2013
Farm Gross Margin and
Enterprise Planning Guide
A gross margin template for
crop and livestock enterprises
RURALSOLUTIONSSA
Throughout 2013, in the Southern Region the GRDC is
working on a number of fronts to increase grower and
adviser capacity in farm business management.
 Farm Business Management factsheets to help farmers, advisers and accountants.
 Farm business and risk management columns featured in Ground Cover newspaper.
 Training for agronomists in farm business management skills.
 Farm Business Essentials workshop for growers (1-day Workshop).
 Specialist Farm Business Management Updates for growers and advisers.
 One day workshops on farm business essentials for growers and advisers.
 Farm Business Management support workshops for farming systems coordinators.
FOR FURTHER INFORMATION ON GRDC SUPPORTED PROFIT
AND RISK MANAGEMENT PUBLICATIONS AND ACTIVITIES VISIT
www.grdc.com.au/farmbusinessmanagement
Produced by Rural Solutions SA
FARM GROSS MARGIN AND
ENTERPRISE PLANNING GUIDE
2013
“A gross margin template for
crop and livestock enterprises”
• Compare the gross margin profitability of
enterprises, paddocks and rotations
• Make the best decisions
• Compare the sensitivity of profit of enterprises
to a change in production, costs and price
Sponsored by SAGIT and GRDC
ISBN 978-1-921779-49-7 Published February 2013
DISCLAIMER
This guide has been prepared in good faith on the basis of the information available at the date of publication
without any independent verification. The South Australian Grain Industry Trust, Rural Solutions SA and
the Grains Research and Development Corporation do not guarantee or warrant the accuracy, reliability,
completeness or currency of the information in this guide nor its usefulness in achieving any purpose.
Readers are responsible for assessing the relevance and accuracy of the content of this guide. The South
Australian Grain Industry Trust, Rural Solutions SA and the Grains Research and Development Corporation
will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or
relying on the information in this Farm Gross Margin Guide.
FARM GROSS MARGIN AND
ENTERPRISE PLANNING GUIDE
Broadacre farmers in South Australia continue to operate in a challenging
environment. The past twelve months has seen generally improved grain
prices but a softening of livestock returns. The 2012 season was variable
across the state with generally below average growing season rainfall
but careful management of soil water from out of season rainfall saw
generally reasonable crop yields being achieved in most areas.
Overall prospects for farming are good and we can expect to go through
a period of growth. Change will no doubt continue and there will be
the need to adopt new technologies and to increase the effectiveness
of existing operations to improve profitability. It will also be necessary
to consider different ways of managing risk whilst maximising profit to
improve total farm income. This will involve close examination of the key
drivers of both profit and risk.
This publication “2013 Farm Gross Margin and Enterprise Planning
Guide” will help farmers and their advisers compare the gross margins
of enterprises, paddocks and rotations and their respective sensitivity
to changes in production, cost and price to ultimately make the best
decisions to maximise the chances of a successful 2013 season.
We know that each farmer and their farm business is different and so a
‘one size fits all’ approach will not work. The templates and sensitivity
analysis provided in this guide allows you to feed in your own figures and
ask the ‘what if’ type questions appropriate to you and your situation. The
guide is to help inform your decisions and compare options – it does not
make the decisions for you.
This guide is one of few publications that provide gross margins for both
crops and livestock enterprises across the range of South Australian
rainfall zones.
We believe that the business of farm management is so important that
the South Australian Grain Industry Trust and the Grains Research and
Development Corporation have partnered with Rural Solutions SA to
provide a copy of this guide to every farm business in SA.
We hope you find it valuable in your decision making.
Jim Heaslip
Chairman
SAGIT
David Shannon
Chairman, GRDC
Southern Panel
Daniel Casement
Rural Solutions SA
RURALSOLUTIONS SA
Agribusiness
Rural Solutions SA is recognised for crafting and delivering
solutions that enhance outcomes for a diverse range of clients
in agribusiness markets. Innovative, tailored solutions focus on
client profitability and value through enhancing the
sustainability of systems and the adoption of leading edge
technologies and practices.
AREAS OF EXPERTISE
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 Livestock systems
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 Seafood industry development
 Business and strategic planning
 Industry and policy development
 Market and value chain development
1300 364 322
www.ruralsolutions.sa.gov.au
CONTENTS
Introduction.......................................................................................................................2
Using Gross Margins for Farm Planning..........................................................................4
Strategies for Maximising Returns from Individual Enterprises........................................5
Calculating Enterprise Profitability and Cost of Production..............................................8
2013 Gross Margin Estimates........................................................................................12
Gross Margins................................................................................................................15
APW Wheat........................................................................................................16
Durum Wheat......................................................................................................18
Malting Barley.....................................................................................................20
Feed Barley........................................................................................................22
Milling Oats.........................................................................................................24
Triticale...............................................................................................................26
Vetch...................................................................................................................28
Lupins.................................................................................................................30
Red Lentils..........................................................................................................32
Field Peas...........................................................................................................34
Faba Beans........................................................................................................36
Chickpeas...........................................................................................................38
Canola................................................................................................................40
Export Oaten Hay...............................................................................................42
Prime Lambs – High Rainfall..............................................................................44
Self Replacing Merino Flock – High Rainfall.......................................................47
Merino Wethers – High Rainfall..........................................................................50
Prime Lambs – Cereal Zone...............................................................................52
Self Replacing Merino Flock – Cereal Zone.......................................................55
Merino Wethers – Cereal Zone...........................................................................58
Prime Lambs – Pastoral Zone............................................................................60
Self Replacing Merino Flock – Pastoral Zone.....................................................63
Merino Wethers – Pastoral Zone........................................................................66
Cleanskin Sheep – Cereal Zone.........................................................................68
Beef Cattle – High Rainfall..................................................................................70
Beef Cattle – Cereal Zone..................................................................................72
Beef Cattle – Pastoral Zone................................................................................74
Appendices
Farm Costs 2013……………………………………………………………………..76
Blank Proforma……………………...............................................…………….…80
Farm Gross Margin Guide 2013
INTRODUCTION
This book provides a format and general estimates for calculating crop and
livestock gross margin profit and enterprise profitability for broadacre enterprises
across Southern Australia. It provides a base to easily calculate gross margins
and to use for cash flow planning. A blank format is included as well as a blank column on every page, along with a
full list of product and input costs as a guide for those wishing to construct their
own gross margins.
What are Gross Margins
The gross margin for a farm enterprise is one measure of profitability that is a
useful tool for cash flow planning and determining the relative profitability of farm
enterprises. They can also be used to assist in assessing the opportunity to develop
new farm enterprises. Gross margin profit is the difference between the annual gross income for that
enterprise and the variable costs directly associated with the enterprise.
In constructing gross
margins, fixed (overhead)
costs are ignored, as it is
considered that they will
be incurred regardless of
the level of the enterprise
undertaken.
The gross margin of
different enterprises should
not be compared if they
have different overhead
costs.
•
Compare the relative profitability of current farm
enterprises, paddocks or rotations
•
Estimate changes in enterprise profit caused by
changes in price, cost or yields
•
Pinpoint high cost or low income areas in the
existing farm plan
•
Evaluate the profitability of a re-organisation of the
farm enterprise mix
The base gross margins
included in this book
should be adjusted as required for commodity prices, yield, input costs and input
items. These items vary considerably between different locations and different farm
businesses.
Treatment of machinery - It is assumed that most machinery items (tractors,
seeders, sprayers, harvesters etc.) are owned by the farm business. In each gross
margin in this guide, the operating costs (fuel and repairs) have been included based
on the number of machinery passes specified. No allowance is included in the gross
margin for machinery ownership costs such as depreciation or opportunity cost of
capital. When calculating enterprise profitability, these ownership costs need to be
included. An alternative is to include all machinery costs at full contract rate.
2
Farm Gross Margin Guide 2013
Limitations of Gross margins
The gross margins prepared within this publication have
been designed to represent ‘average case scenarios’ within
the respective rainfall zones of Southern Australia. They
should be treated strictly as a base guide only and adapted
by users for their particular situations.
Gross margins are best used to compare enterprises that
make use of the same resources on the property. They
cannot be used where varying capital input is needed for an
enterprise. Cropping and livestock gross margins can only be
compared if all capital resources are already on the property.
KEY POINT
Make your own
adjustments to the
gross margins in
this book to adapt
to your own
Estimates of inputs and production can vary from what actually occurs. Although a
crop might have the highest gross margin, it might be the most sensitive to variation. Commodity prices, seasonal conditions, pests and disease can significantly affect
the eventual gross margin. Risk can be assessed by comparing gross margins
calculated with varying values for an input.
Sensitivity analysis tables are included in the book to help determine the impact on
the gross margin of significant changes in yield and price. Agronomic information including chemical rates are provided as a guide only and
exact agronomic recommendations will vary with location, soil type and a number of
other factors.
Gross margins have been broadly delineated into production zones based on rainfall.
Average annual rainfall zones have been classified as ‘Low Rainfall’ (<350 mm),
‘Medium Rainfall’ (350 – 400mm) and ‘High Rainfall’ (>400mm).
3
Farm Gross Margin Guide 2013
USING GROSS MARGINS FOR FARM PLANNING
Gross margins are just one component of a whole range of factors which go into
enterprise selection for paddocks and zones on a farming property. Some of these
other factors include:
• Stage of rotation- weed, pests, nutrition and disease levels
• Suitability of proposed land use to land class- are there physical restrictions
which limit enterprise selection?
•
Availability of suitable plant, equipment, labour and/or infrastructure to carryout the enterprise.
• Risk- What is the sensitivity of the enterprise to adverse circumstances (e.g.
poor yields or prices) and can the farm business afford to carry this risk?
• Integration of livestock in a mixed cropping situation and the need for
appropriate pasture supplies for grazing animals
Gross Margins on their own do not make the decision on enterprise selection across
the property. Each activity undertaken on a farming property will have an impact on
other activities:
• Some may be complimentary such as cropping enterprises which provide a
feed base to livestock through crop residues
• Crops planted in one year will have a rotational effect on subsequent crops
(both positive (eg cereals on legumes) and negative (eg canola on canola)
To use gross margins for planning activity mixes across the farm involves a number
of steps
1. Select the activity with the highest Gross Margin and expand its use until a
critical resource becomes limiting- this will usually be a land area constraint
but may also be plant and equipment, capital needs, rotational considerations
or the need to spread risk
2. Introduce other activities in order of decreasing Gross Margin until all limiting
resources are fully utilised
CALCULATING YOUR OWN GROSS MARGINS
Rates and types of fertiliser and weed control treatments will obviously vary for
different situations. Remember that these calculations are not meant to be an exact
science- roughly right is better than precisely wrong! Use your own estimates
when the values vary significantly from those included in the example.
Calculating the break even yield needed to cover variable costs will give some
indication of the riskiness or exposure of the particular enterprise. Remember,
of course, that there are many other costs (in addition to the variable costs) which
need to be covered before a profit is made- refer to the discussion on calculating
enterprise profitability and Cost of Production for further information. Reference to
the sensitivity tables will provide further information on how the returns from the
enterprise are expected to respond to a range of prices and yields.
4
Farm Gross Margin Guide 2013
STRATEGIES FOR MAXIMISING RETURNS
FROM INDIVIDUAL ENTERPRISES
This Gross Margins guide aims to cover all broadacre cropping and grazing areas in
South Australia. Circumstances obviously vary significantly across different regions.
However, there are some rules of thumb and other resources which can provide
guidance on decision making to aid in maximising returns from individual enterprises.
Storage of Out of Season Soil Water
Provides the opportunity to significantly improve Water Use Efficiency and hence
crop performance. The key to effective storage of soil moisture over the summer
period is to get the soil water deep in the soil profile, below the zone subject to
evaporation and then retain soil moisture through to seeding by control of summer
weeds.
Lighter Mallee type soils
• Rainfall events above 40 mm in December/January should result in some
stored moisture with summer weed control
• Less than 40 mm rainfall events may still warrant summer weed control for
ease of seeding operations and nutrient retention (mainly N).
• Strong case to apply zero tolerance summer weed control policy on light soils
with no sub-soil limitations
Heavier soils
• May require larger rainfall events (up to 100 mm) in December/January to
store soil moisture if soils are already very dry
• Smaller rainfall events from February onwards will warrant control of
germinated weeds
• Control of summer weeds earlier than February may also be dependant on
other considerations e.g. improved ease of sowing, low cost of control, nutrient
retention
Maximising Time of Sowing Benefits
Early seeding generally provides the most reliable yield outcome, particularly in low
rainfall situations. However, frost prone areas have special considerations which
need to be taken into account.
Sowing Opportunity with Early Break
Frost Risk
Start Sowing
Low
After mid April
Medium
After 25th April
High
After early May
• Sow at the optimum time, even in high frost risk areas. Use appropriate
varieties to manage flowering time.
• The yield loss from moisture and temperature stress during spring will usually
be far greater than the damage caused by frost.
• The most severe and damaging frosts are those associated with dry conditions
in mid to late spring (black frosts), which can be devastating even to crops that
have completed flowering.
5
Farm Gross Margin Guide 2013
Reducing the risk of cereal break crops (particularly lower rainfall districts)
The use of grain legumes and canola as break crops for cereals provide rotational advantages for
subsequent cereal crops. However, particularly in low rainfall areas, these crops are regarded as
inherently more risky both financially and environmentally. Some rules of thumb can be used to
reduce this risk:
1. Field Peas and other grain legumes - Sow before 20th May in paddocks with more than
30 mm Plant Available Water (PAW)
2. Canola
•
•
•
•
Low rainfall areas sow before the 10th May in soils with more than 35 mm of PAW
Medium rainfall areas sow before 20th May in soils with more than 35 mm PAW
Research in WA shows that canola sown into very warm soils (eg very early April)
can show high seed mortality rates
Sow canola when the price is more than twice the price of wheat.
Ensuring Efficient Fertiliser Practices
Aim to maintain soil nutrient status at appropriate levels to maximise sustainable and profitable
production
Phosphorous Replacement Levels
Crop
Removal
Removal plus losses #
Cereal grain
3 kg/t
4 kg/t
Pulses
4 kg/t
5 kg/t
Canola
7 kg/t
8 kg/t
Cereal hay
2 kg/t
2.5 kg/t
# higher rates may be required on calcareous / ironstone soils or those with moderate to
low available P.
Reduce P application on soils with sub soil constrains when:
• Moderate to low stored soil moisture
• And crop sown more than 3 weeks after the optimum sowing date.
A new DGT phosphorus test (from Diffusive Gradients in Thin films) has been developed
by Dr Sean Mason of Adelaide University and is now commercially available.
Details http://www.apal.com.au/NEW_DGT_Phosphorus_Test.aspx
N Fertiliser
Wide range of soil types, rotational histories and climatic conditions means that Nitrogen
requirements of crops will vary considerably. Assess opening N supply (e.g. by using deep
soil sampling) and then monitor yield and N requirements through models such as Yield
Prophet® (www.yieldprophet.com.au/) or the CSIRO developed Yield and N Calculator.
(www.clw.csiro.au/products/ncalc/index.html)
6
Farm Gross Margin Guide 2013
Assessing the potential impact of Soil Borne Pathogens
Levels of some soil borne pathogens can be assessed using the PreDicta B service provided by
SARDI. PreDicta B (B = broadacre) is a DNA based soil testing service to identify which soilborne
pathogens pose a significant risk to broadacre crops prior to seeding.
It has been developed for cropping regions in southern Australia and includes tests for:
•
•
•
•
•
•
•
Cereal cyst nematode
Take-all (Gaeumannomyces graminis var tritici (Ggt) and G. graminis var avenae (Gga))
Rhizoctonia barepatch (Rhizoctonia solani AG8)
Crown rot (Fusarium pseudograminearum and F. culmorum)
Root lesion nematode (Pratylenchus neglectus and P. thornei)
Stem nematode (Ditylenchus dipsaci)
Blackspot of peas (Mycosphaerella pinodes, Phoma medicaginis var pinodella and
Phoma koolunga)
Grain producers can access PreDicta B via agronomists accredited by SARDI to interpret the
results and provide advice on management options to reduce the risk of yield loss.
PreDicta B samples are processed weekly from February to mid May (prior to crops being sown) to
assist with planning the cropping program.
PreDicta B is not intended for in-crop diagnosis. This is best achieved by sending samples of
affected plants to your local plant pathology laboratory.
For information on PreDicta B contact: Alan McKay [email protected]
Ph 08 8303 9375
Identifying the potential for Blackspot infection in Peas
In addition to the PreDicta B soil test, field pea growers in SA can utilise the “Blackspot Manager”
to identify the best sowing time to lessen the risk of a blackspot outbreak by accessing a simple
chart online. The model forecasts temporal pattern of blackspot spore maturity and release from
infected field pea stubble at key locations throughout SA. Access is via the WA Department of
Agriculture and Food website- follow the links to Crop Disease Forecast
CropWatch
CropWatch is a FREE electronic newsletter service provided by SARDI and distributed through Jon
Lamb Communications and reports on crop diseases throughout SA.
PestFacts
PestFacts is a FREE electronic newsletter service, produced by SARDI, designed to keep growers
and advisers informed about invertebrate pest-related issues and solutions as they emerge during
the growing season. PestFacts issues warnings (or reminders) for a range of invertebrate pests of
all broad-acre crops including pulses, oilseeds, cereals and fodder crops.
http://www.sardi.sa.gov.au/pestsdiseases/publications/pestfacts
7
Farm Gross Margin Guide 2013
Calculating Enterprise Profitability and Cost of Production
Calculation of Gross Margins only includes the variable costs associated with the particular
enterprise. Other costs need to be allowed for in calculating the overall enterprise
profitability. These include depreciation, overhead or fixed business costs, interest and
living or personal drawings.
The Ready Reckoner Tables on the next two pages provide a quick means of calculating
your annual overhead cost per hectare. Alternatively, calculate your own by completing the
“Your Estimates” column.
Example
APW
WheatMedium
Rainfall
Gross Income ($/Ha)
(From Gross Margin)
625
Variable Costs (Gross Margin)
Depreciation (Ready Reckoner)
Overhead Costs (Ready Reckoner)
Interest (Ready Reckoner)
Drawings (Ready Reckoner)
324
67
33
33
40
Total Enterprise Expenses ($/Ha)
497
Expected Yield (Gross Margin) (t/ha)
2.5
Cost of Production $/tonne
(Total expenses divided by yield) Refer Note3
199
Enterprise Profitability
(Gross Income minus
Total Enterprise Expenses) ($/Ha)
128
Your Enterprises
Note 1. Fixed costs can be allocated on other than a per Hectare basis if more appropriate
eg substantially different land classes may prefer costs to be allocated depending on gross
income being derived from various enterprises.
Note 2. While this format works well in calculating profitability for cropping enterprises,
care needs to be taken when applying to grazing enterprises. The Gross Margins for
stock included in this booklet do not include any allowance for pasture establishment or
maintenance (eg seed, fertiliser, insect and weed control). Any calculation of profitability for
grazing enterprises need to take these costs into account.
Note 3. Cost of Production calculated above does not include any form of return on your
investment in land, plant and equipment. Enterprise profitability needs to cover this return.
This could be up to a further,say $50/tonne, required for full profitability.
8
Farm Gross Margin Guide 2013
Ready Reckoner Tables
Depreciation
Annual Deprec Rate
Annual Depreciation ($)
250,000
10.00%
25000
Cropped Area
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
50
25
17
13
10
Your
Estimate
Cropping Machinery Value ($)
500,000 750,000 1,000,000 1,250,000 1,500,000
10.00%
10.00%
10.00%
10.00%
10.00%
50000
75000
100000
125000
150000
Your Cropped Area
Annual $/Ha Cost for Depreciation
100
150
100
50
75
125
150
33
50
67
83
100
25
38
63
75
50
20
30
40
50
60
17
25
33
42
50
21
29
36
43
25
31
38
22
28
33
25
30
Overhead (Fixed) Costs
Annual Overhead Costs ($)
Total Farm Area
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Your
Estimate
25,000
25
13
8
6
5
50,000
75,000
100,000
150,000 200,000
Your Farm Area
Annual $/Ha Overhead Costs
50
75
100
150
200
50
25
38
75
100
17
25
33
50
67
13
19
38
50
25
10
15
20
30
40
8
13
17
25
33
7
11
14
21
29
9
13
19
25
8
11
17
22
8
10
15
20
Overhead Costs may include the following items
Accountancy Fees
Bank Fees and Charges
Electricity (non-enterprise related)
Consultancy and Subscriptions
General Insurances
Telephone, Postage and Internet
Motor Vehicle expenses (non-enterprise related)
Rates and Taxes
Land Leasing Expenses
Permanent Labour
Other……
Annual Overhead Costs
TOTAL
Your
Estimate
Transfer to the above table
9
Farm Gross Margin Guide 2013
Ready Reckoner Tables
Interest (Debt Servicing) Costs- include any machinery leasing costs
Annual Interest Costs ($)
Total Farm Area
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
25,000
50,000
150,000 200,000
Your Farm Area
Annual $/Ha Interest Costs
50
75
100
150
200
50
25
38
75
100
17
25
33
50
67
13
19
38
50
25
10
15
20
30
40
8
13
17
25
33
7
11
14
21
29
6
9
13
19
25
6
8
11
17
22
5
8
10
15
20
25
13
8
6
5
4
4
3
3
3
75,000
100,000
Living (Personal Drawings) Expenses
Annual Drawings ($)
40,000
Total Farm Area
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
40
20
13
10
8
7
6
5
4
4
Your
Estimate
Your
Estimate
60,000
80,000
100,000
120,000 140,000
Your Farm Area
Annual $/Ha Drawings
60
80
100
120
140
60
30
40
50
70
20
27
33
40
47
15
20
25
35
30
12
16
20
24
28
10
13
17
20
23
9
11
14
17
20
8
10
13
15
18
7
9
11
13
16
6
8
10
12
14
Personal drawings include all living expenses, annual school fees, personal income tax,
non business related motor vehicle expenditure, holidays, superannuation, personal life
insurances and any other expenses of a personal nature
10
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Farm Gross Margin Guide 2013
2013 GROSS MARGIN ESTIMATES
The tables below summarise the anticipated gross margins for all crops and livestock for 2013.
