Farm Gross Margin and Enterprise Planning Guide - Grains

Farm Gross Margin and Enterprise Planning Guide

2013

A gross margin template for crop and livestock enterprises

RURALSOLUTIONSSA

FOR FURTHER INFORMATION ON GRDC SUPPORTED PROFIT AND RISK MANAGEMENT PUBLICATIONS AND ACTIVITIES VISIT

www.grdc.com.au/farmbusinessmanagement

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).

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Throughout 2013, in the Southern Region the GRDC is working on a number of fronts to increase grower and

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FARM GROSS MARGIN AND ENTERPRISE PLANNING GUIDE

2013

“A gross margin template for crop and livestock enterprises”

• Comparethegrossmarginprofitabilityof enterprises,paddocksandrotations • Makethebestdecisions • Comparethesensitivityofprofitofenterprises toachangeinproduction,costsandprice

Sponsored by SAGIT and GRDC

ISBN 978-1-921779-49-7

PublishedFebruary2013

DISCLAIMERThisguidehasbeenpreparedingoodfaithonthebasisoftheinformationavailableatthedateofpublicationwithoutanyindependentverification.TheSouthAustralianGrainIndustryTrust,RuralSolutionsSAandtheGrainsResearchandDevelopmentCorporationdonotguaranteeorwarranttheaccuracy,reliability,completenessorcurrencyoftheinformationinthisguidenoritsusefulnessinachievinganypurpose. Readersareresponsibleforassessingtherelevanceandaccuracyofthecontentofthisguide.TheSouthAustralianGrainIndustryTrust,RuralSolutionsSAandtheGrainsResearchandDevelopmentCorporationwillnotbeliableforanyloss,damage,costorexpenseincurredorarisingbyreasonofanypersonusingorrelyingontheinformationinthisFarmGrossMarginGuide.

Produced by Rural Solutions SA

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 HeaslipChairman SAGIT

David ShannonChairman, GRDC Southern Panel

Daniel CasementRural Solutions SA

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 Sustainable agriculture and farming systems

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Industry and policy development

Market and value chain development

Agribusiness

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1300 364 322www.ruralsolutions.sa.gov.au

CONTENTSIntroduction......................................................................................................................2

UsingGrossMarginsforFarmPlanning.........................................................................4

StrategiesforMaximisingReturnsfromIndividualEnterprises.......................................5

CalculatingEnterpriseProfitabilityandCostofProduction.............................................8

2013GrossMarginEstimates.......................................................................................12

GrossMargins...............................................................................................................15

APWWheat.......................................................................................................16DurumWheat.....................................................................................................18MaltingBarley....................................................................................................20FeedBarley.......................................................................................................22MillingOats........................................................................................................24Triticale..............................................................................................................26Vetch..................................................................................................................28Lupins................................................................................................................30RedLentils.........................................................................................................32FieldPeas..........................................................................................................34FabaBeans.......................................................................................................36Chickpeas..........................................................................................................38Canola...............................................................................................................40ExportOatenHay..............................................................................................42PrimeLambs–HighRainfall.............................................................................44SelfReplacingMerinoFlock–HighRainfall......................................................47MerinoWethers–HighRainfall.........................................................................50PrimeLambs–CerealZone..............................................................................52SelfReplacingMerinoFlock–CerealZone......................................................55MerinoWethers–CerealZone..........................................................................58PrimeLambs–PastoralZone...........................................................................60SelfReplacingMerinoFlock–PastoralZone....................................................63MerinoWethers–PastoralZone.......................................................................66CleanskinSheep–CerealZone........................................................................68BeefCattle–HighRainfall.................................................................................70BeefCattle–CerealZone.................................................................................72BeefCattle–PastoralZone...............................................................................74

AppendicesFarmCosts2013……………………………………………………………………..76BlankProforma……………………...............................................…………….…80

2

Farm Gross Margin Guide 2013

INTRODUCTION

ThisbookprovidesaformatandgeneralestimatesforcalculatingcropandlivestockgrossmarginprofitandenterpriseprofitabilityforbroadacreenterprisesacrossSouthernAustralia.Itprovidesabasetoeasilycalculategrossmarginsandtouseforcashflowplanning.

Ablankformatisincludedaswellasablankcolumnoneverypage,alongwithafulllistofproductandinputcostsasaguideforthosewishingtoconstructtheirowngrossmargins.

What are Gross MarginsThegrossmarginforafarmenterpriseisonemeasureofprofitabilitythatisausefultoolforcashflowplanninganddeterminingtherelativeprofitabilityoffarmenterprises.Theycanalsobeusedtoassistinassessingtheopportunitytodevelopnewfarmenterprises.

Grossmarginprofitisthedifferencebetweentheannualgrossincomeforthatenterpriseandthevariablecostsdirectlyassociatedwiththeenterprise.

Inconstructinggrossmargins,fixed(overhead)costsareignored,asitisconsideredthattheywillbeincurredregardlessoftheleveloftheenterpriseundertaken.

Thegrossmarginofdifferententerprisesshouldnotbecomparediftheyhavedifferentoverheadcosts.

Thebasegrossmarginsincludedinthisbookshouldbeadjustedasrequiredforcommodityprices,yield,inputcostsandinputitems.Theseitemsvaryconsiderablybetweendifferentlocationsanddifferentfarmbusinesses.

Treatment of machinery - Itisassumedthatmostmachineryitems(tractors,seeders,sprayers,harvestersetc.)areownedbythefarmbusiness.Ineachgrossmargininthisguide,theoperatingcosts(fuelandrepairs)havebeenincludedbasedonthenumberofmachinerypassesspecified.No allowance is included in the gross margin for machinery ownership costs such as depreciation or opportunity cost of capital.Whencalculatingenterpriseprofitability,theseownershipcostsneedtobeincluded.Analternativeistoincludeallmachinerycostsatfullcontractrate.

• 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

3


Limitations of Gross marginsThegrossmarginspreparedwithinthispublicationhavebeendesignedtorepresent‘averagecasescenarios’withintherespectiverainfallzonesofSouthernAustralia.Theyshouldbetreatedstrictlyasabaseguideonlyandadaptedbyusersfortheirparticularsituations.

Grossmarginsarebestusedtocompareenterprisesthatmakeuseofthesameresourcesontheproperty.Theycannotbeusedwherevaryingcapitalinputisneededforanenterprise.Croppingandlivestockgrossmarginscanonlybecomparedifallcapitalresourcesarealreadyontheproperty.

Estimatesofinputsandproductioncanvaryfromwhatactuallyoccurs.Althoughacropmighthavethehighestgrossmargin,itmightbethemostsensitivetovariation.Commodityprices,seasonalconditions,pestsanddiseasecansignificantlyaffecttheeventualgrossmargin.Riskcanbeassessedbycomparinggrossmarginscalculatedwithvaryingvaluesforaninput.

Sensitivityanalysistablesareincludedinthebooktohelpdeterminetheimpactonthegrossmarginofsignificantchangesinyieldandprice.

Agronomicinformationincludingchemicalratesareprovidedasaguideonlyandexactagronomicrecommendationswillvarywithlocation,soiltypeandanumberofotherfactors.

Grossmarginshavebeenbroadlydelineatedintoproductionzonesbasedonrainfall.Averageannualrainfallzoneshavebeenclassifiedas‘Low Rainfall’(<350mm),‘Medium Rainfall’(350–400mm)and‘High Rainfall’(>400mm).

KEY POINT

Makeyourownadjustmentstothegrossmarginsinthisbooktoadapt

toyourown

4


USING GROSS MARGINS FOR FARM PLANNINGGrossmarginsarejustonecomponentofawholerangeoffactorswhichgointoenterpriseselectionforpaddocksandzonesonafarmingproperty.Someoftheseotherfactorsinclude:

• Stageofrotation-weed,pests,nutritionanddiseaselevels

• Suitabilityofproposedlandusetolandclass-aretherephysicalrestrictionswhichlimitenterpriseselection?

• Availabilityofsuitableplant,equipment,labourand/orinfrastructuretocarry-outtheenterprise.

• Risk-Whatisthesensitivityoftheenterprisetoadversecircumstances(e.g.pooryieldsorprices)andcanthefarmbusinessaffordtocarrythisrisk?

• Integrationoflivestockinamixedcroppingsituationandtheneedforappropriatepasturesuppliesforgrazinganimals

GrossMarginsontheirowndonotmakethedecisiononenterpriseselectionacrosstheproperty.Eachactivityundertakenonafarmingpropertywillhaveanimpactonotheractivities:

• Somemaybecomplimentarysuchascroppingenterpriseswhichprovideafeedbasetolivestockthroughcropresidues

• Cropsplantedinoneyearwillhavearotationaleffectonsubsequentcrops(bothpositive(egcerealsonlegumes)andnegative(egcanolaoncanola)

Tousegrossmarginsforplanningactivitymixesacrossthefarminvolvesanumberofsteps

1. SelecttheactivitywiththehighestGrossMarginandexpanditsuseuntilacriticalresourcebecomeslimiting-thiswillusuallybealandareaconstraintbutmayalsobeplantandequipment,capitalneeds,rotationalconsiderationsortheneedtospreadrisk

2. IntroduceotheractivitiesinorderofdecreasingGrossMarginuntilalllimitingresourcesarefullyutilised

CALCULATING YOUR OWN GROSS MARGINSRatesandtypesoffertiliserandweedcontroltreatmentswillobviouslyvaryfordifferentsituations.Rememberthatthesecalculationsarenotmeanttobeanexactscience-roughly right is better than precisely wrong! Useyourownestimateswhenthevaluesvarysignificantlyfromthoseincludedintheexample.

Calculating the break even yield needed to cover variable costs will give some indication of the riskiness or exposure of the particular enterprise. Remember,ofcourse,thattherearemanyothercosts(inadditiontothevariablecosts)whichneedtobecoveredbeforeaprofitismade-refertothediscussiononcalculatingenterpriseprofitabilityandCostofProductionforfurtherinformation.Referencetothesensitivitytableswillprovidefurtherinformationonhowthereturnsfromtheenterpriseareexpectedtorespondtoarangeofpricesandyields.

5


STRATEGIES FOR MAXIMISING RETURNS FROM INDIVIDUAL ENTERPRISES

ThisGrossMarginsguideaimstocoverallbroadacrecroppingandgrazingareasinSouthAustralia.Circumstancesobviouslyvarysignificantlyacrossdifferentregions.However,therearesomerulesofthumbandotherresourceswhichcanprovideguidanceondecisionmakingtoaidinmaximisingreturnsfromindividualenterprises.

Storage of Out of Season Soil Water

ProvidestheopportunitytosignificantlyimproveWaterUseEfficiencyandhencecropperformance.Thekeytoeffectivestorageofsoilmoistureoverthesummerperiodistogetthesoilwaterdeepinthesoilprofile,belowthezonesubjecttoevaporationandthenretainsoilmoisturethroughtoseedingbycontrolofsummerweeds.

Lighter Mallee type soils

• Rainfalleventsabove40mminDecember/Januaryshouldresultinsomestoredmoisturewithsummerweedcontrol

• Lessthan40mmrainfalleventsmaystillwarrantsummerweedcontrolforeaseofseedingoperationsandnutrientretention(mainlyN).

• Strongcasetoapplyzerotolerancesummerweedcontrolpolicyonlightsoilswithnosub-soillimitations

Heavier soils

• Mayrequirelargerrainfallevents(upto100mm)inDecember/Januarytostoresoilmoistureifsoilsarealreadyverydry

• SmallerrainfalleventsfromFebruaryonwardswillwarrantcontrolofgerminatedweeds

• ControlofsummerweedsearlierthanFebruarymayalsobedependantonotherconsiderationse.g.improvedeaseofsowing,lowcostofcontrol,nutrientretention

Maximising Time of Sowing Benefits

Earlyseedinggenerallyprovidesthemostreliableyieldoutcome,particularlyinlowrainfallsituations.However,frostproneareashavespecialconsiderationswhichneedtobetakenintoaccount.

SowingOpportunitywithEarlyBreakFrost Risk Start SowingLow AftermidAprilMedium After25thAprilHigh AfterearlyMay

• Sowattheoptimumtime,eveninhighfrostriskareas.Useappropriatevarietiestomanagefloweringtime.

• Theyieldlossfrommoistureandtemperaturestressduringspringwillusuallybefargreaterthanthedamagecausedbyfrost.

• Themostsevereanddamagingfrostsarethoseassociatedwithdryconditionsinmidtolatespring(blackfrosts),whichcanbedevastatingeventocropsthathavecompletedflowering.

6


Reducing the risk of cereal break crops (particularly lower rainfall districts)

Theuseofgrainlegumesandcanolaasbreakcropsforcerealsproviderotationaladvantagesforsubsequentcerealcrops.However,particularlyinlowrainfallareas,thesecropsareregardedasinherentlymoreriskybothfinanciallyandenvironmentally.Somerulesofthumbcanbeusedtoreducethisrisk:

1. Field Peas and other grain legumes-Sowbefore20thMayinpaddockswithmorethan30mmPlantAvailableWater(PAW)

2. Canola

• Lowrainfallareassowbeforethe10thMayinsoilswithmorethan35mmofPAW• Mediumrainfallareassowbefore20thMayinsoilswithmorethan35mmPAW• ResearchinWAshowsthatcanolasownintoverywarmsoils(egveryearlyApril)

canshowhighseedmortalityrates• Sowcanolawhenthepriceismorethantwicethepriceofwheat.

Ensuring Efficient Fertiliser Practices

Aimtomaintainsoilnutrientstatusatappropriatelevelstomaximisesustainableandprofitableproduction

Phosphorous Replacement LevelsCrop Removal Removalpluslosses#Cerealgrain 3kg/t 4kg/tPulses 4kg/t 5kg/tCanola 7kg/t 8kg/tCerealhay 2kg/t 2.5kg/t

# higher rates may be required on calcareous / ironstone soils or those with moderate to low available P.

ReducePapplicationonsoilswithsubsoilconstrainswhen:

• Moderatetolowstoredsoilmoisture

• Andcropsownmorethan3weeksaftertheoptimumsowingdate.

AnewDGTphosphorustest(fromDiffusiveGradientsinThinfilms)hasbeendevelopedbyDrSeanMasonofAdelaideUniversityandisnowcommerciallyavailable. Detailshttp://www.apal.com.au/NEW_DGT_Phosphorus_Test.aspx

N Fertiliser

Widerangeofsoiltypes,rotationalhistoriesandclimaticconditionsmeansthatNitrogenrequirementsofcropswillvaryconsiderably.AssessopeningNsupply(e.g.byusingdeepsoilsampling)andthenmonitoryieldandNrequirementsthroughmodelssuchasYield Prophet® (www.yieldprophet.com.au/) ortheCSIROdevelopedYield and N Calculator. (www.clw.csiro.au/products/ncalc/index.html)

7


Assessing the potential impact of Soil Borne Pathogens

LevelsofsomesoilbornepathogenscanbeassessedusingthePreDictaBserviceprovidedbySARDI. PreDictaB(B=broadacre)isaDNAbasedsoiltestingservicetoidentifywhichsoilbornepathogensposeasignificantrisktobroadacrecropspriortoseeding.

IthasbeendevelopedforcroppingregionsinsouthernAustraliaandincludestestsfor:

• Cerealcystnematode• Take-all(Gaeumannomyces graminis var tritici (Ggt)andG. graminis var avenae (Gga))• Rhizoctoniabarepatch(Rhizoctonia solani AG8)• Crownrot(Fusarium pseudograminearumandF. culmorum)• Rootlesionnematode(Pratylenchus neglectusandP. thornei)• Stemnematode(Ditylenchus dipsaci)• Blackspotofpeas(Mycosphaerella pinodes, Phoma medicaginis var pinodellaand

Phoma koolunga)

GrainproducerscanaccessPreDictaBviaagronomistsaccreditedbySARDItointerprettheresultsandprovideadviceonmanagementoptionstoreducetheriskofyieldloss.

PreDictaBsamplesareprocessedweeklyfromFebruarytomidMay(priortocropsbeingsown)toassistwithplanningthecroppingprogram.

PreDictaBisnotintendedforin-cropdiagnosis.Thisisbestachievedbysendingsamplesofaffectedplantstoyourlocalplantpathologylaboratory.

For information on PreDicta B contact: [email protected] Ph0883039375

Identifying the potential for Blackspot infection in Peas

InadditiontothePreDictaBsoiltest,fieldpeagrowersinSAcanutilisethe“BlackspotManager”toidentifythebestsowingtimetolessentheriskofablackspotoutbreakbyaccessingasimplechartonline.ThemodelforecaststemporalpatternofblackspotsporematurityandreleasefrominfectedfieldpeastubbleatkeylocationsthroughoutSA.AccessisviatheWADepartmentofAgricultureandFoodwebsite-followthelinkstoCrop Disease Forecast

CropWatchCropWatchisaFREEelectronicnewsletterserviceprovidedbySARDIanddistributedthroughJon Lamb Communications andreportsoncropdiseasesthroughoutSA.

