Sheep are an integral part of the mixed farming business run by brothers John and David Taylor and their sons Christopher, Luke and Philip, west of Delungra.
The fourth and fifth generation of Taylors are continuing the tradition of Merino selection and wool production that started more than 60 years ago on the family's 4500-hectare property "Ford End Pastoral".
They also run 400 Hereford cows and crop about half of the farm area to broadacre cereals, canola and lupins.
The Taylor's wool flock typically sits at about 5500-head and is based on genetics from the Waverley Downs stud, which has a Merryville background and is known across the New England region for its highly productive fine and superfine wool breeding stock.
John Taylor said his family's focus was to optimise returns per hectare from each of the enterprises in its farming mix.
He said wool production goals included boosting cuts per head from current levels of about six to 6.5 kilograms per head in adult sheep, and keeping average fibre diameter at about 18.5-19-micron.
To get more fleece on each animal, part of their annual ram selection also comes down to body frame, bone structure and size.
"We know we will be achieving similar genetic gains to Waverley Downs in all of the key profit-driving traits of sheep size, wool cut and wool quality measures because we choose from the stud's top 10 best performing rams each year," Mr Taylor said.
"And their sheep are run in a very similar environment, and in the same climatic conditions, as ours.
"Basically, their sheep are bred for optimal performance and returns in our local conditions."
In a typical year, the Taylors' flock is split into about 3500 self-replacing Merino ewes and 1200-1400 wethers, run specifically to add to wool production.
Shearing occurs in July and, while the family would like to shift to an eight-month shearing cycle, they are still at 12-month intervals to ensure wool staple length is above 65-70 millimetres.
Wool testing results at shearing are used to help guide selection for fibre diameter, coefficient of fibre diameter and staple length and strength.
Fleeces are weighed to monitor and improve wool cut per head and emphasis is on selection of bigger animals that will carry more wool for the same stocking rates.
Nutrition is a key part of the productivity equation for the Taylor family and they have been undertaking pasture improvements for many years.
Sheep are primarily grazed on grass and clover pastures in the winter and sown fodder crops and crop stubbles during summer and autumn.
The three years to 2020 were anything but 'typical' in this traditionally high rainfall area.
The Taylors did not escape the prolonged and severe drought that swept through the New England area from 2017 to 2019.
"We bought a lot of hay to feed our sheep during 2018 and 2019, as we only culled about 10 per cent of the flock when seasonal conditions continued to deteriorate," Mr Taylor said.
"It was a significant investment to feed the livestock through the drought, but we knew the price of replacing sheep when the seasons broke would be too prohibitive.
"And it was worth preserving the genetics we have been working on for more than 30 years."
There was some slight financial relief when the Taylors did clear some stock, fetching $117/head for a line of cast-for-age ewes and $160/head for wethers.
"It is just unviable to have to buy-in sheep as replacements with prices at those levels," Mr Taylor said.
"And for younger stock, values are at about $250-300/head, which just doesn't make economic sense to us."
With sheep prices at such highs and positive market signals emerging for wool, Mr Taylor said he was confident about the coming year.
"I am optimistic wool prices will pick-up during 2021, but you can never be too certain about China," he said.
"We sold 2019 wool to a top of 1400 cents a kilogram (greasy) at the end of 2020, which is pretty close to our long-term average.
"But it is still lagging a bit behind the highs of about 2000c/kg (greasy) in 2018."
Mr Taylor said wool would continue to be an key part of the family's mixed operation, as the sheep were a valuable tool in helping with weed control for cropping and an enjoyable enterprise for all family members.