they actually invest or do not invest would be the
01:02case and how they actually reward themselves. So the fact of the matter is there is so much
01:07coming at farmers and every little thing is having a bit of a cut and actually is affecting their
01:12financial viability. So when I sit down and look at it and say what is the one thing, there isn't
01:17one
01:17thing. But if you take a pie graph and you divide it into three sections, you've got your external
01:22drivers, those things which you cannot influence. World markets, geopolitical tensions, what is,
01:28you know, your price for your inputs, the price for your outputs, the weather, we can't change those
01:34things. So you need to park them to the side and say as a farmer, I can't influence those things.
01:40Then you've got your internal drivers. This is really about the management, how you manage your
01:44farm, the decisions you make given the weather, how you buy your inputs, how you sell your outputs,
01:50the investment decisions you actually make, how you negotiate your interest rates.
01:55These sort of things are things you can control. And in order to be financially, get through this
02:03period and actually become out the other end is financially sound to be able to continue to do
02:08what we do. You've got to make sure that those internal drivers, you do them well. And probably the
02:13third piece of the puzzle that's not talked about is those collective action drivers, those things
02:18which are decisions that are made by our governments and by our decision makers around us, which we can
02:23influence, not directly and not individually, but are having an impact on us. And that's where New
02:29South Wales Farmers comes in from the point of view of whether it's R&D, whether it's taxation
02:34decisions made, whether it's a red and green tape that's applied to farmers, those things we need to
02:39collectively try to influence, because they will also have an impact on the financial viability of farming.
02:45So that's sort of the forgotten piece of the puzzle, the external drivers, the internal drivers and those
02:51collective actions and how we can influence those things, which also have an impact on our bottom line.
02:56And on that's the bottom line. So Andy, are you seeing more businesses using off farm investments to try and
03:04shore up their
03:04their operations, such as alternative revenue streams, renewable agreements or carbon projects to try and secure some of this?
03:16Yeah, look, I guess the off farm investments probably isn't anything new. We've been working with clients for a long
03:22time on off farm investments, whether that's a residential or commercial sort of investment, to diversify their income streams where
03:30possible.
03:30It also helps down the track when they come up with succession planning sort of discussions where the farm may
03:36not be able to supply enough income for two, three, four families to come back to the farm.
03:40So that off farm investment has been something we've been working with customers for a long time on. In regards
03:46to the other things like your carbon projects, your energy like wind farms, solar farms as another income stream for
03:55the farm.
03:56There, there is a lot more customers looking into that nowadays just because it's becoming more, more pressing, I guess,
04:03out there in the environment.
04:05But I think it's making sure that they're actually looking at those things and making sure that it's going to
04:12actually support their farm and their income.
04:16We've worked with customers in the past when we came out of that drought, that 18 to 20 drought, there's
04:22customers looking at putting a couple of wind turbines on their farm as long as it's not going to mess
04:26up how they can run the farm.
04:28It's a good support. They've worked out that those wind turbines could actually probably help pay for the feed through
04:35a drought or something like that.
04:36So they're looking at it, making sure it's going to work for them. But if it doesn't work, then they
04:41won't do it like anything else in a business operation.
04:44It has to work for that farm or that producer if they're going to go into diversified income and investments.
04:53Ellie, so ag tech, massive at the moment, but we really do need to see return on investment.
05:00So what are other technologies out there that are really, you know, delivering tangible returns at the moment?
05:06I believe so. I would speak from Holter's perspective, but we certainly look at finding a return on investment in
05:13Holter for our producers.
05:14And I think I'd go back to what Bec said about the pie chart and that second piece of the
05:19puzzle there about the management decisions that you can be making on farm.
05:23And that's really where Holter sits for beef and dairy producers around the globe is being able to work out,
05:29OK, what are the goals of this business and what are they really trying to progress towards and what's holding
05:35them back from doing that now?
05:36And a lot of the time it can be those day to day management decisions and the limitations on the
05:42cost of fencing, the availability of labour, the time that we have.
05:45Things are getting more and more busy and also, you know, cash flow and things like that.
05:50So, you know, when we sit down with producers and look at, OK, is there a fit for Holter in
05:55your system?