PestFactsPestFactsisaFREEelectronicnewsletterservice,producedbySARDI,designedtokeepgrowersandadvisersinformedaboutinvertebratepest-relatedissuesandsolutionsastheyemergeduringthegrowingseason.PestFactsissueswarnings(orreminders)forarangeofinvertebratepestsofallbroad-acrecropsincludingpulses,oilseeds,cerealsandfoddercrops.

http://www.sardi.sa.gov.au/pestsdiseases/publications/pestfacts

8


Calculating Enterprise Profitability and Cost of ProductionCalculationofGrossMarginsonlyincludesthevariablecostsassociatedwiththeparticularenterprise.Othercostsneedtobeallowedforincalculatingtheoverallenterpriseprofitability.Theseincludedepreciation,overheadorfixedbusinesscosts,interestandlivingorpersonaldrawings.

TheReadyReckonerTablesonthenexttwopagesprovideaquickmeansofcalculatingyourannualoverheadcostperhectare.Alternatively,calculateyourownbycompletingthe“YourEstimates”column.

Example Your EnterprisesAPWWheat-MediumRainfall

Gross Income($/Ha) (From Gross Margin) 625

VariableCosts(Gross Margin)Depreciation(Ready Reckoner)

32467

OverheadCosts(Ready Reckoner) 33Interest(Ready Reckoner) 33Drawings(Ready Reckoner) 40

Total Enterprise Expenses ($/Ha) 497

ExpectedYield(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

Note 1.FixedcostscanbeallocatedonotherthanaperHectarebasisifmoreappropriateegsubstantiallydifferentlandclassesmayprefercoststobeallocateddependingongrossincomebeingderivedfromvariousenterprises.

Note 2.Whilethisformatworkswellincalculatingprofitabilityforcroppingenterprises,careneedstobetakenwhenapplyingtograzingenterprises.TheGrossMarginsforstockincludedinthisbookletdo not includeanyallowanceforpastureestablishmentormaintenance(egseed,fertiliser,insectandweedcontrol).Anycalculationofprofitabilityforgrazingenterprisesneedtotakethesecostsintoaccount.

Note 3. CostofProductioncalculatedabovedoesnotincludeanyformofreturnonyourinvestmentinland,plantandequipment.Enterpriseprofitabilityneedstocoverthisreturn.Thiscouldbeuptoafurther,say$50/tonne,requiredforfullprofitability.

9


Ready Reckoner TablesDepreciation Your

EstimateCroppingMachineryValue($)250,000 500,000 750,000 1,000,000 1,250,000 1,500,000

AnnualDeprecRate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%AnnualDepreciation($) 25000 50000 75000 100000 125000 150000

YourCroppedAreaCroppedArea Annual$/HaCostforDepreciation

500 50 100 1501000 25 50 75 100 125 1501500 17 33 50 67 83 1002000 13 25 38 50 63 752500 10 20 30 40 50 603000 17 25 33 42 503500 21 29 36 434000 25 31 384500 22 28 335000 25 30

Overhead (Fixed) Costs YourEstimate

AnnualOverheadCosts($) 25,000 50,000 75,000 100,000 150,000 200,000YourFarmArea

TotalFarmArea Annual$/HaOverheadCosts1000 25 50 75 100 150 2002000 13 25 38 50 75 1003000 8 17 25 33 50 674000 6 13 19 25 38 505000 5 10 15 20 30 406000 8 13 17 25 337000 7 11 14 21 298000 9 13 19 259000 8 11 17 2210000 8 10 15 20

OverheadCostsmayincludethefollowingitemsYour

EstimateAccountancyFeesBankFeesandChargesElectricity(non-enterpriserelated)ConsultancyandSubscriptionsGeneralInsurancesTelephone,PostageandInternetMotorVehicleexpenses(non-enterpriserelated)RatesandTaxesLandLeasingExpensesPermanentLabourOther……Annual Overhead Costs TOTAL Transfertotheabovetable

10


Ready Reckoner TablesInterest (Debt Servicing) Costs- include any machinery leasing costs Your

EstimateAnnualInterestCosts($) 25,000 50,000 75,000 100,000 150,000 200,000

YourFarmAreaTotalFarmArea Annual$/HaInterestCosts

1000 25 50 75 100 150 2002000 13 25 38 50 75 1003000 8 17 25 33 50 674000 6 13 19 25 38 505000 5 10 15 20 30 406000 4 8 13 17 25 337000 4 7 11 14 21 298000 3 6 9 13 19 259000 3 6 8 11 17 2210000 3 5 8 10 15 20

Living (Personal Drawings) Expenses YourEstimate

AnnualDrawings($) 40,000 60,000 80,000 100,000 120,000 140,000YourFarmArea

TotalFarmArea Annual$/HaDrawings1000 40 60 80 100 120 1402000 20 30 40 50 60 703000 13 20 27 33 40 474000 10 15 20 25 30 355000 8 12 16 20 24 286000 7 10 13 17 20 237000 6 9 11 14 17 208000 5 8 10 13 15 189000 4 7 9 11 13 1610000 4 6 8 10 12 14

Personaldrawingsincludealllivingexpenses,annualschoolfees,personalincometax,nonbusinessrelatedmotorvehicleexpenditure,holidays,superannuation,personallife

insurancesandanyotherexpensesofapersonalnature

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12


2013 GROSS MARGIN ESTIMATES

COMMODITY PRICES HISTORICAL DATA

Thetablesbelowsummarisetheanticipatedgrossmarginsforallcropsandlivestockfor2013.

Historicalcommoditypricedataandtrendscanbeusedasaguideinassessingaveragereturnsovertimeandalsothevariabilityofthosereturnsforanygivencommodity.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.

CROPPINGCommodity $/ha Low Medium High

APWWheat 218 301 454Durum 174 295 497MaltBarley 199 315 452FeedBarley 179 245 378MillingOats 44 167 289Triticale 105 182 299GrainVetch 107 255 377Lupins 52 157 245Lentils 144 318 553FieldPeas 59 134 340FabaBeans 45 154 458Chickpeas(Kabuli) 125 387 691Canola 121 325 538OatenHay 133 263 429

LIVESTOCK

Enterprise $/dsePastoral Cereal High

PrimeLambs 17 31 24Merinobreeders 26 32 32Merinowethers 24 31 32Cleanskin 20BeefCattle 12 13 15

Commodity Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 5 yr Average

2013 Estimate

APWWheat($/t) 280 205 310 214 280 258 250 Durum($/t) 450 250 310 280 305 319 280 MaltBarley($/t) 270 180 270 220 260 240 240 FeedBarley($/t) 175 135 200 200 240 190 200 MillingOats($/t) 170 150 150 180 215 173 185 FeedOats($/t) 150 130 130 170 205 157 175 Triticale($/t) 210 150 200 170 220 190 210 GrainVetch($/t) 700 500 280 280 500 452 400 Lupins($/t) 320 250 270 155 260 251 250 Lentils($/t) 1000 920 680 410 480 698 500 FieldPeas($/t) 350 255 265 300 330 300 270 FabaBeans($/t) 340 260 320 370 470 352 320 Chickpeas6-8mmKabuli($/t) 600 500 600 500 575 555 550 Canola($/t) 530 405 600 500 540 515 470 OatenHay($/t) 180 125 125 140 160 146 150

13


Comparative returns between farm enterprises – High Rainfall

Comparative returns between farm enterprises – Low Rainfall

$0

$100

$200

$300

$400

$500

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GM

$/h

aCropping Gross Margin per Hectare

High Rainfall

$0

$50

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GM

$/h

a

Cropping Gross Margin per Hectare Low Rainfall

$0

$50

$100

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$300

$350

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GM

$/h

a

Cropping Gross Margin per Hectare Medium Rainfall

$0

$5

$10

$15

$20

$25

$30

$35

GM

$/d

se

Livestock Gross Margin per dse High Rainfall

$0

$5

$10

$15

$20

$25

$30

$35

GM

$/d

seLivestock Gross Margin per dse

Cereal Zone

$0

$5

$10

$15

$20

$25

$30

GM

$/d

se

Livestock Gross Margin per dse Pastoral Zone

Comparative returns between farm enterprises – Medium Rainfall

14


COMMENTARY ON 2013 GROSS MARGINS Mostcroppinggrossmarginsestimatesin2013arehigherthanthesameestimatesmadepriortothe2012croppingseason.

Themainreasonforthisisthegeneralriseingrainpricingoverthepast12months.Whetherthesehigherpriceswillstillbeavailablewhenthe2013cropsareharvestedisnotknownatthisstage.Thereisadegreeofexpectationinthemarketthatabignorthernhemispherecropin2013couldresultinsignificantdownwardspressureonAustraliangrainpricesleadingintothe2013harvest.AdegreeofthissentimenthasbeenincludedinthepricingusedtocompletethisGrossMarginsanalysisbutitisemphasisedthatfuturegrainpricingremainsuncertainandestimatesusedinthisGrossMarginsanalysiscouldvarysubstantiallyfromthosewhichareactuallyobtained.

Cerealproductionremainsthestandoutperformerinlowerrainfalldistrictswithbreadwheatshowingthehighestgrossmargin.Themaltingbarleygrossmarginneedstobeadjustedforqualityriskifmaltinggradeisnotusuallyachieved.Inthiscase,ahighyieldingfeedbarleyvarietyislikelytoproveaviablealternative.

Somecerealbreakcropsinmediumandhighrainfalldistricts(notablylentils,chickpeasandcanola)areshowingimprovedreturnsovercereals.Higherproductionand/ormarketingrisksneedtobefactoredintothesereturns.KabuliChickpeasshowthehighestpotentialgrossmarginbutmarketingofthiscropinSAcanbedifficultandgrowerswouldneedtohavetheexpectationofholdingthecropforupto12monthsbeforeamarketmaybecomeavailable.

Thegrossmarginforexportoatenhayisreasonableinalldistrictsifreasonablequalityandyieldscanbeobtained.Freighttotheprocessorisastrongdeterminantofprofitabilityofthiscrop.

Grainvetchcanbequiteprofitableinalldistrictsbutpotentialharvestingdifficultiesandlimitedmarketsrequirecautionwiththiscrop.

Livestockreturnshavesufferedoverthepast12monthswithlowerlivestocksaleprices.

Withsheep,enterprisesbasedprimarilyonwoolproduction(althoughstilllower)havenotseenthesamedeclineinexpectedGrossMarginasthoseprimarilyaimedatmeatproduction.Merinowethershavebecomeamuchmorecompetitiveonadrysheepequivalent(dse)basis.FirstcrossewesarerelyingonsignificantlyimprovedweaningpercentagestoshowreturnssimilartousingMerinoewesasprimelambmothers.

Beefcattlecontinuetoshowexpectedreturnsonadsebasiswellbelowthatavailablefromsheepproduction.Inpart,thisisduetothecostofhandfeedinghayduringperiodsofpoorpasturegrowth.

15


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.

Belowisanexampleofhowthesegrossmarginsmaybeadaptedtosuitindividualcircumstances.Acopyofablankgrossmarginsheet,whichmaybephotocopiedtocalculateyourowngrossmargin,isincludedattherearofthispublication.

2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $150 $150 $150Quality Mixed gradesYield (t/ha) 3.50 5.50 8

GROSS INCOME $525 $825 $1,200

VARIABLE COSTS Rate/ha Rate/ha Rate/haCost Low $/ha Medium $/ha High $/ha

SeedLeviesSeed $180.00 /tonne @ 90 $16.20 120 $21.60 130 $23.40Seed Treatment $0.00 /tonne @ 0 $0.00 0 $0.00

Fertiliser (Bulk)18:20:0 $690 /tonne @ 60 $41.40 80 $55.20 110 $75.90Urea $570 /tonne @ 30 17.1 75 $42.75 150 $85.50

Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsGlyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Oxyfluorfen $18.00 /litre @ 0.075 $1.35 0.075 $1.35 0.075 $1.35Dual Gold $16.00 /litre @ 0.5 $8.00 0.5 $8.00Diuron $11.70 /litre @ 0.4 $4.68 0.4 $4.68 0.4 $4.68

EXPORT OATEN HAY GROSS MARGIN

Post-MCPA Amine $9.00 /litre @ 0.5 $4.50 0.5 $4.50 0.5 $4.50

InsecticidesFungicides

OperationsFuel & Oil $9.06 $9.06 $9.06Repairs & Maintenance $7.53 $7.53 $7.53

Freight Hay $28.00 /tonne @ 3.5 $98.00 5.5 $154.00 8.0 $224.00Fertiliser (t) $20.00 /tonne @ 0.09 $1.80 0.16 $3.10 0.26 $5.20

Contract WorkHay mowing $45.00 /ha @ 1.0 $45.00 1.0 $45.00 1.0 $45.00Super Conditioner $25-35.00 /ha @ 1.0 $25.00 1.0 $30.00 1.0 $35.00Hay baling $26.67 /tonne @ 3.5 $93.33 5.5 $146.67 8.0 $213.33Insurance $2.50 /$1000 @ $1.31 $2.06 $3.00

TOTAL VARIABLE COSTS $392 $562 $771GROSS MARGIN/hectare $133 $263 $429Break Even Price (to cover variable costs only) $112 $102 $96Break Even Yield (to cover variable costs only) 2.62 3.74 5.14Gross Margin based on last 5 year average price $119 $241 $397COMMENTSFertiliser rate assumes hay follows a cereal. Bonuses for shedding and late delivery may apply. Additional capital costs including shedding and extra machinery may need to be considered.

AGRONOMIC NOTESThe use of a 'super conditioner' can significantly reduce drying time and subsequently risk with less chance of a quality downrade. No allowance has been made for cost of raking. Price is based on average quality- substantial differences occur across grades

Insert your estimates based on projected yield and price

Cost of seed should always be allowed even if using own seed

Adjust fertiliser rates to your own situationconsidering prior rotation

Adjust for actual herbicide use. Consult cost section for costs of other chemicals and label information for rates

Chemical rates will vary in some cases with soil types. Adjust for local chemical costs

Most GM’s assume own equipment. Add or delete contract work component as required

Break even price is variable costs divided by yield

Break even yield is variable costs divided by price

16


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $250 $250 $250Quality APW (Change Price for other grades)Yield (t/ha) 1.5 2.5 3.5

GROSS INCOME $375 $625 $875


SeedSeed $0.28 /kg @ 60 $16.80 80 $22.40 90 $25.20Seed Treatment $0.05 /kg @ 60 $2.94 80 $3.92 90 $4.41

LeviesGRDC Levies 1.0% Gross Income $3.75 $6.25 $8.75EPR & state levies $2.30 /tonne sold $3.45 $5.75 $8.05

Fertiliser (Bulk)18:20:0 $690 /tonne @ 40 $27.60 60 $41.40 80 $55.20Urea $570 /tonne @ $0.00 60 $34.20 120 $68.40

Chemicals-Herbicides

Summer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsTrifluralin 480g/L $6.00 /litre @ 1 $6.00 1 $6.00 1 $6.00

$0.00 $0.00 $0.00Glyphosate 540(1) $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Oxyfluorfen $18.00 /litre @ 0.075 $1.35 0.075 $1.35 0.075 $1.35Sakura $325.00 /kg @ $0.00 0.118 $38.35 0.118 $38.35Post-emergents

APW WHEAT GROSS MARGIN

gM.C.P.A. LVE $9.00 /litre @ 0.5 $4.50 0.7 $6.30 0.7 $6.30Metsulfuron methyl(1) $0.08 /gm @ 5 $0.85 5 $0.85 5 $0.85Clopyralid (Lontrel) $30.00 /kg @ 0.075 $2.25 0.075 $2.25 0.075 $2.25Fungicides

Tebuconazole $12.00 /litre @ 0.2 $2.40 0.2 $2.40 Prothioconazole(Prosaro) $67.00 /litre @ 0.15 $10.05 0.15 $10.05Operations

Fuel & Oil $13.10 $15.72 $18.34Repairs & Maintenance $14.15 $16.98 $19.81

Freight Grain (t) $20.00 /tonne @ 1.5 $30.00 2.5 $50.00 3.5 $70.00Fertiliser (t) $20.00 /tonne @ 0.04 $0.80 0.12 $2.40 0.20 $4.00

Contract WorkAerial spraying $14.00 /ha @ $0.00 1 $14.00 1 $14.00Urea spreading $12.00 /ha @ $0.00 1 $12.00 2 $24.00Insurance $8.50 /$1000 @ $3.19 $5.31 $7.4Other $0.00 /ha

$0.00 /haTOTAL VARIABLE COSTS $157 $324 $421GROSS MARGIN/hectare $218 $301 $454Break Even Price (to cover variable costs only) $104 $130 $120Break Even Yield (to cover variable costs only) 0.63 1.30 1.68Gross Margin based on last 5 year average price $230 $321 $481COMMENTS(1) Includes Surfactant at 0.1% To calculate using different grades (AH1, ASW, Feed) substitute different prices using appropriate grade spreads.

AGRONOMIC NOTESNitrogen requirements will vary depending on individual paddocks- seek advice.If targeting higher protein (AH1) additional N inputs will be required.

