Farm Gross Margin and Enterprise Planning Guide 2018 gross margin template for crop and livestock enterprises Farm Gross Margin and Enterprise Planning Guide 2018 A gross margin template

Farm Gross Margin and Enterprise Planning Guide

A gross margin template for crop and livestock enterprises

2018

Mike Krause

Farming

the Business

Module 1

Mike Krause

Module 2

Mike Krause

Module 3

Mike Krause

GRDC_A4_FB_Manual_Comp.indd 1 15/06/2017 2:23 PM


Farm Gross Margin and Enterprise Planning Guide 2018


y Provides representative gross margins for all major extensive crop and livestock enterprises across South Australia

y Compares the sensitivity of profit of enterprises to a change in production and price

y Includes a comprehensive list of major cropping and livestock input costs

A Rural Solutions SA publication

Sponsored by SAGIT and GRDC

ISSN – 2207-2349 (Print)

ISSN – 2207-2357 (Online)

DISCLAIMERThis guide has been prepared in good faith on the basis of the information available at the date of publication without any independent verification. The South Australian Grain Industry Trust, Rural Solutions SA and the Grains Research and Development Corporation do not guarantee or warrant the accuracy, reliability, completeness or currency of the information in this guide nor its usefulness in achieving any purpose.

Readers are responsible for assessing the relevance and accuracy of the content of this guide. The South Australian Grain Industry Trust, Rural Solutions SA and the Grains Research and Development Corporation will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on the information in this Farm Gross Margin Guide. Published February 2018

2018 Farm Gross Margin Guide

Farm Gross Margin and Enterprise Planning Guide 2018The South Australian Grains Industry Trust, in association with Primary Industries and Regions SA (PIRSA) and the Grains Research and Development Corporation are pleased to again produce this annual publication on expected gross margins for broadacre cropping and livestock enterprises in South Australia. It incorporates latest information on input and output pricing to give estimates of the relative profitability of different farm enterprises, as an aid to decision making in enterprise selection.

Each year farmers are confronted with an array of challenges brought on by the vagaries of weather, production and marketing. In 2017, growing season rainfall was below average to very much below average in all agricultural districts except the South East, Southern Murray Mallee, Southern Yorke Peninsula and Fleurieu Peninsula. Where good summer weed control allowed soil moisture to be conserved and where crops were sown and emerged early, crops yielded above average, however paddocks with poor summer weed control or where crops were sown or emerged late, yielded below average. Frost also impacted on yields in some areas. Livestock enterprises have generally performed well, despite the dry conditions but increasing feed costs have impacted some enterprises.

There have been subtle but significant changes in crop diversity over the past decade. Traditionally, virtually all rotations in SA were cereal based, with wheat largely king. However, recently we have seen the emergence of the concept of wheat as a break crop to more valuable alternatives. Examples of this are canola on Lower Eyre Peninsula and lentils on Yorke Peninsula. Integral to this evolution has been the adoption of new and/or cheaper technologies such as herbicide tolerant varieties and cheaper fungicides.

This reclassification of alternative crops from ‘break crops’ to ‘rotation crops’ has come from continued evidence as to their profitability, even in lower rainfall districts.

Under this new regime, it has become even more critical to assess the potential profitability of alternatives when making enterprise selection decisions. Clearly, while this remains an area for individual decision making for each farm business, it is also clear that tightening margins are driving the need for a more robust examination of the risks and rewards of the various alternatives.

We believe that a healthy examination of gross margins of alternative enterprises is an effective tool in assisting with the process. To this end, we are pleased to be involved in the evolution of the Excel based version of the Farm Gross Margin Guide. This tool has all the normal practices for enterprises pre-loaded into an editable version which can be quickly and easily adjusted to represent individual farmer circumstance. This allows the incorporation of individuals own beliefs and judgements in producing their relevant numbers to aid decision making.

In farm business management, the focus is on getting the most from existing land and assets. The three partners in this publication have important roles in this process. GRDC supports a wide number of initiatives in this area including Farm Business Updates, Newsletters and Factsheets. The South Australian Grain Industry Trust (SAGIT) provides local solutions to local problems, investing more than $2 million each year in supporting SA centric grains research. Rural Solutions SA’s purpose is to assist primary industries and regions to grow, innovate and maximise their economic growth potential.

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.

The South Australian Grain Industry Trust and the Grains Research and Development Corporation have pleasure in partnering with PIRSA’s Rural Solutions SA to produce and distribute this guide as a valuable aid in your decision making.

IMPORTANT NOTE: An editable Excel version of this guide has been produced which allows easy adjustments of these Gross Margins to individual circumstances. Please visit the SAGIT, GRDC or PIRSA websites to download the Excel version.


Michael Treloar Chairman

SAGIT

Keith Pengilley Chairman, GRDC Southern Panel

Daniel CasementExecutive Director,Rural Solutions SA

Soil pH and EC Mapping Technology Mapping your soil pH variation across paddocks can help you reduce liming costs of acid soils and improve production.

The Veris pH and EC (electrical conductivity) mapping machine, operated by an experienced Rural Solutions SA soil consultant, can measure and map the spatial variation of pH and EC on your farm, vineyard or horticultural block. PH mapping can identify where lime is needed and EC mapping can indicate sub-soil constraints.

Mapping starts at $15/hectare plus travel costs to and from the site.

For more information contact: Andrew Harding, PIRSA Clare office Mob: 0417 886 835 or Email: [email protected]


Contents

Introduction ................................................................................................................................................. 2

Using Gross Margins for Farm Planning ..................................................................................................... 4

Calculating your own Gross Margins .......................................................................................................... 5

Strategies for Maximising Returns from Individual Enterprises ................................................................. 7

2018 Gross Margin Estimates ..................................................................................................................... 8

APW Wheat .......................................................................................................................................10

Durum Wheat ....................................................................................................................................12

Malting Barley ....................................................................................................................................14

Feed Barley .......................................................................................................................................16

Milling Oats .......................................................................................................................................18

Triticale ............................................................................................................................................ 20

Export Oaten Hay .............................................................................................................................. 22

Vetch .................................................................................................................................................24

Lupins .............................................................................................................................................. 26

Red Lentils ....................................................................................................................................... 28

Lentils (Imi Tolerant) .......................................................................................................................... 30

Field Peas ........................................................................................................................................ 32

Faba Beans ...................................................................................................................................... 34

Chickpeas ........................................................................................................................................ 36

Canola – Conventional ....................................................................................................................... 40

Canola – Triazine tolerant .................................................................................................................. 42

Canola – Clearfield ............................................................................................................................ 44

Sown Pasture ................................................................................................................................... 46

Self-Regenerating Pasture ................................................................................................................ 48

Prime Lambs – High Rainfall .............................................................................................................. 50

Self Replacing Merino Flock – High Rainfall ......................................................................................... 52

Merino Wethers – High Rainfall .......................................................................................................... 54