05:55It's really around is there a return on investment here?
05:58And it's got to be relevant to that producer and their ability to move forwards towards the goals that they're
06:04trying to achieve.
06:05So, yeah, labour is probably the biggest operational bottleneck.
06:08So is what sort of how is Holter helping them?
06:12Yeah. Yeah. So essentially, by putting a collar on cattle, we're able to guide them around the farm.
06:18And because of that, we can take away some of those, yeah, very labour intensive, intensive jobs and allow farmers
06:25to reinvest that labour into other areas of the business.
06:27So that might be things like the time they spend mustering large paddocks in rough terrain, you know, and sometimes
06:33not even getting every animal in and having to go back and get them again.
06:37There's a lot of time spent in maintaining fences, replacing fences and things like that.
06:43And now they're able to use a collar to do all of those jobs for them and then reallocate that
06:47labour to maybe some of the jobs that, you know, get sat on the back burner for a while or
06:52that you just can't get to because the pressing things have to come first, like moving cattle and those things.
06:57Yeah. But obviously with such, you know, high input costs, tight margins, are you playing a part in helping present
07:05a business case for producers to have this technology and taking it to their bank?
07:10Definitely. Yeah. I think it's really got to come from from them and their goals.
07:15And, you know, what we see is that halter is not for everyone.
07:18It's not a fit for everybody and that's OK.
07:20But for the people out there that, you know, can see some challenges and some limitations in the way they're
07:26operating now and they really do want to make a change and be getting more out of the business,
07:30whether that's the ability to increase their carrying capacity by utilising their pastures better or having a higher turnover because
07:37they're getting animals fatter quicker.
07:39You know, it could be those profitability and productivity drivers that really allow them to unlock that potential that they're
07:45currently not.
07:46But as you say, there is an investment in doing that.
07:49And potentially, yeah, you could look at, OK, what could we get out of this investment?
07:53What would the return be? And take that case to the bank or, you know, to your financial advisers and
07:59put a path in place to start moving that way.
08:02And Andy, are you seeing more customers coming to you and with technology like a halter or automated, other automated
08:10technology?
08:11Are you seeing that from your perspective?
08:14Yeah, look, we are seeing a lot more people making inquiries on it.
08:16And it's good to hear what halter is doing and make sure they're working through the whole process with the
08:20customers,
08:21because I think any farmer, they're not going to go and invest in ag tech just because it's fashionable.
08:28They're making sure that they're getting that return on their investment, as you pointed out earlier,
08:32because if they can't see that they're going to get that return on investment,
08:36then it's hard to justify, one, financing it or making the investment themselves out of their cash flow or their
08:43cash on hand, I guess.
08:44So I think, yeah, there's still there's a lot more coming in.
08:48And it's again, it's not ag tech, it's not a new thing.
08:50Like we've been looking at a lot of things and technology evolves so quickly over time.
08:54So it's making sure that they're making those decisions on the investing in the tech to, as Ellie said,
09:02it's to save labour.
09:03It's because there's such big labour shortages everywhere, particularly in regional Australia.
09:07It's hard to get good people and hang on to them.
09:09So if you can invest in something that's going to help you save time, then yes,
09:15there's certainly people out there looking to do it.
09:17And we're willing to, once we sit down with the customers after they've been with someone like Holter,
09:22work through that program and worked out what the investment cost is, what the return is.
09:26We can then sit down with them across the kitchen table and work out, well, is it worthwhile investing?
09:31Is it in and do we fund it or do we pay for it out of cash?
09:35So it's working through, making sure we get those structures right for them
09:38and making sure it's going to work for their business and help them with that long term sustainability.
09:45Sorry.
09:46Yep.
09:47And Bec, what support or policy frameworks would you like to see,
09:51or what do producers actually need from government to adopt sustainable practices
09:57without bearing a heap of risk and upfront costs?
10:02Yeah, look, I think there's a couple of things in this space.
10:06I'm going to touch on consultation and then going to look at the way,
10:10the mandatory way that we look at how legislation and regulations put in place.
10:15So if you go to the consultation, we are increasingly seeing what I would call
10:20very poor consultation coming from the government.