17


GROSS MARGIN SENSITIVITY LOW RAINFALL Cash Price $/t

$200 $225 $250 $275 $3000.5 -$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

MEDIUM RAINFALL Cash Price $/t

$200 $225 $250 $275 $3000.5 -$170 -$157 -$145 -$133 -$120

Yield 1.5 $4 $41 $78 $115 $152t/ha 2.5 $178 $240 $301 $362 $424

3.5 $352 $438 $524 $610 $696HIGH RAINFALL

Cash Price $/t$200 $225 $250 $275 $300

1.5 -$66 -$29 $8 $45 $81Yield 2.5 $108 $169 $231 $292 $353t/ha 3.5 $282 $368 $454 $540 $626

4.5 $456 $567 $677 $787 $898

HISTORIC PRICES AND TRENDS

Machinery Costs- Assuming full ownership of machinery(Fuelandrepairsonly-excludesdepreciationandotherownershipcosts) Operation No. Fuel

$/ha $/ha

seed 1 3.84 5.152spray 4 2.03 1.74

harvest# 1 8.29 6.21TOTAL 14.15 13.10#Ratesareforlowrainfallzone.Extracostinhigheryieldingsituations

APW WHEAT GROSS MARGIN

Repairs & Maint

0

50

100

150

200

250

300

350

400

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

APW 10.5% WHEATHISTORIC PRICES (Post Harvest)

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High

18


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $280 $280.00 $280.00Quality Durum 13%Yield (t/ha) 1.2 2.1 3.2


VARIABLE COSTS Rate/ha Rate/ha Rate/haCost Low Medium $/ha High $/ha



Fertiliser (Bulk)DAP + 2% Zn $720 /tonne @ 40 $28.80 60 $43.20 80 $57.60Urea $570 /tonne @ $0.00 60 $34.20 120 $68.40

Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Trifluralin 480g/L $6.00 /litre @ 1 $6.00 1 $6.00 1 $6.00Boxer Gold $13.75 /litre @ $0.00 2.5 $34.38 2.5 $34.38Glyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Oxyfluorfen $18.00 /litre @ 0.075 $1.35 0.075 $1.35 0.075 $1.35

DURUM GROSS MARGIN

y @Post-emergents MCPA LVE $9.00 /litre @ 0.5 $4.50 0.5 $4.50 0.5 $4.50Metsulfuron methyl(1) $0.08 /gram @ 5 $0.85 5 $0.85 5 $0.85InsecticidesFungicides



Contract WorkAerial spraying $14.00 /ha @ $0.00 $0.00 $0.00Urea spreading $12.00 /ha @ $0.00 1 $12.00 2 $24.00Insurance $8.50 /$1000 @ $2.86 $5.00 $7.62Other

TOTAL VARIABLE COSTS $162 $293 $399GROSS MARGIN/hectare $174 $295 $497Break Even Price (to cover variable costs only) $135 $139 $125Break Even Yield (to cover variable costs only) 0.58 1.05 1.42Gross Margin based on last 5 year average price $221 $377 $622COMMENTS(1) surfactant at 0.1% Assumes durum follows a legume crop or pasture.Price assumes Durum 13% is achieved.

AGRONOMIC NOTESSome Durum varieties have a narrow safety margin with broadleaf herbicides. Seek advice. The effect is worse when the crop is under stress.

19


GROSS MARGIN SENSITIVITY LOW RAINFALL Net Price $/t

$200 $240 $280 $320 $3600.4 -$58 -$43 -$27 -$11 $5

Yield 1.2 $80 $127 $174 $222 $269

t/ha 2 $219 $297 $376 $454 $5332.8 $357 $467 $577 $687 $797

MEDIUM RAINFALL Net Price $/t

$200 $240 $280 $320 $3601 -$60 -$21 $19 $58 $97

Yield 2.1 $130 $213 $295 $378 $460t/ha 3 $286 $404 $522 $639 $757

4 $459 $616 $773 $930 $1,087HIGH RAINFALL

Net Price $/t$200 $240 $280 $320 $360

1 -$135 -$95 -$56 -$17 $22Yield 2 $38 $117 $195 $274 $352t/ha 3.2 $246 $372 $497 $623 $748

4 $384 $541 $698 $855 $1,012


Machinery Costs- Assuming full ownership of machinery(Fuel and repairs only- excludes depreciation and other ownership costs)

Operation No. Fuel

$/ha $/ha

seed 1 3.84 5.152 spray 4 2.03 1.74 harvest# 1 8.29 6.21TOTAL 14.15 13.10# Rates are for low rainfall zone. Extra cost in higher yielding situations

DURUM GROSS MARGIN

Repairs & Maint

0

100

200

300

400

500

600

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

DURUMHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High

20


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $240 $240 $240Quality MaltingYield (t/ha) 1.5 2.5 3.5






Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsTrifluralin 480g/L $6.00 /litre @ 1 $6.00 1.5 $9.00 1.5 $9.00Glyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Oxyfluorfen $18.00 /litre @ 0.075 $1.35 0.075 $1.35 0.075 $1.35Boxer Gold $13.75 /litre @ $0.00 2.5 $34.38 2.5 $34.38Post-emergents

MALTING BARLEY GROSS MARGIN

2,4- D Amine $5.00 /litre @ 1.2 $6.00 1.5 $7.50 1.5 $7.50Metsulfuron methyl(1) $0.08 /gm @ 5 $0.85 5 $0.85 5 $0.85Clopyralid (Lontel) $30.00 /kg @ 0.1 $3.00 0.1 $3.00 0.1 $3.00FungicidesPropoconazole $13.50 /litre @ 0.3 $4.05 0.3 $4.05 0.3 $4.05

0.3 $4.05 0.3 $4.05Insecticides



Contract WorkAerial spraying $14.00 /ha @ 0 $0.00 0 $0.00 1 $14.00Urea Spreading $12.00 /ha @ $0.00 $0.00 1 $12.00Insurance $8.50 /$1000 @ $3.06 $5.10 $7.1Other

TOTAL VARIABLE COSTS $161 $285 $388GROSS MARGIN/hectare $199 $315 $452Break Even Price (to cover variable costs only) $108 $114 $111Break Even Yield (to cover variable costs only) 0.67 1.19 1.62Gross Margin based on last 5 year average price $199 $315 $452COMMENTSAssumes barley follows wheat. 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

AGRONOMIC NOTESUrea may not be required following a legume pasture or grain legume crop

21



$180 $210 $240 $270 $3000.5 -$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


$180 $210 $240 $270 $3000.5 -$141 -$126 -$111 -$97 -$82

Yield 1.5 $14 $58 $102 $146 $190t/ha 2.5 $168 $242 $315 $389 $463

3.5 $323 $426 $529 $632 $735HIGH RAINFALL

Net Price $/t$180 $210 $240 $270 $300

1.5 -$63 -$19 $25 $70 $114Yield 2.5 $92 $165 $239 $312 $386t/ha 3.5 $246 $349 $452 $555 $658

4.5 $401 $533 $666 $798 $931


Machinery Costs- Assuming full ownership of machinery(Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Fuel

$/ha $/ha

seed 1 3.84 5.152 spray 4 2.03 1.74

harvest# 1 8.29 6.21TOTAL 14.15 13.10# Rates are for low rainfall zone. Extra cost in higher yielding situations

Repairs & Maint

MALTING BARLEY GROSS MARGIN

0

50

100

150

200

250

300

350

400

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

MALT BARLEYHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

$/ha

Variable Costs

Low Medium High

22


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $200 $200 $200Quality Feed 1

Yield (t/ha) 1.7 2.8 4






Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsTrifluralin 480g/L $6.00 /litre @ 1 $6.00 1.5 $9.00 1.5 $9.00Glyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Oxyfluorfen $18.00 /litre @ 0.075 $1.35 0.075 $1.35 0.075 $1.35Boxer Gold $13.75 /litre @ $0.00 2.5 $34.38 2.5 $34.38P t t

FEED BARLEY GROSS MARGIN

Post-emergents 2,4- D Amine $5.00 /litre @ 1.2 $6.00 1.5 $7.50 1.5 $7.50Metsulfuron methyl(1) $0.08 /gm @ 5 $0.85 5 $0.85 5 $0.85

FungicidesPropoconazole $13.50 /litre @ 0.3 $4.05 0.3 $4.05 0.3 $4.05

0.3 $4.05 0.3 $4.05Insecticides



Contract WorkAerial spraying $14.00 /ha @ 0 $0.00 0 $0.00 1 $14.00Urea spreading $12.00 /ha @ $0.00 $0.00 1 $12.00Insurance $8.50 /$1000 @ $2.89 $4.76 $6.8Other

TOTAL VARIABLE COSTS $161 $315 $422GROSS MARGIN/hectare $179 $245 $378Break Even Price (to cover variable costs only) $94 $112 $105Break Even Yield (to cover variable costs only) 0.80 1.57 2.11Gross Margin based on last 5 year average price $162 $217 $338COMMENTSAssumes barley follows wheatHaving to windrow barley will reduce GM by around $25/ha

AGRONOMIC NOTESUrea would not be required following a legume pasture or grain legume crop

23



$150 $175 $200 $225 $2501 $8 $33 $57 $82 $106

Yield 1.7 $96 $138 $179 $221 $263

t/ha 2.4 $184 $243 $302 $360 $4193 $259 $333 $406 $480 $553


$150 $175 $200 $225 $2501.2 -$93 -$63 -$34 -$4 $25

Yield 2 $8 $57 $106 $155 $204t/ha 2.8 $108 $177 $245 $314 $383

3.6 $208 $297 $385 $473 $562HIGH RAINFALL

Net Price $/t$150 $175 $200 $225 $250

2 -$69 -$20 $29 $78 $127Yield 3 $57 $130 $204 $277 $351t/ha 4 $182 $280 $378 $476 $575

5 $307 $430 $553 $675 $798



$/ha $/ha

seed 1 3.84 5.15

spray 4 2.03 1.74 harvest# 1 8.29 6.21TOTAL 14.15 13.10# Rates are for low rainfall zone. Extra cost in higher yielding situations

FEED BARLEY GROSS MARGIN

Repairs & Maint

0

50

100

150

200

250

300

350

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

FEED BARLEYHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

140

160

$/ha

Variable Costs

Low Medium High

24


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $185 $185 $185Quality MillingYield (t/ha) 1 2.1 3.2






Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsGlyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Oxyfluorfen $18.00 /litre @ 0.075 $1.35 0.075 $1.35 0.075 $1.35

MILLING OATS GROSS MARGIN

y @Dual Gold $16.00 /litre @ 0.5 $8.00 0.5 $8.00 0.5 $8.00Diuron $11.70 /litre @ 0.4 $4.68 0.4 $4.68 0.4 $4.68Post-MCPA Amine $9.00 /litre @ 0.5 $4.50 0.5 $4.50 0.5 $4.50Fungicides

Tebuconazole $12.00 /litre @ 0.145 $1.74 0.145 $1.74 0.145 $1.74Operations

Fuel & Oil $13.10 $15.72 $18.34Repairs & Maintenance $14.15 $16.98 $19.81


Contract WorkAerial sprayingWindrowingInsurance $8.50 /$1000 @ $1.57 $3.30 $5.03Other

TOTAL VARIABLE COSTS $141 $222 $303GROSS MARGIN/hectare $44 $167 $289Break Even Price (to cover variable costs only) $141 $106 $95Break Even Yield (to cover variable costs only) 0.76 1.20 1.64Gross Margin based on last 5 year average price $32 $142 $251COMMENTSAssumes oats follows a cereal. If following a legume less N will be required.

AGRONOMIC NOTES

25



$125 $155 $185 $215 $2500.5 -$65 -$50 -$35 -$21 -$3

Yield 1 -$14 $15 $44 $74 $108

t/ha 1.5 $36 $80 $124 $168 $2202 $86 $145 $204 $263 $332


$125 $155 $185 $215 $2501 -$68 -$38 -$9 $21 $55

Yield 2.1 $43 $105 $167 $229 $301t/ha 3 $134 $222 $310 $399 $502

4 $235 $352 $470 $588 $725HIGH RAINFALL

Net Price $/t$125 $155 $185 $215 $250

1 -$121 -$91 -$62 -$32 $2Yield 2 -$20 $39 $98 $157 $225t/ha 3.2 $101 $195 $289 $384 $493

4 $181 $299 $417 $535 $672


Machinery Costs- Assuming full ownership of machinery

(Fuel and repairs only- excludes depreciation and other ownership costs)

Operation No. Fuel

$/ha $/ha


MILLING OATS GROSS MARGIN

Repairs & Maint

0

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

MILLING OATSHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

$/ha

Variable Costs

Low Medium High

26


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $210 $210 $210QualityYield (t/ha) 1.2 2.1 3






Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsTrifluralin 480g/L $6.00 /litre @ 1 $6.00 1 $6.00 1 $6.00Glyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Oxyfluorfen $18.00 /litre @ 0.075 $1.35 0.075 $1.35 0.075 $1.35Post-emergents

TRITICALE GROSS MARGIN

gMCPA LVE $9.00 /litre @ 0 0.5 $4.50 0.5 $4.50MCPA amine $9.00 /litre @ 0.5 $4.50 $0.00 $0.00Metsulfuron methyl(1) $0.08 @ 5 $0.85 5 $0.85 5 $0.85Achieve® (2) $65.00 @ $0.00 0.4 $30.08 0.3 $23.58InsecticidesFungicides



Contract WorkAerial sprayingUrea spreadingInsurance $8.50 /$1000 @ $2.14 $3.75 $5.36Other

TOTAL VARIABLE COSTS $147 $259 $331GROSS MARGIN/hectare $105 $182 $299Break Even Price (to cover variable costs only) $123 $123 $110Break Even Yield (to cover variable costs only) 0.70 1.23 1.58Gross Margin based on last 5 year average price $81 $140 $239COMMENTSThis rate of fertiliser assumes triticale follows a cereal(1) Surfactant at 0.1% (2) Surfactant at 0.75%

AGRONOMIC NOTES

27



$150 $180 $210 $240 $2700.6 -$38 -$21 -$3 $15 $32

Yield 1.2 $34 $69 $105 $140 $175

t/ha 1.8 $106 $159 $212 $265 $3182.4 $179 $249 $320 $391 $461


$150 $180 $210 $240 $2701 -$75 -$45 -$16 $14 $43

Yield 2.1 $58 $120 $182 $244 $305 t/ha 3 $166 $255 $343 $431 $520

4 $287 $405 $523 $640 $758HIGH RAINFALL

Net Price $/t$150 $180 $210 $240 $270

1 -$119 -$89 -$60 -$30 -$1Yield 2 $2 $61 $120 $179 $238t/ha 3 $122 $211 $299 $387 $476

4 $243 $361 $479 $596 $714



$/ha $/ha

seed 1 3.84 5.15

spray 4 2.03 1.74 harvest# 1 8.29 6.21TOTAL 14.15 13.10# Rates are for low rainfall zone. Extra cost in higher yielding situations

TRITICALE GROSS MARGIN

Repairs & Maint

0

50

100

150

200

250

300

350

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

TRITICALEHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

$/ha

Variable Costs

Low Medium High

28


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $400 $400 $400Quality Morava vetchYield (t/ha) 0.7 1.2 1.6


VARIABLE COSTS Rate/ha Rate/ha Rate/haCost Low $/ha Medium $/ha High

Seed Seed $0.50 /kg @ 25 $12.50 35 $17.50 35 $17.50Seed Inoculant $0.02 /kg @ 25 $0.45 35 $0.63 35 $0.63

LeviesGRDC Levies 1.0% Gross Income $2.80 $4.80 $6.40EPR &state levies $3.30 /tonne sold $2.31 $3.96 $5.28

Fertiliser (Bulk)MAP $690 /tonne @ 40 $27.60 60 $41.40 80 $55.20Foliar Trace Elem

Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsLexone $0.03 /gm @ 300 $9.00 300 $9.00 300 $9.00Trifluralin 480g/L $6.00 /litre @ 1 $6.00 1.5 $9.00 1.5 $9.00Glyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00

Post-emergents

VETCH GROSS MARGIN

Post emergentsSelect (incl Oil) $14.00 /litre @ 0.4 $8.11 0.5 $9.51 0.5 $9.51Paraquat(Topping) $5.50 /litre 0.8 $4.40 0.8 $4.40 0.8 $4.40InsecticidesDimethoate (1) $10.00 /litre @ 0.4 $4.00 0.4 $4.00 0.4 $4.00omethoate (2) $29.00 /litre @ 0.05 $1.45 0.05 $1.45Karate Zeon® (3) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96



Contract WorkAerial spraying

Insurance $12.00 /$1000 @ $3.36 $5.76 $7.68Other

TOTAL VARIABLE COSTS $173 $225 $263GROSS MARGIN/hectare $107 $255 $377Break Even Price (to cover variable costs only) $247 $188 $164Break Even Yield (to cover variable costs only) 0.43 0.56 0.66Gross Margin based on last 5 year average price $140 $310 $451COMMENTSSeed 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

