MORE than 350 farmers are expected to descend on Wangaratta from August 10-12 for the Grassland Society of Southern Australia's annual conference.

The theme is Global Challenges - Local Choices and will include tours of successful farms and presentations from more than 20 speakers.

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Dairy farmer Daryl Hoey has learnt the hard way that managing seasonal change isn't easy.

Daryl and his wife, Lani, bought their 80ha farm at Katunga, in the Goulburn Valley, in 2002 and almost immediately walked into what became the worst drought in memory.

After working hard just to survive the dry years, the Hoeys, like other farmers in the region, are now enjoying the double benefits of the best season in a decade and improved milk prices.

Daryl will speak about surviving the tough years at the annual conference of the Grasslands Society of Southern Australia, in Wangaratta on August 10-12.

Reducing stock numbers to cut costs was part of the survival strategy.

"We cut back to milking about 240 cows from 300 because of the dry conditions and low returns," Daryl said.

"You've got to be flexible but have a clear picture of the kind of system you want to operate.

"You still need to have a basic system in place but be flexible around the edges depending on the capital outlay and the seasonal conditions."

Despite the prolonged drought, the Hoeys continued to expand, buying a 40ha run-off block in 2006 and a neighbouring 79ha dairy farm in 2008.

"We're now in the process of building up the herd again to make the most of the extra land we have bought," Daryl said.

Reducing input costs was another method of achieving savings, though that was tempered by locked-in contracts.

Daryl said to remain profitable farmers needed to aim for high pasture utilisation, low cost of production per cow, high labour efficiency, low capital costs and keep the depreciation schedule to a minimum.

The most notable change for many farmers had been the move from permanent pastures to short rotation and long-rotation ryegrass.

"While the rainfall and seasonal water allocations are low, I expect that trend will continue," Daryl said.

His Grassland's address will also include a review of world markets and changing climatic conditions and how they will affect the local dairy industry.

"My presentation is based not only on my own experiences but also other farmers in the region," he said.

"Generally farmers are expanding with a lot more confidence, though we are hedging our bets to a degree when it comes to long-term planning."

Daryl is a board member of Murray Dairy, a United Dairy farmers of Victoria central councillor and an Australian Dairy Farmers board director.

He has a long farming involvement in the Goulburn Murray, having been a sharefarmer for nine years before buying his first farm.

He will be one of more than 20 guest speakers on the Grassland's program.