Prime Lambs – Cereal Zone ............................................................................................................... 56

Self Replacing Merino Flock – Cereal Zone ......................................................................................... 58

Merino Wethers – Cereal Zone ........................................................................................................... 60

Cleanskin Sheep – Cereal Zone .......................................................................................................... 62

Prime Lambs – Pastoral Zone ............................................................................................................ 64

Self Replacing Merino Flock – Pastoral Zone ....................................................................................... 66

Merino Wethers – Pastoral Zone ........................................................................................................ 68

Beef Cattle – High Rainfall ................................................................................................................. 70

Beef Cattle – Medium Rainfall ............................................................................................................ 72

Beef Cattle – Low Rainfall ...................................................................................................................74

Appendices ................................................................................................................................................ 76

Blank Pro Forma ........................................................................................................................................ 80

2018 Farm Gross Margin Guide2

Introduction"The key task of farm management is making choices between alternatives. Farm management analysis is about analysing those choices (and) encompasses considering alternative actions under risky and uncertain circumstances.” Malcolm, B., Makeham, J. and Wright, V. 2005, ‘The Farming Game’, Cambridge University Press

The choice of enterprises within a farm system remains a complex decision with a range of possible scenarios. There is generally no best bet system - differences in climate, soil type, market access, labour and management all contribute to the need for land managers to negotiate a system which fits their individual needs. A general outcome being sought from the farming system is profit maximisation at an acceptable level of risk.

The gross margin for a farm enterprise is one measure of profitability that is a useful aid to enterprise planning. The calculation of gross margins can be the starting point for construction of cash flow budgets and assessment of whole farm profitability. They can also be used to assist in assessing the opportunity to develop new farm enterprises.

What are Gross Margins?Gross margin profit is the difference between the annual gross income for that enterprise and the variable costs directly associated with the enterprise.

In constructing gross margins, fixed (overhead) costs are ignored, as it is considered that they will be incurred regardless of the level of the enterprise undertaken.

The gross margin of different enterprises should not be compared if they have different overhead costs.

The direct comparison of gross margins is most useful when the various alternatives fit into the same part of the rotation e.g. the cereal or legume phase. The gross margins in this booklet have been grouped on this basis.

The base gross margins included in this book should be adjusted as required for commodity prices, yield, input costs and input items. These items vary considerably between different locations and different farm businesses.

Treatment of machinery It is assumed that most machinery items (tractors, seeders, sprayers, harvesters etc.) are owned by the farm business. In each gross margin in this guide, the operating costs (fuel and repairs) have been included based on the number of machinery passes specified. No allowance is included in the gross margin for machinery ownership costs such as depreciation or opportunity cost of capital. When calculating enterprise profitability, these ownership costs need to be included. An alternative is to include all machinery costs at full contract rates.

y Compare the relative profitability of current farm enterprises, paddocks or rotations

y Estimate changes in enterprise profit caused by changes in price, cost or yields

y Pinpoint high cost or low income areas in the existing farm plan

y Evaluate the profitability of a re-organisation of the farm enterprise mix

A gross margin template for crop and livestock enterprises 3

Limitations of Gross MarginsThe gross margins prepared within this publication have been designed to represent ‘average case scenarios’ within the respective rainfall zones of South Australia. They should be treated strictly as a base guide only and adapted by users for their particular situations.

Gross margins are best used to compare enterprises that make use of the same resources on the property. They cannot be used where varying capital input is needed for an enterprise. Cropping and livestock gross margins can only be compared if all capital resources are already on the property.

Estimates of inputs and production can vary from what actually occurs. Although a crop might have the highest gross margin, it might be the most sensitive to variation. Commodity prices, seasonal conditions, pests and disease can significantly affect the eventual gross margin. Risk can be assessed by comparing gross margins calculated with varying values for an input.

Sensitivity analysis tables are included in the guide to help determine the impact on the gross margin of significant changes in yield and price. These tables assume input costs remain the same, however generally these will vary with changes in yield.

Agronomic information including chemical rates are provided as a guide only and exact agronomic recommendations will vary with location, soil type and a number of other factors.

Gross margins have been broadly delineated into production zones based on rainfall. Average annual rainfall zones have been classified as ‘Low Rainfall’ (<350 mm), ‘Medium Rainfall’ (350 – 400mm) and ‘High Rainfall’ (>400mm).

KEY POINT

Make your own adjustments to the gross margins in this book using the Excel editable version


Using Gross Margins for Farm PlanningGross margins are just one component of a whole range of factors which go into enterprise selection for paddocks and zones on a farming property. There are other core characteristics of farming systems which potentially contribute to success over time. These include:

1. Appropriate level of income diversificationVirtually all cropping systems in South Australia involve some level of diversification. The traditional approach has been to include livestock although most farm systems in more favoured cropping locations have reduced or even removed livestock from the system. These areas tend to have a more diversified range of crop options than lower rainfall systems.

2. Adoption of right rotations, along with attention to detail“Right rotations pay - they don’t cost”. This catch cry from the Right Rotations initiative in the 1980’s continues to be relevant. Appropriate crop sequencing involves decisions around weed, disease and nutrition implications along with other considerations such as herbicide residues, carry-over of water from previous crops etc. There is also no substitute for good agronomy and/or livestock husbandry.

3. Understanding and acknowledging comparative advantageThis applies both to the business location and the technical and personal characteristics of business managers. Some crops are just not suitable to be grown in certain areas, and some people just should not run livestock! Understanding and working with variations in land capability across farms is important.

4. Meeting market requirementsOur mixed farming systems in SA have traditionally produced grain and livestock products which generally have had good demand and acceptance on world markets. The caveat here is that even though market acceptance is good, difficulties can arise when supply and demand get out of balance resulting in poor prices which test farm business profitability.

Gross margins on their own do not make the decision on enterprise selection across the property. Each activity undertaken on a farming property will have an impact on other activities:

y Some may be complimentary such as cropping enterprises which provide a feed base to livestock through crop residues

y Crops planted in one year will have a rotational effect on subsequent crops (both positive (e.g. cereals on legumes) and negative (e.g. canola on canola)

For more information on the use of gross margin analysis, refer to the following GRDC publications:

Farm Financial Tool- Crop Gross Margin Budget

http://www.grdc.com.au/GRDC-FS-FFT-CropGrossMarginBudget

Farm Financial Tool- Livestock Gross Margin Budget

http://www.grdc.com.au/GRDC-FS-FFT-LivestockGrossMarginBudget

http://www.grdc.com.au/GRDC-FS-FFT-CropGrossMarginBudget

http://www.grdc.com.au/GRDC-FS-FFT-LivestockGrossMarginBudget


Calculating Your Own Gross Margins

The gross margins in this guide 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.

The gross margins shown in this publication are designed to represent a fair estimate of returns available from cropping and livestock enterprises across the cropping regions of South Australia using good management practices. However, clearly, expected outputs along with inputs (e.g. rates and types of fertiliser and weed control treatments) will vary depending on individual circumstances.

