THE top 25 per cent of WA grain growers have earned an extra $1.5 million over the last six years compared to the average grower.
That was the key information announced on the opening day of 2012 Crop Updates by Agriculture Minister Terry Redman as part of the Bridging the Yield Gap program which he launched 12 months ago.
Mr Redman said the findings of the program were quite staggering and it allowed the agricultural industry to understand what the key profit drivers were for the top 25pc of farmers.
"I think it shows there are people out there who have properties which have no particular difference in terms of size, rainfall or soil type and they are able to drive 174pc in increasing their operating surplus compared to the average," Mr Redman said.
"It is quite staggering."
Mr Redman first launched the $3m initiative last year and said it would now allow the department to work out what the key profit drivers were and support those farmers who were at the lower end of profit.
"I think there was early criticism as to why put effort into this program but I think this result highlights that by getting the understanding of the profit drivers for everybody else who is doing it well, we are able to tailor our response and have a department which is responsive to the needs of farmers," he said.
"If you can look at the difference between the top 25pc of growers and the average there is quite a significant gap and our job is to try and close that gap."
Bridging the Yield Gap chairman Gerard O'Brien said some of the key drivers for the increase in profits came from good rotations and dry seeding early.
He said the results showed that it didn't have anything to do with rainfall it was about getting the crops in early.
"The level of profitability in farming has got to a stage where it is just unacceptable," Mr O'Brien said.
"We are running at about a 1.3pc return on capital and even the Commonwealth Bank is running at about 6pc.
"The success of the better farmers doesn't have anything to do with the rainfall it is really about seeding early and the rotations.
"The biggest thing that is coming through is the ability to seed dry and growers getting 50pc of their program in before the season even breaks.
"Now to do that you must have the right rotation, you must have your weeds under control and all the rest of it."
Mr O'Brien said if growers could get the seeding right and water efficiency right, it would make a big difference to the end result.
"The real difference is that the yields are driven by rotations and if you can get it in early it helps with your yields," he said.
"It's not the size of farmers, it's not the rainfall, and it's not the size of the machinery in the sheds, the things that really drive farming is the kilogram of meat between the farmer's ears.
"And we must make sure they have the right knowledge and have the ability to understand the decisions they make can really drive their bottom line."
p Further 2012 Crop Updates reports on page 10 and 12.