Commodity $/ha
CROPPING
Low
Medium
APW Wheat
Durum
Malt Barley
Feed Barley
Milling Oats
Triticale
Grain Vetch
Lupins
Lentils
Field Peas
Faba Beans
Chickpeas (Kabuli)
Canola
Oaten Hay
218
174
199
179
44
105
107
52
144
59
45
125
121
133
301
295
315
245
167
182
255
157
318
134
154
387
325
263
High
454
497
452
378
289
299
377
245
553
340
458
691
538
429
LIVESTOCK
Pastoral Cereal
Enterprise $/dse
Prime Lambs
17
31
Merino breeders
26
32
Merino wethers
24
31
Cleanskin
20
Beef Cattle
12
13
High
24
32
32
15
COMMODITY PRICES HISTORICAL DATA
Historical commodity price data and trends can be used as a guide in assessing average returns
over time and also the variability of those returns for any given commodity. NOTE: 13/14 Forecast
Grain Prices: Forecast grain prices for 13/14 are affected by the value of the Australian
Dollar, world consumption, and Australian and other major grain exporting countries
production. Future pricing is uncertain and caution is needed with projections.
Commodity
APW Wheat ($/t)
Durum ($/t)
Malt Barley ($/t)
Feed Barley ($/t)
Milling Oats ($/t)
Feed Oats ($/t)
Triticale ($/t)
Grain Vetch ($/t)
Lupins ($/t)
Lentils ($/t)
Field Peas ($/t)
Faba Beans ($/t)
Chickpeas 6-8mm Kabuli ($/t)
Canola ($/t)
Oaten Hay ($/t)
12
Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013
280
450
270
175
170
150
210
700
320
1000
350
340
600
530
180
205
250
180
135
150
130
150
500
250
920
255
260
500
405
125
310
310
270
200
150
130
200
280
270
680
265
320
600
600
125
214
280
220
200
180
170
170
280
155
410
300
370
500
500
140
280
305
260
240
215
205
220
500
260
480
330
470
575
540
160
5 yr
2013
Average Estimate
258
250
319
280
240
240
190
200
173
185
157
175
190
210
452
400
251
250
698
500
300
270
352
320
555
550
515
470
146
150
Farm Gross Margin Guide 2013
Comparative returns between farm enterprises – High Rainfall
Livestock Gross Margin per dse
High Rainfall
Cropping Gross Margin per Hectare
High Rainfall
$800
$35
$700
$30
$600
$25
GM $/dse
GM $/ha
$500
$400
$300
$20
$15
$200
$10
$100
$5
$0
$0
Comparative returns between farm enterprises – Medium Rainfall
Cropping Gross Margin per Hectare
Medium Rainfall
Livestock Gross Margin per dse
Cereal Zone
$450
$35
$400
$30
$350
$25
$250
GM $/dse
GM $/ha
$300
$200
$150
$20
$15
$10
$100
$5
$50
$0
$0
Comparative returns between farm enterprises – Low Rainfall
Livestock Gross Margin per dse
Pastoral Zone
Cropping Gross Margin per Hectare
Low Rainfall
$250
$30
$25
$200
$100
$20
GM $/dse
GM $/ha
$150
$15
$10
$50
$5
$0
$0
13
Farm Gross Margin Guide 2013
COMMENTARY ON 2013 GROSS MARGINS
Most cropping gross margins estimates in 2013 are higher than the same estimates made
prior to the 2012 cropping season.
The main reason for this is the general rise in grain pricing over the past 12 months.
Whether these higher prices will still be available when the 2013 crops are harvested is
not known at this stage. There is a degree of expectation in the market that a big northern
hemisphere crop in 2013 could result in significant downwards pressure on Australian
grain prices leading into the 2013 harvest. A degree of this sentiment has been included in
the pricing used to complete this Gross Margins analysis but it is emphasised that future
grain pricing remains uncertain and estimates used in this Gross Margins analysis could
vary substantially from those which are actually obtained.
Cereal production remains the standout performer in lower rainfall districts with bread
wheat showing the highest gross margin. The malting barley gross margin needs to
be adjusted for quality risk if malting grade is not usually achieved. In this case, a high
yielding feed barley variety is likely to prove a viable alternative.
Some cereal break crops in medium and high rainfall districts (notably lentils, chickpeas
and canola) are showing improved returns over cereals. Higher production and/or
marketing risks need to be factored into these returns. Kabuli Chickpeas show the highest
potential gross margin but marketing of this crop in SA can be difficult and growers would
need to have the expectation of holding the crop for up to 12 months before a market may
become available.
The gross margin for export oaten hay is reasonable in all districts if reasonable quality
and yields can be obtained. Freight to the processor is a strong determinant of profitability
of this crop.
Grain vetch can be quite profitable in all districts but potential harvesting difficulties and
limited markets require caution with this crop.
Livestock returns have suffered over the past 12 months with lower livestock sale prices.
With sheep, enterprises based primarily on wool production (although still lower) have
not seen the same decline in expected Gross Margin as those primarily aimed at meat
production. Merino wethers have become a much more competitive on a dry sheep
equivalent (dse) basis. First cross ewes are relying on significantly improved weaning
percentages to show returns similar to using Merino ewes as prime lamb mothers.
Beef cattle continue to show expected returns on a dse basis well below that available
from sheep production. In part, this is due to the cost of hand feeding hay during periods of
poor pasture growth.
14
Farm Gross Margin Guide 2013
GROSS MARGINS
The gross margins in this book are designed to provide a template only,
for users to adapt to their own situation, and
should not be relied upon as representative of any one particular situation.
Below is an example of how these gross margins may be adapted to suit individual
circumstances. A copy of a blank gross margin sheet, which may be photocopied to
calculate your own gross margin, is included at the rear of this publication.
EXPORT OATEN HAY GROSS MARGIN
Adjust fertiliser
rates to your
own situation
considering
prior rotation
2013
INCOME
YOUR
Rainfall Zone
LOW
Price (13/14 Forecast)
Quality
MEDIUM
$150
HIGH
$150
ESTIMATE
$150
Mixed grades
Yield (t/ha)
GROSS INCOME
VARIABLE COSTS
3.50
5.50
$525
$825
Rate/ha
Cost
Low
Rate/ha
$/ha
Medium
8
$1,200
Rate/ha
$/ha
High
$/ha
120
$21.60
130
$23.40
0
$0.00
0
$0.00
80
75
$55.20
$42.75
110
150
$75.90
$85.50
Seed
Levies
Chemical rates
will vary in
some cases
with soil types.
Adjust for local
chemical costs
Seed
$180.00 /tonne
@
$0.00 /tonne
@
$690 /tonne
$570 /tonne
@
@
Seed Treatment
Fertiliser (Bulk)
18:20:0
Urea
90
60
30
$16.20
$41.40
17.1
Chemicals-Herbicides
Summer Weed Control
Various
Allow
$20.00
$20.00
$20.00
Pre-emergents
$5.00
$18.00
$16.00
$11.70
$9.00
Glyphosate 540
Oxyfluorfen
Dual Gold
Most GM’s
assume own
equipment. Add
or delete
contract work
component as
required
Diuron
Post-MCPA Amine
@
@
@
@
@
1.2
0.075
$6.00
$1.35
0.4
0.5
$4.68
$4.50
1.2
0.075
0.5
0.4
0.5
$6.00
$1.35
$8.00
$4.68
$4.50
1.2
0.075
0.5
0.4
0.5
Cost of seed
should always
be allowed even
if using own
seed
Adjust for actual
herbicide use.
Consult cost
section for costs
of other
chemicals and
label information
for rates
$6.00
$1.35
$8.00
$4.68
$4.50
Insecticides
Fungicides
Operations
Fuel & Oil
Repairs & Maintenance
Freight
Hay
Fertiliser (t)
Break even
yield is variable
costs divided
by price
/litre
/litre
/litre
/litre
/litre
Insert your
estimates based
on projected
yield and price
Contract Work
Hay mowing
Super Conditioner
Hay baling
Insurance
$9.06
$7.53
$28.00 /tonne
$20.00 /tonne
$45.00
$25-35.00
$26.67
$2.50
/ha
/ha
/tonne
/$1000
@
@
@
@
@
@
TOTAL VARIABLE COSTS
GROSS MARGIN/hectare
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
3.5
0.09
1.0
1.0
3.5
$9.06
$7.53
$9.06
$7.53
$98.00
$1.80
5.5
0.16
$154.00
$3.10
8.0
0.26
$224.00
$5.20
$45.00
$25.00
$93.33
$1.31
1.0
1.0
5.5
$45.00
$30.00
$146.67
$2.06
1.0
1.0
8.0
$45.00
$35.00
$213.33
$3.00
$392
$133
$112
2.62
$119
$562
$263
$102
3.74
$241
Break even
price is
variable costs
divided by
yield
$771
$429
$96
5.14
$397
AGRONOMIC NOTES
Fertiliser rate assumes hay follows a cereal. Bonuses for shedding The use of a 'super conditioner' can significantly reduce drying time and
subsequently risk with less chance of a quality downrade. No
and late delivery may apply. Additional capital costs including
allowance has been made for cost of raking. Price is based on average
shedding and extra machinery may need to be considered.
quality- substantial differences occur across grades
15
Farm Gross Margin Guide 2013
APW WHEAT GROSS MARGIN
2013
INCOME
Rainfall Zone
LOW
Price (13/14 Forecast)
Quality
MEDIUM
$250
HIGH
$250
YOUR
ESTIMATE
$250
APW (Change Price for other grades)
Yield (t/ha)
1.5
2.5
$375
GROSS INCOME
VARIABLE COSTS
Rate/ha
Cost
Low
Rate/ha
$/ha
3.5
$625
Medium
$875
Rate/ha
$/ha
High
$/ha
Seed
Seed
Seed Treatment
$0.28 /kg
$0.05 /kg
@
@
60
60
$16.80
$2.94
80
80
$22.40
$3.92
90
90
$25.20
$4.41
Levies
GRDC Levies
EPR & state levies
Fertiliser (Bulk)
18:20:0
1.0% Gross Income
$3.75
$3.45
$2.30 /tonne sold
Urea
Chemicals-Herbicides
Summer Weed Control
$690 /tonne
@
$570 /tonne
@
Various
40
Allow
$6.25
$5.75
$8.75
$8.05
$27.60
60
$41.40
80
$55.20
$0.00
60
$34.20
120
$68.40
$20.00
$20.00
$20.00
Pre-emergents
$6.00 /litre
Trifluralin 480g/L
$5.00 /litre
@
$18.00 /litre
@
Glyphosate 540(1)
Oxyfluorfen
Sakura
@
$325.00 /kg
1
$6.00
$0.00
1.2
0.075
@
1
$6.00
$0.00
1
$6.00
$0.00
$6.00
1.2
$6.00
1.2
$6.00
$1.35
0.075
$1.35
0.075
$1.35
$0.00
0.118
$38.35
0.118
$38.35
$6.30
g
Post-emergents
M.C.P.A. LVE
$9.00 /litre
@
0.5
$4.50
0.7
$6.30
0.7
Metsulfuron methyl(1)
$0.08 /gm
@
5
$0.85
5
$0.85
5
$0.85
$30.00 /kg
@
0.075
$2.25
0.075
$2.25
0.075
$2.25
Tebuconazole
$12.00 /litre
@
0.2
$2.40
0.2
$2.40
Prothioconazole(Prosaro)
$67.00 /litre
@
0.15
$10.05
0.15
$10.05
Clopyralid (Lontrel)
Fungicides
Operations
Fuel & Oil
Repairs & Maintenance
$13.10
$14.15
Freight
Grain (t)
Fertiliser (t)
$20.00 /tonne
$20.00 /tonne
@
@
Contract Work
Aerial spraying
Urea spreading
Insurance
$14.00 /ha
$12.00 /ha
$8.50 /$1000
@
@
@
Other
1.5
0.04
$15.72
$16.98
$18.34
$19.81
$30.00
$0.80
2.5
0.12
$50.00
$2.40
3.5
0.20
$70.00
$4.00
$0.00
$0.00
$3.19
1
1
$14.00
$12.00
$5.31
1
2
$14.00
$24.00
$7.4
$0.00 /ha
$0.00 /ha
TOTAL VARIABLE COSTS
$157
$324
$421
GROSS MARGIN/hectare
$218
$301
$454
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
(1) Includes Surfactant at 0.1%
To calculate using different grades (AH1, ASW, Feed) substitute
different prices using appropriate grade spreads.
16
$104
0.63
$230
AGRONOMIC NOTES
$130
1.30
$321
$120
1.68
$481
Nitrogen requirements will vary depending on individual paddocks- seek
advice.
If targeting higher protein (AH1) additional N inputs will be required.
Farm Gross Margin Guide 2013
APW WHEAT GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Cash Price $/t
$200
$225
$250
$275
Variable Costs
$300
0.5
-$29
-$17
-$5
$7
$20
Yield
1
$58
$82
$107
$131
$156
t/ha
1.5
$145
$181
$218
$255
$292
2
$232
$281
$330
$379
$428
140
120
100
MEDIUM RAINFALL
Cash Price $/t
$225
$250
$275
$300
Yield
0.5
1.5
-$170
$4
-$157
$41
-$145
$78
-$133
$115
-$120
$152
t/ha
2.5
$178
$240
$301
$362
$424
3.5
$352
$438
$524
$610
$696
80
$/ha
$200
40
20
HIGH RAINFALL
Cash Price $/t
1.5
2.5
Yield
t/ha
60
0
$200
$225
$250
$275
$300
-$66
$108
-$29
$169
$8
$231
$45
$292
$81
$353
3.5
$282
$368
$454
$540
$626
4.5
$456
$567
$677
$787
$898
Low
Medium
High
HISTORIC PRICES AND TRENDS
APW 10.5% WHEAT
HISTORIC PRICES (Post Harvest)
400
$/tonne
350
300
250
200
150
100
50
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Machinery Costs- Assuming full ownership of machinery
(Fuelandrepairsonly-excludesdepreciationandotherownershipcosts)
Operation
No.
seed
1
spray
4
harvest#
1
TOTAL
Repairs & Maint
Fuel
$/ha
$/ha
3.84
2.03
5.152
1.74
8.29
6.21
14.15
13.10
#Ratesareforlowrainfallzone.Extracostinhigheryieldingsituations
17
Farm Gross Margin Guide 2013
DURUM GROSS MARGIN
INCOME
Rainfall Zone
LOW
Price (13/14 Forecast)
Quality
$280
MEDIUM
HIGH
$280.00
$280.00
2013
YOUR
ESTIMATE
Durum 13%
Yield (t/ha)
1.2
2.1
$336
GROSS INCOME
VARIABLE COSTS
Rate/ha
Low
Cost
Seed
Seed
Seed Treatment
3.2
$588
Rate/ha
Medium
$/ha
$896
Rate/ha
High
$/ha
$0.31 /kg
@
90
$27.45
100
$30.50
120
$36.60
$0.05 /kg
@
90
$4.41
100
$4.90
120
$5.88
Levies
GRDC Levies
EPR & state levies
Fertiliser (Bulk)
DAP + 2% Zn
Urea
Chemicals-Herbicides
1.0% Gross Income
$720 /tonne
$570 /tonne
Summer Weed Control
Trifluralin 480g/L
Boxer Gold
Glyphosate 540
y
Oxyfluorfen
$3.36
$3.96
$3.30 /tonne sold
Various
@
@
40
Allow
$6.00 /litre
$13.75 /litre
$5.00 /litre
$18.00 /litre
@
@
@
@
@
@
$28.80
$0.00
$5.88
$6.93
60
60
$20.00
1
$43.20
$34.20
$8.96
$10.56
80
120
$20.00
$57.60
$68.40
$20.00
1.2
0.075
$6.00
$0.00
$6.00
$1.35
1
2.5
1.2
0.075
$6.00
$34.38
$6.00
$1.35
1
2.5
1.2
0.075
$6.00
$34.38
$6.00
$1.35
0.5
5
$4.50
$0.85
0.5
5
$4.50
$0.85
0.5
5
$4.50
$0.85
Post-emergents
$9.00 /litre
$0.08 /gram
MCPA LVE
Metsulfuron methyl(1)
Insecticides
Fungicides
Operations
Fuel & Oil
Repairs & Maintenance
Freight
Grain (t)
Fertiliser (t)
Contract Work
Aerial spraying
Urea spreading
Insurance
Other
$13.10
$14.15
$20.00 /tonne
$20.00 /tonne
@
@
$14.00 /ha
$12.00 /ha
$8.50 /$1000
@
@
@
TOTAL VARIABLE COSTS
GROSS MARGIN/hectare
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
(1) surfactant at 0.1%
Assumes durum follows a legume crop or pasture.
Price assumes Durum 13% is achieved.
18
1.2
0.04
$15.72
$16.98
$18.34
$19.81
$24.00
$0.80
2.1
0.12
$42.00
$2.40
3.2
0.20
$64.00
$4.00
$0.00
$0.00
$2.86
1
$0.00
$12.00
$5.00
2
$0.00
$24.00
$7.62
$162
$174
$135
0.58
$221
AGRONOMIC NOTES
$293
$295
$139
1.05
$377
$399
$497
$125
1.42
$622
Some Durum varieties have a narrow safety margin with broadleaf
herbicides. Seek advice. The effect is worse when the crop is under
stress.
Farm Gross Margin Guide 2013
DURUM GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$200
Yield
$240
$280
$320
0.4
-$58
-$43
-$27
-$11
$5
1.2
$80
$127
$174
$222
$269
2
$219
$297
$376
$454
$533
2.8
$357
$467
$577
$687
$797
t/ha
Variable Costs
$360
140
120
100
MEDIUM RAINFALL
Net Price $/t
$240
-$21
$280
$19
$320
$58
$360
$97
Yield
2.1
$130
$213
$295
$378
$460
t/ha
3
$286
$404
$522
$639
$757
4
$459
$616
$773
$930
$1,087
80
$/ha
1
$200
-$60
60
40
20
HIGH RAINFALL
Net Price $/t
0
$200
$240
$280
$320
$360
-$135
$38
-$95
$117
-$56
$195
-$17
$274
$22
$352
Yield
1
2
t/ha
3.2
$246
$372
$497
$623
$748
4
$384
$541
$698
$855
$1,012
Low
Medium
High
HISTORIC PRICES AND TRENDS
DURUM
HISTORIC PRICES (post harvest)
600
$/tonne
500
400
300
200
100
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
Operation
No.
Repairs & Maint
Fuel
$/ha
$/ha
1
3.84
5.152
spray
4
2.03
1.74
harvest#
1
8.29
14.15
6.21
13.10
seed
TOTAL
# Rates are for low rainfall zone. Extra cost in higher yielding situations
19
Farm Gross Margin Guide 2013
MALTING BARLEY GROSS MARGIN
2013
INCOME
YOUR
Rainfall Zone
LOW
Price (13/14 Forecast)
Quality
MEDIUM
$240
HIGH
$240
ESTIMATE
$240
Malting
Yield (t/ha)
1.5
2.5
$360
GROSS INCOME
VARIABLE COSTS
Rate/ha
Cost
Seed
Seed
Seed Treatment
Low
$0.26 /kg
$0.05 /kg
@
@
Rate/ha
$/ha
60
60
$15.60
$2.94
3.5
$600
Medium
75
75
$840
Rate/ha
$/ha
$19.50
$3.68
High
80
80
$/ha
$20.80
$3.92
Levies
GRDC Levies
1.0% Gross Income
$3.60
$3.15
$2.10 /tonne sold
EPR & state levies
Fertiliser (Bulk)
18:20:0
Urea
Chemicals-Herbicides
$690 /tonne
$570 /tonne
Summer Weed Control
Various
@
@
40
$27.60
$0.00
Allow
$6.00
$5.25
60
50
$20.00
$41.40
$28.50
$8.40
$7.35
80
100
$20.00
$55.20
$57.00
$20.00
Pre-emergents
Trifluralin 480g/L
Glyphosate 540
Oxyfluorfen
Boxer Gold
$6.00
$5.00
$18.00
$13.75
/litre
/litre
/litre
/litre
@
@
@
@
1
1.2
0.075
$6.00
$6.00
$1.35
$0.00
1.5
1.2
0.075
2.5
$9.00
$6.00
$1.35
$34.38
1.5
1.2
0.075
2.5
$9.00
$6.00
$1.35
$34.38
$5.00 /litre
$0.08 /gm
@
@
1.2
5
$6.00
$0.85
1.5
5
$7.50
$0.85
1.5
5
$7.50
$0.85
$30.00 /kg
@
0.1
$3.00
0.1
$3.00
0.1
$3.00
$13.50 /litre
@
0.3
$4.05
0.3
0.3
$4.05
$4.05
0.3
0.3
$4.05
$4.05
Post-emergents
2,4- D Amine
Metsulfuron methyl(1)
Clopyralid (Lontel)
Fungicides
Propoconazole
Insecticides
Operations
Fuel & Oil
Repairs & Maintenance
$13.10
$14.15
Freight
Grain (t)
Fertiliser (t)
$20.00 /tonne
$20.00 /tonne
@
@
Contract Work
Aerial spraying
Urea Spreading
Insurance
$14.00 /ha
$12.00 /ha
$8.50 /$1000
@
@
@
1.5
0.04
0
$15.72
$16.98
$18.34
$19.81
$30.00
$0.80
2.5
0.11
$50.00
$2.20
3.5
0.18
$70.00
$3.60
$0.00
$0.00
$3.06
0
$0.00
$0.00
$5.10
1
1
$14.00
$12.00
$7.1
Other
TOTAL VARIABLE COSTS
$161
$285
$388
GROSS MARGIN/hectare
$199
$315
$452
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
$108
0.67
$199
AGRONOMIC NOTES
$114
1.19
$315
$111
1.62
$452
Assumes barley follows wheat.
Urea may not be required following a legume pasture or grain legume crop
Price assumes Malting grade is achieved which is high risk. Achieving feed
grade would result in lower Gross Margin.
Having to windrow barley will reduce GM by around $25/ha
20
Farm Gross Margin Guide 2013
MALTING BARLEY GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$180
$210
$240
$270
Variable Costs
$300
0.5
-$44
-$29
-$15
$0
$15
Yield
1
$33
$63
$92
$121
$151
t/ha
1.5
$110
$155
$199
$243
$287
2
$188
$247
$305
$364
$423
120
100
MEDIUM RAINFALL
80
$180
$210
$240
$270
$300
Yield
0.5
1.5
-$141
$14
-$126
$58
-$111
$102
-$97
$146
-$82
$190
t/ha
2.5
$168
$242
$315
$389
$463
3.5
$323
$426
$529
$632
$735
$/ha
Net Price $/t
60
40
20
HIGH RAINFALL
Net Price $/t
0
$180
$210
$240
$270
$300
Yield
1.5
2.5
-$63
$92
-$19
$165
$25
$239
$70
$312
$114
$386
t/ha
3.5
$246
$349
$452
$555
$658
4.5
$401
$533
$666
$798
$931
Low
Medium
High
HISTORIC PRICES AND TRENDS
MALT BARLEY
HISTORIC PRICES (post harvest)
400
$/tonne
350
300
250
200
150
100
50
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
Operation
seed
No.