An Excel based editable version of the gross margins shown in this guide is available for download from the following websites:

https://grdc.com.au/FarmGrossMarginGuide2018

www.pir.sa.gov.au/consultancy/farm_gross_margins_and_enterprise_planning_guide

www.sagit.com.au/publications/

Using the Excel version allows for easy adjustments of the pre-loaded information. Remember that these calculations are not meant to be an exact science - roughly right is better than precisely wrong! Use your own estimates when the values vary significantly from those included in the example.

Calculating the break-even yield needed to cover variable costs will give some indication of the riskiness or exposure of the particular enterprise. Remember, of course, that there are many other costs (in addition to the variable costs) which need to be covered before a profit is made. Such costs include overhead costs, depreciation, interest and labour and management. Reference to the sensitivity tables will provide further information on how the returns from the enterprise are expected to respond to a range of prices and yields.

2018 South Australian Crop Variety Sowing GuideThis guide, compiled by officers from SARDI and sponsored by SAGIT, PIRSA and GRDC provides information on appropriate varietal selection to maximise production and profitability from broadacre cropping and should be read in conjunction with this Farm Gross Margin Guide.

SOWING GUIDE

2018

SOUTH AUSTRALIA

grdc.com.au

WHAT TO SOW NEXT SEASON > THE ESSENTIAL GUIDE TO THE MOST SUITABLE VARIETIES

http://www.pir.sa.gov.au/consultancy/farm_gross_margins_and_enterprise_planning_guide

http://www.sagit.com.au/


Strategies for Maximising Returns from Individual EnterprisesThis Gross Margins Guide aims to cover all broadacre cropping and grazing areas in South Australia. Circumstances obviously vary significantly across different regions. However, there are some rules of thumb and other resources which can provide guidance on decision making to aid in maximising returns from individual enterprises.

Storage of Out of Season Soil Water Provides the opportunity to significantly improve Water Use Efficiency and hence crop performance. The key to effective storage of soil moisture over the summer period is to get the soil water deep in the soil profile, below the zone subject to evaporation and then retain soil moisture through to seeding by control of summer weeds. Below average spring and/or summer rainfall will limit the opportunity to store soil moisture.

Lighter Mallee type soils y Rainfall events above 40mm in December/January should result in some stored moisture with summer weed control

y Less than 40mm rainfall events may still warrant summer weed control for ease of seeding operations and nutrient retention (mainly N)

y There is a strong case to apply zero tolerance summer weed control policy on light soils with no sub-soil limitations

Heavier soils y May require larger rainfall events (up to 100mm) in December/January to store soil moisture if soils are already very dry

y Smaller rainfall events from February onwards will warrant control of germinated weeds

y Control of summer weeds earlier than February may also be dependent on other considerations e.g. improved ease of sowing, low cost of control, nutrient retention

Maximising Time of Sowing BenefitsEarly seeding generally provides the most reliable yield outcome, particularly in low rainfall situations. However, frost prone areas have special considerations which need to be taken into account.

Sowing Opportunity with Early Break

Frost Risk Start SowingLow After mid April

Medium After 25th April

High After early May

y Sow at the optimum time, even in high frost risk areas. Use appropriate varieties to manage flowering time

y The yield loss from moisture and temperature stress during spring will usually be far greater than the damage caused by frost

y The most severe and damaging frosts are those associated with dry conditions in mid to late spring (black frosts), which can be devastating even to crops that have completed flowering


Ensuring Efficient Fertiliser PracticesFor more information on Better Fertiliser Decisions refer to the following GRDC factsheet, www.grdc.com.au/GRDC-FS-BFDCN

Aim to maintain soil nutrient status at appropriate levels to maximise sustainable and profitable production.

Phosphorous Replacement Levels

Crop Removal Removal plus losses #

Cereal grain 3 kg/t 4 kg/t

Pulses 4 kg/t 5 kg/t

Canola 7 kg/t 8 kg/t

Cereal hay 2 kg/t 2.5 kg/t

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

Reduce P application on soils with sub soil constrains when:

y Moderate to low stored soil moisture

y And crop sown more than 3 weeks after the optimum sowing date.

N FertiliserWide range of soil types, rotational histories and climatic conditions means that Nitrogen requirements of crops will vary considerably. Assess opening N supply (e.g. by using deep soil sampling) and then monitor yield and N requirements through models such as Yield Prophet®.

Refer www.yieldprophet.com.au

Micronutrients and trace elementsMicronutrient deficiencies can be tricky to diagnose and treat. By knowing your soil type, considering crop requirements and the season, and supporting this knowledge with diagnostic tools and strategies, effective management is possible.

Refer www.grdc.com.au/GRDC-FS-CropNutrition-Micronutrients

PestFactsPestFacts is a FREE electronic newsletter service, produced by SARDI, designed to keep growers and advisers informed about invertebrate pest-related issues and solutions as they emerge during the growing season. PestFacts issues warnings (or reminders) for a range of invertebrate pests of all broad-acre crops including pulses, oilseeds, cereals and fodder crops.

Refer www.pir.sa.gov.au/research/services/reports_and_newsletters/pestfacts_newsletter

http://www.grdc.com.au/GRDC-FS-BFDCN

http://www.yieldprophet.com.au/

http://www.grdc.com.au/GRDC-FS-CropNutrition-Micronutrients

http://www.pir.sa.gov.au/research/services/reports_and_newsletters/pestfacts_newsletter


2018 Gross Margin EstimatesThe tables below summarise the anticipated gross margins for all crops and livestock for 2018.

LIVESTOCKCommodity $/ha Low Medium High Pastoral

ZoneCereal Zone

High R/F Zone

APW Wheat 179 315 504 Prime Lambs 28 51 44Durum 150 321 585 Merino breeders 44 63 65Malt Barley 190 309 494 Merino wethers 29 35 45Feed Barley 145 226 391 54Milling Oats 30 160 294 22 26 28Triticale 81 197 334Oaten Hay 240 292 241Grain Vetch 75 188 287Lupins 51 152 249Lentils 185 366 526Lentils- Imi Tolerant 151 289 447Field Peas 93 170 297Faba Beans 52 204 507Chickpeas (Kabuli) 203 399 677Canola- Conv 141 302 545Canola-TT 63 185 434Canola-Clear 107 239 482Sown Pasture 166 335 503Self Regen Pasture 196 359 523

CROPPING

Beef CattleCleanskin

Enterprise $/dse

Commodity Prices Historical DataHistorical commodity price data and trends can be used as a guide in assessing average returns over time and also the variability of those returns for any given commodity. NOTE: 18/19 Forecast Grain Prices: Forecast grain prices for 18/19 are affected by the value of the Australian Dollar, world consumption, and Australian and other major grain exporting countries production. Future pricing is uncertain and caution is needed with projections.