10:23So going back to my pie chart, that collective action, you expect consultation
10:26when you're setting up, you know, whether it's legislation or regulations.
10:30But increasingly we're seeing things like we're being given, say,
10:34a hundred page plus documents and we're given two days to reply.
10:37Or they're basically drafting up regulations and saying, oh,
10:41can you give us feedback on this?
10:42You're like, well, you've already drafted up.
10:43You haven't actually taken our feedback.
10:45Or they put out the regulations two days after, you know,
10:48the feedback's closed.
10:48Or they're having committees where they have to sign confidentiality agreements.
10:53So we put a representative on there, but they can't actually come back
10:56and talk to us.
10:57Or, as is very much the case, and given that farmers control over 50% of land
11:03in Australia, we are seeing committees set up and particularly around the
11:07environmental rules and regulations.
11:09And you might have one farmer in a group of 20, which seems mind boggling.
11:13So there's a real problem with our consultation.
11:15And if you go to the New South Wales, there's a thing called better regulation statement,
11:20which the idea is to have a, you know, consultation on these sort of things.
11:25But it's not, you don't have to have consultation.
11:28There is nothing mandatory about it.
11:30And so I think increasingly are we seeing less consultation with the farmers
11:35and with those affected on the ground.
11:37And that is a real problem when you have decisions being made by people
11:42who've maybe never been on a farm, don't understand agriculture
11:45and don't understand what we do and why we do it and how we do it.
11:48So that is something I think in the policy framework we really need
11:51to address at a state level.
11:53Federal has something similar, although it's slightly stronger.
11:56But that consultation and really understanding what it is we do
12:00and allowing us to have an input into that is increasingly becoming
12:04a tick and flick exercise, which is very concerning.
12:07The other thing I think in the policy framework is when you go
12:11and make regulations, legislation and all the rules and that behind it,
12:17there is nothing to say that you have to consider the impact
12:20on food production.
12:22So when you create legislation, when you create regulations,
12:25they have to consider things like human rights.
12:27It's in line with the Constitution.
12:29But what we're not seeing and what we would like to see is some sort
12:33of mandatory policy test which says what is the effect going
12:36to be on food production?
12:38How is it going to impact it?
12:39Is it going to be an irreversible outcome on productive ag land
12:44where it can never produce food again?
12:46Is there alternatives which will have a better, less of a negative impact
12:50on agriculture?
12:51What are the intergenerational outcomes by doing what we're doing?
12:56So we would like to see a test put in place where not only you consider
13:00human rights and constitutional, but they are forced to consider
13:04what the effect is on food production.
13:06Because I go back to my original point.
13:08All of these little things that are happening on the red tape, green tape,
13:12all these things that have been coming down on farmers in themselves,
13:15by themselves are not that impactful.
13:18But when you add them up on a cumulative basis, it is huge.
13:21And we're seeing so much agricultural land lost to renewables,
13:25to carbon credit plantations, pressure from urban expansion.
13:30And that is all starting to impact on ag and our ability to actually,
13:34into the future, potentially be what we want to be,
13:37which is food secure in this country.
13:39Have you taken this to the government and had much feedback?
13:43Or have they, you know, the idea that we do need this extra check there?
13:48Yeah, look, it's something I think we need to start having that conversation
13:51about because this idea that we export 70% of our produce,
13:57therefore we're food secure.
13:58Well, that's great if we want to live on grain and red meat and sugar.
14:01But when it comes to our fresh dairy products, when it comes to fruit and vegetables,
14:07when it comes to nuts, things which we take for granted in this country,
14:11we are not food secure.
14:12And then when you add on top of that how our huge reliance on our inputs,
14:18whether that be fertiliser, chemicals, fuel,
14:22and we've seen that recently with the fuel crisis,
14:24we are not food secure in terms of the breadth and the quality of food
14:30that we actually have come to take for granted in this country.
14:35Now, Andy, you touched on succession earlier, so it's a massive issue.
14:40We hear it all the time.
14:41I'm sure you guys hear it all the time as well.
14:43How are you, how's Westpac helping families navigate this balancing act
14:48of making sure we can bring in the next generation,
14:50but at the same time not disadvantaging the older generation that are moving out?