AGRONOMIC NOTESLexone (Metribuzin) not recommended on some varieties. Seek advice (also applies to using Diuron on vetch)Harvest and marketing difficulties are common with this crop

29



$300 $350 $400 $450 $5000.3 -$67 -$52 -$38 -$23 -$8

Yield 0.7 $39 $73 $107 $142 $176

t/ha 1.1 $145 $199 $253 $306 $3601.5 $251 $324 $398 $471 $544


$300 $350 $400 $450 $5000.4 -$75 -$55 -$36 -$16 $4

Yield 0.8 $31 $71 $110 $149 $188t/ha 1.2 $137 $196 $255 $313 $372

1.8 $297 $385 $473 $561 $649HIGH RAINFALL

Net Price $/t$300 $350 $400 $450 $500

0.8 $8 $48 $87 $126 $165Yield 1.2 $114 $173 $232 $291 $349t/ha 1.6 $221 $299 $377 $455 $533

2.5 $459 $581 $704 $826 $948



$/ha $/ha

seed 1 3.84 5.15 spray 5 2.53 2.17 roll 1 1.16 1.74 harvest# 1 18.56 8.69TOTAL 26.09 17.76# Rates are for low rainfall zone. Extra cost in higher yielding situations

VETCH GROSS MARGIN

Repairs & Maint

0

100

200

300

400

500

600

700

800

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

VETCHHISTORIC PRICES (post harvest)

0

10

20

30

40

50

60

70

$/ha

Variable Costs

Low Medium High

30


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $250 $250 $250Quality

Yield (t/ha) 0.9 1.5 2


VARIABLE COSTS Rate/ha Rate/ha Rate/haCost Low Medium $/ha High $/ha

Seed Seed $0.26 /kg @ 90 $23.40 90 $23.40 90 $23.40Seed Inoculant $0.02 /kg @ 90 $1.62 90 $1.62 90 $1.62Roval seed treat


Fertiliser (Bulk)MAP $690 /tonne @ 40 27.6 60 $41.40 80 $55.20Foliar Trace Elem

Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsTrifluralin 480g/L $6.00 /litre @ 1 $6.00 1.5 $9.00 1.5 $9.00Glyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Simazine Granules $7.60 /kg @ 0.83 $6.31 0.83 $6.31 0.83 $6.31

P t t

LUPINS GROSS MARGIN

Post-emergentsParaquat(Topping) $5.50 /litre 0.8 $4.40 0.8 $4.40 0.8 $4.40Select (incl Oil) $14.00 /litre @ 0.4 $8.11 0.5 $9.51 0.5 $9.51InsecticidesTalstar (1) $44.00 /litre @ 0.04 $1.76 0.04 $1.76 0.04 $1.76Karate Zeon® (2) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96



Contract WorkAerial spraying $14.00 /ha @ $0 $0.00 $0.00

Insurance $10.00 /$1000 @ $2.25 $3.75 $5.00Other

TOTAL VARIABLE COSTS $173 $218 $255GROSS MARGIN/hectare $52 $157 $245Break Even Price (to cover variable costs only) $192 $145 $127Break Even Yield (to cover variable costs only) 0.69 0.87 1.02Gross Margin based on last 5 year average price $53 $159 $247COMMENTSSeed 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

AGRONOMIC NOTES

31



$150 $200 $250 $300 $3500.5 -$84 -$59 -$35 -$10 $14

Yield 0.9 -$36 $8 $52 $96 $140

t/ha 1.5 $36 $109 $183 $256 $3302 $95 $193 $291 $389 $487


$150 $200 $250 $300 $3500.5 -$109 -$85 -$60 -$36 -$11

Yield 1 -$49 $0 $49 $98 $147t/ha 1.5 $10 $84 $157 $231 $304

2 $70 $168 $266 $364 $462HIGH RAINFALL

Net Price $/t$150 $200 $250 $300 $350

1 -$70 -$21 $28 $77 $126Yield 1.5 -$11 $63 $136 $210 $283t/ha 2 $49 $147 $245 $343 $441

2.5 $109 $231 $354 $476 $599



$/ha $/ha


LUPINS GROSS MARGIN

Repairs & Maint

-100

-50

0

50

100

150

200

250

300

350

400

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

LUPINSHISTORIC PRICES (post harvest)

0

10

20

30

40

50

60

70

$/ha

Variable Costs

Low Medium High

32


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) 500 $500 $500Quality Nugget

Yield (t/ha) 0.7 1.2 1.8



Seed Seed $0.48 /kg @ 50 $24.00 50 $24.00 50 $24.00Seed Inoculant $0.02 /kg @ 50 $0.90 50 $0.90 50 $0.90P-Pickel $82.00 /tonne 50 $4.10 50 $4.10


Fertiliser (Bulk)MAP $690 /tonne @ 40 $27.60 50 $34.50 60 $41.40

Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsGlyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00trifluralin 480g/L $6.00 /litre @ 1 $6.00 1.5 $9.00 1.5 $9.00Terbyne $21.00 /kg @ 1 $21.00 1 $21.00 1 $21.00Broadstrike® $0.72 /gram @ $0.00 25 $18.00 25 $18.00Paraquat(Topping) $5.50 /litre @ 0.8 $4.40 0.8 $4.40 0.8 $4.40Select (incl Oil) $14.00 /litre @ 0.4 $8.11 0.5 $9.51 0.5 $9.51

RED LENTILS GROSS MARGIN

( ) $ @ $ $ $InsecticidesKarate Zeon® (1) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96omethoate (2) $29.00 /litre @ 0.05 $1.45 0.05 $1.45 0.05 $1.45FungicidesMancozeb (3) $10.00 kg @ $0.00 $0.00 2.2 $22.00Carbendazim (4) $22.00 /kg @ 0.5 $11.00 1 $22.00 1 $22.00



Contract WorkAerial sprayingWindrowing

Insurance $12.00 /$1000 @ $4.20 $7.20 $10.80Other

TOTAL VARIABLE COSTS $206 $282 $347GROSS MARGIN/hectare $144 $318 $553Break Even Price (to cover variable costs only) $295 $235 $193Break Even Yield (to cover variable costs only) 0.41 0.56 0.69Gross Margin based on last 5 year average price $282 $556 $910COMMENT(1) Native budworm control (2) RLEM (3) Ascochyta (4) Grey mouldDo not exceed 800ml/Ha Paraquat when crop topping to avoid possible residues

AGRONOMIC NOTESInoculate with Group E inoculant. Northfield and Nipper more sensitive to Lexone than other varietiesCheck newly released varieties for suitability to your area

33



$400 $450 $500 $550 $6000.3 -$67 -$53 -$38 -$23 -$9

Yield 0.7 $75 $109 $144 $178 $212

t/ha 1.1 $217 $271 $325 $379 $4331.5 $360 $433 $507 $580 $653


$400 $450 $500 $550 $6000.6 -$13 $17 $46 $75 $105

Yield 1.2 $201 $259 $318 $377 $435t/ha 1.8 $414 $502 $590 $678 $766

2.4 $628 $745 $863 $980 $1,097HIGH RAINFALL

Net Price $/t$400 $450 $500 $550 $600

0.8 $22 $61 $100 $139 $178Yield 1.3 $199 $263 $327 $390 $454t/ha 1.8 $377 $465 $553 $641 $729

2.5 $627 $749 $871 $993 $1,116



$/ha $/ha

seed 1 3.84 5.15 spray 7 3.55 3.04 roll 1 1.16 1.74 harvest# 1 11.60 8.69

TOTAL 20.15 18.63# Rates are for low rainfall zone. Extra cost in higher yielding situations

RED LENTILS GROSS MARGIN

Repairs & Maint

0

200

400

600

800

1000

1200

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

RED LENTILSHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High

34


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $270 $270 $270Quality Kaspa

Yield (t/ha) 1 1.5 2.5



SeedSeed $0.33 /kg @ 90 $29.70 100 $33.00 110 $36.30Seed Grading $25.40 /tonne @ 90 $2.29 100 $2.54 110 $2.79P-Pickel $82.00 /tonne @ $0.00 100 $8.20 110 $9.02Inoculant $18.00 /tonne @ $0.00 $0.00 110 $1.98



Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsTrifluralin 480g/L $6.00 /litre @ 1 $6.00 1.5 $9.00 1.5 $9.00Glyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Post-emergents Terbyne $21.00 /kg @ 1 $21.00 1 $21.00 1 $21.00

FIELD PEAS GROSS MARGIN

g @Select (incl Oil) $14.00 /litre @ 0.4 $8.11 0.5 $9.51 0.5 $9.51Paraquat(Topping) $5.50 /litre @ 0.8 $4.40 0.8 $4.40 0.8 $4.40InsecticidesKarate Zeon® (1) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96Karate Zeon® (2) $165.00 /litre @ $0.00 0.024 $1.32 0.024 $1.32Omethoate (3) $29.00 /litre @ 0.05 $1.45 0.05 $1.45 0.05 $1.45Fungicides Tebuconazole (4) $12.00 /litre @ $0.00 0.145 $1.74 0.145 $1.74



Contract Work/ha @ $0.00 $0.00 $0.00/ha @ $0.00 $0.00 $0.00

Insurance $16.00 /$1000 @ $4.32 $6.48 $10.80Other $0.00 /ha $0.00

$0.00 /ha $0.00TOTAL VARIABLE COSTS $211 $271 $335GROSS MARGIN/hectare $59 $134 $340Break Even Price (to cover variable costs only) $211 $181 $134Break Even Yield (to cover variable costs only) 0.78 1.00 1.24Gross Margin based on last 5 year average price $89 $179 $415COMMENTS(1) Native budworm control (2) Pea weavil border spray (3) RLEM (4) Powdery Mildew.

AGRONOMIC NOTESRecently released "Kaspa" type varieties are more suited to lower rainfall situations

35



$210 $240 $270 $300 $3300.75 -$44 -$22 $0 $22 $44

Yield 1 $0 $29 $59 $88 $117

t/ha 1.25 $45 $81 $118 $154 $1911.5 $89 $133 $176 $220 $264


$210 $240 $270 $300 $3301 -$42 -$13 $16 $45 $75

Yield 1.5 $46 $90 $134 $178 $222t/ha 2 $135 $193 $252 $310 $369

2.5 $223 $297 $370 $443 $516HIGH RAINFALL

Net Price $/t$210 $240 $270 $300 $330

1.5 $17 $60 $104 $148 $192Yield 2 $105 $164 $222 $280 $339t/ha 2.5 $194 $267 $340 $413 $486

3 $282 $370 $458 $545 $633



$/ha $/ha

seed 1 3.84 5.15 spray 7 3.55 3.04 roll 1 1.16 1.74 harvest# 1 18.56 8.69TOTAL 27.11 18.63

# Rates are for low rainfall zone. Extra cost in higher yielding situations

FIELD PEA GROSS MARGIN

Repairs & Maint

-100

0

100

200

300

400

500

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

FIELD PEASHISTORIC PRICES(post harvest)

0

10

20

30

40

50

60

70

80

90

$/ha

Variable Costs

Low Medium High

36


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $320 $320 $320Quality Fiesta

Yield (t/ha) 0.8 1.6 2.8



Seed Seed $0.47 /kg @ 100 $47.00 140 $65.80 160 $75.20Seed Inoculant $0.00 /kg @ $0.00 $0.00 $0.00



Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsGlyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Trifluralin 480g/L $6.00 /litre @ 1 $6.00 1.5 $9.00 1.5 $9.00Simazine 900g/kg $7.60 /kg @ 0.83 $6.31 0.83 $6.31 0.83 $6.31Post-emergents Select (incl Oil) $14.00 /litre @ 0.4 $8.11 0.5 $9.51 0.5 $9.51Insecticidesomethoate (1) $29.00 /litre @ 0.1 $2.90 0.1 $2.90 0.1 $2.90

FABA BEAN GROSS MARGIN

Karate Zeon® (2) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96Dimethoate (3) $10.00 /litre @ 0.5 $5.00 0.5 $5.00 0.5 $5.00FungicidesTebuconazole(4) $12.00 /kg @ $0.00 0.3 $3.60 0.3 $3.60Mancozeb-low r/f $10.00 /kg @ 1.7 $17.00 0 $0.00 0 $0.00Mancozeb-Med/high $10.00 /kg @ 0 $0.00 5.1 $51.00 5.1 $51.00Carbendazim 2 applic $22.00 /kg @ 0.5 $11.00 1 $22.00



Contract WorkAerial spraying $14.00 /ha @ $0.00 2 $28.00 2 $28.00

Insurance $12.00 /$1000 @ $3.07 $6.14 $10.75

TOTAL VARIABLE COSTS $211 $358 $438GROSS MARGIN/hectare $45 $154 $458Break Even Price (to cover variable costs only) $264 $224 $156Break Even Yield (to cover variable costs only) 0.66 1.12 1.37Gross Margin based on last 5 year average price $71 $205 $548COMMENTS(1) RLEM control (2) Native Budworm control (3) Cow pea aphid (4)

Cercospora Mancozeb for Ascochyta Carbendazim for chocalate spot

AGRONOMIC NOTESSeed 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.

37



$200 $250 $320 $350 $4000.4 -$117 -$97 -$70 -$58 -$39

Yield 0.8 -$49 -$10 $45 $68 $108

t/ha 1.5 $70 $144 $246 $290 $3642 $155 $253 $390 $449 $547


$200 $250 $320 $350 $4001 -$136 -$87 -$18 $11 $60

Yield 1.6 -$34 $45 $154 $201 $279t/ha 2 $35 $132 $269 $328 $426

2.5 $120 $242 $413 $487 $609HIGH RAINFALL

Net Price $/t$200 $250 $320 $350 $400

1 -$177 -$128 -$60 -$30 $18Yield 2 -$7 $91 $228 $287 $384t/ha 2.8 $129 $266 $458 $540 $677

4 $334 $529 $803 $921 $1,116



$/ha $/ha


FABA BEAN GROSS MARGIN

Repairs & Maint

-100

0

100

200

300

400

500

600

700

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

FABA BEANSHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High

38


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $550 $550 $550Quality 6-8 mm Kabuli

Yield (t/ha) 0.7 1.3 2

GROSS INCOME $385 $715 $1,100

VARIABLE COSTS Rate/ha Rate/ha Rate/haSeed Cost Low $/ha Medium $/ha High $/ha

Seed $0.58 /kg @ 90 $51.75 100 $57.50 110 $63.25Seed Inoculant $18.00 /tonne @ 90 $1.62 100 $1.80 110 $1.98P-Pickel $82.00 /tonne @ 90 $7.38 100 $8.20 110 $9.02



Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentstrifluralin 480g/L $6.00 /litre @ 1 $6.00 1.5 $9.00 1.5 $9.00Glyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Balance® $0.38 /gram @ 100 $38.00 100 $38.00 100 $38.00

Post-emergentsSelect (incl Oil) $14.00 /litre @ 0.4 $8.11 0.5 $9.51 0.5 $9.51Insecticides

$ $1 45 $ $

CHICKPEAS (6-8mm Kabuli) GROSS MARGIN

Omethoate $29.00 /litre @ 0.05 $1.45 0.05 $1.45 0.05 $1.45Karate Zeon® $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96FungicidesChlorothalonil $21.00 /litre @ 1 $21.00 1.5 $31.50 2 $42.00

DessicationParaquat $5.50 /litre @ 0.8 $4.40 0.8 $4.40 0.8 $4.40


Freight

Grain (t) $25.00 /tonne @ 0.7 $17.50 1.3 $32.50 2.0 $50.00Fertiliser (t) $20.00 /tonne @ 0.04 $0.80 0.06 $1.20 0.08 $1.60

Contract WorkAerial spraying $14.00 /ha @ $0.00 $0.00 1 $14.00Windrowing $35.00 /ha @ $0.00 0 $0.00 0 $0.00Insurance $10.00 /$1000 @ $3.85 $7.15 $11.00Other $0.00 /ha

$0.00 /haTOTAL VARIABLE COSTS $260 $328 $409GROSS MARGIN/hectare $125 $387 $691Break Even Price (to cover variable costs only) $372 $252 $204Break Even Yield (to cover variable costs only) 0.47 0.60 0.74Gross Margin based on last 5 year average price $128 $394 $701COMMENTSSeed is inoculated with a Group N inoculant. Do not excced 800ml/Ha Paraquat when dessicating to avoid possible residue issues

AGRONOMIC NOTESPrice is heavily dependant on grade and quality. Seek advice. May need to store product for up to 12 months before marketing

39


GROSS MARGIN SENSITIVITY LOW RAINFALLNet Price $/t

$450 $500 $550 $600 $6500.4 -$67 -$48 -$28 -$8 $11

Yield 0.7 $56 $90 $125 $159 $193

t/ha 1.2 $261 $320 $379 $438 $4961.8 $508 $596 $684 $772 $861

MEDIUM RAINFALLNet Price $/t

$450 $500 $550 $600 $6500.5 -$69 -$44 -$20 $5 $29

Yield 1.3 $260 $324 $387 $451 $515t/ha 1.8 $465 $553 $642 $730 $818

2.3 $671 $783 $896 $1,009 $1,121HIGH RAINFALL

Net Price $/t$450 $500 $550 $600 $650

1 $84 $133 $182 $231 $280Yield 1.5 $290 $363 $437 $510 $584t/ha 2 $495 $593 $691 $789 $887