Commodity Jan 2014 Jan 2015 Jan 2016 Jan 2017 Jan 2018

5 yr Average

2018 Estimate

APW Wheat ($/t) 260 290 250 220 240 252 245Durum ($/t) 340 550 370 305 310 375 300Malt Barley ($/t) 255 320 290 200 288 271 270Feed Barley ($/t) 215 270 205 160 225 215 210Milling Oats ($/t) 190 240 290 160 200 216 200Feed Oats ($/t) 180 230 275 150 180 203 170Triticale ($/t) 200 240 210 180 220 210 205Grain Vetch ($/t) 380 650 850 300 350 506 350Lupins ($/t) 305 335 380 230 270 304 270Lentils ($/t) 630 940 1340 680 420 802 450Field Peas ($/t) 320 400 550 350 285 381 300Faba Beans ($/t) 420 490 560 270 315 411 330Chickpeas 6-8mm Kabuli ($/t) 440 530 1050 1450 900 874 700Canola ($/t) 490 480 530 520 480 500 500Oaten Hay ($/t) 155 160 170 170 170 165 170


Comparative returns between farm enterprises – High Rainfall

Comparative returns between farm enterprises – Medium Rainfall

Comparative returns between farm enterprises – Low Rainfall

$0

$100

$200

$300

$400

$500

$600

$700

$800

GM

$/h

aCropping Gross Margin per Hectare

High Rainfall

$0

$10

$20

$30

$40

$50

$60

$70

GM

$/d

se

Livestock Gross Margin per dse High Rainfall

$0

$50

$100

$150

$200

$250

$300

GM

$/h

a

Cropping Gross Margin per Hectare Low Rainfall

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

GM

$/d

se

Livestock Gross Margin per dse Pastoral Zone

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

GM

$/h

a

Cropping Gross Margin per Hectare Medium Rainfall

$0

$10

$20

$30

$40

$50

$60

$70G

M $

/dse

Livestock Gross Margin per dse Cereal Zone


2018INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (18/19 Forecast) $245 $245 $245Quality APW (Change Price for other grades)Yield (t/ha) 1.5 2.7 4GROSS INCOME $368 $662 $980

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

SeedSeed $0.24 /kg @ 60 $14.40 80 $19.20 100 $24.00Seed Treatment(1) $0.04 /kg @ 60 $2.33 80 $3.10 100 $3.88Seed Treatment(2) $0.07 /kg @ 60 $4.29 80 $5.72 100 $7.15

LeviesGRDC Levies 1.0% Gross Income $3.68 $6.62 $9.80EPR & state levies $3.50 /tonne sold $5.25 $9.45 $14.00

Fertiliser (Bulk)18:20:0 $660 /tonne @ 40 $26.40 60 $39.60 80 $52.80Flutriafol (on fert) $26.00 /litre @ 0.2 $5.20 0.2 $5.20 0.2 $5.20Urea $480 /tonne @ $0.00 80 $38.40 160 $76.80

Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsTrifluralin 480g/L $5.75 /litre @ 1.5 $8.63 $0.00 $0.00Tri-allate 500g/L $9.58 /litre @ 1.6 $15.33 $0.00 $0.00Glyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Sakura $340.00 /kg @ $0.00 0.118 $40.12 0.118 $40.12Post-emergents Topik (3) $38.80 /litre @ 0.085 $5.62 0.085 $5.62M.C.P.A. LVE $8.85 /litre @ 0.5 $4.43 $0.00 $0.00Metsulfuron methyl(4) $0.06 /gm @ 5 $0.72 $0.00 $0.00Clopyralid 600g/L $39.60 /litre @ 0.04 $1.58 0.04 $1.58 0.04 $1.58Affinity® $122.50 /litre @ $0.00 0.1 $12.25 0.1 $12.25MCPA Amine (750g/L) 8.75 /litre @ $0.00 0.33 $2.89 0.33 $2.89Fungicides

Epoxiconazole 125g/L $17.00 /litre @ 0.25 $4.25 0.5 $8.50Operations

Fuel & Oil $10.78 $12.94 $15.09Repairs & Maintenance $15.76 $18.92 $22.07

Freight Grain (t) $20.00 /tonne @ 1.5 $30.00 2.7 $54.00 4.0 $80.00Fertiliser (t) $20.00 /tonne @ 0.04 $0.80 0.14 $2.80 0.24 $4.80

Contract WorkAerial spraying $14.00 /ha @ $0.00 1 $14.00 2 $28.00Urea spreading $8.50 /ha @ $0.00 1 $8.50 2 $17.00Insurance $8.50 /$1000 @ $3.12 $5.62 $8.3Other $0.00 /ha

$0.00 /haTOTAL VARIABLE COSTS $189 $347 $476GROSS MARGIN/hectare $179 $315 $504Break Even Price (to cover variable costs only) $126 $128 $119Break Even Yield (to cover variable costs only) 0.77 1.42 1.94Gross Margin based on last 5 year average price $189 $334 $532

APW WHEAT GROSS MARGIN

COMMENTS(1) Smuts and Bunts(2) Aphid Treatment(3) Includes Oil @ 0.5%(4) Includes Surfactant at 0.1%

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

APW Wheat Gross Margin


APW Wheat Gross Margin

GROSS MARGIN SENSITIVITY LOW RAINFALL

$200 $225 $245 $275 $3000.5 -$60 -$48 -$38 -$23 -$11

Yield 1 $26 $51 $70 $100 $124t/ha 1.5 $113 $149 $179 $223 $260

2.5 $285 $347 $396 $469 $5313.5 $458 $544 $613 $716 $802

MEDIUM RAINFALL

$200 $225 $245 $275 $3001 -$98 -$74 -$54 -$25 $0

Yield 2 $75 $124 $163 $222 $271t/ha 2.7 $195 $262 $315 $394 $460

3.5 $334 $420 $488 $591 $6774.5 $507 $617 $705 $838 $948

HIGH RAINFALL

$200 $225 $245 $275 $3002 -$18 $31 $70 $129 $178

Yield 3 $155 $228 $287 $375 $449t/ha 4 $327 $426 $504 $622 $720

5 $500 $623 $721 $868 $9916 $673 $820 $938 $1,115 $1,262

HISTORIC PRICES AND TRENDS

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

$/ha $/ha

seed 1 3.89 3.98 spray 6 3.30 2.01 harvest# 1 8.57 4.79TOTAL 15.76 10.78# Rates are for low rainfall zone. Extra cost in higher yielding situations

Repairs & Maint

Cash Price $/t

Cash Price $/t

Cash Price $/t

0

50

100

150

200

250

300

350

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$/to

nne

Year

APW 10.5% WHEATHISTORIC PRICES (Post Harvest)

Forward Pricefor2018/19asatJan2018$240/tonne

0

20

40

60

80

100

120

140

160

$/ha

Variable Costs

Low Medium High


Durum Gross Margin2018

INCOME YOURRainfall Zone LOW MEDIUM HIGH ESTIMATE

Price (18/19 Forecast) $300 $300 $300Quality Durum 13%Yield (t/ha) 1.2 2.2 3.4GROSS INCOME $360 $660 $1,020