1
spray
4
harvest#
1
TOTAL
Repairs & Maint
Fuel
$/ha
$/ha
3.84
2.03
5.152
1.74
8.29
6.21
14.15
13.10
# Rates are for low rainfall zone. Extra cost in higher yielding situations
21
Farm Gross Margin Guide 2013
FEED BARLEY GROSS MARGIN
2013
YOUR
ESTIMATE
INCOME
Rainfall Zone
LOW
Price (13/14 Forecast)
Quality
MEDIUM
$200
HIGH
$200
$200
Feed 1
Yield (t/ha)
1.7
2.8
$340
GROSS INCOME
VARIABLE COSTS
Rate/ha
Low
Cost
Seed
Seed
Seed Treatment
$0.24 /kg
$0.05 /kg
@
@
60
60
$/ha
$14.40
$2.94
4
$560
Rate/ha
Medium
75
75
$/ha
$18.00
$3.68
$800
Rate/ha
High
80
80
$/ha
$19.20
$3.92
Levies
GRDC Levies
EPR & state levies
Fertiliser (Bulk)
18:20:0
1.0% Gross Income
$3.40
$3.06
$1.80 /tonne sold
Urea
Chemicals-Herbicides
Summer Weed Control
$690 /tonne
@
$570 /tonne
@
Various
40
Allow
$5.60
$5.04
$8.00
$7.20
$27.60
60
$41.40
80
$55.20
$0.00
100
$57.00
150
$85.50
$20.00
$20.00
$20.00
Pre-emergents
Trifluralin 480g/L
$6.00 /litre
@
Glyphosate 540
$5.00 /litre
@
Oxyfluorfen
$18.00 /litre
@
Boxer Gold
$13.75 /litre
@
2,4- D Amine
$5.00 /litre
@
Metsulfuron methyl(1)
$0.08 /gm
@
$13.50 /litre
@
1
$6.00
1.5
$9.00
1.5
$9.00
$6.00
1.2
$6.00
1.2
$6.00
$1.35
0.075
$1.35
0.075
$1.35
$0.00
2.5
$34.38
2.5
$34.38
1.2
$6.00
1.5
$7.50
1.5
$7.50
5
$0.85
5
$0.85
5
$0.85
0.3
$4.05
0.3
0.3
$4.05
$4.05
0.3
0.3
$4.05
$4.05
1.2
0.075
Post-emergents
P t
t
Fungicides
Propoconazole
Insecticides
Operations
Fuel & Oil
Repairs & Maintenance
Freight
Grain (t)
Fertiliser (t)
Contract Work
Aerial spraying
$20.00 /tonne
$20.00 /tonne
@
@
$14.00 /ha
@
$12.00 /ha
$8.50 /$1000
@
@
0
$15.72
$18.34
$14.15
$16.98
$19.81
$34.00
$0.80
2.8
0.16
$56.00
$3.20
4.0
0.23
$80.00
$4.60
$0.00
0
$0.00
1
$14.00
$0.00
$2.89
$0.00
$4.76
1
$12.00
$6.8
TOTAL VARIABLE COSTS
$161
$315
$422
GROSS MARGIN/hectare
$179
$245
$378
Urea spreading
Insurance
Other
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
Assumes barley follows wheat
Having to windrow barley will reduce GM by around $25/ha
22
1.7
0.04
$13.10
$94
0.80
$162
AGRONOMIC NOTES
$112
1.57
$217
$105
2.11
$338
Urea would not be required following a legume pasture or grain legume
crop
Farm Gross Margin Guide 2013
FEED BARLEY GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$150
$175
$200
$225
$250
Variable Costs
1
$8
$33
$57
$82
$106
Yield
1.7
$96
$138
$179
$221
$263
t/ha
2.4
$184
$243
$302
$360
$419
140
3
$259
$333
$406
$480
$553
120
160
MEDIUM RAINFALL
100
$150
$175
$200
$225
$250
Yield
1.2
2
-$93
$8
-$63
$57
-$34
$106
-$4
$155
$25
$204
t/ha
2.8
$108
$177
$245
$314
$383
3.6
$208
$297
$385
$473
$562
$/ha
Net Price $/t
80
60
40
20
HIGH RAINFALL
Net Price $/t
0
$150
$175
$200
$225
$250
Yield
2
3
-$69
$57
-$20
$130
$29
$204
$78
$277
$127
$351
t/ha
4
$182
$280
$378
$476
$575
5
$307
$430
$553
$675
$798
Low
Medium
High
HISTORIC PRICES AND TRENDS
FEED BARLEY
HISTORIC PRICES (post harvest)
350
$/tonne
300
250
200
150
100
50
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
Operation
No.
Repairs & Maint
Fuel
$/ha
$/ha
1
3.84
5.15
spray
4
2.03
1.74
harvest#
1
8.29
6.21
14.15
13.10
seed
TOTAL
# Rates are for low rainfall zone. Extra cost in higher yielding situations
23
Farm Gross Margin Guide 2013
MILLING OATS GROSS MARGIN
INCOME
Rainfall Zone
LOW
Price (13/14 Forecast)
Quality
MEDIUM
$185
HIGH
$185
$185
Milling
Yield (t/ha)
1
2.1
$185
GROSS INCOME
VARIABLE COSTS
Rate/ha
Low
Cost
Seed
Seed
Seed Treatment
3.2
$389
Rate/ha
$/ha Medium
$/ha
$592
Rate/ha
High
$/ha
$0.22 /kg
@
50
$10.75
65
$13.98
80
$17.20
$0.05 /kg
@
50
$2.45
65
$3.19
80
$3.92
Levies
GRDC Levies
EPR & state levies
Fertiliser (Bulk)
18:20:0
Urea
Chemicals-Herbicides
1.0% Gross Income
$1.85
$2.00
$2.00 /tonne sold
$690 /tonne
$570 /tonne
Summer Weed Control
Various
@
@
40
Allow
$27.60
$0.00
$3.89
$4.20
60
50
$20.00
$41.40
$28.50
$5.92
$6.40
80
100
$20.00
$55.20
$57.00
$20.00
Pre-emergents
Glyphosate 540
y
Oxyfluorfen
Dual Gold
Diuron
Post-MCPA Amine
$5.00
$18.00
$16.00
$11.70
$9.00
/litre
/litre
/litre
/litre
/litre
@
@
@
@
@
1.2
0.075
0.5
0.4
0.5
$6.00
$1.35
$8.00
$4.68
$4.50
1.2
0.075
0.5
0.4
0.5
$6.00
$1.35
$8.00
$4.68
$4.50
1.2
0.075
0.5
0.4
0.5
$6.00
$1.35
$8.00
$4.68
$4.50
$12.00 /litre
@
0.145
$1.74
0.145
$1.74
0.145
$1.74
Fungicides
Tebuconazole
Operations
Fuel & Oil
Repairs & Maintenance
Freight
Grain (t)
Fertiliser (t)
$13.10
$14.15
$20.00 /tonne
$20.00 /tonne
@
@
$8.50 /$1000
@
Contract Work
Aerial spraying
Windrowing
Insurance
Other
1.0
0.04
TOTAL VARIABLE COSTS
GROSS MARGIN/hectare
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
Assumes oats follows a cereal. If following a legume less N will be
required.
24
$20.00
$0.80
$15.72
$16.98
2.1
0.11
$42.00
$2.20
$18.34
$19.81
3.2
0.18
$64.00
$3.60
$1.57
$3.30
$5.03
$141
$222
$303
$44
$141
0.76
$32
AGRONOMIC NOTES
$167
$106
1.20
$142
$289
$95
1.64
$251
2013
YOUR
ESTIMATE
Farm Gross Margin Guide 2013
MILLING OATS GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$125
$155
$185
$215
Variable Costs
$250
0.5
-$65
-$50
-$35
-$21
-$3
Yield
1
-$14
$15
$44
$74
$108
t/ha
1.5
$36
$80
$124
$168
$220
2
$86
$145
$204
$263
$332
120
100
MEDIUM RAINFALL
80
1
$125
-$68
$155
-$38
$185
-$9
$215
$21
$250
$55
Yield
2.1
$43
$105
$167
$229
$301
t/ha
3
$134
$222
$310
$399
$502
4
$235
$352
$470
$588
$725
$/ha
Net Price $/t
60
40
20
HIGH RAINFALL
Net Price $/t
0
$125
$155
$185
$215
$250
Yield
1
2
-$121
-$20
-$91
$39
-$62
$98
-$32
$157
$2
$225
t/ha
3.2
$101
$195
$289
$384
$493
4
$181
$299
$417
$535
$672
Low
Medium
High
HISTORIC PRICES AND TRENDS
MILLING OATS
HISTORIC PRICES (post harvest)
$/tonne
300
250
200
150
100
50
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
Operation
No.
Repairs & Maint
Fuel
$/ha
$/ha
seed
1
3.84
5.15
spray
4
harvest#
1
2.03
8.29
14.15
1.74
6.21
13.10
TOTAL
# Rates are for low rainfall zone. Extra cost in higher yielding situations
25
Farm Gross Margin Guide 2013
TRITICALE GROSS MARGIN
2013
INCOME
YOUR
Rainfall Zone
LOW
Price (13/14 Forecast)
MEDIUM
$210
HIGH
$210
ESTIMATE
$210
Quality
Yield (t/ha)
1.2
2.1
$252
GROSS INCOME
VARIABLE COSTS
Rate/ha
Low
Cost
Seed
Seed
Seed Treatment
3
$441
Rate/ha
$/ha Medium
$/ha
$630
Rate/ha
High
$/ha
$0.22 /kg
@
60
$13.20
80
$17.60
85
$18.70
$0.05 /kg
@
60
$2.94
80
$3.92
85
$4.17
Levies
GRDC Levies
EPR & state levies
Fertiliser (Bulk)
18:20:0
Urea
Chemicals-Herbicides
1.0% Gross Income
$2.52
$2.04
$1.70 /tonne sold
$690 /tonne
$570 /tonne
Summer Weed Control
Various
@
@
40
Allow
$27.60
$0.00
$4.41
$3.57
60
50
$20.00
$41.40
$28.50
$6.30
$5.10
80
100
$20.00
$55.20
$57.00
$20.00
Pre-emergents
Trifluralin 480g/L
Glyphosate 540
Oxyfluorfen
$6.00 /litre
$5.00 /litre
$18.00 /litre
@
@
@
1
1.2
0.075
$9.00 /litre
$9.00 /litre
$0.08
$65.00
@
@
@
@
0
0.5
$6.00
$6.00
$1.35
1
1.2
0.075
$6.00
$6.00
$1.35
1
1.2
0.075
$6.00
$6.00
$1.35
0.5
$4.50
$0.00
$0.85
$30.08
0.5
$4.50
$0.00
$0.85
$23.58
g
Post-emergents
MCPA LVE
MCPA amine
Metsulfuron methyl(1)
Achieve® (2)
5
$4.50
$0.85
$0.00
5
0.4
5
0.3
Insecticides
Fungicides
Operations
Fuel & Oil
Repairs & Maintenance
Freight
Grain (t)
Fertiliser (t)
$13.10
$14.15
$25.00 /tonne
$20.00 /tonne
@
@
$8.50 /$1000
@
Contract Work
Aerial spraying
Urea spreading
Insurance
Other
TOTAL VARIABLE COSTS
GROSS MARGIN/hectare
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
This rate of fertiliser assumes triticale follows a cereal
(1) Surfactant at 0.1% (2) Surfactant at 0.75%
26
1.2
0.04
$30.00
$0.80
$15.72
$16.98
2.1
0.11
$52.50
$2.20
$18.34
$19.81
3.0
0.18
$75.00
$3.60
$2.14
$3.75
$5.36
$147
$259
$331
$105
$123
0.70
$81
AGRONOMIC NOTES
$182
$123
1.23
$140
$299
$110
1.58
$239
Farm Gross Margin Guide 2013
TRITICALE GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$150
$180
$210
$240
Variable Costs
$270
0.6
-$38
-$21
-$3
$15
$32
Yield
1.2
$34
$69
$105
$140
$175
t/ha
1.8
$106
$159
$212
$265
$318
2.4
$179
$249
$320
$391
$461
120
100
MEDIUM RAINFALL
80
1
$150
-$75
$180
-$45
$210
-$16
$240
$14
$270
$43
Yield
2.1
$58
$120
$182
$244
$305
t/ha
3
$166
$255
$343
$431
$520
4
$287
$405
$523
$640
$758
$/ha
Net Price $/t
60
40
20
HIGH RAINFALL
Net Price $/t
0
$150
$180
$210
$240
$270
Yield
1
2
-$119
$2
-$89
$61
-$60
$120
-$30
$179
-$1
$238
t/ha
3
$122
$211
$299
$387
$476
4
$243
$361
$479
$596
$714
Low
Medium
High
HISTORIC PRICES AND TRENDS
TRITICALE
HISTORIC PRICES (post harvest)
350
$/tonne
300
250
200
150
100
50
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
Operation
No.
Repairs & Maint
Fuel
$/ha
$/ha
5.15
seed
1
3.84
spray
4
2.03
1.74
harvest#
1
8.29
6.21
14.15
13.10
TOTAL
# Rates are for low rainfall zone. Extra cost in higher yielding situations
27
Farm Gross Margin Guide 2013
VETCH GROSS MARGIN
2013
INCOME
YOUR
Rainfall Zone
LOW
Price (13/14 Forecast)
Quality
MEDIUM
HIGH
$400
$400
$400
0.7
1.2
1.6
ESTIMATE
Morava vetch
Yield (t/ha)
$280
GROSS INCOME
VARIABLE COSTS
Rate/ha
Low
Cost
Seed
Seed
Seed Inoculant
$0.50 /kg
$0.02 /kg
@
@
25
25
$480
Rate/ha
$/ha Medium
$12.50
$0.45
35
35
$/ha
$17.50
$0.63
$640
Rate/ha
High
35
35
$17.50
$0.63
Levies
GRDC Levies
EPR &state levies
Fertiliser (Bulk)
MAP
Foliar Trace Elem
Chemicals-Herbicides
1.0% Gross Income
$2.80
$2.31
$3.30 /tonne sold
$690 /tonne
Summer Weed Control
Various
@
40
Allow
$27.60
$4.80
$3.96
60
$20.00
$41.40
$6.40
$5.28
80
$20.00
$55.20
$20.00
Pre-emergents
$0.03 /gm
$6.00 /litre
$5.00 /litre
@
@
@
300
1
1.2
$9.00
$6.00
$6.00
300
1.5
1.2
$9.00
$9.00
$6.00
300
1.5
1.2
$9.00
$9.00
$6.00
$14.00 /litre
$5.50 /litre
@
0.4
0.8
$8.11
$4.40
0.5
0.8
$9.51
$4.40
0.5
0.8
$9.51
$4.40
$10.00 /litre
$29.00 /litre
$165.00 /litre
@
@
@
0.4
$4.00
0.024
$3.96
0.4
0.05
0.024
$4.00
$1.45
$3.96
0.4
0.05
0.024
$4.00
$1.45
$3.96
Lexone
Trifluralin 480g/L
Glyphosate 540
Post
emergents
Post-emergents
Select (incl Oil)
Paraquat(Topping)
Insecticides
Dimethoate (1)
omethoate (2)
Karate Zeon® (3)
Operations
Fuel & Oil
Repairs & Maintenance
Freight
Grain (t)
Fertiliser (t)
$17.76
$26.09
$25.00 /tonne
$20.00 /tonne
@
@
$12.00 /$1000
@
0.7
0.04
$17.50
$0.80
$21.31
$31.31
1.2
0.06
$30.00
$1.20
$24.86
$36.53
1.6
0.08
$40.00
$1.60
Contract Work
Aerial spraying
Insurance
$3.36
$5.76
$7.68
Other
TOTAL VARIABLE COSTS
GROSS MARGIN/hectare
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
Seed is not treated with a fungicide or graded. (1) Cow pea aphid (2)
RLEM (3) Native budworm
Do not exceed 800 ml/Ha Paraquat when crop topping to avoid possible
residue issues
28
$173
$107
$247
0.43
$140
AGRONOMIC NOTES
$225
$255
$188
0.56
$310
$263
$377
$164
0.66
$451
Lexone (Metribuzin) not recommended on some varieties. Seek advice (also
applies to using Diuron on vetch)
Harvest and marketing difficulties are common with this crop
Farm Gross Margin Guide 2013
VETCH GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$300
$350
$400
$450
Variable Costs
$500
0.3
-$67
-$52
-$38
-$23
-$8
Yield
0.7
$39
$73
$107
$142
$176
t/ha
1.1
$145
$199
$253
$306
$360
1.5
$251
$324
$398
$471
$544
70
60
50
MEDIUM RAINFALL
Net Price $/t
$350
$400
$450
$500
Yield
0.4
0.8
-$75
$31
-$55
$71
-$36
$110
-$16
$149
$4
$188
t/ha
1.2
$137
$196
$255
$313
$372
1.8
$297
$385
$473
$561
$649
40
$/ha
$300
30
20
10
HIGH RAINFALL
Net Price $/t
0
$300
$350
$400
$450
$500
Yield
0.8
1.2
$8
$114
$48
$173
$87
$232
$126
$291
$165
$349
t/ha
1.6
$221
$299
$377
$455
$533
2.5
$459
$581
$704
$826
$948
Low
Medium
High
HISTORIC PRICES AND TRENDS
VETCH
HISTORIC PRICES (post harvest)
800
$/tonne
700
600
500
400
300
200
100
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
Operation
No.
Repairs & Maint
Fuel
$/ha
$/ha
5.15
2.17
1.74
seed
1
spray
5
roll
1
3.84
2.53
1.16
harvest#
1
18.56
8.69
26.09
17.76
TOTAL
# Rates are for low rainfall zone. Extra cost in higher yielding situations
29
Farm Gross Margin Guide 2013
LUPINS GROSS MARGIN
2013
INCOME
YOUR
Rainfall Zone
LOW
Price (13/14 Forecast)
MEDIUM
$250
HIGH
$250
ESTIMATE
$250
Quality
Yield (t/ha)
0.9
1.5
$225
GROSS INCOME
VARIABLE COSTS
Rate/ha
Low
Cost
Seed
Seed
Seed Inoculant
$0.26 /kg
$0.02 /kg
@
@
90
90
Rate/ha
Medium
$23.40
$1.62
2
$375
90
90
$/ha
$23.40
$1.62
$500
Rate/ha
High
90
90
$/ha
$23.40
$1.62
Roval seed treat
Levies
GRDC Levies
EPR &state levies
Fertiliser (Bulk)
1.0% Gross Income
$2.25
$2.34
$2.60 /tonne sold
MAP
Foliar Trace Elem
Chemicals-Herbicides
$690 /tonne
Summer Weed Control
Pre-emergents
Various
@
40
Allow
27.6
$3.75
$3.90
60
$20.00
$41.40
$5.00
$5.20
80
$20.00
$55.20
$20.00
$6.00 /litre
$5.00 /litre
$7.60 /kg
@
@
@
1
1.2
0.83
$6.00
$6.00
$6.31
1.5
1.2
0.83
$9.00
$6.00
$6.31
1.5
1.2
0.83
$9.00
$6.00
$6.31
$5.50 /litre
$14.00 /litre
@
0.8
0.4
$4.40
$8.11
0.8
0.5
$4.40
$9.51
0.8
0.5
$4.40
$9.51
$44.00 /litre
$165.00 /litre
@
@
0.04
0.024
$1.76
$3.96
0.04
0.024
$1.76
$3.96
0.04
0.024
$1.76
$3.96
Trifluralin 480g/L
Glyphosate 540
Simazine Granules
Post-emergents
P t
t
Paraquat(Topping)
Select (incl Oil)
Insecticides
Talstar (1)
Karate Zeon® (2)
Operations
Fuel & Oil
Repairs & Maintenance
$15.01
$18.48
$18.01
$22.18
$21.01
$25.87
Freight
Grain (t)
$25.00 /tonne
@
0.9
$22.50
1.5
$37.50
2.0
$50.00
Fertiliser (t)
$20.00 /tonne
@
0.04
$0.80
0.06
$1.20
0.08
$1.60
Aerial spraying
$14.00 /ha
@
$0
$0.00
$0.00
Insurance
$10.00 /$1000
@
$2.25
$3.75
$5.00
$173
$218
$255
$52
$157
$245
Contract Work
Other
TOTAL VARIABLE COSTS
GROSS MARGIN/hectare
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
Seed is not treated with a fungicide or graded.
(1) RLEM(2) Native budworm
Do not exceed 800ml/Ha when crop topping with Paraquat to avoid any
possible residue issues
30
$192
0.69
$53
AGRONOMIC NOTES
$145
0.87
$159
$127
1.02
$247
Farm Gross Margin Guide 2013
LUPINS GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$150
$200
$250
$300
Variable Costs
$350
0.5
-$84
-$59
-$35
-$10
$14
Yield
0.9
-$36
$8
$52
$96
$140
t/ha
1.5
$36
$109
$183
$256
$330
2
$95
$193
$291
$389
$487
70
60
50
MEDIUM RAINFALL
Net Price $/t
$200
$250
$300
$350
Yield
0.5
1
-$109
-$49
-$85
$0
-$60
$49
-$36
$98
-$11
$147
t/ha
1.5
$10
$84
$157
$231
$304
2
$70
$168
$266
$364
$462
40
$/ha
$150
20
10
HIGH RAINFALL
Net Price $/t
0
$150
$200
$250
$300
$350
-$70
-$11
-$21
$63
$28
$136
$77
$210
$126
$283
2
$49
$147
$245
$343
$441
2.5
$109
$231
$354
$476
$599
1
1.5
Yield
t/ha
30
Low
Medium
High
HISTORIC PRICES AND TRENDS
LUPINS
HISTORIC PRICES (post harvest)
400
350
$/tonne
300
250
200
150
100
50
0
-50
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
-100
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
Operation
No.
