Water scheme makes money flow

While it is a significant capital outlay, according to a 2016 report ‘The Economics of Stock Water Reticulation on Hill Country’ the average payback period was just three years. This is based on indepth case studies of 11 sheep and beef farmers from across the country who had installed reticulated water systems on their hill country properties.

Speaking at a recent Beef + Lamb New Zealand Farming for Profit day, report co-author and AgFirst consultant Erica van Reenen said most case study farmers were able to increase stocking rates after the installation of a reticulated water system. All reported increases in lambing, calving or fawning percentages, as well as increases in the number of animals sold prime to heavier slaughter weights.

When the farmers were asked what advice they would give other farmers contemplating installing a reticulated water system, they were unanimous in their response: “Just do it.”

At the time the report was written, the average capital costs of the water system were $311/ha or $29/su and operating costs were $4.77/ha or $0.59/su.

Van Reenen said most farmers experienced a slight over-run in costs when installing their systems, but this was mainly due to farmers wanting to over-spec once they got under way. There were also some logistical challenges, such as requiring a helicopter during the installation process when it became apparent that a tractor wasn’t up to the job.

She said the greatest benefits generated by the water schemes were around grazing management and the ability to better utilise pasture. Most were able to further subdivide paddocks, but this was not critical to see a return on investment.

Troughs proved to be an effective way to encourage grazing over hill country and optimise land use. The systems also gave farmers the opportunity to retire less productive areas such as gullies or erosion-prone land.

Another benefit was greater flexibility over summer. This included being able to buy trading stock and co-graze sheep and cattle, which can be difficult when relying on dam water.

Most farmers reported that their water system made implementing their farm plan easier and enabled them to fence-off water ways, bush and wetlands and carry out riparian and erosion control planting.

Another significant but less tangible benefit that all case study farmers reported was peace of mind.

Before the installation of the water systems, most sourced their water from dams or other unreliable water sources.

Van Reenen said just about every farmer spoken to had experienced drought before the installation of their water system and the peace of mind was enormous.

The water system provided access to more of the farm during subsequent droughts.

Getting the right people involved in the project from the outset was important, as was drawing up a plan and getting the correct pipes.

She said pipe requirements determined everything else such as pumping and head requirements.

The grazing management should also be planned from the outset.

“Think about what changes you are going to make to ensure you make the most of your new system.”

Where to start

Van Reenan said first off, farmers need to think about why they needed a reticulated water system and the drivers behind it. Typically, an increase in productivity and performance were the main motivators.

Other factors that need consideration include the water source, where the water needs to go to, how much volume is needed, power supply, hydraulic design, compliance requirements and efficiency or the scheme’s life-time costs.

Most systems draw water from streams, dams or lakes (evaporation needs to be taken into account), springs or groundwater and with all of these, take time to ensure the sustainability of the water source and its quality.

“It’s important to test the water for the system at the start.”

When calculating the system’s requirements, she advises taking peak demand from maximum stock numbers into consideration. Cattle can drink a lot of water in summer.

While gravity is the most cost-effective way to move water around, she said it is important to ensure pressure doesn’t exceed pipe ratings and pressure breaks are placed roughly every 60 metres. Troughs should not be used as pressure breakers.

Solar pumps can be effective in remote locations, but additional storage would be needed for periods of grey days. Diesel pumps are good, particularly in remote locations where water is needed on demand.

Ram pumps can be effective but they need a consistent volume of water to fill them as adequate fall.

Electric pumps are most cost efficient if the power source is close by.

Pipes should be buried as they will de-rate quickly and if they can’t be buried, they should run along a fence-line to get covered in grass.

“Think about pipes in relation to the contour of the land.”

Troughs should be positioned to maximise grazing management while being easily accessible for repairs and maintenance.

The whole system should be mapped, ideally during installation.

Taking the plunge

Wanganui farmers Bevan and Mary Proffit have just completed stage one of their reticulated water system that covers 230ha. Stage two, which will cover a further 300ha, is scheduled to get underway next spring.

The couple farm Ohineiti Station, a 1972ha predominantly steep hill country property north of Wanganui, running 12,518 stock units. These are made up of 5176 mixed-age ewes, 1998 two-tooths and 1625 hoggets (not mated) and 383 mixed-age breeding cows, 95 R2 heifers and 209 R1 heifers.

While every paddock on the station had water, Bevan says it was unreliable at best, and the predominance of dams limited their ability to graze sheep and cattle together over summer. Sheep would continually get stuck in the mud created by the cattle.

Proffit said they had been thinking about installing a reticulated water system for some time and while there was a small water system on Ohineiti when they bought the station 10 years ago, it had not worked for five years.

“We needed more reliability and to be able to integrate cows and ewes and lambs.”

He did a lot of homework and picked a lot of brains before making the decision to go ahead with the project.

A reliable water source is critical, and the Proffits have been able to source water from a creek on their neighbour’s farm. This creek runs all year and has been tapped at 410m above sea level.

The tanks on Ohineiti are 10m below the creek so the whole system is gravity fed.