14:57That's a really great question.
14:59Yeah, look, succession, as you said, it's a balancing act.
15:03And I guess there's no right or wrong way of doing it, I don't think.
15:09And succession isn't just a document that talks about what's going to happen within the family.
15:14It comes back to, I think Bex talked about it before,
15:18it comes back to the whole planning phase.
15:22The farmers out there and the families out there and anything,
15:25they need to make sure that they're planning.
15:27And our role as part of that is working as bankers.
15:32The best part of our job is actually working across several generations on a farm.
15:36But the part in succession, I guess, is making sure that that next generation coming through,
15:41we can work with them to help them understand how banking works,
15:44how we can help them fund any structures that they might want to put in place going forward.
15:50But it's all about having those really honest conversations and getting everyone involved,
15:56making sure that it's not just the banks, it's all the advisors out there.
16:00It's the accountants, the solicitors, financial planners.
16:03It's making sure that all those people are in the room to work with the families on those things.
16:08And our role, I think, in that is helping the next generation understand how the banking side of it works,
16:14help educating them and giving them the information on that side of things.
16:18And again, getting back to what I said before with working through the technology side of things,
16:22it's having those kitchen table conversations and making sure that everyone is on the same page.
16:28And that's where we see it working really well.
16:30It's when the conversations between everyone involved aren't open and honest,
16:36is where it falls apart and then families stop talking to each other and we don't want that.
16:41So our job is to make sure that everyone's on board, everyone's involved,
16:44and that we can educate them and help them understand the banking side of it as much as they can
16:50so that we can help structure it for them so it goes for many more generations to come.
16:55Now, this question is to all of you.
16:57If you could eliminate one friction, one piece of friction, what would it be and why?
17:04We'll start with Ellie.
17:05That's a big question.
17:07There's so many friction points in ag that I think producers are faced with,
17:11but I think something universal that I would love to see change is change.
17:16I think people find so much friction in making change.
17:20And that's something I see in my role at Halter is, you know,
17:24I come across producers who are desperate for change and they really want to see themselves achieving those goals
17:30and progressing the business, whether that be, you know, because of succession maybe can be a big part of that
17:35too
17:35and wanting to pass down an asset or an operation or a business that's profitable and, you know, moving forward.
17:43And I think that something I see with Halter, for example, is it is a big change in the business.
17:48It's a big gear shift in how you operate and manage your stock, manage your land and move the business
17:53forward.
17:54And you have to be really willing to engage with that.
17:57So I think if I could take away that fear of change as a friction point and allow people to
18:01open their minds and just assess,
18:03is this right for me or not?
18:04It's okay if it's not, you don't have to go ahead with it, but you should at least be open
18:08to the option.
18:09Yeah, I think that would be a game changer.
18:11And not just doing things because that's how it's always been done.
18:13Or because of hype and because it's something being talked about.
18:17It's like, really, does this change?
18:18Will this be meaningful for my family, this business, for our region, for my farm?
18:23Yeah.
18:25Andy?
18:26Yeah, it's a great question.
18:27And change is a really good one.
18:29It's something that I've been thinking of because it changes a big thing.
18:34But I think for me, it's probably the planning side of it.
18:39I think that there's a lot of friction around because people probably don't give themselves enough time to plan for
18:44things.
18:45If there is change, I need to make sure that they plan and have those open conversations and discussions for
18:50everyone to make sure they're all across it.
18:52But make sure they plan going forward.
18:56I know things come up all the time and things that are out of your control.
19:00But if you can plan as much as you can for change or investments or whatever it is, if they
19:08can get that planning in place, that'll help take friction out across a number of things.
19:12I think it's just planning is probably not the friction, but there's a couple of things that if they plan
19:18well and have those open discussions, that'll help take some friction out.
19:23And your magic wand, Bec?
19:25Slightly different perspective, once again, from the advocacy perspective.
19:28It's the red tape.
19:30It's the layers of legislation.
19:32It is the constant changing of that legislation, the multiple agencies that we've got.
19:37Whether it's water, whether it's environment, whether it's even chemicals.
19:41Farmers have to navigate so much red tape, multiple layers, so many different agencies have got to deal with.