Repairs & Maint
Fuel
$/ha
$/ha
3.84
5.15
seed
1
spray
6
3.04
2.61
harvest#
1
11.60
7.25
18.48
15.01
TOTAL
# Rates are for low rainfall zone. Extra cost in higher yielding situations
31
Farm Gross Margin Guide 2013
RED LENTILS GROSS MARGIN
2013
INCOME
YOUR
Rainfall Zone
LOW
Price (13/14 Forecast)
Quality
MEDIUM
500
HIGH
$500
ESTIMATE
$500
Nugget
Yield (t/ha)
GROSS INCOME
VARIABLE COSTS
0.7
1.2
1.8
$350
$600
$900
Rate/ha
Cost
Seed
Seed
Seed Inoculant
P-Pickel
Low
Rate/ha
$/ha Medium
Rate/ha
$/ha
High
$/ha
$0.48 /kg
@
50
$24.00
50
$24.00
50
$24.00
$0.02 /kg
@
50
$0.90
50
$0.90
50
$0.90
50
$4.10
50
$4.10
$82.00 /tonne
Levies
GRDC Levies
1.0% Gross Income
$5.30 /tonne sold
EPR &state levies
$3.50
$6.00
$9.00
$3.71
$6.36
$9.54
Fertiliser (Bulk)
MAP
$690 /tonne
@
40
$27.60
50
$34.50
60
$41.40
Chemicals-Herbicides
Summer Weed Control
Various
Allow
$20.00
$20.00
$20.00
Pre-emergents
Glyphosate 540
$5.00 /litre
@
1.2
$6.00
1.2
$6.00 /litre
@
1
$6.00
$6.00
1.2
trifluralin 480g/L
1.5
$9.00
1.5
$6.00
$9.00
Terbyne
$21.00 /kg
@
1
$21.00
1
$21.00
1
$21.00
Broadstrike®
$0.72 /gram
@
$0.00
25
$18.00
25
$18.00
Paraquat(Topping)
$5.50 /litre
@
0.8
$4.40
0.8
$4.40
0.8
$4.40
$14.00 /litre
$
@
0.4
$8.11
$
0.5
$9.51
$
0.5
$9.51
$
$165.00 /litre
@
0.024
$3.96
0.024
$3.96
0.024
$3.96
$29.00 /litre
@
0.05
$1.45
0.05
$1.45
0.05
$1.45
Mancozeb (3)
$10.00 kg
@
$0.00
2.2
$22.00
Carbendazim (4)
$22.00 /kg
@
0.5
$11.00
1
$22.00
1
$22.00
Select ((incl Oil))
Insecticides
Karate Zeon® (1)
omethoate (2)
Fungicides
$0.00
Operations
Fuel & Oil
$18.63
$22.35
$26.08
Repairs & Maintenance
$20.15
$24.18
$28.21
Freight
Grain (t)
$30.00 /tonne
@
0.7
$21.00
1.2
$36.00
1.8
$54.00
Fertiliser (t)
$20.00 /tonne
@
0.04
$0.80
0.05
$1.00
0.06
$1.20
$12.00 /$1000
@
Contract Work
Aerial spraying
Windrowing
Insurance
$4.20
$7.20
$10.80
Other
TOTAL VARIABLE COSTS
$206
$282
$347
GROSS MARGIN/hectare
$144
$295
0.41
$282
$318
$553
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENT
32
AGRONOMIC NOTES
$235
0.56
$556
$193
0.69
$910
(1) Native budworm control (2) RLEM (3) Ascochyta (4) Grey mould Inoculate with Group E inoculant. Northfield and Nipper more sensitive
Do not exceed 800ml/Ha Paraquat when crop topping to avoid
to Lexone than other varieties
possible residues
Check newly released varieties for suitability to your area
Farm Gross Margin Guide 2013
RED LENTILS GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$400
$450
$500
$550
Variable Costs
$600
0.3
-$67
-$53
-$38
-$23
-$9
Yield
0.7
$75
$109
$144
$178
$212
t/ha
1.1
$217
$271
$325
$379
$433
1.5
$360
$433
$507
$580
$653
140
120
MEDIUM RAINFALL
100
0.6
$400
-$13
$450
$17
$500
$46
$550
$75
$600
$105
Yield
1.2
$201
$259
$318
$377
$435
t/ha
1.8
$414
$502
$590
$678
$766
2.4
$628
$745
$863
$980
$1,097
$/ha
Net Price $/t
80
60
40
HIGH RAINFALL
20
Net Price $/t
$400
$450
$500
$550
$600
Yield
0.8
1.3
$22
$199
$61
$263
$100
$327
$139
$390
$178
$454
t/ha
1.8
$377
$465
$553
$641
$729
2.5
$627
$749
$871
$993
$1,116
0
Low
Medium
High
HISTORIC PRICES AND TRENDS
RED LENTILS
HISTORIC PRICES (post harvest)
1200
$/tonne
1000
800
600
400
200
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
No.
Repairs & Maint
Fuel
Operation
seed
1
spray
7
roll
1
harvest#
1
TOTAL
$/ha
$/ha
3.84
3.55
1.16
11.60
5.15
3.04
1.74
8.69
20.15
18.63
# Rates are for low rainfall zone. Extra cost in higher yielding situations
33
Farm Gross Margin Guide 2013
FIELD PEAS GROSS MARGIN
2013
INCOME
YOUR
Rainfall Zone
LOW
Price (13/14 Forecast)
Quality
MEDIUM
$270
HIGH
$270
$270
1
1.5
2.5
$270
$405
$675
ESTIMATE
Kaspa
Yield (t/ha)
GROSS INCOME
VARIABLE COSTS
Rate/ha
Cost
Low
Rate/ha
$/ha
Medium
Rate/ha
$/ha
High
$/ha
$36.30
Seed
Seed
@
90
$29.70
100
$33.00
110
Seed Grading
$25.40 /tonne
$0.33 /kg
@
90
$2.29
100
$2.54
110
$2.79
P-Pickel
$82.00 /tonne
@
$0.00
100
$8.20
110
$9.02
Inoculant
$18.00 /tonne
@
$0.00
$0.00
110
$1.98
$2.70
$4.05
$6.75
$2.30
$3.45
$5.75
Levies
GRDC Levies
1.0% Gross Income
$2.30 /tonne sold
EPR &state levies
Fertiliser (Bulk)
MAP
$690 /tonne
@
40
$27.60
60
$41.40
80
$55.20
Chemicals-Herbicides
Summer Weed Control
Various
Allow
$20.00
$20.00
$20.00
Pre-emergents
Trifluralin 480g/L
$6.00 /litre
@
1
$6.00
1.5
$9.00
1.5
$9.00
Glyphosate 540
$5.00 /litre
@
1.2
$6.00
1.2
$6.00
1.2
$6.00
Post-emergents
Terbyne
$21.00 /kg
g
@
1
$21.00
1
$21.00
1
$21.00
Select (incl Oil)
$14.00 /litre
@
0.4
$8.11
0.5
$9.51
0.5
$9.51
$5.50 /litre
@
0.8
$4.40
0.8
$4.40
0.8
$4.40
Karate Zeon® (1)
$165.00 /litre
@
0.024
$3.96
0.024
$3.96
0.024
$3.96
Karate Zeon® (2)
$165.00 /litre
@
$0.00
0.024
$1.32
0.024
$1.32
$29.00 /litre
@
$1.45
0.05
$1.45
0.05
$1.45
$12.00 /litre
@
$0.00
0.145
$1.74
0.145
$1.74
Paraquat(Topping)
Insecticides
Omethoate (3)
0.05
Fungicides
Tebuconazole (4)
Operations
Fuel & Oil
$18.63
$22.35
$26.08
Repairs & Maintenance
$27.11
$32.53
$37.95
Freight
Grain (t)
$25.00 /tonne
@
1.0
$25.00
1.5
$37.50
2.5
$62.50
Fertiliser (t)
$20.00 /tonne
@
0.04
$0.80
0.06
$1.20
0.08
$1.60
Contract Work
Insurance
Other
/ha
@
$0.00
$0.00
/ha
@
$0.00
$0.00
$0.00
@
$4.32
$6.48
$10.80
$16.00 /$1000
$0.00 /ha
$0.00
$0.00 /ha
$0.00
TOTAL VARIABLE COSTS
GROSS MARGIN/hectare
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
34
$0.00
$211
$271
$335
$59
$134
$340
$211
0.78
$89
AGRONOMIC NOTES
$181
1.00
$179
$134
1.24
$415
(1) Native budworm control (2) Pea weavil border spray (3) RLEM Recently released "Kaspa" type varieties are more suited to lower
(4) Powdery Mildew.
rainfall situations
Farm Gross Margin Guide 2013
FIELD PEA GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$240
$270
$300
0.75
-$44
-$22
$0
$22
$44
Yield
1
$0
$29
$59
$88
$117
t/ha
1.25
$45
$81
$118
$154
$191
1.5
$89
$133
$176
$220
$264
MEDIUM RAINFALL
1
90
80
70
Net Price $/t
$210
-$42
Variable Costs
$330
$240
-$13
$270
$16
$300
$45
$330
$75
Yield
1.5
$46
$90
$134
$178
$222
t/ha
2
$135
$193
$252
$310
$369
2.5
$223
$297
$370
$443
$516
HIGH RAINFALL
Net Price $/t
60
$/ha
$210
50
40
30
20
10
$210
$240
$270
$300
$330
$17
$105
$60
$164
$104
$222
$148
$280
$192
$339
Yield
1.5
2
t/ha
2.5
$194
$267
$340
$413
$486
3
$282
$370
$458
$545
$633
0
Low
Medium
High
HISTORIC PRICES AND TRENDS
FIELD PEAS
HISTORIC PRICES(post harvest)
$/tonne
500
400
300
200
100
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
-100
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
Operation
No.
seed
1
spray
7
roll
1
harvest#
1
TOTAL
Repairs & Maint
Fuel
$/ha
$/ha
3.84
3.55
1.16
18.56
27.11
5.15
3.04
1.74
8.69
18.63
# Rates are for low rainfall zone. Extra cost in higher yielding situations
35
Farm Gross Margin Guide 2013
FABA BEAN GROSS MARGIN
2013
INCOME
YOUR
Rainfall Zone
LOW
Price (13/14 Forecast)
Quality
MEDIUM
$320
HIGH
$320
ESTIMATE
$320
Fiesta
Yield (t/ha)
0.8
1.6
$256
GROSS INCOME
VARIABLE COSTS
Rate/ha
Cost
Low
2.8
$512
Rate/ha
$/ha Medium
$896
Rate/ha
$/ha
High
$/ha
$65.80
160
$75.20
Seed
Seed
$0.47 /kg
@
Seed Inoculant
$0.00 /kg
@
100
$47.00
140
$0.00
$0.00
$0.00
$2.56
$5.12
$8.96
$0.24
$0.48
$0.84
Levies
GRDC Levies
1.0% Gross Income
$0.30 /tonne sold
EPR &state levies
Fertiliser (Bulk)
MAP
$690 /tonne
@
40
$27.60
60
$41.40
80
$55.20
Chemicals-Herbicides
Summer Weed Control
Various
Allow
$20.00
$20.00
$20.00
Pre-emergents
Glyphosate 540
$5.00 /litre
@
1.2
$6.00
1.2
$6.00
1.2
$6.00
Trifluralin 480g/L
$6.00 /litre
@
1
$6.00
1.5
$9.00
1.5
$9.00
Simazine 900g/kg
$7.60 /kg
@
0.83
$6.31
0.83
$6.31
0.83
$6.31
$14.00 /litre
@
0.4
$8.11
0.5
$9.51
Post-emergents
Select (incl Oil)
0.5
$9.51
Insecticides
$29.00 /litre
@
0.1
$2.90
0.1
$2.90
0.1
$165.00 /litre
@
0.024
$3.96
0.024
$3.96
0.024
$3.96
$10.00 /litre
@
0.5
$5.00
0.5
$5.00
0.5
$5.00
Tebuconazole(4)
$12.00 /kg
@
$0.00
0.3
$3.60
0.3
$3.60
Mancozeb-low r/f
$10.00 /kg
@
1.7
$17.00
0
$0.00
0
$0.00
Mancozeb-Med/high
$10.00 /kg
@
0
$0.00
5.1
$51.00
5.1
$51.00
Carbendazim 2 applic
$22.00 /kg
@
0.5
$11.00
1
$22.00
omethoate (1)
Karate Zeon® (2)
Dimethoate (3)
$2.90
Fungicides
Operations
Fuel & Oil
$15.44
$18.53
$21.62
Repairs & Maintenance
$18.99
$22.78
$26.58
Freight
Grain (t)
$25.00 /tonne
@
0.8
$20.00
1.6
$40.00
2.8
$70.00
Fertiliser (t)
$20.00 /tonne
@
0.04
$0.80
0.06
$1.20
0.08
$1.60
Aerial spraying
$14.00 /ha
@
$0.00
2
$28.00
2
$28.00
Insurance
$12.00 /$1000
@
$3.07
$6.14
$10.75
$211
$358
$438
Contract Work
TOTAL VARIABLE COSTS
GROSS MARGIN/hectare
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
(1) RLEM control (2) Native Budworm control (3) Cow pea aphid (4)
Cercospora Mancozeb for Ascochyta Carbendazim for chocalate spot
36
$45
$264
0.66
$71
AGRONOMIC NOTES
$154
$224
1.12
$205
$458
$156
1.37
$548
Seed is not treated with a fungicide but is inoculated with a strain SU303
inoculant.
No allowance is made in this gross margin as to the economic benefit of
bean stubble to livestock.
Farm Gross Margin Guide 2013
FABA BEAN GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$200
$250
$320
$350
Variable Costs
$400
0.4
-$117
-$97
-$70
-$58
-$39
Yield
0.8
-$49
-$10
$45
$68
$108
t/ha
1.5
$70
$144
$246
$290
$364
2
$155
$253
$390
$449
$547
140
120
100
MEDIUM RAINFALL
Net Price $/t
$250
-$87
$320
-$18
$350
$11
$400
$60
Yield
1.6
-$34
$45
$154
$201
$279
t/ha
2
$35
$132
$269
$328
$426
2.5
$120
$242
$413
$487
$609
80
$/ha
1
$200
-$136
60
40
20
HIGH RAINFALL
Net Price $/t
0
$200
$250
$320
$350
$400
-$177
-$7
-$128
$91
-$60
$228
-$30
$287
$18
$384
Yield
1
2
t/ha
2.8
$129
$266
$458
$540
$677
4
$334
$529
$803
$921
$1,116
Low
Medium
High
HISTORIC PRICES AND TRENDS
FABA BEANS
HISTORIC PRICES (post harvest)
700
$/tonne
600
500
400
300
200
100
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
-100
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
Operation
No.
seed
1
spray
7
harvest#
1
TOTAL
Repairs & Maint
Fuel
$/ha
$/ha
3.84
3.55
11.60
18.99
5.15
3.04
7.25
15.44
# Rates are for low rainfall zone. Extra cost in higher yielding situations
37
Farm Gross Margin Guide 2013
CHICKPEAS (6-8mm Kabuli) GROSS MARGIN
2013
INCOME
YOUR
Rainfall Zone
LOW
Price (13/14 Forecast)
Quality
MEDIUM
HIGH
ESTIMATE
$550
$550
$550
0.7
1.3
2
$385
$715
$1,100
6-8 mm Kabuli
Yield (t/ha)
GROSS INCOME
VARIABLE COSTS
Rate/ha
Seed
Seed
Cost
$0.58 /kg
Seed Inoculant
P-Pickel
@
Low
90
Rate/ha
$/ha Medium
$51.75
100
Rate/ha
$/ha
$57.50
High
110
$/ha
$63.25
$18.00 /tonne
@
90
$1.62
100
$1.80
110
$1.98
$82.00 /tonne
@
90
$7.38
100
$8.20
110
$9.02
Levies
GRDC Levies
1.0% Gross Income
$5.30 /tonne sold
EPR &state levies
$3.85
$7.15
$11.00
$3.71
$6.89
$10.60
Fertiliser (Bulk)
MAP
Chemicals-Herbicides
$690 /tonne
Summer Weed Control
Various
@
40
Allow
$27.60
60
$20.00
$41.40
80
$55.20
$20.00
$20.00
Pre-emergents
trifluralin 480g/L
$6.00 /litre
@
1
$6.00
1.5
$9.00
1.5
$9.00
Glyphosate 540
$5.00 /litre
@
1.2
1.2
$6.00
1.2
$6.00
Balance®
$0.38 /gram
@
100
$6.00
$38.00
100
$38.00
100
$38.00
@
0.4
$8.11
0.5
$9.51
Post-emergents
Select (incl Oil)
$14.00 /litre
0.5
$9.51
Insecticides
$
$29.00 /litre
@
0.05
$1 45
$1.45
0.05
$
$1.45
0.05
$
$1.45
$165.00 /litre
@
0.024
$3.96
0.024
$3.96
0.024
$3.96
$21.00 /litre
@
1
$21.00
1.5
$31.50
2
$42.00
$5.50 /litre
@
0.8
$4.40
0.8
$4.40
0.8
$4.40
Omethoate
Karate Zeon®
Fungicides
Chlorothalonil
Dessication
Paraquat
Operations
Fuel & Oil
$15.01
$18.01
$21.01
Repairs & Maintenance
$18.48
$22.18
$25.87
Freight
Grain (t)
$25.00 /tonne
@
0.7
Fertiliser (t)
$20.00 /tonne
@
0.04
Aerial spraying
$14.00 /ha
@
Windrowing
$35.00 /ha
@
Insurance
$10.00 /$1000
@
Contract Work
Other
$0.00 /ha
GROSS MARGIN/hectare
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
Seed is inoculated with a Group N inoculant. Do not excced
800ml/Ha Paraquat when dessicating to avoid possible residue
issues
38
$0.00
$0.00
$3.85
1.3
$32.50
2.0
$50.00
0.06
$1.20
0.08
$1.60
$0.00
1
$14.00
$0.00
0
0
$7.15
$0.00
$11.00
$0.00 /ha
TOTAL VARIABLE COSTS
COMMENTS
$17.50
$0.80
$260
$125
$372
0.47
$128
AGRONOMIC NOTES
$328
$387
$252
0.60
$394
$409
$691
$204
0.74
$701
Price is heavily dependant on grade and quality. Seek advice. May
need to store product for up to 12 months before marketing
Farm Gross Margin Guide 2013
CHICKPEAS GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$450
$500
$550
$600
Variable Costs
$650
0.4
-$67
-$48
-$28
-$8
$11
Yield
0.7
$56
$90
$125
$159
$193
t/ha
1.2
$261
$320
$379
$438
$496
1.8
$508
$596
$684
$772
$861
140
120
100
MEDIUM RAINFALL
Net Price $/t
$500
-$44
$550
-$20
$600
$5
$650
$29
Yield
1.3
$260
$324
$387
$451
$515
t/ha
1.8
$465
$553
$642
$730
$818
2.3
$671
$783
$896
$1,009
$1,121
80
$/ha
0.5
$450
-$69
60
40
HIGH RAINFALL
20
Net Price $/t
$450
$500
$550
$600
$650
Yield
1
1.5
$84
$290
$133
$363
$182
$437
$231
$510
$280
$584
t/ha
2
$495
$593
$691
$789
$887
3
$906
$1,053
$1,200
$1,347
$1,494
0
Low
Medium
High
HISTORIC PRICES AND TRENDS
HISTORIC PRICES AND TRENDS
CHICKPEA
HISTORIC PRICES (post harvest)
900
$/tonne
800
700
600
500
400
300
200
100
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
Operation
No.
seed
1
spray
6
harvest#
1
TOTAL
Repairs & Maint
Fuel
$/ha
$/ha
3.84
3.04
11.60
18.48
5.15
2.61
7.25
15.01
# Rates are for low rainfall zone. Extra cost in higher yielding situations
39
Farm Gross Margin Guide 2013
CANOLA GROSS MARGIN Triazine Tolerant
2013
INCOME
YOUR
Rainfall Zone
LOW
Price (13/14 Forecast)
MEDIUM
$470
HIGH
$470
ESTIMATE
$470
Quality
Yield (t/ha)
0.7
1.4
$329
GROSS INCOME
VARIABLE COSTS
Rate/ha
Cost
Low
Rate/ha
$/ha
2
$658
Medium
$940
Rate/ha
$/ha
High
$/ha
Seed
Seed
$10.00 /kg
@
3
$30.00
3
$30.00
3
$30.00
Levies
GRDC Levies
1.0% Gross Income
$0.30 /tonne sold
EPR &state levies
$3.29
$6.58
$9.40
$0.21
$0.42
$0.60
Fertiliser (Bulk)
18:20:0
Urea
Chemicals-Herbicides
Summer Weed Control
$690 /tonne
@
$570 /tonne
@
Various
30
Allow
$20.70
50
$34.50
70
$48.30
$0.00
80
$45.60
120
$68.40
$20.00
$20.00
$20.00
Pre-emergents
Simazine 900g/kg
$7.60 /kg
@
1.1
$8.36
1.5
$11.40
2
$15.20
Trifluralin 480g/L
$6.00 /litre
@
1
$6.00
1.5
$9.00
1.5
$9.00
Glyphosate 540
$5.00 /litre
@
1.2
$6.00
1.2
$6.00
1.2
$6.00
$14.00 /litre
@
0.4
$8.11
0.5
$9.51
$30 00 /litre
$30.00
@
0 15
0.15
$4 50
$4.50
0 15
0.15
$4 50
$4.50
Post-emergents
Select (incl Oil)
Cl
lid 300g/L
300 /L
Clopyralid
0.5
0 15
0.15
$9.51
$4 50
$4.50
Insecticides
$10.00 /litre
@
0.2
$2.00
0.2
$2.00
0.2
$2.00
$44.00 /litre
@
0.04
$1.76
0.04
$1.76
0.04
$1.76
Imidan
$10.00 /litre
@
0.25
$2.50
0.25
$2.50
0.25
$2.50
Dimethoate
$10.00 /litre
@
0.4
$4.00
0.4
$4.00
0.4
$4.00
$165.00 /litre
@
0.024
$3.96
0.024
$3.96
0.024
$3.96
Chlorpyrifos 500g/L
Talstar (1)
Karate Zeon®(1)
Operations
Fuel & Oil
$13.97
$16.76
$19.56
Repairs & Maintenance
$15.17
$18.20
$21.23
Freight
Grain (t)
$25.00 /tonne
@
0.7
$17.50
1.4
$35.00
2
$50.00
Fertiliser (t)
$20.00 /tonne
@
0.03
$0.60
0.13
$2.60
0.19
$3.80
$0.00
1
$14.00
1
$14.00
1
$35.00
1
$35.00
1
Contract Work
Aerial spraying
$14.00 /ha
@
Windrowing
$35.00 /ha
@
Insurance
$12.00 /$1000
@
$3.95
Urea spreading
$12.00 /ha
@
$0.00
1
$12.00
$35.00
$11.28
1
$12.00
TOTAL VARIABLE COSTS
$208
$333
$402
GROSS MARGIN/hectare
$121
$325
$538
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
(1) Native Budworm control (1 in 4 years) .