3 $906 $1,053 $1,200 $1,347 $1,494

HISTORIC PRICES AND TRENDSHISTORIC PRICES AND TRENDS


$/ha $/ha


CHICKPEAS GROSS MARGIN

Repairs & Maint

0

100

200

300

400

500

600

700

800

900

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

CHICKPEAHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High

40


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $470 $470 $470Quality

Yield (t/ha) 0.7 1.4 2



Seed Seed $10.00 /kg @ 3 $30.00 3 $30.00 3 $30.00



Chemicals-Herbicides

Summer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsSimazine 900g/kg $7.60 /kg @ 1.1 $8.36 1.5 $11.40 2 $15.20Trifluralin 480g/L $6.00 /litre @ 1 $6.00 1.5 $9.00 1.5 $9.00Glyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Post-emergents

Select (incl Oil) $14.00 /litre @ 0.4 $8.11 0.5 $9.51 0.5 $9.51Cl lid 300 /L $30 00 /litre @ 0 15 $4 50 0 15 $4 50 0 15 $4 50

CANOLA GROSS MARGIN Triazine Tolerant

Clopyralid 300g/L $30.00 /litre @ 0.15 $4.50 0.15 $4.50 0.15 $4.50InsecticidesChlorpyrifos 500g/L $10.00 /litre @ 0.2 $2.00 0.2 $2.00 0.2 $2.00Talstar (1) $44.00 /litre @ 0.04 $1.76 0.04 $1.76 0.04 $1.76Imidan $10.00 /litre @ 0.25 $2.50 0.25 $2.50 0.25 $2.50Dimethoate $10.00 /litre @ 0.4 $4.00 0.4 $4.00 0.4 $4.00Karate Zeon®(1) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96


Freight

Grain (t) $25.00 /tonne @ 0.7 $17.50 1.4 $35.00 2 $50.00Fertiliser (t) $20.00 /tonne @ 0.03 $0.60 0.13 $2.60 0.19 $3.80

Contract WorkAerial spraying $14.00 /ha @ $0.00 1 $14.00 1 $14.00Windrowing $35.00 /ha @ 1 $35.00 1 $35.00 1 $35.00Insurance $12.00 /$1000 @ $3.95 $7.90 $11.28Urea spreading $12.00 /ha @ $0.00 1 $12.00 1 $12.00

TOTAL VARIABLE COSTS $208 $333 $402GROSS MARGIN/hectare $121 $325 $538Break Even Price (to cover variable costs only) $297 $238 $201Break Even Yield (to cover variable costs only) 0.44 0.71 0.86Gross Margin based on last 5 year average price $153 $388 $628COMMENTS(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.

AGRONOMIC NOTESA 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 andintensive cropping systems. Ensure insect control and good seed/soil contact when sowing.Lowrainfall situations require at least 35mm Plant Available Water at sowing.

41



$410 $430 $470 $500 $5500.3 -$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 $586MEDIUM RAINFALL

Net Price $/t$410 $430 $470 $500 $550

0.7 -$20 -$7 $21 $41 $76Yield 1.4 $243 $270 $325 $366 $434t/ha 2 $468 $507 $585 $644 $742

2.5 $656 $705 $803 $876 $998HIGH RAINFALL

Net Price $/t$410 $430 $470 $500 $550

1 $45 $65 $104 $133 $182Yield 1.5 $233 $262 $321 $365 $438t/ha 2 $421 $460 $538 $597 $694

2.5 $608 $657 $755 $829 $951



$/ha $/ha

seed 1 3.84 5.15 spray 6 3.04 2.61 harvest# 1 8.29 6.21

TOTAL 15.17 13.97# Rates are for low rainfall zone. Extra cost in higher yielding situations

CANOLA GROSS MARGIN

Repairs & Maint

0

100

200

300

400

500

600

700

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

CANOLA HISTORIC PRICES

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High

42


2013INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (13/14 Forecast) $150 $150 $150Quality Mixed gradesYield (t/ha) 3.50 5.50 8

GROSS INCOME $525 $825 $1,200


SeedLeviesSeed $180.00 /tonne @ 90 $16.20 120 $21.60 130 $23.40Seed Treatment $0.00 /tonne @ 0 $0.00 0 $0.00

Fertiliser (Bulk)18:20:0 $690 /tonne @ 60 $41.40 80 $55.20 110 $75.90Urea $570 /tonne @ 30 17.1 75 $42.75 150 $85.50

Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsGlyphosate 540 $5.00 /litre @ 1.2 $6.00 1.2 $6.00 1.2 $6.00Oxyfluorfen $18.00 /litre @ 0.075 $1.35 0.075 $1.35 0.075 $1.35Dual Gold $16.00 /litre @ 0.5 $8.00 0.5 $8.00Diuron $11.70 /litre @ 0.4 $4.68 0.4 $4.68 0.4 $4.68


Post-MCPA Amine $9.00 /litre @ 0.5 $4.50 0.5 $4.50 0.5 $4.50

InsecticidesFungicides


Freight Hay $28.00 /tonne @ 3.5 $98.00 5.5 $154.00 8.0 $224.00Fertiliser (t) $20.00 /tonne @ 0.09 $1.80 0.16 $3.10 0.26 $5.20

Contract WorkHay mowing $45.00 /ha @ 1.0 $45.00 1.0 $45.00 1.0 $45.00Super Conditioner $25-35.00 /ha @ 1.0 $25.00 1.0 $30.00 1.0 $35.00Hay baling $26.67 /tonne @ 3.5 $93.33 5.5 $146.67 8.0 $213.33Insurance $2.50 /$1000 @ $1.31 $2.06 $3.00

TOTAL VARIABLE COSTS $392 $562 $771GROSS MARGIN/hectare $133 $263 $429Break Even Price (to cover variable costs only) $112 $102 $96Break Even Yield (to cover variable costs only) 2.62 3.74 5.14Gross Margin based on last 5 year average price $119 $241 $397COMMENTSFertiliser rate assumes hay follows a cereal. Bonuses for shedding and late delivery may apply. Additional capital costs including shedding and extra machinery may need to be considered.

AGRONOMIC NOTESThe use of a 'super conditioner' can significantly reduce drying time and subsequently risk with less chance of a quality downrade. No allowance has been made for cost of raking. Price is based on average quality- substantial differences occur across grades

43



$100 $125 $150 $175 $2001.5 -$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 $452MEDIUM RAINFALL

Net Price $/t$100 $125 $150 $175 $200

2 -$169 -$119 -$69 -$19 $31Yield 3.5 -$101 -$14 $74 $161 $248

t/ha 5.5 -$11 $126 $263 $401 $538

7.5 $79 $266 $453 $640 $827HIGH RAINFALL

Net Price $/t$100 $125 $150 $175 $200

4 -$151 -$51 $49 $148 $248Yield 6 -$61 $89 $239 $388 $538t/ha 8 $30 $229 $429 $628 $828

10 $120 $369 $618 $868 $1,117



$/ha $/ha

seed 1 3.84 5.15 spray 5 2.53 2.17 roll 1 1.16 1.74

TOTAL 7.53 9.06


Repairs & Maint

0

20

40

60

80

100

120

140

160

180

200

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$/to

nne

Year

OATEN HAYHISTORIC PRICES

0

50

100

150

200

250

300

350

$/ha

Variable Costs

Low Medium High

44


AssumptionsAve Breeding Ewe Fibre Diameter 28 Total DSE's 1840Number of breeding ewes (First Cross) 1000 Stocking rate (DSE/Ha) 12.0First cross ewe - Terminal meat sire

2013INCOME YOUR

$ ESTIMATEWool (kg greasy) 4423.2 Kg [ ave price 382 c/kg ] $16,906Sales 1339 animals [ ave price $84.25 per hd] $112,780

GROSS INCOME $129,686

VARIABLE COSTSShearing

Shearing 970 sheep @ $267.47 /100 $2,594(Federal awards) 19 rams @ $534.94 /100 $102Shed labour 5 days @ $200.40 /day $1,002Woolclasser 2.50 days @ $239.66 /day $599Superannuation (on ordinary wages only) @ 9.3% wages $397Work Cover (includes super + o'time etc) @ 4.0% total $172Wool packs 26 packs @ $11.50 /pack $299Shed sundries 989 sheep @ $0.15 /head $148Lice control 989 sheep @ $0.83 /head $821Crutch & Wig 990 ewes @ $85.59 /100 $847

19 rams @ $171.18 /100 $33Marking

Lamb marking 1150 lambs @ $1.00 /head $1,150Ear tags 1150 lambs @ $0.35 /head $403

Animal Health drench 3190 sheep @ $0.19 /head $598 vaccinate 3320 sheep @ $0.24 /head $797 blowfly control 1000 sheep @ $1.20 /head $1,200Stock purchases

Purchases $43,379Sale Costs

Freight livestock 189 culls @ $3.00 /head $567

PRIME LAMB GROSS MARGIN - HIGH RAINFALL (450mm+)

livestock 189 culls @ $3.00 /head $567212 ewes @ $3.00 /head $637

1150 prime lambs @ $3.00 /head $3,450 wool 26 bales @ $8.00 /bale $208

Stock selling charges commission/insurance @ 5.5% gross $ $6,203 yard fees 1339 head @ $0.70 /head $937

levy-sheep 189 head @ $0.20 /head $38levy-lambs 1150 head @ $1.50 /head $1,725SA sheep industry 1339 head @ $0.40 /head $535Wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $973wool levy @ 2.0% gross $338

Feed and Other Costs hay 20.4 tonne @ $160.00 /tonne $3,264 grain 24.6 tonnes @ $240.00 /tonne $5,904

Insurance $148,675 value @ $2.00 /$'000 $297Water 1840 DSE's @ $2.50 /DSE $4,600Fuel 1840 DSE's @ $0.70 /DSE $1,288Other 1840 DSE's @ $0.50 /DSE $920

TOTAL VARIABLE COSTS $86,426GROSS MARGIN TOTAL $43,260GROSS MARGIN/hectare $282GROSS MARGIN/DSE $24COMMENTS 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.

45


PRODUCTION DATA

Stocking rate (DSE/Ha) 12.0 Culling Rate (% from each group)Total DSE's 1840 Age group Ewes WethersSHEEP GRAZING AREA 153 0.5 0%Number of ewes mated 1000 1.5 0%Ram percentage 2% 2.5 0%Age ewes bought (yrs) 1.5 3.5 0%Age ewes culled 6.5 4.5 0%Years rams kept 3 5.5 0%Flock death rate 3% 6.5 100%Average weaning rate 115%% Lambs carried over 0%

SALES Number Price/hd Age Totalc.f.a ewes 182 $50.00 6.5 $9,100c.f.a rams 6 $30.00 4.5 $180lambs 1150 $90.00 20 weeks $103,500TOTAL 1339 $84.25 $112,780PURCHASES Number Price/hd Age yrs Totalewes 212 $180 1.5 $38,226rams 7 $750 1.5 $5,153

STOCK HEALTH REQUIREMENTS Number of times

Number Drench Vacc. Blowfly DSEewes 1000 2 1 1 1.8rams 20 2 1 0 2lambs 1150 1 2 0TOTAL 2170 3190 3320 1000 1840

SHEARING Wool cut price TotalNumber kg/hd

ewes 970 4.50 $3.84 $16,775crossbred rams 19 3.00 $2.25 $131

TOTAL 989 4423 $16,906

FEEDINGHay Kgs Fed No weeks Total

Number Cost ($/T) per week of Feeding cost ($)ewes 1000 $160 2.5 8 $3,200rams 20 $160 2.5 8 $64

Grain Kgs Fed No weeks TotalNumber Cost ($/T) per week of Feeding cost ($)

ewes 1000 $240 3.0 8 $5,760rams 20 $240 3.0 10 $144

PRIME LAMB GROSS MARGIN - HIGH RAINFALL

46


G.M. SENSITIVITY GROSS MARGIN/DSE Average Weaning Rate (%)

85% 95% 105% 115% 125% 135%$65 ($0) $3 $6 $9 $12 $15$70 $2 $5 $9 $12 $15 $18$75 $4 $8 $11 $15 $18 $22$80 $7 $10 $14 $18 $21 $25

Average $85 $9 $13 $17 $21 $25 $28Lamb Sale $90 $11 $15 $19 $24 $28 $32Price ($/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

PRIME LAMB GROSS MARGIN - HIGH RAINFALL

47


Assumptions

Ave Breeding Ewe Fibre Diameter 19.5 Total DSE's 2390Number of breeding ewes 1000 Stocking rate (DSE/Ha) 12.0

2013INCOME YOUR

$ ESTIMATEWool (kg greasy) 9426 Kg [ ave price 819 c/kg ] $77,201Sales 862 animals [ ave price $63.77 per hd] $54,990



Shearing 2324 sheep @ $267.47 /100 $6,216(Federal Awards) 25 rams @ $534.94 /100 $134Shed labour 9 days @ $200.40 /day $1,804Woolclasser 5 days @ $239.66 /day $1,078Superannuation (on ordinary wages only) @ 9.3% wages $854Work Cover (includes super + o'time etc) @ 4.0% total $403Wool packs 55 packs @ $11.50 /pack $633Shed sundries 2349 sheep @ $0.15 /head $352Lice Control 2349 sheep @ $0.83 /head $1,950Crutch & wig 1424 sheep @ $85.59 /100 $1,219

25 rams @ $171.18 /100 $43Marking

Lamb marking 900 @ $1.30 /head $1,170Ear tags 900 lambs @ $0.35 /head $315

Animal Health drench 2400 sheep @ $0.19 /head $450 vaccinate 3275 sheep @ $0.24 /head $786 blowfly control 1475 sheep @ $1.20 /head $1,770Sale and Purchase Costs

Purchases 7 Merino rams @ $950.00 /head $6,650

SELF REPLACING MERINO FLOCK - HIGH RAINFALL (450mm+)

Purchases 7 Merino rams @ $950.00 /head $6,650Freight 862 sheep @ $3.00 /head $2,586

55 bales @ $8.00 /bale $440Stock selling charges

commission/insurance @ 5.5% gross $3,024 yard fees 862 head @ $0.70 /head $603 Sheep trans levy 412 head @ $0.20 /head $82

Lamb trans levy 450 head @ $1.50 /head $675SA sheep industry 862 head @ $0.40 /head $345Wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $2,074Industry levy @ 2.0% gross $1,544

Feed and other CostsHand Feeding $8,439Insurance $151,459 value @ $2.00 /$'000 $303Water 2390 DSE's @ $2.50 /DSE $5,975Fuel 2390 DSE's @ $0.70 /DSE $1,673Other 2390 DSE's @ $0.50 /DSE $1,195

TOTAL VARIABLE COSTS $54,785GROSS MARGIN TOTAL $77,407GROSS MARGIN/hectare $389

$32GROSS MARGIN /DSECOMMENTSThe 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.