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



Fertiliser (Bulk)Granulock Z18 $694 /tonne @ 40 $27.76 60 $41.64 80 $55.52Urea $480 /tonne @ 50 $24.00 150 $72.00 200 $96.00

Chemicals-Herbicides

Summer Weed Control Various Allow $25.00 $25.00 $25.00Trifluralin 480g/L $5.75 /litre @ 1 $5.75 $0.00 $0.00Tri-allate 500g/L $9.58 /litre @ 1.6 $15.33 $0.00 $0.00Boxer Gold $11.50 /litre @ $0.00 2.5 $28.75 2.5 $28.75Glyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Post-emergents MCPA LVE $8.85 /litre @ 0.5 $4.43 $0.00 $0.00Clopyralid 600g/L $39.60 /litre @ 0.04 $2.00 $0.00 $0.00Affinity® $122.50 /litre @ $0.00 0.1 $12.25 0.1 $12.25MCPA Amine (750g/L) 8.75 /litre @ $0.00 0.33 $2.89 0.33 $2.89

OperationsFuel & Oil $10.45 $12.54 $14.62Repairs & Maintenance $15.21 $18.26 $21.30


Contract WorkAerial spraying $14.00 /ha @ $0.00 $0.00 $0.00Urea spreading $8.50 /ha @ $0.00 1 $8.50 2 $17.00Insurance $8.50 /$1000 @ $3.06 $5.61 $8.67Other

TOTAL VARIABLE COSTS $210 $339 $435GROSS MARGIN/hectare $150 $321 $585Break Even Price (to cover variable costs only) $175 $154 $128Break Even Yield (to cover variable costs only) 0.70 1.13 1.45Gross Margin based on last 5 year average price $240 $486 $840

DURUM GROSS MARGIN

COMMENTSAssumes durum follows a legume crop or pasture.Price assumes Durum 13% is achieved(1) Smuts and Bunts(2) Aphid Control

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


Durum Gross Margin


$220 $260 $300 $340 $3800.4 -$98 -$83 -$67 -$51 -$36

Yield 1.2 $56 $103 $150 $197 $244t/ha 2 $210 $288 $367 $445 $524

2.8 $363 $473 $583 $693 $803MEDIUM RAINFALL

$220 $260 $300 $340 $3801.5 $14 $73 $132 $190 $249

Yield 2.2 $148 $235 $321 $408 $494t/ha 3 $302 $420 $538 $656 $774

4 $495 $652 $809 $966 $1,123HIGH RAINFALL

$220 $260 $300 $340 $3801.5 -$48 $11 $70 $129 $188

Yield 2.5 $145 $243 $341 $439 $538t/ha 3.4 $318 $452 $585 $719 $852

4.5 $530 $706 $883 $1,060 $1,236



$/ha $/ha seed 1 3.89 3.98 spray 5 2.75 1.68 harvest# 1 8.57 4.79TOTAL 15.21 10.45# Rates are for low rainfall zone. Extra cost in higher yielding situations

Repairs & Maint

Net Price $/t

Net Price $/t

Net Price $/t

0

100

200

300

400

500

600

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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DURUMHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

140

160

$/ha

Variable Costs

Low Medium High


Malting Barley Gross Margin2018


Price (18/19 Forecast) $270 $270 $270Quality MaltingYield (t/ha) 1.5 2.5 3.5GROSS INCOME $405 $675 $945




Fertiliser (Bulk)18:20:0 $660 /tonne @ 40 $26.40 60 $39.60 80 $52.80Urea $480 /tonne @ 50 $24.00 100 $48.00 150 $72.00

Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsTrifluralin 480g/L $5.75 /litre @ 1.5 $8.63 $0.00 $0.00Tri-allate 500g/L $9.58 /litre @ 1.6 $15.33Glyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Boxer Gold $11.50 /litre @ $0.00 2.5 $28.75 2.5 $28.75Post-emergents 2,4- D Amine $4.50 /litre @ 1.2 $5.40 $0.00 $0.00Metsulfuron methyl(3) $0.06 /gm @ 5 $0.72 $0.00 $0.00Clopyralid 600g/L $39.60 /kg @ 0.04 $1.58 0.04 $1.58 0.04 $1.58Affinity® $122.50 /litre @ $0.00 0.1 $12.25 0.1 $12.25MCPA Amine (750g/L) 8.75 /litre @ $0.00 0.33 $2.89 0.33 $2.89FungicidesPropiconazole 250g/L $12.35 /litre @ 0.35 $4.32 $0.00 $0.00Amistar® $40.00 /litre @ $0.00 0.4 $16.00 0.4 $16.00



Contract WorkAerial spraying $14.00 /ha @ 0 $0.00 1 $14.00 1 $14.00Urea Spreading $8.50 /ha @ $0.00 1 $8.50 2 $17.00Insurance $8.50 /$1000 @ $3.44 $5.74 $8.0Other


MALTING BARLEY GROSS MARGIN

COMMENTSAssumesbarleyfollowswheat.PriceassumesMaltinggradeisachievedwhichishighrisk.AchievingfeedgradewouldresultinlowerGrossMargin.HavingtowindrowbarleywillreduceGMbyaround25/ha(1)Systivaseeddressing(2)Aphidcontrol(3)[email protected]%

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


Malting Barley Gross Margin


$210 $240 $270 $300 $3300.5 -$81 -$66 -$51 -$36 -$22

Yield 1 $10 $40 $69 $99 $128t/ha 1.5 $101 $145 $190 $234 $278

2 $192 $251 $310 $369 $4283 $374 $462 $551 $639 $727

MEDIUM RAINFALL

$210 $240 $270 $300 $3300.5 -$202 -$187 -$172 -$158 -$143

Yield 1.5 -$20 $24 $68 $113 $157t/ha 2.5 $162 $235 $309 $383 $456

3.5 $344 $447 $550 $653 $7564 $435 $552 $670 $788 $906

HIGH RAINFALL

$210 $240 $270 $300 $3301.5 -$76 -$31 $13 $57 $101

Yield 2.5 $106 $180 $253 $327 $401t/ha 3.5 $288 $391 $494 $597 $700

4.5 $470 $602 $735 $867 $1,0006 $743 $919 $1,096 $1,273 $1,449


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

No. Fuel$/ha $/ha


Operation Repairs & Maint

Net Price $/t

Net Price $/t

Net Price $/t

0

50

100

150

200

250

300

350

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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MALT BARLEYHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High


Feed Barley Gross Margin2018


Price (18/19 Forecast) $210 $210 $210Quality Feed 1Yield (t/ha) 1.7 2.8 4GROSS INCOME $357 $588 $840





Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsTrifluralin 480g/L $5.75 /litre @ 1.5 $8.63 $0.00 $0.00Tri-allate 500g/L $9.58 /litre @ 1.6 $15.33Glyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Boxer Gold $11.50 /litre @ $0.00 2.5 $28.75 2.5 $28.75Post-emergents 2,4- D Amine $4.50 /litre @ 1.2 $5.40 $0.00 $0.00Metsulfuron methyl(3) $0.06 /gm @ 5 $0.72 $0.00 $0.00Clopyralid 600g/L $39.60 /kg @ 0.04 $1.58 0.04 $1.58 0.04 $1.58 Affinity® $122.50 /litre @ $0.00 0.1 $12.25 0.1 $12.25 MCPA Amine (750g/L) $8.75 /litre @ $0.00 0.33 $2.89 0.33 $2.89FungicidesPropiconazole 250g/L $12.35 /litre @ 0.35 $4.32 $0.00 $0.00Amistar® $40.00 /litre @ $0.00 0.4 $16.00 0.4 $16.00



Contract WorkAerial spraying $14.00 /ha @ 0 $0.00 1 $14.00 1 $14.00Urea spreading $8.50 /ha @ $0.00 1 $8.50 2 $17.00Insurance $8.50 /$1000 @ $3.03 $5.00 $7.1Other


FEED BARLEY GROSS MARGIN

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

COMMENTSAssumes barley follows wheatHaving to windrow barley will reduce GM by around $25/ha(1) Systiva seed dressing(2) Aphid control(3) Includes surfactant @ 0.1%


Feed Barley Gross Margin


$170 $190 $210 $230 $2500.5 -$95 -$86 -$76 -$66 -$56

Yield 1.2 $6 $29 $53 $76 $100t/ha 1.7 $78 $111 $145 $178 $211

2.5 $193 $242 $291 $340 $3903.5 $338 $406 $475 $544 $612

MEDIUM RAINFALL Net Price $/t

$170 $190 $210 $230 $2501.2 -$115 -$91 -$68 -$44 -$21

Yield 2 $1 $40 $79 $118 $158t/ha 2.8 $116 $171 $226 $281 $336

3.6 $232 $302 $373 $444 $5144.2 $318 $401 $483 $566 $648

HIGH RAINFALL Net Price $/t

$170 $190 $210 $230 $2502 -$55 -$15 $24 $63 $102

Yield 3 $90 $149 $208 $266 $325t/ha 4 $234 $313 $391 $470 $548

5 $378 $477 $575 $673 $7716 $523 $641 $758 $876 $994



$/ha $/ha


Repairs & Maint

Net Price $/t

0

50

100

150

200

250

300

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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FEED BARLEYHISTORIC PRICES (post harvest)

ForwardPrice2018/19asatJan2018$210/tonne

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High


Milling Oats Gross Margin2018


Price (18/19 Forecast) $200 $200 $200Quality MillingYield (t/ha) 1 2.1 3.2GROSS INCOME $200 $420 $640


SeedSeed $0.20 /kg @ 50 $10.00 65 $13.00 80 $16.00Seed Treatment (1) $0.04 /kg @ 50 $1.94 65 $2.52 80 $3.10Seed Treatment (2) $0.07 /kg @ $0.00 65 $4.65 80 $5.72

LeviesGRDC Levies 1.0% Gross Income $2.00 $4.20 $6.40EPR & state levies $2.50 /tonne sold $2.50 $5.25 $8.00 Net Price $/t



Summer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsGlyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Dual Gold $16.00 /litre @ 0.5 $8.00 0.5 $8.00 0.5 $8.00Diuron $9.00 /kg @ 0.4 $3.60 0.4 $3.60 0.4 $3.60Post-emergentsMCPA Amine $8.75 /litre @ 0.5 $4.38 0.5 $4.38 0.5 $4.38Fungicides

Tebuconazole $12.10 /litre @ 0.145 $1.75 0.145 $1.75 0.145 $1.75Operations

Fuel & Oil $10.78 $12.94 $15.09Repairs & Maintenance $15.76 $18.92 $22.07


Contract WorkAerial sprayingUrea spreading $8.50 /ha @ $0.00 1 $8.50 2 $17.00Insurance $8.50 /$1000 @ $1.70 $3.57 $5.44Other


MILLING OATS GROSS MARGIN

AGRONOMIC NOTESCOMMENTSAssumes oats follows a cereal. If following a legume less N will be required.(1) Smuts and bunts(2) Aphid treatment


Milling Oats Gross Margin


$160 $180 $200 $250 $3000.5 -$76 -$66 -$57 -$32 -$7

Yield 1 -$9 $11 $30 $79 $129t/ha 1.5 $58 $88 $117 $191 $265

2 $126 $165 $204 $302 $400MEDIUM RAINFALL

$160 $180 $200 $250 $3001 -$71 -$51 -$31 $18 $67

Yield 2.1 $77 $119 $160 $263 $366t/ha 3 $199 $257 $316 $464 $611

4 $333 $412 $490 $686 $883HIGH RAINFALL

$150 $175 $200 $250 $3001 -$137 -$113 -$88 -$39 $10

Yield 2.1 $0 $51 $103 $206 $309t/ha 3.2 $137 $216 $294 $451 $608

4 $237 $335 $433 $629 $826


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

Operation No. Fuel$/ha $/ha


Net Price $/t

Repairs & Maint

Net Price $/t

Net Price $/t

0

50

100

150

200

250

300

350

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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Year

MILLING OATSHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High


Triticale Gross Margin2018


Price (18/19 Forecast) $205 $205 $205QualityYield (t/ha) 1.3 2.4 3.5GROSS INCOME $267 $492 $718


SeedSeed $0.22 /kg @ 60 $13.20 80 $17.60 85 $18.70Seed Treatment $0.04 /kg @ 60 $2.33 80 $3.10 85 $3.30



Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsTrifluralin 480g/L $5.75 /litre @ 1.5 $8.63 1.5 $8.63 1.5 $8.63Glyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Tri-allate 500g/L $9.58 /litre @ $0.00 1.6 $15.33 1.6 $15.33Post-emergentsMCPA LVE $8.85 /litre @ 0 0.5 $4.43 0.5 $4.43MCPA amine $8.75 /litre @ 0.5 $4.38 $0.00 $0.00Metsulfuron methyl(1) $0.06 /gm @ 5 $0.72 5 $0.72 5 $0.72Clopyralid 600g/L $39.60 /litre @ 0.04 $1.58 0.04 $1.58 0.04 $1.58Fungicides



Contract WorkAerial sprayingUrea spreading $8.50 /ha @ $0.00 1 $8.50 2 $17.00Insurance $8.50 /$1000 @ $2.27 $4.18 $6.10Other


TRITICALE GROSS MARGIN

COMMENTSThis rate of fertiliser assumes triticale follows a cereal(1) Surfactant at 0.1%