In low rainfall situations, oil penalties may
apply conversely oil bonuses may be
expected in high rainfall areas.
40
$7.90
AGRONOMIC NOTES
$297
0.44
$153
$238
0.71
$388
$201
0.86
$628
A maximum of 15 units of nitrogen and 10 units of phosphorus should be applied with seed.
Nitrogen rate dependent on target yield. Sulphur required on sandy, neutral/acid soils and
intensive cropping systems. Ensure insect control and good seed/soil contact when sowing.Low
rainfall situations require at least 35mm Plant Available Water at sowing.
Farm Gross Margin Guide 2013
CANOLA GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$410
$430
$470
$500
Variable Costs
$550
0.3
-$70
-$64
-$52
-$44
-$29
Yield
0.7
$80
$94
$121
$142
$176
t/ha
1.1
$231
$252
$295
$327
$381
1.5
$381
$410
$469
$513
$586
140
120
100
MEDIUM RAINFALL
Net Price $/t
Yield
$430
-$7
$470
$21
$500
$41
$550
$76
1.4
$243
$270
$325
$366
$434
2
$468
$507
$585
$644
$742
2.5
$656
$705
$803
$876
$998
t/ha
80
$/ha
0.7
$410
-$20
60
40
20
HIGH RAINFALL
Net Price $/t
Yield
0
$410
$430
$470
$500
$550
1
1.5
$45
$233
$65
$262
$104
$321
$133
$365
$182
$438
2
$421
$460
$538
$597
$694
2.5
$608
$657
$755
$829
$951
t/ha
Low
Medium
High
HISTORIC PRICES AND TRENDS
CANOLA HISTORIC PRICES
700
$/tonne
600
500
400
300
200
100
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
Operation
No.
seed
1
spray
6
harvest#
1
TOTAL
Repairs & Maint
Fuel
$/ha
$/ha
3.84
3.04
8.29
5.15
2.61
6.21
15.17
13.97
# Rates are for low rainfall zone. Extra cost in higher yielding situations
41
Farm Gross Margin Guide 2013
EXPORT OATEN HAY GROSS MARGIN
2013
INCOME
YOUR
Rainfall Zone
LOW
Price (13/14 Forecast)
Quality
MEDIUM
$150
HIGH
$150
ESTIMATE
$150
Mixed grades
Yield (t/ha)
GROSS INCOME
VARIABLE COSTS
3.50
5.50
$525
$825
Rate/ha
Cost
Low
Rate/ha
$/ha
Medium
8
$1,200
Rate/ha
$/ha
High
$/ha
120
$21.60
130
$23.40
0
$0.00
0
$0.00
80
75
$55.20
$42.75
110
150
$75.90
$85.50
Seed
Levies
Seed
$180.00 /tonne
@
$0.00 /tonne
@
$690 /tonne
$570 /tonne
@
@
Seed Treatment
Fertiliser (Bulk)
18:20:0
Urea
90
60
30
$16.20
$41.40
17.1
Chemicals-Herbicides
Summer Weed Control
Various
Allow
$20.00
$20.00
$20.00
Pre-emergents
$5.00
$18.00
$16.00
$11.70
$9.00
Glyphosate 540
Oxyfluorfen
Dual Gold
Diuron
Post-MCPA Amine
/litre
/litre
/litre
/litre
/litre
@
@
@
@
@
1.2
0.075
$6.00
$1.35
0.4
0.5
$4.68
$4.50
1.2
0.075
0.5
0.4
0.5
$6.00
$1.35
$8.00
$4.68
$4.50
1.2
0.075
0.5
0.4
0.5
$6.00
$1.35
$8.00
$4.68
$4.50
Insecticides
Fungicides
Operations
Fuel & Oil
Repairs & Maintenance
Freight
Hay
Fertiliser (t)
Contract Work
Hay mowing
Super Conditioner
Hay baling
Insurance
$9.06
$7.53
$28.00 /tonne
$20.00 /tonne
$45.00
$25-35.00
$26.67
$2.50
/ha
/ha
/tonne
/$1000
@
@
@
@
@
@
TOTAL VARIABLE COSTS
GROSS MARGIN/hectare
Break Even Price (to cover variable costs only)
Break Even Yield (to cover variable costs only)
Gross Margin based on last 5 year average price
COMMENTS
3.5
0.09
1.0
1.0
3.5
$9.06
$7.53
$9.06
$7.53
$98.00
$1.80
5.5
0.16
$154.00
$3.10
8.0
0.26
$224.00
$5.20
$45.00
$25.00
$93.33
$1.31
1.0
1.0
5.5
$45.00
$30.00
$146.67
$2.06
1.0
1.0
8.0
$45.00
$35.00
$213.33
$3.00
$392
$133
$112
2.62
$119
AGRONOMIC NOTES
$562
$263
$102
3.74
$241
$771
$429
$96
5.14
$397
Fertiliser rate assumes hay follows a cereal. Bonuses for shedding The use of a 'super conditioner' can significantly reduce drying time and
subsequently risk with less chance of a quality downrade. No
and late delivery may apply. Additional capital costs including
allowance has been made for cost of raking. Price is based on average
shedding and extra machinery may need to be considered.
quality- substantial differences occur across grades
42
Farm Gross Margin Guide 2013
EXPORT OATEN HAY GROSS MARGIN
GROSS MARGIN SENSITIVITY
LOW RAINFALL
Net Price $/t
$100
$125
$150
$175
Variable Costs
$200
1.5
-$132
-$95
-$57
-$20
$18
Yield
2.5
-$87
-$25
$38
$100
$162
t/ha
3.5
-$42
$45
$133
$220
$307
4.5
$3
$115
$228
$340
$452
350
300
250
MEDIUM RAINFALL
Net Price $/t
$125
$150
$175
$200
2
-$169
-$119
-$69
-$19
$31
Yield
3.5
-$101
-$14
$74
$161
$248
t/ha
5.5
-$11
$126
$263
$401
$538
7.5
$79
$266
$453
$640
$827
200
$/ha
$100
150
100
50
HIGH RAINFALL
Net Price $/t
0
$100
$125
$150
$175
$200
-$151
-$61
-$51
$89
$49
$239
$148
$388
$248
$538
8
$30
$229
$429
$628
$828
10
$120
$369
$618
$868
$1,117
4
6
Yield
t/ha
Low
Medium
High
HISTORIC PRICES AND TRENDS
OATEN HAY
HISTORIC PRICES
200
$/tonne
180
160
140
120
100
80
60
40
20
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Machinery Costs- Assuming full ownership of machinery
(Fuel and repairs only- excludes depreciation and other ownership costs)
Operation
No.
Fuel
$/ha
$/ha
5
3.84
2.53
5.15
2.17
1
1.16
1.74
7.53
9.06
seed
1
spray
roll
TOTAL
Repairs & Maint
43
Farm Gross Margin Guide 2013
PRIME LAMB GROSS MARGIN - HIGH RAINFALL (450mm+)
Assumptions
Ave Breeding Ewe Fibre Diameter
Number of breeding ewes (First Cross)
First cross ewe - Terminal meat sire
28
1000
Total DSE's
Stocking rate (DSE/Ha)
1840
12.0
2013
INCOME
Wool (kg greasy)
Sales
GROSS INCOME
VARIABLE COSTS
Shearing
Shearing
(Federal awards)
YOUR
4423.2 Kg
1339 animals
970
19
5
2.50
sheep
rams
days
days
Shed labour
Woolclasser
Superannuation (on ordinary wages only)
Work Cover (includes super + o'time etc)
Wool packs
26 packs
Shed sundries
989 sheep
Lice control
989 sheep
Crutch & Wig
990 ewes
19 rams
Marking
Lamb marking
1150 lambs
Ear tags
1150 lambs
Animal Health
drench
3190 sheep
vaccinate
3320 sheep
blowfly control
1000 sheep
Stock purchases
Purchases
Sale Costs
Freight
livestock
189 culls
212 ewes
1150 prime lambs
wool
26 bales
Stock selling charges
commission/insurance
yard fees
1339 head
levy-sheep
189 head
levy-lambs
1150
SA sheep industry
1339
Wool selling charges
brokerage/testing/insurance
wool levy
Feed and Other Costs
hay
20.4
grain
24.6
Insurance
$148,675
Water
1840
Fuel
1840
Other
1840
TOTAL VARIABLE COSTS
GROSS MARGIN TOTAL
GROSS MARGIN/hectare
GROSS MARGIN/DSE
COMMENTS
head
head
tonne
tonnes
value
DSE's
DSE's
DSE's
[ ave price
[ ave price
@
@
@
@
@
@
@
@
@
@
@
382 c/kg ]
$84.25 per hd]
$267.47
$534.94
$200.40
$239.66
9.3%
4.0%
$11.50
$0.15
$0.83
$85.59
$171.18
/100
/100
/day
/day
wages
total
/pack
/head
/head
/100
/100
$
$16,906
$112,780
$129,686
ESTIMATE
$2,594
$102
$1,002
$599
$397
$172
$299
$148
$821
$847
$33
@
@
$1.00 /head
$0.35 /head
$1,150
$403
@
@
@
$0.19 /head
$0.24 /head
$1.20 /head
$598
$797
$1,200
$43,379
@
@
@
@
$3.00
$3.00
$3.00
$8.00
@
@
@
5.5% gross $
$0.70 /head
$0.20 /head
$6,203
$937
$38
@
@
$1.50 /head
$0.40 /head
$1,725
$535
@
@
$0.22 /kg
2.0% gross
$973
$338
@
@
@
@
@
@
$160.00
$240.00
$2.00
$2.50
$0.70
$0.50
/head
/head
/head
/bale
/tonne
/tonne
/$'000
/DSE
/DSE
/DSE
$567
$637
$3,450
$208
$3,264
$5,904
$297
$4,600
$1,288
$920
$86,426
$43,260
$282
$24
The wool price is 90% the price for that micron. This takes into account the lower value of bellies, skirtings,locks etc.
Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance feed requirements of a 2
year old, 50 Kg liveweight Merino Wether with a body condition score of 2. No allowance has been made for
superphosphate application.
44
Farm Gross Margin Guide 2013
PRIME LAMB GROSS MARGIN - HIGH RAINFALL
PRODUCTION DATA
Stocking rate (DSE/Ha)
Total DSE's
12.0
1840
SHEEP GRAZING AREA
Number of ewes mated
Culling Rate (% from each group)
Age group
Ewes
Wethers
153
0.5
0%
1000
1.5
0%
Ram percentage
2%
2.5
0%
1.5
3.5
0%
Age ewes culled
6.5
4.5
0%
Years rams kept
3
5.5
0%
3%
6.5
100%
Age ewes bought
(yrs)
Flock death rate
Average weaning rate
115%
% Lambs carried over
0%
SALES
Number
c.f.a ewes
Price/hd
182
c.f.a rams
Age
$50.00
Total
6.5
$9,100
6
$30.00
4.5
$180
lambs
1150
$90.00
20 weeks
$103,500
TOTAL
1339
PURCHASES
Number
$84.25
Price/hd
$112,780
Age yrs
Total
ewes
212
$180
1.5
$38,226
rams
7
$750
1.5
$5,153
STOCK HEALTH REQUIREMENTS
Number of times
Number
Drench
Vacc.
Blowfly
DSE
ewes
1000
2
1
1
1.8
rams
20
2
1
0
2
lambs
1150
1
2
0
TOTAL
2170
3190
3320
1000
SHEARING
Wool cut
Number
ewes
crossbred rams
TOTAL
price
1840
Total
kg/hd
970
4.50
$3.84
$16,775
19
3.00
$2.25
$131
989
4423
$16,906
FEEDING
Number
Hay
Kgs Fed
No weeks
per week
2.5
of Feeding
2.5
ewes
1000
Cost ($/T)
$160
rams
20
$160
Number
Total
8
cost ($)
$3,200
8
$64
Grain
Kgs Fed
No weeks
Total
Cost ($/T)
per week
of Feeding
cost ($)
ewes
1000
$240
3.0
8
$5,760
rams
20
$240
3.0
10
$144
45
Farm Gross Margin Guide 2013
PRIME LAMB GROSS MARGIN - HIGH RAINFALL
G.M. SENSITIVITY
GROSS MARGIN/DSE
46
Average Weaning Rate (%)
85%
95%
$65
($0)
$3
105%
$6
115%
$9
125%
$12
135%
$15
$70
$2
$5
$9
$12
$15
$18
$75
$4
$8
$11
$15
$18
$22
Average
$80
$85
$7
$9
$10
$13
$14
$17
$18
$21
$21
$25
$25
$28
Lamb Sale
$90
$11
$15
$19
$24
$28
$32
Price ($/hd)
$95
$13
$18
$22
$26
$31
$35
$100
$15
$20
$25
$29
$34
$39
$105
$17
$22
$27
$32
$37
$42
$110
$20
$25
$30
$35
$41
$46
$115
$22
$27
$33
$38
$44
$49
Farm Gross Margin Guide 2013
SELF REPLACING MERINO FLOCK - HIGH RAINFALL (450mm+)
Assumptions
Ave Breeding Ewe Fibre Diameter
Number of breeding ewes
19.5
1000
Total DSE's
Stocking rate (DSE/Ha)
INCOME
Wool (kg greasy)
Sales
9426 Kg
862 animals
[ ave price
[ ave price
819 c/kg ]
$63.77 per hd]
GROSS INCOME
VARIABLE COSTS
Shearing
Shearing
(Federal Awards)
2324
25
9
5
sheep
rams
days
days
Shed labour
Woolclasser
Superannuation (on ordinary wages only)
Work Cover (includes super + o'time etc)
Wool packs
55 packs
Shed sundries
2349 sheep
Lice Control
2349 sheep
Crutch & wig
1424 sheep
25 rams
Marking
Lamb marking
900
Ear tags
900 lambs
Animal Health
drench
2400 sheep
vaccinate
3275 sheep
blowfly control
1475 sheep
Sale and Purchase Costs
Purchases
7 Merino rams
Freight
862 sheep
55 bales
Stock selling charges
commission/insurance
yard fees
862 head
Sheep trans levy
412 head
Lamb trans levy
450 head
862 head
SA sheep industry
Wool selling charges
brokerage/testing/insurance
Industry levy
Feed and other Costs
Hand Feeding
Insurance
$151,459 value
Water
2390 DSE's
Fuel
2390 DSE's
Other
2390 DSE's
TOTAL VARIABLE COSTS
GROSS MARGIN TOTAL
GROSS MARGIN/hectare
GROSS MARGIN /DSE
COMMENTS
@
@
@
@
@
@
@
@
@
@
@
$267.47
$534.94
$200.40
$239.66
9.3%
4.0%
$11.50
$0.15
$0.83
$85.59
$171.18
/100
/100
/day
/day
wages
total
/pack
/head
/head
/100
/100
$
$77,201
$54,990
$132,191
2013
YOUR
ESTIMATE
$6,216
$134
$1,804
$1,078
$854
$403
$633
$352
$1,950
$1,219
$43
@
@
$1.30 /head
$0.35 /head
$1,170
$315
@
@
@
$0.19 /head
$0.24 /head
$1.20 /head
$450
$786
$1,770
@
@
@
$950.00 /head
$3.00 /head
$8.00 /bale
$6,650
$2,586
$440
@
@
@
@
@
5.5%
$0.70
$0.20
$1.50
$0.40
gross
/head
/head
/head
/head
$3,024
$603
$82
$675
$345
@
@
$0.22 /kg
2.0% gross
$2,074
$1,544
@
@
@
@
$2.00
$2.50
$0.70
$0.50
/$'000
/DSE
/DSE
/DSE
2390
12.0
$8,439
$303
$5,975
$1,673
$1,195
$54,785
$77,407
$389
$32
The wool price is 90% the wool price for that micron. This takes into account the lower value of bellies, skirtings,locks
etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance feed
requirements of a 2 year old, 50 Kg liveweight Merino Wether with a body condition score of 2. No allowance has
been made for superphosphate application.
47
Farm Gross Margin Guide 2013
SELF REPLACING MERINO FLOCK - HIGH RAINFALL
PRODUCTION DATA
Stocking rate (DSE/Ha)
Total DSE's
SHEEP GRAZING AREA
Number of ewes mated
Ram percentage
Age wethers sold (yrs)
Years rams kept
Flock death rate
Average weaning rate
12.0
2390
285
1000
2.5%
0.5
4
3%
90%
SALES
c.f.a ewes
c.f.a merino rams
ewe hoggets
wether lambs
TOTAL
Number
204
6
203
450
862
STOCK HEALTH
ewes
ewe hoggets
wether weaners
merino lambs
merino rams
TOTAL
Total Value
FEEDING
Feed
Oats/barley
Hay
Lupins
Total
SHEARING
ewes
ewe hoggets
wether weaners
lambs
merino rams
Adults
Total
48
Culling Rate (% per each group)
Age group
Ewes
Wethers
0.5
0%
100%
1.5
46%
0%
2.5
5%
0%
3.5
5%
0%
4.5
5%
0%
5.5
5%
0%
6.5
100%
0%
Number
1000
450
0
900
25
2375
$151,459
DSE
Number of
Animals
833
833
375
Hay
Cost ($/T)
$240
$160
$260
1.8
1.2
0.8
0.0
2.0
2390
Number
981
443
0
900
25
1449
2349
Price/hd
$50.00
$30.00
$120.00
$45.00
$63.77
Number of times
Drench
Vacc.
1
1
1
1
1
1
1
2
2
1
2400
3275
kg/
animal
24 /ewe
20 /ewe
10 /weaner
Wool cut
kg/hd
6.00
4.50
4.50
1.50
8.00
5.75
Total
Greasy kg
5885
1995
0
1350
197
8076
9426
Total
$10,200
$180
$24,360
$20,250
$54,990
Blowfly
1
1
0
0
1
1475
Total
cost ($)
$4,798
$2,666
$975
$8,439
Yield
(%)
70%
70%
70%
70%
70%
Total
Clean kg
4119
1396
0
945
138
6598
Farm Gross Margin Guide 2013
SELF REPLACING MERINO FLOCK - HIGH RAINFALL (450mm+)
FLOCK STRUCTURE
Class of
Sheep
Ewes
Wethers
Rams
This table shows the number of merino sheep in each age group at mating
0.5 y.o.
450
0
1.5 y.o.
234
0
7
SENSITIVITY ANALYSIS
GROSS MARGIN/DSE
Average
Sale Price
All Sheep
($/hd)
$35
$40
$45
$50
$55
$60
$64
$70
$75
$80
$85
700
$18
$20
$21
$23
$25
$27
$28
$30
$32
$33
$35
2.5 y.o.
216
0
6
Age Group
3.5 y.o.
199
0
6
4.5 y.o.
183
0
6
5.5 y.o.
169
0
0
Average Greasy Wool Price (c/Kg)
750
800
819
$20
$22
$23
$22
$24
$24
$23
$25
$26
$25
$27
$28
$27
$29
$29
$28
$30
$31
$30
$32
$32
$32
$34
$35
$34
$35
$36
$35
$37
$38
$37
$39
$40
850
$24
$25
$27
$29
$31
$32
$34
$36
$37
$39
$41
6.5 y.o.
0
0
0
900
$26
$27
$29
$31
$33
$34
$36
$38
$39
$41
$43
49
Farm Gross Margin Guide 2013
MERINO WETHERS - HIGH RAINFALL (450mm+)
Assumptions:
Average Wether Fibre Diametre
Number of adult wethers
Total DSE's
Stocking rate (DSE/Ha)
19.5
1000
1200
12.0
Gross Margin per Ha
Gross Margin per DSE
Gross Margin/Wether
$385
$32
$39
INCOME
Wool (kg greasy)
Sales
GROSS INCOME
6790 Kg
182 animals
EXPENSES
Shearing
Shearing
970 sheep
Shed labour
4 days
Woolclasser
2 days
Superannuation (on ordinary wages only)
Work Cover (on wages+super+o'time etc)
Wool packs
40 packs
Shed sundries
970 sheep
Lice control
970 sheep
Crutching
1000 sheep
Animal Health
drench
1000 sheep
vaccinate
1000 sheep
blowfly control
1000 sheep
Other Expenses
0 sheep
Stock Purchases
Purchases
212 wethers
Sale costs and other
Freight
livestock
395
wool
40 bales
Stock selling charges
commission/insurance
yard fees
182 head
transaction levy
182 head
SA sheep industry
182 head
Wool selling charges
brokerage/testing/insurance
Industry levy
Other Expenses
Hand Feeding
Insurance
57500 value
Water
1200 DSE's
fuel
1200 DSE's
Other Expenses
1200 DSE's
TOTAL VARIABLE COSTS
GROSS MARGIN
GROSS MARGIN/hectare
GROSS MARGIN/DSE
COMMENTS
50
[ave price
[ave price
@
@
@
@
@
@
@
@
@
819 c/kg ]
$70.00 per hd]
/100
/day
/day
wages
total
/pack
/head
/head
/100
$2,594
$802
$479
$358
$169
$460
$146
$805
$856
/head
/head
/head
/head
$188
$240
$1,200
$0
@
$45.00 /head
$9,540
@
@
$3.00 /head
$8.00 /bale
$1,185
$320
@
@
@
@
5.5%
$0.70
$0.20
$0.40
gross
/head
/head
/head
$702
$127
$36
$73
@
@
$0.22 /kg
2.00% gross
$1,494
$1,112
@
@
@
@
$2.00
$2.50
$0.70
$0.50
@
@
@
@
$267.47
$200.40
$239.66
9.3%
4.0%
$11.50
$0.15
$0.83
$85.59
$
$55,610
$12,766
$68,376
$0.19
$0.24
$1.20
$0.00
/$'000
/DSE
/DSE
/DSE
2013
YOUR
ESTIMATE
$2,400
$115
$3,000
$840
$600
$29,842
$38,534
$385
$32
The wool price is 90% the wool price for that micron. This takes into account the lower value of bellies,
skirtings,locks etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance
feed requirements of a 2 year old, 50 Kg liveweight Merino Wether with a body condition score of 2. No allowance
has been made for superphosphate application.