48


PRODUCTION DATA

Stocking rate (DSE/Ha) 12.0 Culling Rate (% per each group)Total DSE's 2390 Age group Ewes WethersSHEEP GRAZING AREA 285 0.5 0% 100%Number of ewes mated 1000 1.5 46% 0%Ram percentage 2.5% 2.5 5% 0%Age wethers sold (yrs) 0.5 3.5 5% 0%Years rams kept 4 4.5 5% 0%Flock death rate 3% 5.5 5% 0%Average weaning rate 90% 6.5 100% 0%

SALES Number Price/hd Totalc.f.a ewes 204 $50.00 $10,200c.f.a merino rams 6 $30.00 $180ewe hoggets 203 $120.00 $24,360wether lambs 450 $45.00 $20,250TOTAL 862 $63.77 $54,990

STOCK HEALTH Number of times

Number DSE Drench Vacc. Blowflyewes 1000 1.8 1 1 1ewe hoggets 450 1.2 1 1 1wether weaners 0 0.8 1 1 0merino lambs 900 0.0 1 2 0merino rams 25 2.0 2 1 1TOTAL 2375 2390 2400 3275 1475Total Value $151,459

FEEDINGFeed Number of Hay kg/ animal Total

Animals Cost ($/T) cost ($)Oats/barley 833 $240 24 /ewe $4,798Hay 833 $160 20 /ewe $2,666Lupins 375 $260 10 /weaner $975Total $8,439

SHEARING Wool cut Total Yield TotalNumber kg/hd Greasy kg (%) Clean kg

ewes 981 6.00 5885 70% 4119ewe hoggets 443 4.50 1995 70% 1396wether weaners 0 4.50 0 70% 0lambs 900 1.50 1350 70% 945merino rams 25 8.00 197 70% 138Adults 1449 5.75 8076Total 2349 9426 6598

SELF REPLACING MERINO FLOCK - HIGH RAINFALL

49


FLOCK STRUCTURE This table shows the number of merino sheep in each age group at mating

Class of Age GroupSheep 0.5 y.o. 1.5 y.o. 2.5 y.o. 3.5 y.o. 4.5 y.o. 5.5 y.o. 6.5 y.o.Ewes 450 234 216 199 183 169 0

Wethers 0 0 0 0 0 0 0Rams 7 6 6 6 0 0

SENSITIVITY ANALYSISGROSS MARGIN/DSE Average Greasy Wool Price (c/Kg)

700 750 800 819 850 900$35 $18 $20 $22 $23 $24 $26$40 $20 $22 $24 $24 $25 $27$45 $21 $23 $25 $26 $27 $29$50 $23 $25 $27 $28 $29 $31

Average $55 $25 $27 $29 $29 $31 $33Sale Price $60 $27 $28 $30 $31 $32 $34All Sheep $64 $28 $30 $32 $32 $34 $36

($/hd) $70 $30 $32 $34 $35 $36 $38$75 $32 $34 $35 $36 $37 $39$80 $33 $35 $37 $38 $39 $41$85 $35 $37 $39 $40 $41 $43

SELF REPLACING MERINO FLOCK - HIGH RAINFALL (450mm+)

50


Assumptions:Average Wether Fibre Diametre 19.5 Gross Margin per Ha $385Number of adult wethers 1000 Gross Margin per DSE $32Total DSE's 1200 Gross Margin/Wether $39Stocking rate (DSE/Ha) 12.0

2013INCOME YOUR

$ ESTIMATEWool (kg greasy) 6790 Kg [ave price 819 c/kg ] $55,610Sales 182 animals [ave price $70.00 per hd] $12,766


EXPENSESShearing

Shearing 970 sheep @ $267.47 /100 $2,594Shed labour 4 days @ $200.40 /day $802Woolclasser 2 days @ $239.66 /day $479Superannuation (on ordinary wages only) @ 9.3% wages $358Work Cover (on wages+super+o'time etc) @ 4.0% total $169Wool packs 40 packs @ $11.50 /pack $460Shed sundries 970 sheep @ $0.15 /head $146Lice control 970 sheep @ $0.83 /head $805Crutching 1000 sheep @ $85.59 /100 $856

Animal Health drench 1000 sheep @ $0.19 /head $188 vaccinate 1000 sheep @ $0.24 /head $240 blowfly control 1000 sheep @ $1.20 /head $1,200

Other Expenses 0 sheep @ $0.00 /head $0Stock Purchases

Purchases 212 wethers @ $45.00 /head $9,540Sale costs and other

Freight

MERINO WETHERS - HIGH RAINFALL (450mm+)

Freight livestock 395 @ $3.00 /head $1,185wool 40 bales @ $8.00 /bale $320

Stock selling charges commission/insurance @ 5.5% gross $702 yard fees 182 head @ $0.70 /head $127

transaction levy 182 head @ $0.20 /head $36SA sheep industry 182 head @ $0.40 /head $73Wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $1,494Industry levy @ 2.00% gross $1,112Other ExpensesHand Feeding $2,400Insurance 57500 value @ $2.00 /$'000 $115Water 1200 DSE's @ $2.50 /DSE $3,000fuel 1200 DSE's @ $0.70 /DSE $840Other Expenses 1200 DSE's @ $0.50 /DSE $600

TOTAL VARIABLE COSTS $29,842GROSS MARGIN $38,534GROSS MARGIN/hectare $385GROSS MARGIN/DSE $32

COMMENTSThe 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.

51


PRODUCTION DATAStocking rate (DSE/Ha) 12.0 Culling Rate (% from each group) Stock Total DSE's 1200 Age group Ewes Wethers No'sSHEEP GRAZING AREA 100 0.5 0% 212Number of wethers 1000 1.5 0% 206Flock death rate 3% 2.5 0% 200Age wethers bought (yrs) 0.5 3.5 0% 194Age wethers culled 5.5 4.5 0% 188

5.5 100%

SALES Number Price/hd Age Totalc.f.a wethers 182 $70.00 5.5 $12,740TOTAL 182 $12,740PURCHASES Number Price/hd Age yrs Totalwethers 212 $45 0.5 $9,556

STOCK VALUE AND D.S.E REQUIREMENTValue Ave Live DSE

Number $/head Wt (Kgs) ratingwethers 1000 $58 55 1.2TOTAL 1000

STOCK HEALTH REQUIREMENTS Number of times DSE

Number Drench Vacc. Blowfly ratingwethers 1000 1 1 1 1.2TOTAL 1000 1000 1000 1000 1200


wethers 970 7.00 6790 70% 4753TOTAL 970 6790 4753

HAND FEEDINGkg fed /animal $/tonne Total

Oats/barley kg/wether 240 $0Hay 15 kg/wether 160 $2,400Lupins kg/wether 260 $0Total $2,400

MERINO WETHERS - HIGH RAINFALL

SENSITIVITY TABLEGROSS MARGIN/DSE Average Greasy Wool Price (c/Kg)

700 750 800 819 850 900$45 $22 $25 $27 $29 $30 $33$50 $23 $25 $28 $29 $31 $34$55 $23 $26 $29 $30 $32 $34$60 $24 $27 $30 $31 $32 $35

Average $65 $25 $28 $30 $31 $33 $36Sale Price $70 $26 $28 $31 $32 $34 $37of wethers $75 $26 $29 $32 $33 $35 $37

($/hd) $80 $27 $30 $32 $34 $35 $38$85 $28 $30 $33 $34 $36 $39$90 $28 $31 $34 $35 $37 $39$95 $29 $32 $35 $36 $37 $40

MERINO WETHERS - HIGH RAINFALL

52


AssumptionsAve Breeding Ewe Fibre Diameter 21 Total DSE's 1850Number of breeding ewes (Merino) 1000 Stocking rate (DSE/Ha) 6.0Merino ewe - Terminal meat sire

2013INCOME YOUR




Shearing 970 sheep @ $267.47 /100 $2,594(Federal awards) 24 rams @ $534.94 /100 $128Shed labour 5 days @ $200.40 /day $1,002Woolclasser 2.5 days @ $239.66 /day $599Work Cover (includes super + o'time etc) @ 9.25% total $400Superannuation (on ordinary wages only) @ 4.00% wages $173Wool packs 38 packs @ $11.50 /pack $437Shed sundries 994 sheep @ $0.15 /head $149Lice control 994 sheep @ $0.46 /head $456Crutch & Wig 0 lambs @ $85.59 /100 $0

1019 ewes @ $85.59 /100 $872Marking

Lamb marking 950 lambs @ $1.00 /head $950Ear tags 950 lambs @ $0.35 /head $333



Freight $ $

PRIME LAMB GROSS MARGIN - CEREAL ZONE (250 - 450mm)

livestock 239 culls @ $3.00 /head $717262 ewes @ $3.00 /head $785950 prime lambs @ $3.00 /head $2,850

wool 38 bales @ $8.00 /bale $304Stock selling charges

commissioninsurance @ 5.5% gross $4,831 yard fees 1189 head @ $0.70 /head $832

levy-sheep 239 head @ $0.20 /head $48levy-lambs 950 head @ $1.50 /head $1,425SA sheep industry lev 1189 head @ $0.40 /head $476Wool selling chargesbrokerage/testing/insurance @ $0.22 kg $1,403Industry levy @ 2.0% gross $952

Feed and Other CostsWater 1850 DSE's @ $2.50 /DSE $4,625Fuel 1850 DSE's @ $0.70 /DSE $1,295Other 1850 DSE's @ $0.50 /DSE $925

hay 20.5 tonne @ $160.00 /tonne $3,280 grain 24.8 tonnes @ $240.00 /tonne $5,940

Insurance $113,750 value @ $2.00 /$'000 $228TOTAL VARIABLE COSTS $78,995GROSS MARGIN TOTAL $56,448GROSS MARGIN/hectare $183GROSS MARGIN/DSE $31COMMENTSThe 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.

53


PRODUCTION DATA

Stocking rate (DSE/Ha) 6.0 Culling Rate (% from each group)Total DSE's 1850 Age group Ewes WethersSHEEP GRAZING AREA 308 0.5 0%Number of ewes mated 1000 1.5 0%Ram percentage 2.5% 2.5 0%Age ewes bought (yrs) 1.5 3.5 0%Age ewes culled 5.5 4.5 0%Years rams kept 3 5.5 100%Flock death rate 3% 6.5 0%Average weaning rate 95%% Lambs carried over 0%

SALES Number Price/hd Age Totalc.f.a ewes 232 $50.00 5.5 $11,600c.f.a rams 8 $30.00 4.5 $240lambs 950 $80.00 20 weeks $76,000TOTAL 1189 73.83 $87,840PURCHASES Number Price/hd Age yrs Totalewes 262 $120 1.5 $31,384rams 9 $750 1.5 $6,441



SHEARING Wool cut price TotalNumber kg/hd $

ewes 970 6.50 $7.52 47439crossbred rams 24 3.00 $2.25 164

TOTAL 994 6378 47603


Number Cost ($/T) per week of Feeding cost ($)ewes 1000 $160 2.5 8 $3,200rams 25 $160 2.5 8 $80


ewes 1000 $240 3.0 8 $5,760rams 25 $240 3.0 10 $180

PRIME LAMB GROSS MARGIN - CEREAL ZONE

54



75% 85% 95% 105% 115% 125%$55 $14 $16 $18 $21 $23 $26$60 $15 $18 $21 $23 $26 $29$65 $17 $20 $23 $26 $29 $32$70 $19 $22 $26 $29 $32 $35


$90 $27 $31 $35 $40 $44 $48$95 $29 $33 $38 $42 $47 $51

$100 $31 $36 $40 $45 $50 $54$105 $33 $38 $43 $48 $53 $58

PRIME LAMB GROSS MARGIN - CEREAL ZONE

55


Assumptions

Ave Breeding Ewe Fibre Diameter 21 Total DSE's 2360Number of breeding ewes 1000 Stocking rate (DSE/Ha) 6.0

2013INCOME YOUR




Shearing 2250 sheep @ $267.47 /100 $6,018(Federal Awards) 25 rams @ $534.94 /100 $134Shed labour 8 days @ $200.40 /day $1,603Woolclasser 4.0 days @ $239.66 /day $959Superannuation (on ordinary wages only) @ 9.3% wages $806Work Cover (includes super + o'time etc) @ 4.0% total $381Wool packs 62 packs @ $11.50 /pack $713Shed sundries 2274 sheep @ $0.15 /head $341Lice control 2274 sheep @ $0.83 /head $1,887Crutch & wig 1400 sheep @ $85.59 /100 $1,198

25 rams @ $171.18 /100 $43Marking

Lamb marking 850 lambs @ $1.30 /head $1,105Ear tags 850 lambs @ $0.35 /head $298

Animal Health drench 2325 sheep @ $0.19 /head $436 vaccinate 3150 sheep @ $0.20 /head $630 blowfly control 1450 sheep @ $1.20 /head $1,740Sale and Purchase Costs

Purchases 7 Merino rams @ $950.00 /head $6,650

SELF REPLACING MERINO FLOCK - CEREAL ZONE (250 - 450mm)

Purchases 7 Merino rams @ $950.00 /head $6,650Freight 813 sheep @ $3.00 /head $2,439


commission/insurance @ 5.5% gross $2,798 yard fees 813 head @ $0.70 /head $569 sheep tran levy 388 head @ $0.20 /head $78

lamb trans levy 425 head @ $1.50 /head $638SA Sheep industry 813 head @ $0.40 /head $325wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $2,335Industry levy @ 2.0% gross $1,597


TOTAL VARIABLE COSTS $55,300GROSS MARGIN TOTAL $75,423GROSS MARGIN/hectare $192

$32GROSS MARGIN /DSECOMMENTSThe 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.

56


PRODUCTION DATA

Stocking rate (DSE/Ha) 6.0 Culling Rate (% per each group)Total DSE's 2360 Age group Ewes WethersSHEEP GRAZING AREA 285 0.5 0% 100%Number of ewes mated 1000 1.5 43% 0%Ram percentage 2.5% 2.5 5% 0%Age wethers sold (yrs) 0.5 3.5 5% 0%Years rams kept 4 4.5 5% 0%Flock death rate 3% 5.5 5% 0%Average weaning rate 85% 6.5 100% 0%Prime lamb weaning % 0%% mated for prime lms 0%

SALES Number Price/hd Totalc.f.a ewes 204 $50.00 $10,200c.f.a merino rams 6 $30.00 $180ewe hoggets 178 $120.00 $21,360wether lambs 425 $45.00 $19,125TOTAL 813 $62.56 $50,865


Number DSE Drench Vacc. Blowflyewes 1000 1.8 1 1 1ewe hoggets 425 1.2 1 1 1wether weaners 0 0.8 1 1 1merino lambs 850 0.0 1 2 0merino rams 25 2.0 2 1 1TOTAL 2300 2360 2325 3150 1450Total Value $143,892

FEEDINGFeed Number of Fodder kg/ animal Total

Animals Cost ($/T) cost ($)Oats/barley 1000 $240 24 /ewe $5,760Hay 1000 $160 20 /ewe $3,200Lupins 425 $260 10 /weaner $1,105Total $10,065



SELF REPLACING MERINO FLOCK - CEREAL ZONE

57




Wethers 0 0 0 0 0 0 0Rams 7 6 6 6 0 0

SENSITIVITY ANALYSISGROSS MARGIN/DSE Average Greasy Wool Price (c/Kg)

650 700 752 800 850 900$35 $18 $21 $23 $25 $27 $29$40 $20 $22 $25 $27 $29 $31$45 $22 $24 $26 $28 $31 $33$50 $23 $26 $28 $30 $32 $34

Average $55 $25 $27 $29 $32 $34 $36Sale Price $60 $27 $29 $31 $33 $35 $38All Sheep $63 $28 $30 $32 $34 $36 $39

($/hd) $70 $30 $32 $34 $36 $39 $41$75 $31 $34 $36 $38 $40 $43$80 $33 $35 $38 $40 $42 $44$85 $35 $37 $39 $41 $44 $46

SELF REPLACING MERINO FLOCK - CEREAL ZONE

58


Assumptions:Average Wether Fibre Diameter 21 Gross Margin per Ha $188Number of adult wethers 1000 Gross Margin per DSE $31Total DSE's 1200 Gross Margin/Wether $38Stocking rate (DSE/Ha) 6.0

2013INCOME YOUR



EXPENSESShearing





Freight

MERINO WETHERS - CEREAL ZONE (250 - 450mm)



transaction levy 182 head @ $0.20 /head $36SA sheep industry 182 head @ $0.40 /head $73Wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $1,601Industry levy @ 2.0% gross $1,095Other ExpensesHand Feeding $2,400Insurance 57500 value @ $2.00 /$'000 $115Water 1200 DSE's @ $2.50 /DSE $3,000fuel 1200 DSE's @ $0.70 /DSE $840Other Expenses 1200 DSE's @ $0.50 /DSE $600

TOTAL VARIABLE COSTS $29,885GROSS MARGIN $37,618GROSS MARGIN/hectare $188GROSS MARGIN/DSE $31

COMMENTSThe 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.

59


PRODUCTION DATAStocking rate (DSE/Ha) 6.0 Culling Rate (% from each group) StockTotal DSE's 1200 Age group Ewes Wethers No'sSHEEP GRAZING AREA 200 0.5 0% 212Number of wethers 1000 1.5 0% 206Flock death rate 3% 2.5 0% 200Age wethers bought (yrs) 0.5 3.5 0% 194Age wethers culled 5.5 4.5 0% 188

5.5 100%







wethers 970 7.50 7275 68% 4947TOTAL 970 7275 4947


Oats/barley 0 kg/wether 240 $0Hay 15 kg/wether 160 $2,400Lupins kg/wether 260 $0Total $2,400

MERINO WETHERS - CEREAL ZONE


650 700 752 800 850 900$45 $22 $25 $28 $31 $34 $37$50 $22 $25 $28 $31 $34 $37$55 $23 $26 $29 $32 $35 $38$60 $24 $27 $30 $33 $36 $39

Average $65 $25 $28 $31 $33 $36 $39Sale Price $70 $25 $28 $31 $34 $37 $40of wethers $75 $26 $29 $32 $35 $38 $41

($/hd) $80 $27 $30 $33 $36 $39 $42$85 $27 $30 $33 $36 $39 $42$90 $28 $31 $34 $37 $40 $43$95 $29 $32 $35 $38 $41 $44

MERINO WETHERS - CEREAL ZONE

60


Assumptions (Lambs sold to specialist finisher)Ave Breeding Ewe Fibre Diameter 22 Total DSE's 1858Number of breeding ewes 1000 Stocking rate (DSE/Ha) 0.14Merino ewes - Terminal meat sire

2013INCOME YOUR




Shearing 950 sheep @ $267.47 /100 $2,541(Federal awards) 24 rams @ $534.94 /100 $128Shed labour 5 days @ $200.40 /day $1,002Woolclasser 2.50 days @ $239.66 /day $599Superannuation (on ordinary wages only) @ 9.3% wages $395Work Cover (on wages+super+o'time etc) @ 4.0% total $171Wool packs 34 packs @ $11.50 /pack $391Shed sundries 974 sheep @ $0.15 /head $146Lice control 974 sheep @ $0.83 /head $808Crutch & Wig 800 lambs @ $85.59 /100 $685

998 adults @ $85.59 /100 $854Marking

Lamb marking 800 lambs @ $1.00 /head $800Ear tags 800 lambs @ $0.35 /head $280



Freight $ $

PRIME LAMB GROSS MARGIN - PASTORAL ZONE (<250mm)

livestock 220 culls @ $5.00 /head $1,100270 ewes @ $5.00 /head $1,348800 prime lambs @ $5.00 /head $4,000

wool 34 bales @ $10.00 /bale $340Stock selling charges

commission/insurance @ 5.5% gross $3,403 yard fees 1020 head @ $0.70 /head $714

levy-sheep 220 head @ $0.20 /head $44levy-lambs 800 head @ $1.50 /head $1,200SA sheep industry 1020 head @ $0.40 /head $408wool selling chargesIndustry levy @ 2.0% gross $779brokerage/testing/insurance @ $0.22 /kg $1,270

Feed and Other CostsWater 1858 DSE's @ $2.50 /tonne $4,644Fuel 1858 DSE's @ $0.70 /tonne $1,300Other 1858 DSE's @ $0.50 /DSE $929

hay 0.0 tonne @ $160.00 /DSE $0 grain 0.0 tonnes @ $240.00 /DSE $0

Insurance $105,250 value @ $2.00 /$'000 $211TOTAL VARIABLE COSTS $69,455GROSS MARGIN TOTAL $31,368GROSS MARGIN/hectare $2.36GROSS MARGIN/DSE $17COMMENTSThe 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.