AGRONOMIC NOTES


Triticale Gross Margin


$165 $185 $205 $225 $2450.5 -$78 -$68 -$58 -$48 -$38

Yield 1 -$11 $9 $29 $48 $68t/ha 1.3 $30 $55 $81 $106 $132

2 $123 $163 $202 $241 $2803 $257 $316 $375 $434 $493

MEDIUM RAINFALL

$165 $185 $205 $225 $245 1 -$85 -$65 -$45 -$26 -$6

Yield 1.6 -$4 $27 $59 $90 $121t/ha 2.4 $103 $150 $197 $244 $291

3.2 $210 $273 $336 $399 $4614 $317 $396 $474 $553 $631

HIGH RAINFALL

$165 $185 $205 $225 $2451.5 -$71 -$42 -$12 $17 $46

Yield 2.5 $63 $112 $161 $210 $259t/ha 3.5 $197 $265 $334 $403 $471

4.5 $331 $419 $507 $596 $6845.5 $464 $572 $680 $788 $896


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

$/ha $/ha


Net Price $/t

Net Price $/t

Net Price $/t

0

50

100

150

200

250

300

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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TRITICALEHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High


Export Oaten Hay Gross Margin2018


Price (18/19 Forecast) $200 $170 $140Quality Mixed gradesYield (t/ha) 3.50 5.50 8GROSS INCOME $700 $935 $1,120


SeedLeviesSeed $200.00 /tonne @ 90 $18.00 110 $22.00 130 $26.00Seed Treatment $0.00 /tonne @ 0 $0.00 0 $0.00

Fertiliser (Bulk)18:20:0 $660 /tonne @ 60 $39.60 80 $52.80 110 $72.60Urea $480 /tonne @ 30 14.40$ 75 $36.00 150 $72.00

Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsGlyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Post-emergentsDiuron $9.00 /Kg @ 0.4 $3.60 0.4 $3.60 0.4 $3.60

MCPA Amine $8.75 /litre @ 0.5 $4.38 0.5 $4.38 0.5 $4.38Pre cutting-Glypho (1) $6.00 /litre @ 2 $12.00 2.5 $15.00 2.5 $15.00InsecticidesFungicidesPropiconazole 250g/L $12.35 /litre @ 0.35 $4.32 0.35 $4.32 0.35 $4.32


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 $50.00 /ha @ 1.0 $50.00 1.0 $50.00 1.0 $50.00Super Conditioner $25-40.00 /ha @ 1.0 $25.00 1.0 $30.00 1.0 $35.00Hay baling $25.00 /bale @ 3.5 $120.69 5.5 $189.66 8.0 $275.86Hay Accumulation $3.00 /bale @ 3.5 $14.48 5.5 $22.76 8.0 $33.10Insurance $2.50 /$1000 @ $1.75 $2.34 $2.80


EXPORT OATEN HAY GROSS MARGIN

COMMENTSPrice received is strongly related to yield. Fertiliser rate assumes hay follows a cereal. Bonuses for shedding and late delivery may apply. Additional capital costs including shedding and extra machinery may be needed.

AGRONOMIC NOTESThe use of a 'super conditioner' can significantly reduce drying time and subsequently risk with less chance of a quality downgrade. No allowance has been made for cost of raking. (1) Glyphosate Weedmaster DST registered for this use


Export Oaten Hay Gross Margin


$160 $180 $200 $220 $2401.5 -$85 -$55 -$26 $4 $34

Yield 2.5 $8 $58 $107 $157 $207t/ha 3.5 $101 $170 $240 $310 $380

4.5 $194 $283 $373 $463 $553MEDIUM RAINFALL

$130 $150 $170 $190 $2102 -$148 -$108 -$69 -$29 $11

Yield 3.5 -$54 $16 $86 $156 $225t/ha 5.5 $72 $182 $292 $401 $511

7.5 $198 $348 $498 $647 $797HIGH RAINFALL

$100 $120 $140 $170 $2004 -$210 -$131 -$51 $69 $189

Yield 6 -$144 -$24 $95 $275 $454t/ha 8 -$78 $82 $241 $481 $720

10 -$12 $188 $387 $687 $986



$/ha $/ha seed 1 3.89 3.98 spray 6 3.30 2.01 roll 1 1.20 1.34

TOTAL 8.39 7.33# Rates are for low rainfall zone. Extra cost in higher yielding situations

Repairs & Maint

Net Price $/t

Net Price $/t

Net Price $/t

020406080

100120140160180200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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Year

OATEN HAYHISTORIC PRICES

0

50

100

150

200

250

300

350

400

$/ha

Variable Costs

Low Medium High


Vetch Gross Margin2018


Price (18/19 Forecast) $350 $350 $350Quality Morava vetchYield (t/ha) 0.7 1.2 1.6GROSS INCOME $245 $420 $560


Seed Seed $0.35 /kg @ 25 $8.75 30 $10.50 35 $12.25Seed Inoculant $0.05 /kg @ 25 $1.25 30 $1.50 35 $1.75

LeviesGRDC Levies 1.0% Gross Income $2.45 $4.20 $5.60

Fertiliser (Bulk)MAP $660 /tonne @ 40 $26.40 60 $39.60 80 $52.80

Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsMetribuzin 750 gm/kg $22.40 /kg @ 0.2 $4.48 0.25 $5.60 0.3 $6.72Trifluralin 480g/L $5.75 /litre @ 1.5 $8.63 2 $11.50 2 $11.50Tri-allate 500g/L $9.58 /litre @ $0.00 1.6 $15.33 1.6 $15.33Glyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Post-emergentsClethodim(incl Oil) $10.20 /litre @ 0.3 $5.39 0.5 $7.43 0.7 $9.47Haloxyfop 520g/L $38.90 /litre @ 0.04 $1.56 0.04 $1.56 0.04 $1.56Paraquat(Topping) $5.40 /litre @ 0.8 $4.32 0.8 $4.32 0.8 $4.32InsecticidesDimethoate (1) $8.45 /litre @ 0.4 $3.38 0.4 $3.38 0.4 $3.38Karate Zeon® (2) $115.50 /litre @ 0.024 $2.77 0.024 $2.77 0.024 $2.77



Contract WorkAerial spraying

Insurance $12.00 /$1000 @ $2.94 $5.04 $6.72Other


VETCH GROSS MARGIN

COMMENTSSeed is not treated with a fungicide or graded.(1) Cow pea aphid(2) Native budwormDo not exceed 800 ml/Ha Paraquat 250 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.Vetch is a dual purpose crop and grain production following grazing is possible. This can markedly influence Gross Margin performance.