Farm Gross Margin Guide 2013
MERINO WETHERS - HIGH RAINFALL
PRODUCTION DATA
Stocking rate (DSE/Ha)
Total DSE's
SHEEP GRAZING AREA
Number of wethers
Flock death rate
Age wethers bought (yrs)
Age wethers culled
12.0
1200
100
1000
3%
0.5
5.5
SALES
c.f.a wethers
TOTAL
PURCHASES
wethers
Number
182
182
Number
212
Culling Rate (% from each group)
Age group
Ewes
Wethers
0.5
0%
1.5
0%
2.5
0%
3.5
0%
4.5
0%
5.5
100%
Price/hd
$70.00
Price/hd
$45
STOCK VALUE AND D.S.E REQUIREMENT
Number
1000
1000
wethers
TOTAL
STOCK HEALTH REQUIREMENTS
Number of times
Number Drench
Vacc.
wethers
1000
1
1
TOTAL
1000
1000
1000
SHEARING
Number
970
970
wethers
TOTAL
HAND FEEDING
kg fed
/animal
kg/wether
15 kg/wether
kg/wether
Oats/barley
Hay
Lupins
Total
SENSITIVITY TABLE
GROSS MARGIN/DSE
Average
Sale Price
of wethers
($/hd)
Wool cut
kg/hd
7.00
Age
5.5
Age yrs
0.5
Value
$/head
$58
Blowfly
1
1000
Total
Greasy kg
6790
6790
$/tonne
240
160
260
Stock
No's
212
206
200
194
188
Total
$12,740
$12,740
Total
$9,556
Ave Live
Wt (Kgs)
55
DSE
rating
1.2
DSE
rating
1.2
1200
Yield
(%)
70%
Total
Clean kg
4753
4753
Total
$0
$2,400
$0
$2,400
MERINO WETHERS - HIGH RAINFALL
$45
$50
$55
$60
$65
$70
$75
$80
$85
$90
$95
700
$22
$23
$23
$24
$25
$26
$26
$27
$28
$28
$29
Average Greasy Wool Price (c/Kg)
750
800
819
$25
$27
$29
$25
$28
$29
$26
$29
$30
$27
$30
$31
$28
$30
$31
$28
$31
$32
$29
$32
$33
$30
$32
$34
$30
$33
$34
$31
$34
$35
$32
$35
$36
850
$30
$31
$32
$32
$33
$34
$35
$35
$36
$37
$37
900
$33
$34
$34
$35
$36
$37
$37
$38
$39
$39
$40
51
Farm Gross Margin Guide 2013
PRIME LAMB GROSS MARGIN - CEREAL ZONE (250 - 450mm)
Assumptions
Ave Breeding Ewe Fibre Diameter
Number of breeding ewes (Merino)
Merino ewe - Terminal meat sire
21
1000
Total DSE's
Stocking rate (DSE/Ha)
1850
6.0
2013
INCOME
Wool (kg greasy)
Sales
GROSS INCOME
VARIABLE COSTS
Shearing
Shearing
(Federal awards)
YOUR
6378 Kg
1189 animals
970
24
5
2.5
Shed labour
Woolclasser
Work Cover (includes super + o'time etc)
Superannuation (on ordinary wages only)
Wool packs
38
Shed sundries
994
Lice control
994
Crutch & Wig
0
1019
Marking
Lamb marking
950
Ear tags
950
Animal Health
drench
2000
vaccinate
2925
blowfly control
1000
Stock purchases
Purchases
Sale Costs
Freight
livestock
239
262
950
wool
38
Stock selling charges
commissioninsurance
yard fees
1189
levy-sheep
239
levy-lambs
950
SA sheep industry lev
1189
Wool selling charges
brokerage/testing/insurance
Industry levy
Feed and Other Costs
Water
1850
Fuel
1850
Other
1850
hay
20.5
grain
24.8
Insurance
$113,750
TOTAL VARIABLE COSTS
GROSS MARGIN TOTAL
GROSS MARGIN/hectare
GROSS MARGIN/DSE
COMMENTS
52
sheep
rams
days
days
[ ave price
[ ave price
746 c/kg ]
$73.83 per hd]
$267.47
$534.94
$200.40
$239.66
9.25%
4.00%
$11.50
$0.15
$0.46
$85.59
$85.59
/100
/100
/day
/day
total
wages
/pack
/head
/head
/100
/100
$
$47,603
$87,840
$135,443
packs
sheep
sheep
lambs
ewes
@
@
@
@
@
@
@
@
@
@
@
lambs
lambs
@
@
$1.00 /head
$0.35 /head
$950
$333
sheep
sheep
sheep
@
@
@
$0.19 /head
$0.20 /head
$1.20 /head
$375
$585
$1,200
ESTIMATE
$2,594
$128
$1,002
$599
$400
$173
$437
$149
$456
$0
$872
$37,826
culls
ewes
prime lambs
bales
@
@
@
@
head
head
head
head
@
@
@
@
@
@
@
DSE's
DSE's
DSE's
tonne
tonnes
value
@
@
@
@
@
@
$3.00
$
$3.00
$3.00
$8.00
/head
/head
/head
/bale
$717
$
$785
$2,850
$304
gross
/head
/head
/head
/head
$4,831
$832
$48
$1,425
$476
$0.22 kg
2.0% gross
$1,403
$952
5.5%
$0.70
$0.20
$1.50
$0.40
$2.50
$0.70
$0.50
$160.00
$240.00
$2.00
/DSE
/DSE
/DSE
/tonne
/tonne
/$'000
$4,625
$1,295
$925
$3,280
$5,940
$228
$78,995
$56,448
$183
$31
The wool price is 90% the price for that micron. This takes into account the lower value of bellies, skirtings,locks etc.
Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance feed requirements of a 2 year old, 50
Kg liveweight Merino Wether with a body condition score of 2.
Farm Gross Margin Guide 2013
PRIME LAMB GROSS MARGIN - CEREAL ZONE
PRODUCTION DATA
Stocking rate (DSE/Ha)
6.0
Total DSE's
Culling Rate (% from each group)
1850
SHEEP GRAZING AREA
Age group
Ewes
Wethers
308
0.5
0%
Number of ewes mated
1000
1.5
0%
Ram percentage
2.5%
2.5
0%
Age ewes bought (yrs)
Age ewes culled
Years rams kept
Flock death rate
Average weaning rate
% Lambs carried over
1.5
5.5
3
3%
95%
0%
3.5
4.5
5.5
6.5
0%
0%
100%
0%
Age
Total
$11,600
$240
$76,000
$87,840
Total
$31,384
$6,441
SALES
c.f.a ewes
c.f.a rams
lambs
TOTAL
PURCHASES
ewes
rams
Number
232
8
950
1189
Number
262
9
Price/hd
$50.00
$30.00
$80.00
73.83
Price/hd
$120
$750
5.5
4.5
20 weeks
Age yrs
1.5
1.5
STOCK HEALTH REQUIREMENTS
ewes
rams
lambs
TOTAL
Number
1000
25
950
1975
Drench
1
2
1
2000
SHEARING
ewes
crossbred rams
Number
970
24
TOTAL
994
Number of times
Vacc.
Blowfly
DSE
1
1
1
0
2
0
2925
1000
Wool cut
kg/hd
6.50
3.00
price
$7.52
$2.25
6378
1.8
2
1850
Total
$
47439
164
47603
FEEDING
Number
ewes
rams
1000
25
Number
ewes
rams
1000
25
Hay
Kgs Fed
No weeks
Cost ($/T)
$160
$160
Grain
Cost ($/T)
$240
$240
per week
2.5
2.5
Kgs Fed
per week
3.0
3.0
of Feeding
Total
8
8
No weeks
of Feeding
8
10
cost ($)
$3,200
$80
Total
cost ($)
$5,760
$180
53
Farm Gross Margin Guide 2013
PRIME LAMB GROSS MARGIN - CEREAL ZONE
G.M. SENSITIVITY
GROSS MARGIN/DSE
54
Average Weaning Rate (%)
85%
95%
$16
$18
$18
$21
$20
$23
$22
$26
$25
$28
Average
$55
$60
$65
$70
$75
75%
$14
$15
$17
$19
$21
Lamb Sale
$80
$23
$27
Price ($/hd)
$85
$90
$95
$100
$105
$25
$27
$29
$31
$33
$29
$31
$33
$36
$38
105%
$21
$23
$26
$29
$32
115%
$23
$26
$29
$32
$35
125%
$26
$29
$32
$35
$38
$31
$34
$38
$42
$33
$35
$38
$40
$43
$37
$40
$42
$45
$48
$41
$44
$47
$50
$53
$45
$48
$51
$54
$58
Farm Gross Margin Guide 2013
SELF REPLACING MERINO FLOCK - CEREAL ZONE (250 - 450mm)
Assumptions
Ave Breeding Ewe Fibre Diameter
Number of breeding ewes
21
1000
Total DSE's
Stocking rate (DSE/Ha)
INCOME
Wool (kg greasy)
Sales
GROSS INCOME
VARIABLE COSTS
Shearing
Shearing
(Federal Awards)
10614 Kg
813 animals
2250
25
8
4.0
sheep
rams
days
days
Shed labour
Woolclasser
Superannuation (on ordinary wages only)
Work Cover (includes super + o'time etc)
Wool packs
62 packs
Shed sundries
2274 sheep
Lice control
2274 sheep
Crutch & wig
1400 sheep
25 rams
Marking
Lamb marking
850 lambs
Ear tags
850 lambs
Animal Health
drench
2325 sheep
vaccinate
3150 sheep
blowfly control
1450 sheep
Sale and Purchase Costs
Purchases
7 Merino rams
Freight
813 sheep
62 bales
Stock selling charges
commission/insurance
yard fees
813 head
sheep tran levy
388 head
lamb trans levy
425 head
813 head
SA Sheep industry
wool selling charges
brokerage/testing/insurance
Industry levy
Feed and other Costs
Hand Feeding
Insurance
$143,892 value
Water
2360 DSE's
Fuel
2360 DSE's
Other
2360 DSE's
TOTAL VARIABLE COSTS
GROSS MARGIN TOTAL
GROSS MARGIN/hectare
GROSS MARGIN /DSE
[ ave price
[ ave price
@
@
@
@
@
@
@
@
@
@
@
752 c/kg ]
$62.56 per hd]
$267.47
$534.94
$200.40
$239.66
9.3%
4.0%
$11.50
$0.15
$0.83
$85.59
$171.18
/100
/100
/day
/day
wages
total
/pack
/head
/head
/100
/100
$
$79,859
$50,865
$130,724
2013
YOUR
ESTIMATE
$6,018
$134
$1,603
$959
$806
$381
$713
$341
$1,887
$1,198
$43
@
@
$1.30 /head
$0.35 /head
$1,105
$298
@
@
@
$0.19 /head
$0.20 /head
$1.20 /head
$436
$630
$1,740
@
@
@
$950.00 /head
$3.00 /head
$8.00 /bale
$6,650
$2,439
$496
@
@
@
@
@
5.5%
$0.70
$0.20
$1.50
$0.40
gross
/head
/head
/head
/head
$2,798
$569
$78
$638
$325
@
@
$0.22 /kg
2.0% gross
$2,335
$1,597
@
@
@
@
$2.00
$2.50
$0.70
$0.50
/$'000
/DSE
/DSE
/DSE
2360
6.0
$10,065
$288
$5,900
$1,652
$1,180
$55,300
$75,423
$192
$32
COMMENTS
The wool price is 90% the wool price for that micron. This takes into account the lower value of bellies,
skirtings,locks etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance
feed requirements of a 2 year old, 50 Kg liveweight Merino Wether with a body condition score of 2.
55
Farm Gross Margin Guide 2013
SELF REPLACING MERINO FLOCK - CEREAL ZONE
PRODUCTION DATA
Stocking rate (DSE/Ha)
Total DSE's
SHEEP GRAZING AREA
Number of ewes mated
Ram percentage
Age wethers sold (yrs)
Years rams kept
Flock death rate
Average weaning rate
Prime lamb weaning %
% mated for prime lms
6.0
2360
285
1000
2.5%
0.5
4
3%
85%
0%
0%
SALES
c.f.a ewes
c.f.a merino rams
ewe hoggets
wether lambs
TOTAL
Number
204
6
178
425
813
STOCK HEALTH
ewes
ewe hoggets
wether weaners
merino lambs
merino rams
TOTAL
Total Value
FEEDING
Feed
Oats/barley
Hay
Lupins
Total
SHEARING
ewes
ewe hoggets
wether weaners
lambs
merino rams
Adults
Total
56
Culling Rate (% per each group)
Age group
Ewes
Wethers
0.5
0%
100%
1.5
43%
0%
2.5
5%
0%
3.5
5%
0%
4.5
5%
0%
5.5
5%
0%
6.5
100%
0%
Number
1000
425
0
850
25
2300
$143,892
DSE
Number of
Animals
1000
1000
425
Fodder
Cost ($/T)
$240
$160
$260
1.8
1.2
0.8
0.0
2.0
2360
Number
981
419
0
850
25
1424
2274
Price/hd
$50.00
$30.00
$120.00
$45.00
$62.56
Number of times
Drench
Vacc.
1
1
1
1
1
1
1
2
2
1
2325
3150
kg/
animal
24 /ewe
20 /ewe
10 /weaner
Wool cut
kg/hd
6.50
5.50
5.00
2.00
9.50
6.63
Total
Greasy kg
6378
2302
0
1700
234
8914
10614
Total
$10,200
$180
$21,360
$19,125
$50,865
Blowfly
1
1
1
0
1
1450
Total
cost ($)
$5,760
$3,200
$1,105
$10,065
Yield
(%)
68%
68%
68%
68%
68%
Total
Clean kg
4337
1566
0
1156
159
7217
Farm Gross Margin Guide 2013
SELF REPLACING MERINO FLOCK - CEREAL ZONE
FLOCK STRUCTURE
Class of
Sheep
Ewes
Wethers
Rams
This table shows the number of merino sheep in each age group at mating
0.5 y.o.
425
0
1.5 y.o.
234
0
7
SENSITIVITY ANALYSIS
GROSS MARGIN/DSE
Average
Sale Price
All Sheep
($/hd)
$35
$40
$45
$50
$55
$60
$63
$70
$75
$80
$85
650
$18
$20
$22
$23
$25
$27
$28
$30
$31
$33
$35
2.5 y.o.
216
0
6
Age Group
3.5 y.o.
199
0
6
4.5 y.o.
183
0
6
5.5 y.o.
169
0
0
Average Greasy Wool Price (c/Kg)
700
752
800
$21
$23
$25
$22
$25
$27
$24
$26
$28
$26
$28
$30
$27
$29
$32
$29
$31
$33
$30
$32
$34
$32
$34
$36
$34
$36
$38
$35
$38
$40
$37
$39
$41
850
$27
$29
$31
$32
$34
$35
$36
$39
$40
$42
$44
6.5 y.o.
0
0
0
900
$29
$31
$33
$34
$36
$38
$39
$41
$43
$44
$46
57
Farm Gross Margin Guide 2013
MERINO WETHERS - CEREAL ZONE (250 - 450mm)
Assumptions:
Average Wether Fibre Diameter
Number of adult wethers
Total DSE's
Stocking rate (DSE/Ha)
21
1000
1200
6.0
Gross Margin per Ha
Gross Margin per DSE
Gross Margin/Wether
$188
$31
$38
INCOME
Wool (kg greasy)
Sales
GROSS INCOME
7275 Kg
182 animals
EXPENSES
Shearing
Shearing
970 sheep
Shed labour
4 days
Woolclasser
2 days
Superannuation (on ordinary wages only )
Work Cover (on wages+super+o'time etc)
Wool packs
43 packs
Shed sundries
970 sheep
Lice control
970 sheep
Crutching
1000 sheep
Animal Health
drench
1000 sheep
vaccinate
1000 sheep
blowfly control
1000 sheep
Other Expenses
0 sheep
Stock Purchases
Purchases
212 wethers
Sale costs and other
Freight
livestock
395
wool
43 bales
Stock selling charges
commission/insurance
yard fees
182 head
transaction levy
182 head
SA sheep industry
182 head
Wool selling charges
brokerage/testing/insurance
Industry levy
Other Expenses
Hand Feeding
Insurance
57500 value
Water
1200 DSE's
fuel
1200 DSE's
Other Expenses
1200 DSE's
TOTAL VARIABLE COSTS
GROSS MARGIN
GROSS MARGIN/hectare
GROSS MARGIN/DSE
COMMENTS
[ ave price
[ ave price
@
@
@
@
@
@
@
@
@
752 c/kg ]
$70.00 per hd]
/100
/day
/day
wages
total
/pack
/head
/head
/100
$2,594
$802
$479
$314
$148
$495
$146
$805
$856
/head
/head
/head
/head
$188
$200
$1,200
$0
@
$45.00 /head
$9,540
@
@
$3.00 /head
$8.00 /bale
$1,185
$344
@
@
@
@
5.5%
$0.70
$0.20
$0.40
gross
/head
/head
/head
$702
$127
$36
$73
@
@
$0.22 /kg
2.0% gross
$1,601
$1,095
@
@
@
@
$2.00
$2.50
$0.70
$0.50
@
@
@
@
$267.47
$200.40
$239.66
9.3%
4.0%
$11.50
$0.15
$0.83
$85.59
$
$54,737
$12,766
$67,503
$0.19
$0.20
$1.20
$0.00
/$'000
/DSE
/DSE
/DSE
2013
YOUR
ESTIMATE
$2,400
$115
$3,000
$840
$600
$29,885
$37,618
$188
$31
The wool price is 90% the wool price for that micron. This takes into account the lower value of bellies, skirtings,
locks etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance feed
requirements of a 2 year old, 50 kg liveweight Merino wether with a body condition score of 2. No allowance has
been made for superphosphate application.
58
Farm Gross Margin Guide 2013
MERINO WETHERS - CEREAL ZONE
PRODUCTION DATA
Stocking rate (DSE/Ha)
Total DSE's
SHEEP GRAZING AREA
Number of wethers
Flock death rate
Age wethers bought (yrs)
Age wethers culled
SALES
c.f.a wethers
TOTAL
PURCHASES
wethers
6.0
1200
200
1000
3%
0.5
5.5
Number
182
182
Number
212
Culling Rate (% from each group)
Age group
Ewes
Wethers
0.5
0%
1.5
0%
2.5
0%
3.5
0%
4.5
0%
5.5
100%
Price/hd
$70.00
Price/hd
$45
STOCK VALUE AND D.S.E REQUIREMENT
Number
1000
1000
wethers
TOTAL
STOCK HEALTH REQUIREMENTS
Number of times
Number Drench
Vacc.
wethers
1000
1
1
TOTAL
1000
1000
1000
SHEARING
Number
970
970
wethers
TOTAL
HAND FEEDING
kg fed
Wool cut
kg/hd
7.50
/animal
0 kg/wether
15 kg/wether
kg/wether
Oats/barley
Hay
Lupins
Total
Age
5.5
Age yrs
0.5
Value
$/head
$58
Blowfly
1
1000
Total
Greasy kg
7275
7275
$/tonne
240
160
260
Stock
No's
212
206
200
194
188
Total
$12,740
$12,740
Total
$9,556
Ave Live
Wt (Kgs)
55
DSE
rating
1.2
DSE
rating
1.2
1200
Yield
(%)
68%
Total
Clean kg
4947
4947
Total
$0
$2,400
$0
$2,400
MERINO WETHERS - CEREAL ZONE
SENSITIVITY TABLE
GROSS MARGIN/DSE
Average
Sale Price
of wethers
($/hd)
$45
$50
$55
$60
$65
$70
$75
$80
$85
$90
$95
650
$22
$22
$23
$24
$25
$25
$26
$27
$27
$28
$29
Average Greasy Wool Price (c/Kg)
700
752
800
$25
$28
$31
$25
$28
$31
$26
$29
$32
$27
$30
$33
$28
$31
$33
$28
$31
$34
$29
$32
$35
$30
$33
$36
$30
$33
$36
$31
$34
$37
$32
$35
$38
850
$34
$34
$35
$36
$36
$37
$38
$39
$39
$40
$41
900
$37
$37
$38
$39
$39
$40
$41
$42
$42
$43
$44
59
Farm Gross Margin Guide 2013
PRIME LAMB GROSS MARGIN - PASTORAL ZONE (<250mm)
Assumptions
(Lambs sold to specialist finisher)
Ave Breeding Ewe Fibre Diameter
22
Number of breeding ewes
1000
Total DSE's
Stocking rate (DSE/Ha)
1858
0.14
Merino ewes - Terminal meat sire
2013
INCOME
Wool (kg greasy)
Sales
GROSS INCOME
VARIABLE COSTS
Shearing
Shearing
(Federal awards)
YOUR
5771 Kg
1020 animals
950
24
5
2.50
sheep
rams
days
days
Shed labour
Woolclasser
Superannuation (on ordinary wages only)
Work Cover (on wages+super+o'time etc)
Wool packs
34 packs
Shed sundries
974 sheep
Lice control
974 sheep
Crutch & Wig
800 lambs
998 adults
Marking
Lamb marking
800 lambs
Ear tags
800 lambs
Animal Health
drench
0 sheep
vaccinate
1825 sheep
blowfly control
1000 sheep
Stock purchases
Purchases
Sale Costs
Freight
livestock
220 culls
270 ewes
800 prime lambs
wool
34 bales
Stock selling charges
commission/insurance
yard fees
1020 head
levy-sheep
220 head
levy-lambs
800 head
SA sheep industry
1020 head
wool selling charges
Industry levy
brokerage/testing/insurance
Feed and Other Costs
Water
1858 DSE's
Fuel
1858 DSE's
Other
1858 DSE's
hay
0.0 tonne
grain
0.0 tonnes
Insurance
$105,250 value
TOTAL VARIABLE COSTS
GROSS MARGIN TOTAL
GROSS MARGIN/hectare
GROSS MARGIN/DSE
COMMENTS
[ ave price
[ ave price
@
@
@
@
@
@
@
@
@
@
@
675 c/kg ]
$60.69 per hd]
$267.47
$534.94
$200.40
$239.66
9.3%
4.0%
$11.50
$0.15
$0.83
$85.59
$85.59
/100
/100
/day
/day
wages
total
/pack
/head
/head
/100
/100
$
$38,943
$61,880
$100,823
ESTIMATE
$2,541
$128
$1,002
$599
$395
$171
$391
$146
$808
$685
$854
@
@
$1.00 /head
$0.35 /head
$800
$280
@
@
@
$0.19 /head
$0.20 /head
$1.20 /head
$0
$365
$1,200
$37,400
@
@
@
@
$5.00
$
$5.00
$5.00
$10.00
/head
/head
/head
/bale
$1,100
$
$1,348
$4,000
$340
@
@
@
@
@
5.5%
$0.70
$0.20
$1.50
$0.40
gross
/head
/head
/head
/head
$3,403
$714
$44
$1,200
$408
@
@
2.0% gross
$0.22 /kg
$779
$1,270
@
@
@
@
@
@
$2.50
$0.70
$0.50
$160.00
$240.00
$2.00
/tonne
/tonne
/DSE
/DSE
/DSE
/$'000
$4,644
$1,300
$929
$0
$0
$211
$69,455
$31,368
$2.36
$17
The wool price is 90% the wool price for that micron. This takes into account the lower value of bellies, skirtings,locks
etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance feed requirements
of a 2 year old, 50 Kg liveweight Merino Wether with a body conditionscore of 2.