61


PRODUCTION DATA

Stocking rate (DSE/Ha) 0.14 Culling Rate (% from each group)Total DSE's 1858 Age group Ewes WethersSHEEP GRAZING AREA 13268 0.5 0%Number of ewes mated 1000 1.5 0%Ram percentage 2.5% 2.5 0%Age ewes bought (yrs) 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%Average weaning rate 80%% Lambs carried over 0%

SALES Number Price/hd Age Totalc.f.a ewes 220 $45.00 5.5 $9,900c.f.a rams 0 $30.00 5.5 $0lambs 800 $65.00 16 weeks $52,000TOTAL 1020 $60.69 $61,900PURCHASES Number Price/hd Age yrs Totalewes 270 $120 1.5 $32,346rams 7 $750 1.5 $5,054



SHEARING Wool cut price TotalNumber kg/hd

ewes 950 6.00 $6.80 38783crossbred rams 24 3.00 $2.25 160

TOTAL 974 5771 38943


Number Cost ($/T) per week of Feeding cost ($)ewes 1000 $160 3.0 0 $0rams 24 $160 3.0 0 $0


ewes 1000 $240 0.0 0 $0rams 24 $240 3.0 0 $0

PRIME LAMB GROSS MARGIN - PASTORAL ZONE

62



50% 60% 70% 80% 90% 100%$35 $1 $2 $3 $5 $6 $7$40 $2 $4 $5 $7 $8 $10$45 $3 $5 $7 $9 $11 $12$50 $5 $7 $9 $11 $13 $15


$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

PRIME LAMB GROSS MARGIN - PASTORAL ZONE

63


Assumptions

Ave Breeding Ewe Fibre Diameter 22 Total DSE's 2610Number of breeding ewes 1000 Stocking rate (DSE/Ha) 0.14

2013INCOME YOUR




Shearing 2451 sheep @ $267.47 /100 $6,556(Federal Awards) 29 rams @ $534.94 /100 $155Shed labour 10 days @ $200.40 /day $2,004Woolclasser 5 days @ $239.66 /day $1,198Superannuation (on ordinary wages only) @ 9.3% wages $917Work Cover (includes super + o'time etc) @ 4.0% total $433Wool packs 66 packs @ $11.50 /pack $759Shed sundries 2480 sheep @ $0.15 /head $372Lice control 2480 sheep @ $0.83 /head $2,058Crutch & wig 1701 sheep @ $85.59 /100 $1,456

MarkingLamb marking 750 lambs @ $1.30 /head $975Ear tags 750 lambs @ $0.35 /head $263


other 0 sheep @ $0.00 /head $0Sale and Purchase Costs

SELF REPLACING MERINO FLOCK - PASTORAL ZONE (<250mm)

Sale and Purchase CostsPurchases 8 Merino rams @ $950.00 /head $7,600Freight 669 sheep @ $5.00 /head $3,345


commission/insurance @ 5.5% gross $2,188 yard fees 669 head @ $0.70 /head $468

transaction levy 669 head @ $0.20 /head $134SA sheep industry 669 head @ $0.40 /head $268Wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $2,472Industry levy @ 2.0% gross $1,529

Feed and other CostsHand Feeding $0Insurance $150,400 value @ $2.00 /$'000 $301Water 2610 DSE's @ $2.50 /DSE $6,525Fuel 2610 DSE's @ $0.70 /DSE $1,827Other 2610 DSE's @ $0.50 /DSE $1,305

TOTAL VARIABLE COSTS $47,549GROSS MARGIN TOTAL $68,686GROSS MARGIN/hectare $3.68

$26GROSS MARGIN /DSECOMMENTSThe 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.

64


PRODUCTION DATA

Stocking rate (DSE/Ha) 0.14 Culling Rate (% per each group)Total DSE's 2610 Age group Ewes WethersSHEEP GRAZING AREA 18643 0.5 0% 0%Number of ewes mated 1000 1.5 32% 100%Ram percentage 3.0% 2.5 5% 0%Age wethers sold (yrs) 1 3.5 5% 0%Years rams kept 4 4.5 5% 0%Flock death rate 5% 5.5 5% 0%Average weaning rate 75% 6.5 100% 0%Prime lamb weaning % 0%% mated for prime lms 0%

SALES Number Price/hd Totalc.f.a ewes 193 $45.00 $8,685c.f.a merino rams 7 $30.00 $210ewe hoggets 113 $100.00 $11,300wether hoggets 356 $55.00 $19,580TOTAL 669 $59.45 $39,775


Number DSE Drench Vacc. Jetewes 1000 1.8 0 1 1ewe hoggets 375 1.2 0 1 0wether weaners 375 0.8 0 0 0merino lambs 750 0 0 0 2 0

SELF REPLACING MERINO FLOCK - PASTORAL ZONE

merino lambs 750 0.0 0 2 0merino rams 30 2.0 0 1 0TOTAL 2530 2610 0 2905 1000Total Value $150,400

FEEDINGFeed Number of Hay kg/ animal Total

Animals Cost ($/T) fed cost ($)Oats/barley 1000 $240 0.0 /ewe $0Hay 1000 $160 0.0 /ewe $0Lupins 750 $260 0.0 /weaner $0Total $0



65




Wethers 375 0 0 0 0 0 0Rams 8 8 7 7 0 0

SENSITIVITY ANALYSISGROSS MARGIN/HA Average Greasy Wool Price (c/Kg)

550 600 650 680 700 750$35 $15 $17 $19 $20 $21 $23$40 $16 $18 $20 $22 $22 $25$45 $17 $19 $22 $23 $24 $26$50 $19 $21 $23 $24 $25 $27

Average $55 $20 $22 $24 $25 $26 $28Sale $60 $21 $23 $25 $26 $27 $29

Price ($/hd) $65 $22 $24 $26 $28 $28 $31$70 $23 $25 $28 $29 $30 $32$75 $25 $27 $29 $30 $31 $33$80 $26 $28 $30 $31 $32 $34$85 $27 $29 $31 $32 $33 $35

SELF REPLACING MERINO FLOCK - PASTORAL ZONE

66


Assumptions:Average Wether Fibre Diameter 22 Gross Margin per Ha $3.4Number of adult wethers 1000 Gross Margin per DSE $24Total DSE's 1200 Gross Margin/Wether $29Stocking rate (DSE/Ha) 0.14

2013INCOME YOUR

$ ESTIMATEWool (kg greasy) 6720 Kg [ave price 680 c/kg ] $45,723Sales 177 animals [ave price $65.00 per hd] $11,482


EXPENSESShearing





Freight

MERINO WETHERS - PASTORAL ZONE (<250mm)



transaction levy 177 head @ $0.20 /head $35SA sheep industry 177 head @ $0.40 /head $71Wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $1,478Industry levy @ 2.0% gross $914Other ExpensesHand Feeding $0Insurance 55000 value @ $2.00 /$'000 $110Water 1200 DSE's @ $2.50 /DSE $3,000fuel 1200 DSE's @ $0.70 /DSE $840Other Expenses 1200 DSE's @ $0.50 /DSE $600

TOTAL VARIABLE COSTS $27,945GROSS MARGIN $29,261GROSS MARGIN/hectare $3.41GROSS MARGIN/DSE $24

COMMENTSThe 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.

67


PRODUCTION DATAStocking rate (DSE/Ha) 0.14 Culling Rate (% from each group) StockTotal DSE's 1200 Age group Ewes Wethers No'sSHEEP GRAZING AREA 8571 0.5 0% 217Number of wethers 1000 1.5 0% 208Flock death rate 4% 2.5 0% 200Age wethers bought (yrs) 0.5 3.5 0% 192Age wethers culled 5.5 4.5 0% 184

5.5 100%







wethers 960 7.00 6720 63% 4234TOTAL 960 6720 4234


Oats/barley 0 kg/wether 240 $0Hay 0 kg/wether 160 $0Lupins 0 kg/wether 260 $0Total $0

MERINO WETHERS - PASTORAL ZONE


550 600 650 680 700 750$40 $14 $16 $19 $21 $22 $25$45 $14 $17 $20 $22 $23 $25$50 $15 $18 $21 $22 $23 $26$55 $16 $19 $21 $23 $24 $27

Average $60 $17 $19 $22 $24 $25 $28Sale $65 $17 $20 $23 $24 $25 $28

Price ($/hd) $70 $18 $21 $23 $25 $26 $29$75 $19 $21 $24 $26 $27 $30$80 $19 $22 $25 $26 $28 $30$85 $20 $23 $25 $27 $28 $31$90 $21 $23 $26 $28 $29 $32

MERINO WETHERS - PASTORAL ZONE

68


Assumptions

Total DSE's 2540Number of breeding ewes 1000 Stocking rate (DSE/Ha) 6.0

2013INCOME YOUR

$ ESTIMATE$0

Sales 1109 animals [ ave price $79.83 per hd] $88,490GROSS INCOME $88,490

VARIABLE COSTS$0

MarkingLamb marking 1150 lambs @ $1.00 /head $1,150Ear tags 1150 lambs @ $0.35 /head $403

Animal Health drench 2775 sheep @ $0.19 /head $520 vaccinate 3900 sheep @ $0.20 /head $780 blowfly control 0 sheep @ $1.20 /head $0

Lice control 0 sheep @ $0.83 /head $0Sale and Purchase Costs

Purchases 7 rams @ $750.00 /head $5,250Freight 204 ewes @ $3.00 /head $612

6 rams @ $3.00 /head $18324 hoggets @ $3.00 /head $972575 lambs @ $3.00 /head $1,725

Stock selling chargescommission/insurance @ 5 5% gross $4 867

CLEANSKIN SHEEP - CEREAL ZONE (250 - 450mm)

commission/insurance @ 5.5% gross $4,867 yard fees 1109 head @ $0.70 /head $776 sheep tran levy 534 head @ $0.20 /head $107

lamb trans levy 575 head @ $1.50 /head $863SA Sheep industry 1109 head @ $0.40 /head $443

$0$0


TOTAL VARIABLE COSTS $38,778GROSS MARGIN TOTAL $49,712GROSS MARGIN/hectare $117GROSS MARGIN /DSE $20COMMENTSAssumes flock is fully wool shedding and therefore no shearing, crutching or lice control costs are included. Assumes only one lambing per year.

69


PRODUCTION DATAStocking rate (DSE/Ha) 6.0 Culling Rate (% per each group)Total DSE's 2540 Age group Ewes WethersSHEEP GRAZING AREA 423 0.5 0% 100%Number of ewes mated 1000 1.5 58% 0%Ram percentage 2.5% 2.5 5% 0%Age wethers sold (yrs) 0.5 3.5 5% 0%Years rams kept 4 4.5 5% 0%Flock death rate 3% 5.5 5% 0%Average weaning rate 115% 6.5 100% 0%

SALES Number Price/hd Total

c.f.a ewes 204 $45.00 $9,180c.f.a rams 6 $30.00 $180ewe hoggets 324 $120.00 $38,880wether lambs 575 $70.00 $40,250TOTAL 1109 $79.83 $88,490

STOCK HEALTH

Number DSE Drench Vacc. Blowfly Liceewes 1000 1.8 1 1 0 0ewe hoggets 575 1.2 1 1 0 0wether weaners 0 0.8 1 1 0 0lambs 1150 0.0 1 2 0 0rams 25 2.0 2 1 0 0TOTAL 2750 2540 2775 3900 0 0Total Value $219,521

FEEDING Number of Fodder kg/ animal TotalFeed Animals Cost ($/T) cost ($)

Oats/barley 1000 $240 24 /ewe $5,760Hay 1000 $160 20 /ewe $3,200Lupins 575 $260 10 /weaner $1,495Total $10,455

Number of times

CLEANSKIN SHEEP - CEREAL ZONE

FLOCK STRUCTURE This table shows the number of sheep in each age group at matingClass of Age Group

Sheep 0.5 y.o. 1.5 y.o. 2.5 y.o. 3.5 y.o. 4.5 y.o. 5.5 y.o. 6.5 y.o.Ewes 575 234 216 199 183 169 0

Wethers 0 0 0 0 0 0 0Rams 7 6 6 6 0 0

SENSITIVITY ANALYSISGROSS MARGIN/DSE Average Weaning Percentage

95 105 115 125 135 145$50 $10 $12 $15 $18 $21 $24$55 $11 $13 $16 $19 $22 $25$60 $11 $14 $17 $20 $23 $26$65 $12 $15 $19 $22 $25 $28$70 $13 $16 $20 $23 $26 $29

Sale Price $75 $14 $17 $21 $24 $27 $31Lambs $80 $15 $18 $22 $25 $29 $32($/hd) $85 $16 $19 $23 $26 $30 $33

$90 $17 $20 $24 $27 $31 $35$95 $18 $21 $25 $29 $32 $36

$100 $18 $22 $26 $30 $34 $37

CLEANSKIN SHEEP - CEREAL ZONE

70


Assumptions: (Breeding young cattle for local trade, grass fattened)Breeding Cow 15 DSE 100 Cow breeding herdCalf Weaning 90% 13 cows replaced per yearHerd Deaths 3% 3% Bulls bought for $3,000Cows c.f.a 10 years old sold for $900Uses 13 heifers as replacements after 3 yearsCarry over calf 8 DSE 40% carryover to heavier weightsWeaned @ 8 months 6 months extra carry overHeifers mated @ 15 months 1891 Herd DSEStocking rate 10 DSE/ha Drench cows 2 xArea required 189 hectares Drench calves 1 xFeeds 35 kg/DSE hay equivalent supplement

2013INCOME YOUR

ESTIMATEStock sales 54 vealers @ 280 kg liveweight@ $1.75 /kg L/W $26,460

22 yearlings 420 kg liveweight@ $1.60 /kg L/W $14,992Culls 10 Cows @ 550 kg liveweight@ $1.10 /kg L/W $5,800

1 bull@ $900GROSS INCOME $48,152

VARIABLE COSTSBull PurchasesNo. of bulls 1 $3,000.00 total $3,000Veterinary & MedicinesDrench - cows 2x calves 1x 290 @ $4.28 /head $1,240Ear Tags NLIS 90 @ $4.90 /tag $441

BEEF CATTLE - HIGH RAINFALL

Ear Tags NLIS 90 @ $4.90 /tag $441Lice Treatments 0 @ $0.00 /dose $0Vaccine (5 in 1) 180 @ $1.20 /dose $216

Supplementary FeedHay 66 tonne @ $160.00 /tonne $10,560Grain 0.00 t/head @ $240.00 /tonne $0Blocks/ Mineral Mix 100 @ $5.00 /head $500Sale costs and otherInsurance $119,000 @ $2.00 /$1000 $238Transport: Lvstk 87 head @ $15.00 /head $1,303Transport: Hay 66 tonne @ $0.00 /tonne $0Commission @ 5.5% $2,648Levies @ $5.00 /head $434

TOTAL VARIABLE COSTS $20,581GROSS MARGIN TOTAL $27,571GROSS MARGIN PER COW $276GROSS MARGIN/DSE $14.58GROSS MARGIN/hectare $145.84COMMENTSGM 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

71


GROSS MARGIN SENSITIVITY PER COW$/kg Liveweight(yearlings/steers)

$1.25 $1.50 $1.75 $2.00 $2.2560% $40 $75 $111 $147 $18265% $61 $101 $140 $180 $22070% $82 $126 $170 $214 $25875% $103 $151 $199 $248 $296