Proffit said they had been thinking about installing a reticulated water system for some time and while there was a small water system on Ohineiti when they bought the station 10 years ago, it had not worked for five years.

“We needed more reliability and to be able to integrate cows and ewes and lambs.”

He did a lot of homework and picked a lot of brains before making the decision to go ahead with the project.

A reliable water source is critical, and the Proffits have been able to source water from a creek on their neighbour’s farm. This creek runs all year and has been tapped at 410m above sea level.

The tanks on Ohineiti are 10m below the creek so the whole system is gravity fed.

“We’re playing with altitude.”

So far, they have installed three 30,000 litre tanks, one 5000 tank and laid 7km of pipes. All but 100m of pipe is buried. They have placed 25 troughs (along with 30 existing troughs that were part of the old water system) and installed three 70-litre pressure breakers. They have also hand-built a small dam at the water source.

The couple has spent $85,800 on materials (which includes materials for stage two) and $38,000 in labour and installation costs. These costs include flying the tanks onto their hill site.

Platforms have been built on the outside of the tanks so they can be checked safely, and Proffit spent an extra $800 to allow him to check the tanks via his cell phone using the wifi at his house.

“For $800 it saves so much time.”

The benefits

The installation of the water system has enabled the Proffits to retire 17ha of land and subdivide 15ha of flat land.

The removal of the 17ha from their rotation has made stock management a lot easier without impacting on stock numbers. The Proffits are hoping to enter retired land into the ETS.

Most importantly, the water system will enable them to utilise more of their hill country.

They used to have to force animals to graze the higher parts of the block.

Unfortunately, they have yet to fully reap the benefits of their water system, due to the extremely wet weather they have been experiencing since last winter.

A series of slips has wiped out fences, so it’s been an ongoing job to clear slips and repair fences.

“It’s just been one of those seasons.”

AI used on cows and heifers

Ohineiti Station is classified 70% steep country, 20% medium hill country and 10% easy and rolling.

It is a good testing ground for beef genetics and the Angus, Hereford and Shorthorn cows have to produce a good calf on hard hill country year after year with minimal inputs.

The bull goes out on December 15 to the yearling heifers, which are at an average mating weight of 329kg. The mixed-age cows are put to the bull on January 15. The cows are set-stocked for calving in July and stay on the hill until weaning. The heifers calve on easier country behind a wire. All calves are weaned from late April or early May and all but the very smallest surplus calves are sold at weaning. Bull calves are sold entire. The calves weaned to cows mated is 72%, with misadventure being behind a number of losses on their steep country.

This year, as part of a Beef + Lamb NZ Genetics progeny trial, the Proffits artificially inseminated 350 cows and heifers. Bevan said they have used Hereford, Shorthorn and Angus sires to see how the different breeds perform against each other in a commercial environment. Most importantly, they were testing to see if estimated breeding values (EBVs) continue to be expressed in what is a tough testing ground.

“We offered up our commercial herd to see if the EBVs do stack up, and hopefully the outcomes will be of some benefit to all commercial farmers.”

After mobile sheep

It is strictly a breeding farm with all non-replacement progeny sold store.

The main breeding objectives in their Perendale ewes is to breed a mobile sheep for their hill country and their older or off-type ewes are put to a Suftex cross terminal sire.

Ram lambs are used for the first 30 days of mating and these are followed up by older rams until scanning. The scanner marks late in-lamb ewes.

Lambing dates are staggered with the terminal sires going to 2100 ewes on March 10 and Perendale rams going to 3200 mixed-age ewes on March 20. These mating dates have been moved forward by 20 days to produce an older lamb for sale in December. On April 5, Perendale rams went out to 2000 two-tooth ewes for a September 1 lambing.

Last year, the terminal and mixed-age ewes scanned 160% and 159% respectively, and the two-tooths scanned 143%. Across all three classes, the ewes lambed 119% (lambs weaned to ewes mated), six percentage points below their goal of 125%.

Weaning in the terminal sire ewes takes place in late November and everything above 25kg is sold. This is about 70% of the lambs. The mixed-age ewes are weaned in mid-December and all male lambs above 25kg are sold, this is about 45% of the maternal lamb crop.

The Proffits aim to average 30kg at weaning and they draft every month thereafter to achieve a 33–35kg average sale weight.

Maximising the return on investment

From the outset, the long-term goals of the water system and the fencing should be planned to maximise grazing management.

It can be done in stages, so the benefits become apparent before undertaking stage two.

Consider the environmental benefits of a reticulated water system, such as fencing off less productive or riparian areas. It’s also important to have a back-up in case of system failure.

This might include putting a gate in fenced-off riparian areas to allow stock access to water in case of emergencies.

KEY POINTS

• A reticulated water system on hill country gives significant ROI
• Can lift stock reproductive performance and productivity
• Greatest benefits are around grazing management.

 

• Greater flexibility over summer.
• More subdivision and retirement of less productive land.
• Grazing management should be planned at the outset.
• Installation can be staged.