60
Farm Gross Margin Guide 2013
PRIME LAMB GROSS MARGIN - PASTORAL ZONE
PRODUCTION DATA
Stocking rate (DSE/Ha)
0.14
Total DSE's
Culling Rate (% from each group)
1858
SHEEP GRAZING AREA
Age group
Ewes
Wethers
13268
0.5
0%
Number of ewes mated
1000
1.5
0%
Ram percentage
2.5%
2.5
0%
1.5
3.5
0%
Age ewes culled
5.5
4.5
100%
Years rams kept
4
5.5
0%
Flock death rate
5%
6.5
0%
Age
Total
Age ewes bought
(yrs)
Average weaning rate
80%
% Lambs carried over
0%
SALES
Number
Price/hd
c.f.a ewes
220
$45.00
5.5
c.f.a rams
0
$30.00
5.5
$0
800
$65.00
16 weeks
$52,000
lambs
TOTAL
1020
PURCHASES
Number
$9,900
$60.69
Price/hd
$61,900
Age yrs
Total
ewes
270
$120
1.5
$32,346
rams
7
$750
1.5
$5,054
STOCK HEALTH REQUIREMENTS
Number of times
Number
ewes
Drench
1000
Vacc.
0
Blowfly
1
DSE
1
1.8
2
rams
25
0
1
0
lambs
800
0
1
0
TOTAL
1825
0
1825
1000
SHEARING
Wool cut
Number
ewes
Total
kg/hd
950
6.00
$6.80
38783
24
3.00
$2.25
160
974
5771
crossbred rams
TOTAL
price
1850
38943
FEEDING
Number
Hay
Kgs Fed
No weeks
Total
Cost ($/T)
per week
of Feeding
cost ($)
ewes
1000
$160
3.0
0
rams
24
$160
3.0
0
Number
Grain
Kgs Fed
No weeks
Cost ($/T)
per week
of Feeding
$0
$0
Total
cost ($)
ewes
1000
$240
0.0
0
$0
rams
24
$240
3.0
0
$0
61
Farm Gross Margin Guide 2013
PRIME LAMB GROSS MARGIN - PASTORAL ZONE
G.M. SENSITIVITY
GROSS MARGIN/DSE
62
Average Weaning Rate (%)
50%
60%
70%
80%
90%
$35
$1
$2
$3
$5
$6
100%
$7
$40
$2
$4
$5
$7
$8
$10
$45
$3
$5
$7
$9
$11
$12
$50
$5
$7
$9
$11
$13
$15
Average
$55
$6
$8
$11
$13
$15
$17
Lamb Sale
$60
$7
$10
$12
$15
$17
$20
Price ($/hd)
$65
$8
$11
$14
$17
$20
$23
$70
$10
$13
$16
$19
$22
$25
$75
$11
$14
$18
$21
$24
$28
$80
$12
$16
$19
$23
$27
$30
$85
$14
$17
$21
$25
$29
$33
Farm Gross Margin Guide 2013
SELF REPLACING MERINO FLOCK - PASTORAL ZONE (<250mm)
Assumptions
Ave Breeding Ewe Fibre Diameter
Number of breeding ewes
22
1000
Total DSE's
Stocking rate (DSE/Ha)
INCOME
Wool (kg greasy)
Sales
GROSS INCOME
VARIABLE COSTS
Shearing
Shearing
(Federal Awards)
11237 Kg
669 animals
2451
29
10
5
680 c/kg ]
$59.45 per hd]
@
@
@
@
@
@
@
@
@
@
lambs
lambs
@
@
$1.30 /head
$0.35 /head
sheep
sheep
sheep
sheep
@
@
@
@
$0.19
$0.20
$1.20
$0.00
Merino rams
sheep
bales
@
@
@
head
head
head
@
@
@
@
5.5%
$0.70
$0.20
$0.40
gross
/head
/head
/head
$2,188
$468
$134
$268
@
@
$0.22 /kg
2.0% gross
$2,472
$1,529
@
@
@
@
$2.00
$2.50
$0.70
$0.50
value
DSE's
DSE's
DSE's
$267.47
$534.94
$200.40
$239.66
9.3%
4.0%
$11.50
$0.15
$0.83
$85.59
/100
/100
/day
/day
wages
total
/pack
/head
/head
/100
$
$76,459
$39,775
$116,234
sheep
rams
days
days
Shed labour
Woolclasser
Superannuation (on ordinary wages only)
Work Cover (includes super + o'time etc)
Wool packs
66 packs
Shed sundries
2480 sheep
Lice control
2480 sheep
Crutch & wig
1701 sheep
Marking
Lamb marking
750
Ear tags
750
Animal Health
drench
0
vaccinate
2905
blowfly control
1000
other
0
Sale and Purchase Costs
Purchases
8
Freight
669
66
Stock selling charges
commission/insurance
yard fees
669
transaction levy
669
669
SA sheep industry
Wool selling charges
brokerage/testing/insurance
Industry levy
Feed and other Costs
Hand Feeding
Insurance
$150,400
Water
2610
Fuel
2610
Other
2610
TOTAL VARIABLE COSTS
GROSS MARGIN TOTAL
GROSS MARGIN/hectare
GROSS MARGIN /DSE
[ ave price
[ ave price
2013
YOUR
ESTIMATE
$6,556
$155
$2,004
$1,198
$917
$433
$759
$372
$2,058
$1,456
$975
$263
/head
/head
/head
/head
$0
$581
$1,200
$0
$950.00 /head
$5.00 /head
$10.00 /bale
$7,600
$3,345
$660
/$'000
/DSE
/DSE
/DSE
2610
0.14
$0
$301
$6,525
$1,827
$1,305
$47,549
$68,686
$3.68
$26
COMMENTS
The wool price is 90% the wool price for that micron. This takes into account the lower value of bellies,
skirtings,locks etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance
feed requirements of a 2 year old, 50 Kg liveweight Merino Wether with a body condition score of 2.
63
Farm Gross Margin Guide 2013
SELF REPLACING MERINO FLOCK - PASTORAL ZONE
PRODUCTION DATA
Stocking rate (DSE/Ha)
Total DSE's
SHEEP GRAZING AREA
Number of ewes mated
Ram percentage
Age wethers sold (yrs)
Years rams kept
Flock death rate
Average weaning rate
Prime lamb weaning %
% mated for prime lms
0.14
2610
18643
1000
3.0%
1
4
5%
75%
0%
0%
SALES
c.f.a ewes
c.f.a merino rams
ewe hoggets
wether hoggets
TOTAL
Number
193
7
113
356
669
STOCK HEALTH
ewes
ewe hoggets
wether weaners
merino lambs
merino rams
TOTAL
Total Value
FEEDING
Feed
Oats/barley
Hay
Lupins
Total
SHEARING
ewes
ewe hoggets
wether weaners
lambs
merino rams
Adults
Total
64
Culling Rate (% per each group)
Age group
Ewes
Wethers
0.5
0%
0%
1.5
32%
100%
2.5
5%
0%
3.5
5%
0%
4.5
5%
0%
5.5
5%
0%
6.5
100%
0%
Number
1000
375
375
750
30
2530
$150,400
DSE
1.8
1.2
0.8
00
0.0
2.0
2610
Number of
Animals
1000
1000
750
Hay
Cost ($/T)
$240
$160
$260
Number
970
366
366
750
29
1730
2480
Price/hd
$45.00
$30.00
$100.00
$55.00
$59.45
Number of times
Drench
Vacc.
0
1
0
1
0
0
0
2
0
1
0
2905
kg/
fed
animal
0.0 /ewe
0.0 /ewe
0.0 /weaner
Wool cut
kg/hd
6.00
5.00
5.00
2.00
9.00
6.25
Total
Greasy kg
5818
1828
1828
1500
263
9737
11237
Total
$8,685
$210
$11,300
$19,580
$39,775
Jet
1
0
0
0
0
1000
Total
cost ($)
$0
$0
$0
$0
Yield
(%)
63%
63%
63%
63%
63%
Total
Clean kg
3665
1152
1152
945
166
7080
Farm Gross Margin Guide 2013
SELF REPLACING MERINO FLOCK - PASTORAL ZONE
FLOCK STRUCTURE
Class of
Sheep
Ewes
Wethers
Rams
This table shows the number of merino sheep in each age group at mating
0.5 y.o.
375
375
1.5 y.o.
243
0
8
SENSITIVITY ANALYSIS
GROSS MARGIN/HA
Average
Sale
Price ($/hd)
$35
$40
$45
$50
$55
$60
$65
$70
$75
$80
$85
550
$15
$16
$17
$19
$20
$21
$22
$23
$25
$26
$27
2.5 y.o.
219
0
8
Age Group
3.5 y.o.
198
0
7
4.5 y.o.
179
0
7
Average Greasy Wool Price (c/Kg)
600
650
680
$17
$19
$20
$18
$20
$22
$19
$22
$23
$21
$23
$24
$22
$24
$25
$23
$25
$26
$24
$26
$28
$25
$28
$29
$27
$29
$30
$28
$30
$31
$29
$31
$32
5.5 y.o.
161
0
0
700
$21
$22
$24
$25
$26
$27
$28
$30
$31
$32
$33
6.5 y.o.
0
0
0
750
$23
$25
$26
$27
$28
$29
$31
$32
$33
$34
$35
65
Farm Gross Margin Guide 2013
MERINO WETHERS - PASTORAL ZONE (<250mm)
Assumptions:
Average Wether Fibre Diameter
Number of adult wethers
Total DSE's
Stocking rate (DSE/Ha)
22
1000
1200
0.14
Gross Margin per Ha
Gross Margin per DSE
Gross Margin/Wether
$3.4
$24
$29
INCOME
Wool (kg greasy)
Sales
GROSS INCOME
6720 Kg
177 animals
EXPENSES
Shearing
Shearing
960 sheep
Shed labour
4 days
Woolclasser
2 days
Superannuation (on ordinary wages only)
Work Cover (on wages+super+o'time etc)
Wool packs
40 packs
Shed sundries
960 sheep
Lice control
960 sheep
Crutching
1000 sheep
Animal Health
drench
0 sheep
vaccinate
1000 sheep
blowfly control
1000 sheep
Other Expenses
0 sheep
Stock Purchases
Purchases
217 wethers
Sale costs and other
Freight
livestock
393
wool
40 bales
Stock selling charges
commission/insurance
yard fees
177 head
transaction levy
177 head
SA sheep industry
177 head
Wool selling charges
brokerage/testing/insurance
Industry levy
Other Expenses
Hand Feeding
Insurance
55000 value
Water
1200 DSE's
fuel
1200 DSE's
Other Expenses
1200 DSE's
TOTAL VARIABLE COSTS
GROSS MARGIN
GROSS MARGIN/hectare
GROSS MARGIN/DSE
COMMENTS
[ave price
[ave price
@
@
@
@
@
@
@
@
@
680 c/kg ]
$65.00 per hd]
/100
/day
/day
wages
total
/pack
/head
/head
/100
$2,568
$802
$479
$356
$149
$460
$144
$797
$856
/head
/head
/head
/head
$0
$200
$1,200
$0
@
$45.00 /head
$9,765
@
@
$5.00 /head
$10.00 /bale
$1,965
$400
@
@
@
@
$267.47
$200.40
$239.66
9.3%
4.0%
$11.50
$0.15
$0.83
$85.59
$
$45,723
$11,482
$57,205
$0.19
$0.20
$1.20
$0.00
@
@
@
@
5.5%
$0.70
$0.20
$0.40
gross
/head
/head
/head
$632
$124
$35
$71
@
@
$0.22 /kg
2.0% gross
$1,478
$914
@
@
@
@
$2.00
$2.50
$0.70
$0.50
/$'000
/DSE
/DSE
/DSE
2013
YOUR
ESTIMATE
$0
$110
$3,000
$840
$600
$27,945
$29,261
$3.41
$24
The wool price is 90% the price for that micron. This takes into account the lower value of bellies, skirtings,locks
etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance feed
requirements of a 2 year old, 50 Kg liveweight Merino Wether with a body condition score of 2.
66
Farm Gross Margin Guide 2013
MERINO WETHERS - PASTORAL ZONE
PRODUCTION DATA
Stocking rate (DSE/Ha)
Total DSE's
SHEEP GRAZING AREA
Number of wethers
Flock death rate
Age wethers bought (yrs)
Age wethers culled
SALES
c.f.a wethers
TOTAL
PURCHASES
wethers
0.14
1200
8571
1000
4%
0.5
5.5
Number
177
177
Number
217
Culling Rate (% from each group)
Age group
Ewes
Wethers
0.5
0%
1.5
0%
2.5
0%
3.5
0%
4.5
0%
5.5
100%
Price/hd
$65.00
Price/hd
$45
STOCK VALUE AND D.S.E REQUIREMENT
Number
1000
1000
wethers
TOTAL
STOCK HEALTH REQUIREMENTS
Number of times
Number Drench
Vacc.
wethers
1000
0
1
TOTAL
1000
0
1000
SHEARING
Number
960
960
wethers
TOTAL
HAND FEEDING
kg fed
Oats/barley
Hay
Lupins
Total
Wool cut
kg/hd
7.00
/animal
0 kg/wether
0 kg/wether
0 kg/wether
Age
5.5
Age yrs
0.5
Value
$/head
$55
Blowfly
1
1000
Total
Greasy kg
6720
6720
$/tonne
240
160
260
Stock
No's
217
208
200
192
184
Total
$11,505
$11,505
Total
$9,749
Ave Live
Wt (Kgs)
55
DSE
rating
1.20
DSE
rating
1.2
1200
Yield
(%)
63%
Total
Clean kg
4234
4234
Total
$0
$0
$0
$0
MERINO WETHERS - PASTORAL ZONE
SENSITIVITY TABLE
GROSS MARGIN/DSE
Average
Sale
Price ($/hd)
$40
$45
$50
$55
$60
$65
$70
$75
$80
$85
$90
550
$14
$14
$15
$16
$17
$17
$18
$19
$19
$20
$21
Average Greasy Wool Price (c/Kg)
600
650
680
$16
$19
$21
$17
$20
$22
$18
$21
$22
$19
$21
$23
$19
$22
$24
$20
$23
$24
$21
$23
$25
$21
$24
$26
$22
$25
$26
$23
$25
$27
$23
$26
$28
700
$22
$23
$23
$24
$25
$25
$26
$27
$28
$28
$29
750
$25
$25
$26
$27
$28
$28
$29
$30
$30
$31
$32
67
Farm Gross Margin Guide 2013
CLEANSKIN SHEEP - CEREAL ZONE (250 - 450mm)
Assumptions
Number of breeding ewes
Total DSE's
Stocking rate (DSE/Ha)
1000
2540
6.0
INCOME
$
Sales
GROSS INCOME
1109 animals
[ ave price
$79.83 per hd]
$0
$88,490
$88,490
2013
YOUR
ESTIMATE
VARIABLE COSTS
$0
Marking
Lamb marking
1150
Ear tags
1150
Animal Health
drench
2775
vaccinate
3900
blowfly control
0
Lice control
0
Sale and Purchase Costs
Purchases
7
Freight
204
6
324
575
Stock selling charges
commission/insurance
yard fees
sheep tran levy
lamb trans levy
SA Sheep industry
1109
534
575
1109
Feed and other Costs
Hand Feeding
Insurance
$219,521
Water
2540
Fuel
2540
Other
2540
TOTAL VARIABLE COSTS
GROSS MARGIN TOTAL
GROSS MARGIN/hectare
GROSS MARGIN /DSE
COMMENTS
lambs
lambs
@
@
$1.00 /head
$0.35 /head
$1,150
$403
sheep
sheep
sheep
sheep
@
@
@
@
$0.19
$0.20
$1.20
$0.83
/head
/head
/head
/head
$520
$780
$0
$0
rams
ewes
rams
hoggets
lambs
@
@
@
@
@
$750.00
$3.00
$3.00
$3.00
$3.00
/head
/head
/head
/head
/head
$5,250
$612
$18
$972
$1,725
head
head
head
head
@
@
@
@
@
5 5%
5.5%
$0.70
$0.20
$1.50
$0.40
gross
/head
/head
/head
/head
$4,867
$4
867
$776
$107
$863
$443
$0
$0
value
DSE's
DSE's
DSE's
@
@
@
@
$2.00
$2.50
$0.70
$0.50
/$'000
/DSE
/DSE
/DSE
$10,455
$439
$6,350
$1,778
$1,270
$38,778
$49,712
$117
$20
Assumes flock is fully wool shedding and therefore no shearing, crutching or lice control costs are included.
Assumes only one lambing per year.
68
Farm Gross Margin Guide 2013
PRODUCTION DATA
Stocking rate (DSE/Ha)
Total DSE's
SHEEP GRAZING AREA
Number of ewes mated
Ram percentage
Age wethers sold (yrs)
Years rams kept
Flock death rate
Average weaning rate
CLEANSKIN SHEEP - CEREAL ZONE
6.0
2540
423
1000
2.5%
0.5
4
3%
115%
SALES
Culling Rate (% per each group)
Age group
Ewes
Wethers
0.5
0%
100%
1.5
58%
0%
2.5
5%
0%
3.5
5%
0%
4.5
5%
0%
5.5
5%
0%
6.5
100%
0%
Number
c.f.a ewes
c.f.a rams
ewe hoggets
wether lambs
TOTAL
204
6
324
575
1109
Price/hd
Total
$45.00
$30.00
$120.00
$70.00
$79.83
$9,180
$180
$38,880
$40,250
$88,490
STOCK HEALTH
Number
1000
575
0
1150
25
2750
$219,521
DSE
Number of
Animals
1000
1000
575
Fodder
Cost ($/T)
$240
$160
$260
ewes
ewe hoggets
wether weaners
lambs
rams
TOTAL
Total Value
FEEDING
Feed
Oats/barley
Hay
Lupins
Total
kg/
animal
24 /ewe
20 /ewe
10 /weaner
Blowfly
Lice
0
0
0
0
0
0
0
0
0
0
0
0
Total
cost ($)
$5,760
$3,200
$1,495
$10,455
CLEANSKIN SHEEP - CEREAL ZONE
FLOCK STRUCTURE
Class of
This table shows the number of sheep in each age group at mating
Age Group
Sheep
0.5 y.o.
Ewes
575
Wethers
0
Rams
SENSITIVITY ANALYSIS
GROSS MARGIN/DSE
Sale Price
Lambs
($/hd)
1.8
1.2
0.8
0.0
2.0
2540
Number of times
Drench
Vacc.
1
1
1
1
1
1
1
2
2
1
2775
3900
$50
$55
$60
$65
$70
$75
$80
$85
$90
$95
$100
1.5 y.o.
234
0
7
95
$10
$11
$11
$12
$13
$14
$15
$16
$17
$18
$18
2.5 y.o.
216
0
6
3.5 y.o.
199
0
6
4.5 y.o.
183
0
6
Average Weaning Percentage
105
115
$12
$15
$13
$16
$14
$17
$15
$19
$16
$20
$17
$21
$18
$22
$19
$23
$20
$24
$21
$25
$22
$26
125
$18
$19
$20
$22
$23
$24
$25
$26
$27
$29
$30
5.5 y.o.
169
0
0
135
$21
$22
$23
$25
$26
$27
$29
$30
$31
$32
$34
6.5 y.o.
0
0
0
145
$24
$25
$26
$28
$29
$31
$32
$33
$35
$36
$37
69
Farm Gross Margin Guide 2013
BEEF CATTLE - HIGH RAINFALL
Assumptions:
Breeding Cow
Calf Weaning
Herd Deaths
(Breeding young cattle for local trade, grass fattened)
15 DSE
100 Cow breeding herd
90%
13 cows replaced per year
3%
3% Bulls bought for
Cows c.f.a
Uses
Carry over calf
Weaned @
Heifers mated @
10
13
8
8
15
Stocking rate
Area required
Feeds
years old
heifers as replacements
DSE
months
months
$3,000
sold for
$900
after
3 years
40% carryover to heavier weights
6 months extra carry over
1891 Herd DSE
10 DSE/ha
189 hectares
35 kg/DSE hay equivalent supplement
Drench cows
Drench calves
2 x
1 x
2013
INCOME
YOUR
ESTIMATE
Stock sales
54
22
10
1
Culls
vealers @
yearlings
Cows @
bull@
280 kg liveweight@
420 kg liveweight@
550 kg liveweight@
$1.75 /kg L/W
$1.60 /kg L/W
$1.10 /kg L/W
GROSS INCOME
$26,460
$14,992
$5,800
$900
$48,152
VARIABLE COSTS
Bull Purchases
No. of bulls
Veterinary & Medicines
Drench - cows 2x calves 1x
Ear Tags NLIS
Lice Treatments
Vaccine (5 in 1)
Supplementary Feed
Hay
Grain
Blocks/ Mineral Mix
Sale costs and other
Insurance
Transport:
Transport:
Commission
1
290
90
0
180
Levies
TOTAL VARIABLE COSTS
@
@
@
@
$4.28
$4.90
$0.00
$1.20
/head
/tag
/dose
/dose
$1,240
$441
$0
$216
66 tonne
@
$160.00 /tonne
$10,560
@
@
$240.00 /tonne
$5.00 /head
$0
$500
@
@
@
@
$2.00 /$1000
$15.00 /head
$0.00 /tonne
5.5%
$238
$1,303
$0
$2,648
100
87 head
66 tonne
@
$5.00 /head
GROSS MARGIN TOTAL
GROSS MARGIN PER COW
GROSS MARGIN/DSE
GROSS MARGIN/hectare
COMMENTS
GM excludes cost of Superphosphate application which may or may not be an annual expense.