Weaning 80% $124 $176 $229 $281 $334% 85% $145 $201 $258 $315 $371

90% $166 $227 $287 $348 $40995% $187 $252 $317 $382 $447100% $208 $277 $346 $416 $485

PER Ha$/kg Liveweight(yearlings/steers)

$1.25 $1.50 $1.75 $2.00 $2.2560% $21 $40 $59 $78 $9765% $32 $53 $74 $95 $11770% $43 $67 $90 $113 $13775% $54 $80 $105 $131 $157

Weaning 80% $65 $93 $121 $149 $177% 85% $77 $107 $137 $167 $197

90% $88 $120 $152 $184 $21695% $99 $133 $168 $202 $236100% $110 $147 $183 $220 $256

BEEF CATTLE - HIGH RAINFALL

0

20

40

60

80

100

120

$/C

ow

Variable Costs

Cost/cow

72


Assumptions: (Breeding young cattle for local trade, grass fattened)Breeding Cow 14.5 DSE 100 Cow breeding herdCalf Weaning 85% 13 cows replaced per yearHerd Deaths 3% 3% Bulls bought for $3,000Cows c.f.a 10 years old sold for $900Uses 13 heifers as replacements after 3 yearsCarry over calf 8 DSE 50% carryover to heavier weightsWeaned @ 8 months 6 months extra carry overHeifers mated @ 15 months 1941 Herd DSEStocking rate 5.00 DSE/ha Drench cows 2 xArea required 388 hectares Drench calves 1 xFeeds 35 kg/DSE hay equivalent supplement

2013INCOME YOUR

ESTIMATEStock sales 43 vealers @ 270 kg liveweight @ $1.75 /kg L/W $20,081

29 yearlings 400 kg liveweight @ $1.60 /kg L/W $18,314Culls 10 Cows @ 550 kg liveweight @ $1.10 /kg L/W $5,800

1 bull@ $900


VARIABLE COSTSBull PurchasesNo. of bulls 1 @ $3,000 total $3,000Veterinary & MedicinesDrench - cows 2x calves 1x 285 @ $4.28 /head $1,218E T 85 @ $4 90 /t $417

BEEF CATTLE - CEREAL ZONE

Ear Tags 85 @ $4.90 /tag $417Lice Treatments 0 @ $0.00 /dose $0Vaccine (5 in 1) 170 @ $1.20 /dose $204

Supplementary FeedHay 68 tonne @ $160.00 /tonne $10,880Grain 0.00 t/head @ $240.00 /tonne $0Blocks/ Mineral Mix 100 @ $5.00 /head $500Sale costs and otherInsurance $117,250 @ $2.00 /$1000 $235Transport: Lvstk 82 head @ $15.00 /km $1,226Transport: Hay 68 tonne @ $0.00 /tonne $0Commission @ 5.5% $2,480Levies @ $5.00 /head $409

TOTAL VARIABLE COSTS $20,568GROSS MARGIN TOTAL $24,527GROSS MARGIN PER COW $245GROSS MARGIN/DSE $12.64GROSS MARGIN/hectare $63.18COMMENTS

73


GROSS MARGIN SENSITIVITY PER COW$/kg Liveweight(yearlings/steers)

$1.25 $1.50 $1.75 $2.00 $2.2560% $43 $79 $115 $151 $18865% $64 $104 $144 $185 $22570% $84 $129 $174 $218 $26375% $105 $154 $203 $252 $301

Weaning 80% $126 $179 $232 $285 $338% 85% $147 $204 $262 $319 $376

90% $168 $230 $291 $352 $41495% $189 $255 $320 $386 $451100% $210 $280 $350 $419 $489

PER Ha$/kg Liveweight(yearlings/steers)

$1.25 $1.50 $1.75 $2.00 $2.2560% $11 $20 $30 $39 $4865% $16 $27 $37 $48 $5870% $22 $33 $45 $56 $6875% $27 $40 $52 $65 $77

Weaning 80% $33 $46 $60 $74 $87

% 85% $38 $53 $67 $82 $9790% $43 $59 $75 $91 $10795% $49 $66 $83 $99 $116100% $54 $72 $90 $108 $126

BEEF CATTLE - CEREAL ZONE

0

20

40

60

80

100

120

$/C

ow

Variable Costs

Cost/cow

74


Assumptions: (Breeding young cattle for store trade)Breeding Cow 15 DSE 100 Cow breeding herdCalf Weaning 80% 13 cows replaced per yearHerd Deaths 3% 3% Bulls bought for $3,000Cows c.f.a 10 years old sold for $900Uses 13 heifers as replacements after 3 yearsCarry over calf 8 DSE 100% carryover to heavier weightsWeaned @ 8 months 6 months extra carry overHeifers mated @ 15 months 2248 Herd DSEStocking rate 2.5 DSE/ha Drench cows 0 xArea required 899 hectares Drench calves 0 xFeeds 20 kg/DSE hay equivalent supplement

2013INCOME YOUR

ESTIMATEStock sales 67 yearlings 360 kg liveweight @ $1.50 /kg $36,180Culls 10 Cows @ 550 kg lwt @ $1.00 /kg $5,500

1 bull@ $1,000GROSS INCOME $42,680

VARIABLE COSTSBull DepreciationBull purchase 1 @ $3,000 total $3,000Veterinary & MedicinesDrench 0 @ $4.28 /head $0Ear Tags 80 @ $4.90 /tag $392

BEEF CATTLE - PASTORAL

Ear Tags 80 @ $4.90 /tag $392Lice Treatments 196 @ $0.00 /dose $0Vaccine (5 in 1) 160 @ $1.20 /dose $192Supplementary FeedHay 45 tonne @ $160.00 /tonne $7,200Grain 0.00 t/head @ $240.00 /tonne $0Sale costs and otherInsurance $111,500 @ $2.00 /$1000 $223Transport: Lvstk 78 head @ $15.00 /km $1,170Transport: Hay 79 tonne @ $0.00 /tonne $0Commission @ 5.5% $2,347Levies @ $5.00 /head $390

TOTAL VARIABLE COSTS $14,914GROSS MARGIN TOTAL $27,766GROSS MARGIN PER COW $278GROSS MARGIN/DSE $12.35GROSS MARGIN/hectare $30.88COMMENTSFeed costs include an allowance for drought fodder.Livestock weight will vary between cattle breed, feed type and age.

75


GROSS MARGIN SENSITIVITY PER COW$/kg LWT yearlings/steers)

$1.00 $1.25 $1.50 $1.75 $2.0060% $85 $127 $170 $212 $25465% $103 $150 $197 $243 $29070% $121 $172 $224 $275 $32675% $139 $195 $251 $306 $362

Weaning 80% $157 $217 $278 $338 $398% 85% $175 $240 $305 $369 $434

90% $193 $262 $332 $401 $47095% $211 $285 $359 $432 $506100% $229 $307 $386 $464 $542

PER Ha$/kg LWT (yearlings/steers)

$1.00 $1.25 $1.50 $1.75 $2.0060% $9 $14 $19 $24 $2865% $11 $17 $22 $27 $3270% $13 $19 $25 $31 $3675% $15 $22 $28 $34 $40

Weaning 80% $17 $24 $31 $38 $44

% 85% $19 $27 $34 $41 $4890% $21 $29 $37 $45 $5295% $23 $32 $40 $48 $56100% $25 $34 $43 $52 $60

BEEF CATTLE - PASTORAL

0

10

20

30

40

50

60

70

80

$/C

ow

Variable Costs

Cost/cow

76


SHEEPLice Control Extinosad $41.50 /litre

$0.83 /20ml doseDrench Ivomec $15.00 /litre

$0.19 /12.5ml doseVaccine 3 in 1 $50.00 250ml

$0.20 /1ml dose6 in 1 $60.00 250ml

$0.24 /1ml doseBlowfly Control Clik $50.00 /litre

$1.20 /24 ml doseWool packs nylon $11.50 ea

Shearing Sheep $267.47 /100rams $534.94 /100shed labour $200.40 /daywool classer $239.66 daysuperannuation 9.25% wagesWork Cover-Allow 4.00% totalshed sundries $0.15 /head

Crutching sheep $85.59 /100rams $171.18 /100

lamb marking mulesing / materials $1.30 /headmarking only $1.00 /headear tags $0.35 /head

Stock purchaces purchase rams $750.00 /headpurchase wethers $45.00 /head

Stock selling Sell wethers $70.00 /headfreight sheep $3.00 /head $5.00 Pastoral freight lambs $3.00 /head $5.00 Pastoral freight bales $8.00 /bale $10.00 Pastoral commission/insurance 5.5%yard fees $0.70 /headsheep transaction levy $0.20 /headlamb transaction levy $1.50 /headSA sheep industry levy $0.40 /headwool brokerage / testing $0.22 /kgwool levy 2.0%

BEEFDrench (backline) Genesis $171.00 /litre

$4.28 /25ml dose7 in 1 vaccine $150.00 /250 ml

$1.20 2.5

Trace Element treatments $3.00 /headHGP implant $1.75Vitamin injection $1.30

NLIS Breeder Tags (incl levy) $4.90 each

freight cattle in $12.00 /headfreight cattle out $15.00 /headCatle levy $5.00 /head

FEED & OTHER COSTS water $2.50 /DSEfuel $0.70 /DSEother $0.50 /DSEhay $160.00 /tonneFeed Cereal grain $240.00 /tonnelupins $260.00 /tonne

FARM COSTS - 2013Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Costs will varydepending on situation. Users of this publication should ascertain the relevance of these costs to their particular situation and make adjustments to grossmargin budgets if required.

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CHEMICAL COSTS - HERBICIDESS-metolachlor 960g/L (Dual®Gold) $16.00 /litreTrifluralin 480g/L $6.00 /litreQuizalofop (Targa®) $10.00 /litreMetsulfuron methyl $0.08 /gramDiclofop methyl 500g/L(Hoegrass®) $18.75 /litreBrodal®Options $43.00 /litreBalance ® $0.38 /gramChlorsulfuron 750g/kg (Glean) $0.12 /gramClopyralid 300g/L (Lontrel) $30.00 /litreLexone (Metribuzin 750 gm/kg) $0.03 /gramOxyfluorfen 240g/L $18.00 /litreM.C.P.A. LVE $9.00 /litreVerdict® 520 $44.00 /litreReglone® $20.00 /litreSakura $325.00 /kgDiuron 900 gm a.i. granules $11.70 /kgBromoxynil /MCPA $13.00 /litre2,4-D Amine (625g/l) $5.00 /litreAchieve® WG $65.00 /kgSupercharge $7.25 /litreTalstar $44.00 /litreTri-allate 500g/L $10.00 /litreDicamba 500g/L $19.50 /litreBroadstrike® $0.72 /gramAtrazine (Gesaprim) $8.00 /litreTigrex® $17.60 /litreTriasulfuron 750g/kg (Logran) $0.08 /gmTopik® EC $80.00 /litreMCPA Amine (750g/L) $9.00 /litreSelect® $14.00 /litreParaquat $5.50 /litreGlyphosate 540g/L $5.00 /litreSprayseed® $11.00 /litreSimazine Granules 900g/kg $7.60 /kgTerbyne 750 $21.00 /kg

Boxer Gold $13.75 /litre Affinity $176.00 /litre Midas /litre Intervix /litreCHEMICAL COSTS - ADJUVANTS

Uptake (Oil) $6.70 /litreBS-1000 (WETTER) $6.00 /litreSurfactant cost (with Achieve) Per Ha $4.08 Assume 75l/ha @ 0.75% surf.Oil Cost $2.51 Assume 75l/ha @0.5% oilWetter Cost per Ha $0.45 Assume 75l/ha @ 0.1% surf.

CHEMICAL COSTS - INSECTICIDESDimethoate 400g/L $10.00 /litreOmethoate 400g/L $29.00 /litreAlpha-cypermethrin 16g/L $7.00 /litreLambda-cyhalothrin (Karate Zeon®) $165.00 /litre 24mls/haImidanMaldison 500g/L $8.50 /litreChlorpyrifos 500g/L $10.00 /litre Lorsban

FARM COSTS - 2013Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Users of thispublication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required.

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CHEMICAL COSTS - FUNGICIDESApron XL 350 ES $350.00 /litreMancozeb 750g/kg $10.00 /kgVeteran C $25.00 /kgVitavax 200 FF $30.00 /kgBaytan $30.00 /kgArmour C $30.00 /kgP-Pickel T $41.00 /litreCarbendazim 500g/kg $22.00 /kgTebuconazole 430 $12.00 /litreTriadimefon 125g/L $8.70 /litrePropiconazole 250g/L $13.50 /litreChlorothalonil 500g/L $21.00 /litreProsaro $67.00 /litreAmistar $55.00 /litreOpus $30.00 /litre

CHEMICAL COSTS - TRACE ELEMENTSZincsulphate $1.45 /litreCoppersulphate $3.60 /litreMangasulphate $1.45 /litre

FUEL COSTSTotal price - Diesel (GST Exc) $1.30 /litreRebate $0.38 /litreNet Price Diesel - $/litre $0.92 /l bulk includes rebate

FERTILISER COSTSMAP 10:22 $690 /tonneDAP 18:20 $690 /tonneUrea $570 /tonneSuperphosphate $350 /tonneDAP/MAP + 2% Zn $720 /tonneDAP + Urea 24:16 $680 /tonneDAP + Urea 28:13 $650 /tonneDAP + Urea 32:10 $640 /tonne

GRAIN GRADING & PICKLING Cost /TonneGrading cereals $22.00

other crops $24.00Pickling cereals $1.30

other crops $1.40Cleaning wheat $24.00

barley $25.00peas $30.00

Smuticide - Cereals Veteran C $25.00

Inoculant Legumes $18.00

Seed Treatment P-Pickle T $82.00 /tonne

FARM COSTS - 2013

Note- Assumes minimum standard of application for smuts and bunts. More expensive options available which may give some control of foliar diseases. Seek advice

Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Users of thispublication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required.

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STOCK RETURNS 2011 Average (Clean)2012 Average

(Clean)Jan, 2013

(Clean)Budget Base

(Clean)Budget Base

(Greasy)WOOL- High Rainfall 28 mic 70%Yield 656 607 619 610 427 - High Rainfall 19.5 mic 70% Yld 1466 1263 1307 1300 910 - Med Rainfall 21 mic 68% Yield 1311 1217 1232 1230 836 - Low Rainfall 22 mic 63% Yield 1250 1190 1204 1200 756

- Crossbred Ram 32 mic 250

FREIGHT COSTS (as included in Gross Margins) Cost /TonneCANOLA $25.00FERTILIZER $20.00LENTILS $30.00OTHER LEGUME GRAINS $25.00CEREAL GRAINS $20.00TRITICALE $25.00HAY-OATEN $28.00

CONTRACT RATES (indicative only- will be highly variable depending on situation)aerial spraying $14.00 /hectareContract harvesting cereals, low rainfall $40.00 /hectareContract harvesting cereals, high rainfall $60.00 /hectareContract harvesting pulse/canola, low rainfall $68.00 /hectareContract harvesting pulse/canola, high rainfall $90.00 /hectareWindrowing $35.00 /hectareContract spreading $32.00 /tonne includes cartageContract spreading $12.00 /tonne excludes cartageHaymakingContract mowing-up to $45.00 /hectareContract raking $25.00 /hectareContract baling (750kg square bales) $20.00 /baleSuper conditioner (oaten hay) $25-35.00 /hectare

FARM COSTS- 2013Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Users of thispublication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required.

INSURANCE COSTSLivestockSheep and cattle $2.00 /$1,000 insured CropsCereals $8.50 /$1,000 insured Chickpeas, lupins, safflower $10.00 /$1,000 insured Faba beans, vetch, lentils, canola $12.00 /$1,000 insured Field Peas $16.00 /$1,000 insured

FARM COSTS - 2013Note: The below costs have been collected from a umber of regional sources and should be seen as an approximate guide only. Users of this publicationshould ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required.

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Gross Margin Pro-Forma INCOME

$/ha

Average yield t/ha @ $ /tonne (estimated silo return) TOTAL INCOME EXPENSES Pool Charges & Interest t/ha @ $ /tonne Seed kg/ha @ $ /tonne Seed treatment

kg/ha @ $ /tonne

Fertiliser kg/ha @ $ /tonne kg/ha @ $ /tonne kg/ha @ $ /tonne Chemicals Herbicides Insecticides Fungicides Machinery Fuel & Oil Repairs & Maintenance

Freight Grain kg/ha @ $ /tonne Fertiliser kg/ha @ $ /tonne Contract Work

kg/ha @ $ /tonne kg/ha @ $ /tonne Insurance Other kg/ha @ $ /tonne kg/ha @ $ /tonne TOTAL EXPENSES GROSS MARGIN /HECTARE

Delivering Outstanding Solutions

Environment

Agribusiness

RURA

LSO

LUTIO

NS S

A

1300 364 322www.ruralsolutions.sa.gov.au

South Australian Grain Industry Trust

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

GRAIN INDUSTRY R E S E A R C H U P D A T E

TARGETED RESEARCH

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

Documents

Farm Gross Margin and Enterprise Planning Guide - Grains