19:48And that becomes really confusing, particularly when a lot of the legislation says the onus is on the farmer to
19:55actually do the right thing.
19:56And if they don't, the onus is on them to prove that they didn't.
20:00And so it's a real reverse onus of innocent until proven guilty, which we accept as a, you know, as
20:07should be the case of any legislation in this country.
20:10But that is not the case.
20:12So while we have these layers, and let's take the environment.
20:15We've had the recent changes in the EPBC, the Federal Environmental Act.
20:18That's now got to interact with the state.
20:21And that is particularly cumbersome because we have several pieces of state legislation has to interact with.
20:28We then have codes and self assessments that we have to know how to get through.
20:32You have 2000 matters of national environmental significance, which you have to know if you can do that on your
20:37farm.
20:38It is an absolute minefield for farmers.
20:41So that creates a lot of friction.
20:43It creates a lot of upset.
20:44It creates mistakes being made by farmers to the point where they almost go, it's all too hard.
20:49So if I had a magic wand, I'd get rid of the red tape, the layered legislation, and these multiple
20:54agencies, which is just confusing for farmers to know how to navigate through it all.
21:00And another question for everyone, and this one, I'll start with you, Andy.
21:04What is one thing producers can do now that's going to set them up for 2027?
21:09Oh, geez, that's a big question.
21:12Oh, look, honestly, there's so much out there.
21:15Like there's obviously diversification of income.
21:19There's technology side of things.
21:21But I think it comes back to what I was talking about in the friction side of things.
21:25I think if they start planning now for 27, that's going to help them decide whether they're going to invest
21:30in some ag tech or whether they're going to do some off-arm investments or how they can plan going
21:35forward for that family succession.
21:37But I think it's about sitting down now to make sure they can plan now and do that early planning
21:50because we see the producers that are really outdoing everyone else are the ones that plan ahead and make sure
21:58that they get that down on paper and everyone in the team's involved.
22:01But that planning is the thing they need to do now to make sure that 27 is as successful for
22:07them as they can be.
22:09Bec?
22:11I like the planning and I like the planning for change.
22:14But I think it fits into that piece of the pie I was talking about where it's an internal driver.
22:19You can control that.
22:20So you have to take, you have to look at your operation and say, I'm going to do that piece
22:25of the puzzle really, really well.
22:27And the other thing they can do is look at those control drivers, those collective actions, and actually be part
22:34and actually help amplify the voice.
22:36We have, we don't have a lot of people in Parliament who really understand ag anymore.
22:41The electoral boundaries have changed.
22:44We have less farmers.
22:45So that means we really need to be working together to actually amplify our voice and try and influence those
22:51collective actions that we can actually influence.
22:54So join a New South Wales Farmers and make sure you do your internal drivers that you can control really
23:00well.
23:01And Ellie?
23:03Boringly, I would echo both of these guys.
23:06That's the following going last.
23:08No, but I truly, well, I'll add to it.
23:11But I think, like, I'm so excited for 2027.
23:15I just feel like the ag space is, yeah, really evolving at the moment, especially in livestock industries that I'm
23:23involved in.
23:24Like, it's just such an exciting time for producers.
23:26And I think it's been a tough time, but there's also an opportunity for growth and change in this time.
23:32And to really reset and, like, take the business forward and do that review, do that planning.
23:38Think about how you want to change and make that progress.
23:41And so I think, yeah, for me, I just totally agree.
23:44It's like use the people in your corner, get, you know, advice from those consultants, from the bank, from New
23:50South Wales farmers, from your neighbour who, you know, might have used ag tech and had either good or bad
23:56experience with it.
23:57And I think from an ag tech perspective, it really does come back to not buying into the hype and
24:03actually really reviewing, OK, if I'm going to do this, is it really going to solve the problems I need
24:08it to solve?
24:09And getting advice on which problems are the most important ones to move you towards whatever that goal might be.
24:15So I think, yeah, it would be all of the above, really.
24:18Yeah.
24:20All right.
24:21Well, thank you so much, Ellie and Andy Beck.
24:23Thank you for being here.
24:24Thanks, Liz.
24:25Thank you both.
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