Livestock weight will vary between cattle breed, feed type and age
70
$3,000
0.00 t/head
$119,000
Lvstk
Hay
$3,000.00 total
$434
$20,581
$27,571
$276
$14.58
$145.84
Farm Gross Margin Guide 2013
BEEF CATTLE - HIGH RAINFALL
GROSS MARGIN SENSITIVITY
PER COW
$/kg Liveweight(yearlings/steers)
$1.50
$1.75
$2.00
$2.25
60%
$40
$75
$111
$147
$182
65%
$61
$101
$140
$180
$220
70%
$82
$126
$170
$214
$258
75%
$103
$151
$199
$248
$296
Weaning
80%
$124
$176
$229
$281
$334
%
85%
$145
$201
$258
$315
$371
90%
$166
$227
$287
$348
$409
95%
$187
$252
$317
$382
$447
100%
$208
$277
$346
PER Ha
$416
$485
Variable Costs
120
100
80
$/Cow
$1.25
60
40
$/kg Liveweight(yearlings/steers)
$1.25
$1.50
$1.75
$2.00
$2.25
60%
$21
$40
$59
$78
$97
65%
$32
$53
$74
$95
$117
70%
$43
$67
$90
$113
$137
75%
$54
$80
$105
$131
$157
Weaning
80%
$65
$93
$121
$149
$177
%
85%
$77
$107
$137
$167
$197
90%
$88
$120
$152
$184
$216
95%
$99
$133
$168
$202
$236
100%
$110
$147
$183
$220
$256
20
0
Cost/cow
71
Farm Gross Margin Guide 2013
BEEF CATTLE - CEREAL ZONE
Assumptions:
Breeding Cow
Calf Weaning
Herd Deaths
Cows c.f.a
Uses
Carry over calf
Weaned @
Heifers mated @
Stocking rate
Area required
Feeds
14.5
85%
3%
10
13
8
8
15
5.00
388
35
(Breeding young cattle for local trade, grass fattened)
DSE
100 Cow breeding herd
13 cows replaced per year
3% Bulls bought for
$3,000
years old
sold for
$900
heifers as replacements
after
3 years
DSE
50% carryover to heavier weights
months
6 months extra carry over
months
1941 Herd DSE
DSE/ha
Drench cows
2 x
hectares
Drench calves
1 x
kg/DSE hay equivalent supplement
2013
INCOME
YOUR
ESTIMATE
Stock sales
Culls
43
29
10
1
vealers @
yearlings
Cows @
bull@
270 kg liveweight @
400 kg liveweight @
550 kg liveweight @
$1.75 /kg L/W
$1.60 /kg L/W
$1.10 /kg L/W
GROSS INCOME
$45,095
VARIABLE COSTS
Bull Purchases
No. of bulls
Veterinary & Medicines
Drench - cows 2x calves 1x
E T
Ear
Tags
Lice Treatments
Vaccine (5 in 1)
Supplementary Feed
Hay
Grain
Blocks/ Mineral Mix
Sale costs and other
Insurance
Transport:
Lvstk
Transport:
Hay
Commission
Levies
TOTAL VARIABLE COSTS
GROSS MARGIN TOTAL
GROSS MARGIN PER COW
GROSS MARGIN/DSE
GROSS MARGIN/hectare
COMMENTS
72
$20,081
$18,314
$5,800
$900
1
@
285
85
0
170
@
@
@
@
100
@
@
@
68 tonne
0.00 t/head
$117,250
82 head
68 tonne
@
@
@
@
@
$3,000 total
$4.28
$4 90
$4.90
$0.00
$1.20
$3,000
/head
/t
/tag
/dose
/dose
$1,218
$417
$0
$204
$160.00 /tonne
$240.00 /tonne
$5.00 /head
$10,880
$0
$500
$2.00
$15.00
$0.00
5.5%
$5.00
/$1000
/km
/tonne
/head
$235
$1,226
$0
$2,480
$409
$20,568
$24,527
$245
$12.64
$63.18
Farm Gross Margin Guide 2013
BEEF CATTLE - CEREAL ZONE
GROSS MARGIN SENSITIVITY
PER COW
$/kg Liveweight(yearlings/steers)
$1.50
$1.75
$2.00
Variable Costs
$2.25
60%
$43
$79
$115
$151
$188
65%
$64
$104
$144
$185
$225
70%
$84
$129
$174
$218
$263
75%
$105
$154
$203
$252
$301
Weaning
80%
$126
$179
$232
$285
$338
%
85%
$147
$204
$262
$319
$376
90%
$168
$230
$291
$352
$414
95%
$189
$255
$320
$386
$451
100%
$210
$280
$350
PER Ha
$419
$489
120
100
80
$/Cow
$1.25
60
40
$/kg Liveweight(yearlings/steers)
$1.25
$1.50
$1.75
$2.00
60%
$11
$20
$30
$39
$2.25
$48
65%
$16
$27
$37
$48
$58
70%
$22
$33
$45
$56
$68
75%
$27
$40
$52
$65
$77
Weaning
80%
$33
$46
$60
$74
$87
%
85%
$38
$53
$67
$82
$97
90%
$43
$59
$75
$91
$107
95%
$49
$66
$83
$99
$116
100%
$54
$72
$90
$108
$126
20
0
Cost/cow
73
Farm Gross Margin Guide 2013
BEEF CATTLE - PASTORAL
Assumptions:
Breeding Cow
Calf Weaning
Herd Deaths
Cows c.f.a
Uses
Carry over calf
Weaned @
Heifers mated @
Stocking rate
Area required
Feeds
15
80%
3%
10
13
8
8
15
2.5
899
20
(Breeding young cattle for store trade)
DSE
years old
heifers as replacements
DSE
months
months
DSE/ha
hectares
kg/DSE hay equivalent supplement
100 Cow breeding herd
13 cows replaced per year
3% Bulls bought for
$3,000
sold for
$900
after
3 years
100% carryover to heavier weights
6 months extra carry over
2248 Herd DSE
Drench cows
0 x
Drench calves
0 x
2013
INCOME
YOUR
ESTIMATE
Stock sales
Culls
67 yearlings
10 Cows @
1 bull@
360 kg liveweight @
550 kg lwt @
$1.50 /kg
$1.00 /kg
GROSS INCOME
VARIABLE COSTS
Bull Depreciation
Bull purchase
Veterinary & Medicines
Drench
Ear Tags
Lice Treatments
Vaccine (5 in 1)
Supplementary Feed
Hay
Grain
Sale costs and other
Insurance
Transport:
Lvstk
Transport:
Hay
Commission
Levies
TOTAL VARIABLE COSTS
1
@
$3,000 total
0
80
196
160
@
@
@
@
$4.28
$4.90
$0.00
$1.20
45 tonne
0.00 t/head
$111,500
78 head
79 tonne
@
@
@
@
@
@
@
GROSS MARGIN TOTAL
GROSS MARGIN PER COW
GROSS MARGIN/DSE
GROSS MARGIN/hectare
COMMENTS
Feed costs include an allowance for drought fodder.
Livestock weight will vary between cattle breed, feed type and age.
74
$36,180
$5,500
$1,000
$42,680
$3,000
/head
/tag
/dose
/dose
$0
$392
$0
$192
$160.00 /tonne
$240.00 /tonne
$7,200
$0
$2.00
$15.00
$0.00
5.5%
$5.00
/$1000
/km
/tonne
/head
$223
$1,170
$0
$2,347
$390
$14,914
$27,766
$278
$12.35
$30.88
Farm Gross Margin Guide 2013
BEEF CATTLE - PASTORAL
GROSS MARGIN SENSITIVITY
PER COW
$/kg LWT yearlings/steers)
Variable Costs
$1.25
$1.50
$1.75
$2.00
60%
$85
$127
$170
$212
$254
65%
$103
$150
$197
$243
$290
70%
$121
$172
$224
$275
$326
80
75%
$139
$195
$251
$306
$362
Weaning
80%
$157
$217
$278
$338
$398
70
%
85%
$175
$240
$305
$369
$434
60
90%
$193
$262
$332
$401
$470
50
95%
$211
$285
$359
$432
$506
100%
$229
$307
$386
PER Ha
$464
$542
$/Cow
$1.00
40
30
$/kg LWT (yearlings/steers)
$2.00
20
$1.00
$1.25
$1.50
$1.75
60%
$9
$14
$19
$24
$28
10
65%
$11
$17
$22
$27
$32
70%
$13
$19
$25
$31
$36
0
75%
$15
$22
$28
$34
$40
Weaning
80%
$17
$24
$31
$38
$44
%
85%
$19
$27
$34
$41
$48
90%
$21
$29
$37
$45
$52
95%
$23
$32
$40
$48
$56
100%
$25
$34
$43
$52
$60
Cost/cow
75
Farm Gross Margin Guide 2013
FARM COSTS - 2013
Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Costs will vary
depending on situation. Users of this publication should ascertain the relevance of these costs to their particular situation and make adjustments to gross
margin budgets if required.
SHEEP
Lice Control
Extinosad
Drench
Ivomec
Vaccine
3 in 1
6 in 1
/litre
/20ml dose
/litre
/12.5ml dose
250ml
/1ml dose
250ml
/1ml dose
/litre
/24 ml dose
ea
Blowfly Control
Clik
Wool packs
nylon
Shearing
Sheep
rams
shed labour
wool classer
superannuation
Work Cover-Allow
shed sundries
$267.47
$534.94
$200.40
$239.66
9.25%
4.00%
$0.15
Crutching
sheep
rams
$85.59 /100
$171.18 /100
lamb marking
mulesing / materials
marking only
ear tags
Stock purchaces
purchase rams
purchase wethers
Stock selling
Sell wethers
freight sheep
freight lambs
freight bales
commission/insurance
yard fees
sheep transaction levy
lamb transaction levy
SA sheep industry levy
wool brokerage / testing
wool levy
BEEF
Drench (backline)
Genesis
7 in 1 vaccine
/100
/100
/day
day
wages
total
/head
$1.30 /head
$1.00 /head
$0.35 /head
$750.00 /head
$45.00 /head
$70.00
$3.00
$3.00
$8.00
5.5%
$0.70
$0.20
$1.50
$0.40
$0.22
2.0%
/head
/head
/head
/bale
$5.00 Pastoral
$5.00 Pastoral
$10.00 Pastoral
/head
/head
/head
/head
/kg
$171.00
$4.28
$150.00
$1.20
/litre
/25ml dose
/250 ml
2.5
Trace Element treatments
HGP implant
Vitamin injection
$3.00 /head
$1.75
$1.30
NLIS Breeder Tags (incl levy)
$4.90 each
freight cattle in
freight cattle out
Catle levy
FEED & OTHER COSTS
76
$41.50
$0.83
$15.00
$0.19
$50.00
$0.20
$60.00
$0.24
$50.00
$1.20
$11.50
water
fuel
other
hay
Feed Cereal grain
lupins
$12.00 /head
$15.00 /head
$5.00 /head
$2.50
$0.70
$0.50
$160.00
$240.00
$260.00
/DSE
/DSE
/DSE
/tonne
/tonne
/tonne
Farm Gross Margin Guide 2013
FARM COSTS - 2013
Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Users of this
publication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required.
CHEMICAL COSTS - HERBICIDES
S-metolachlor 960g/L (Dual®Gold)
Trifluralin 480g/L
Quizalofop (Targa®)
Metsulfuron methyl
Diclofop methyl 500g/L(Hoegrass®)
Brodal®Options
Balance ®
Chlorsulfuron 750g/kg (Glean)
Clopyralid 300g/L (Lontrel)
Lexone (Metribuzin 750 gm/kg)
Oxyfluorfen 240g/L
M.C.P.A. LVE
Verdict® 520
Reglone®
Sakura
Diuron 900 gm a.i. granules
Bromoxynil /MCPA
2,4-D Amine (625g/l)
Achieve® WG
Supercharge
Talstar
Tri-allate 500g/L
Dicamba 500g/L
Broadstrike®
Atrazine (Gesaprim)
Tigrex®
Triasulfuron 750g/kg (Logran)
Topik® EC
MCPA Amine (750g/L)
Select®
Paraquat
Glyphosate 540g/L
Sprayseed®
Simazine Granules 900g/kg
Terbyne 750
Boxer Gold
Affinity
Midas
Intervix
CHEMICAL COSTS - ADJUVANTS
Uptake (Oil)
BS-1000 (WETTER)
Surfactant cost (with Achieve) Per Ha
Oil Cost
Wetter Cost per Ha
CHEMICAL COSTS - INSECTICIDES
Dimethoate 400g/L
Omethoate 400g/L
Alpha-cypermethrin 16g/L
Lambda-cyhalothrin (Karate Zeon®)
Imidan
Maldison 500g/L
Chlorpyrifos 500g/L
$16.00
$6.00
$10.00
$0.08
$18.75
$43.00
$0.38
$0.12
$30.00
$0.03
$18.00
$9.00
$44.00
$20.00
$325.00
$11.70
$13.00
$5.00
$65.00
$7.25
$44.00
$10.00
$19.50
$0.72
$8.00
$17.60
$0.08
$80.00
$9.00
$14.00
$5.50
$5.00
$11.00
$7.60
$21.00
$13.75
$176.00
$6.70
$6.00
$4.08
$2.51
$0.45
$10.00
$29.00
$7.00
$165.00
/litre
/litre
/litre
/gram
/litre
/litre
/gram
/gram
/litre
/gram
/litre
/litre
/litre
/litre
/kg
/kg
/litre
/litre
/kg
/litre
/litre
/litre
/litre
/gram
/litre
/litre
/gm
/litre
/litre
/litre
/litre
/litre
/litre
/kg
/kg
/litre
/litre
/litre
/litre
/litre
/litre
Assume 75l/ha @ 0.75% surf.
Assume 75l/ha @0.5% oil
Assume 75l/ha @ 0.1% surf.
/litre
/litre
/litre
/litre
$8.50 /litre
$10.00 /litre
24mls/ha
Lorsban
77
Farm Gross Margin Guide 2013
FARM COSTS - 2013
Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Users of this
publication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required.
CHEMICAL COSTS - FUNGICIDES
Apron XL 350 ES
Mancozeb 750g/kg
Veteran C
Vitavax 200 FF
Baytan
Armour C
P-Pickel T
Carbendazim 500g/kg
Tebuconazole 430
Triadimefon 125g/L
Propiconazole 250g/L
Chlorothalonil 500g/L
Prosaro
Amistar
Opus
CHEMICAL COSTS - TRACE ELEMENTS
Zincsulphate
Coppersulphate
Mangasulphate
$350.00
$10.00
$25.00
$30.00
$30.00
$30.00
$41.00
$22.00
$12.00
$8.70
$13.50
$21.00
$67.00
$55.00
$30.00
/litre
/kg
/kg
/kg
/kg
/kg
/litre
/kg
/litre
/litre
/litre
/litre
/litre
/litre
/litre
$1.45 /litre
$3.60 /litre
$1.45 /litre
FUEL COSTS
Total price - Diesel (GST Exc)
Rebate
Net Price Diesel - $/litre
$1.30 /litre
$0.38 /litre
$0.92 /l bulk includes rebate
FERTILISER COSTS
MAP 10:22
DAP 18:20
Urea
Superphosphate
DAP/MAP + 2% Zn
DAP + Urea 24:16
DAP + Urea 28:13
DAP + Urea 32:10
$690
$690
$570
$350
$720
$680
$650
$640
/tonne
/tonne
/tonne
/tonne
/tonne
/tonne
/tonne
/tonne
GRAIN GRADING & PICKLING
Grading
Cost /Tonne
cereals
$22.00
other crops
$24.00
Pickling
cereals
$1.30
other crops
$1.40
Cleaning
wheat
$24.00
barley
$25.00
peas
$30.00
Smuticide - Cereals
Veteran C
$25.00
Note- Assumes minimum standard of application for smuts and bunts. More expensive options available
which may give some control of foliar diseases. Seek advice
78
Inoculant
Legumes
$18.00
Seed Treatment
P-Pickle T
$82.00 /tonne
Farm Gross Margin Guide 2013
FARM COSTS- 2013
Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Users of this
publication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required.
STOCK RETURNS
WOOL- High Rainfall 28 mic 70%Yield
- High Rainfall 19.5 mic 70% Yld
- Med Rainfall 21 mic 68% Yield
- Low Rainfall 22 mic 63% Yield
- Crossbred Ram 32 mic
2011 Average (Clean)
656
1466
1311
1250
FREIGHT COSTS (as included in Gross Margins)
CANOLA
FERTILIZER
LENTILS
OTHER LEGUME GRAINS
CEREAL GRAINS
TRITICALE
HAY-OATEN
2012 Average
(Clean)
607
1263
1217
1190
Jan, 2013
(Clean)
619
1307
1232
1204
Budget Base
(Clean)
610
1300
1230
1200
Budget Base
(Greasy)
427
910
836
756
250
Cost /Tonne
$25.00
$20.00
$30.00
$25.00
$20.00
$25.00
$28.00
CONTRACT RATES (indicative only- will be highly variable depending on situation)
aerial spraying
$14.00 /hectare
Contract harvesting cereals, low rainfall
$40.00 /hectare
Contract harvesting cereals, high rainfall
$60.00 /hectare
Contract harvesting pulse/canola, low rainfall
$68.00 /hectare
Contract harvesting pulse/canola, high rainfall
$90.00 /hectare
Windrowing
$35.00 /hectare
Contract spreading
$32.00 /tonne
Contract spreading
$12.00 /tonne
Haymaking
Contract mowing-up to
$45.00 /hectare
Contract raking
$25.00 /hectare
Contract baling (750kg square bales)
$20.00 /bale
Super conditioner (oaten hay)
$25-35.00 /hectare
includes cartage
excludes cartage
FARM COSTS - 2013
Note: The below costs have been collected from a umber of regional sources and should be seen as an approximate guide only. Users of this publication
should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required.
INSURANCE COSTS
Livestock
Sheep and cattle
Crops
Cereals
Chickpeas, lupins, safflower
Faba beans, vetch, lentils, canola
Field Peas
$2.00 /$1,000 insured
$8.50
$10.00
$12.00
$16.00
/$1,000 insured
/$1,000 insured
/$1,000 insured
/$1,000 insured
79
Farm Gross Margin Guide 2013
INCOME
Average yield
(estimated silo return)
Gross Margin Pro-Forma
t/ha
@
$
/tonne
TOTAL INCOME
EXPENSES
Pool Charges
& Interest
Seed
Seed
treatment
Fertiliser
t/ha
@
$
/tonne
kg/ha
kg/ha
@
@
$
$
/tonne
/tonne
kg/ha
kg/ha
kg/ha
@
@
@
$
$
$
/tonne
/tonne
/tonne
kg/ha
kg/ha
@
@
$
$
/tonne
/tonne
kg/ha
kg/ha
@
@
$
$
/tonne
/tonne
kg/ha
kg/ha
@
@
$
$
/tonne
/tonne
Chemicals
Herbicides
Insecticides
Fungicides
Machinery
Fuel & Oil
Repairs &
Maintenance
Freight
Grain
Fertiliser
Contract
Work
Insurance
Other
80
TOTAL EXPENSES
GROSS MARGIN /HECTARE
$/ha
RURALSOLUTIONS SA
Delivering Outstanding Solutions
Agribusiness
Environment
1300 364 322
www.ruralsolutions.sa.gov.au
GRAIN INDUSTRY
R E S E A R C H U P D AT E
TARGETED
RESEARCH
The SA Grains Industry Trust will invest $2.2 million in new projects supporting
research crucial to the advancement of the SA grain industry with funds coming
from the 30c a tonne contribution on all grain delivered by SA grain growers.
IN 2012 – 2013 SAGIT IS SUPPORTING 30
PROJECTS INCLUDING:
CEREALS
• Rhizoctonia control with
fungicides – SARDI
• Net Blotch in barley – YPAS
• Improving the heat stress
tolerance of wheat – Australian
Grain Technologies
• Barley germplasm development
– SARDI
• Double haploids in wheat and
oats – SARDI
• Matching seed source to target
environments – SARDI
• Strategies to reduce white grain
on the EP – SARDI
• Improving drought stress
tolerance of barley – University of
Adelaide
• Matching seed nutrient content to
improve yield and vigour in wheat
– University of Adelaide
• Evaluating the agronomics and
financial benefits of P efficient
cereal varieties – University of
Adelaide
• Cost effective selection of high
beta-glucan oats using molecular
markers – SARDI
• Enhancing the grain yield and
quality of oats under water
deficits-SARDI
• A new approach to grass control
for Durum wheat – Durum
Growers Ass.
• Demonstrating best management
for Rhizoctonia on upper EP and
Mallee – SARDI
PULSES, OILSEEDS AND
PASTURES
• Mould on Faba bean seed
affecting seed quality and
meeting export standards –
SARDI
• Resistance monitoring of
ascochyta blight in lentils – SARDI
• Assessment of new vetch
varieties – SARDI
• Disease workshops in pulses –
SARDI
• Multi stand medics – SARDI
OTHER PRIORITIES
• Value of feed grains - Productive
Nutrition
• Gross margin guide – Rural
Solutions
• Economic returns using precision
agriculture – Precision Cropping
Technologies
• Predicting P fertilizer rates –
University of Adelaide
• Managing Brome grass – Rural
Solutions
• SA crop variety sowing guide –
Rural Solutions
• Protocol for on farm trails –
SARDI
• Practical development of weed
patch management for adoption
in grains – SARDI
• UHP injection of fungicides –
SANTFA
• Testing innovative snail
management techniques on the
YP – YPAS
• Farmer groups to focus on
innovative practices in the Mallee
– MSF
South Australian Grain Industry Trust
TRUSTEES OF THE
SA GRAIN INDUSTRY TRUST
Jim Heaslip (Appila),
Linda Eldredge (Clare)
Michael Treloar (Cummins)
The trustees are assisted in
project allocation decisions by
SAFF nominees Peter McCormack
(Turretfield) and Tanya Morgan
(Jabuk), and Scientific Adviser Dr
Allan Mayfield.
Project Management:
Royal Agricultural and Horticultural
Society of SA
Malcolm Buckby
(phone 8210 5230)
www.sagit.com.au