Vetch Gross Margin


$300 $325 $350 $400 $4500.3 -$67 -$59 -$52 -$37 -$23

Yield 0.7 $41 $58 $75 $109 $143t/ha 1.1 $148 $175 $202 $256 $309

1.5 $255 $292 $329 $402 $476MEDIUM RAINFALL

$300 $325 $350 $400 $4500.4 -$85 -$76 -$66 -$46 -$27

Yield 0.8 $22 $42 $61 $100 $139t/ha 1.2 $129 $159 $188 $247 $305

1.8 $290 $334 $378 $466 $554HIGH RAINFALL

$300 $325 $350 $400 $4500.8 -$5 $14 $34 $73 $112

Yield 1.2 $102 $131 $161 $219 $278t/ha 1.6 $209 $248 $287 $366 $444

2.5 $451 $512 $573 $695 $818



$/ha $/ha seed 1 3.89 3.98 spray 8 4.40 2.68 roll 1 1.20 1.34 harvest# 1 19.20 6.71TOTAL 28.69 14.71# Rates are for low rainfall zone. Extra cost in higher yielding situations

Repairs & Maint

Net Price $/t

Net Price $/t

Net Price $/t

0

100

200

300

400

500

600

700

800

900

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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Year

VETCHHISTORIC PRICES (post harvest)

0

10

20

30

40

50

60

70

$/ha

Variable Costs

Low Medium High


Lupins Gross Margin2018


Price (18/19 Forecast) $270 $270 $270QualityYield (t/ha) 0.9 1.5 2GROSS INCOME $243 $405 $540


Seed Seed $0.27 /kg @ 90 $24.30 90 $24.30 90 $24.30Seed Inoculant $0.05 /kg @ 90 $4.50 90 $4.50 90 $4.50Seed Treatment(1) $0.09 /kg @ 90 $8.05 90 $8.05 90 $8.05

LeviesGRDC Levies 1.0% Gross Income $2.43 $4.05 $5.40EPR &state levies $2.80 /tonne sold $2.52 $4.20 $5.60

Fertiliser (Bulk)MAP $660 /tonne @ 40 26.4 60 $39.60 80 $52.80Foliar Trace Elem

Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsTrifluralin 480g/L $5.75 /litre @ 1.5 $8.63 2 $11.50 2 $11.50Tri-allate 500g/L $9.58 /litre @ $0.00 1.6 $15.33 1.6 $15.33Glyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Simazine Granules $7.30 /kg @ 0.83 $6.06 0.83 $6.06 0.83 $6.06Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Post-emergentsClethodim(incl Oil) $10.20 /litre @ 0.3 $5.39 0.5 $7.43 0.7 $9.47Haloxyfop 520g/L $38.90 /litre @ 0.04 $1.56 0.04 $1.56 0.04 $1.56Paraquat(Topping) $5.40 /litre @ 0.8 $4.32 0.8 $4.32 0.8 $4.32InsecticidesTalstar (2) $27.28 /litre @ 0.04 $1.09 0.04 $1.09 0.04 $1.09Karate Zeon® (3) $115.50 /litre @ 0.024 $2.77 0.024 $2.77 0.024 $2.77



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

Insurance $10.00 /$1000 @ $2.43 $4.05 $5.40Other


LUPINS GROSS MARGIN

AGRONOMIC NOTESAGRONOMIC NOTES(1) Seed treatment for aphid control for controlling viruses(2) RLEM(3) Native budwormDo not exceed 800ml/Ha when crop topping with Paraquat 250 to avoid any possible residue issues.


Lupins Gross Margin


$230 $250 $270 $300 $3500.5 -$64 -$54 -$44 -$29 -$5

Yield 0.9 $15 $33 $51 $77 $121t/ha 1.5 $134 $163 $193 $237 $310

2 $233 $272 $311 $370 $468MEDIUM RAINFALL

$230 $250 $270 $300 $3500.5 -$104 -$94 -$84 -$70 -$45

Yield 1 -$5 $14 $34 $63 $112t/ha 1.5 $94 $123 $152 $197 $270

2 $192 $232 $271 $330 $428HIGH RAINFALL

$230 $250 $270 $300 $3501 -$27 -$8 $12 $41 $90

Yield 1.5 $72 $101 $130 $174 $248t/ha 2 $170 $210 $249 $308 $406

2.5 $269 $318 $367 $441 $563



$/ha $/ha


Repairs & Maint

Net Price $/t

Net Price $/t

Net Price $/t

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100

200

300

400

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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LUPINSHISTORIC PRICES (post harvest)

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$/ha

Variable Costs

Low Medium High


Red Lentils Gross Margin2018


Price (18/19 Forecast) 450 $450 $450Quality Large redYield (t/ha) 0.9 1.5 2GROSS INCOME $405 $675 $900


Seed Seed $0.42 /kg @ 50 $21.00 50 $21.00 50 $21.00Seed Inoculant $0.05 /kg @ 50 $2.50 50 $2.50 50 $2.50P-Pickel $68.00 /tonne 50 $3.40 50 $3.40 50 $3.40



Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsGlyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80trifluralin 480g/L $5.75 /litre @ 0.8 $4.60 0.8 $4.60 0.8 $4.60Tri-allate 500g/L $9.58 /litre @ $0.00 1.6 $15.33 1.6 $15.33Metribuzin 750 gm/kg $22.40 /kg @ 0.18 $4.03 0.24 $5.38 0.3 $6.72Post-emergentsDiflufenican $35.88 /litre @ 0.15 $5.38 0.15 $5.38 0.15 $5.38Clethodim(incl Oil) $10.20 /litre @ 0.3 $5.39 0.5 $7.43 0.7 $9.47Haloxyfop 520g/L $38.90 /litre @ 0.04 $1.56 0.04 $1.56 0.04 $1.56Paraquat(Topping) $5.40 /litre @ 0.8 $4.32 0.8 $4.32 0.8 $4.32InsecticidesDimethoate (1) $8.45 /litre @ 0.4 $3.38 0.4 $3.38 0.4 $3.38Karate Zeon® (2) $115.50 /litre @ 0.024 $2.77 0.024 $2.77 0.024 $2.77Karate Zeon® (3) $115.50 /litre @ 0.024 $2.77 0.024 $2.77 0.024 $2.77Trojan (4) $116.00 /litre @ 0.025 $2.90 0.025 $2.90 0.025 $2.90FungicidesChlorothalonil (5) $12.40 /litre @ $0.00 1.6 $19.84 2.4 $29.76Carbendazim (6) $12.90 /litre @ 0.5 $6.45 1 $12.90 1 $12.90Procymidone (7) $26.00 /litre @ $0.00 $0.00 0.5 $13.00


Freight Grain (t) $30.00 /tonne @ 0.9 $27.00 1.5 $45.00 2 $60.00Fertiliser (t) $20.00 /tonne @ 0.04 $0.80 0.05 $1.00 0.06 $1.20

Contract WorkAerial sprayingWindrowingInsurance $12.00 /$1000 @ $4.86 $8.10 $10.80Other

TOTAL VARIABLE COSTS $220 $309 $374GROSS MARGIN/hectare $185 $366 $526Break Even Price (to cover variable costs only) $245 $206 $187Break Even Yield (to cover variable costs only) 0.49 0.69 0.83Gross Margin based on last 5 year average price $503 $897 $1,234

RED LENTILS GROSS MARGIN

AGRONOMIC NOTESSomevarietiesmoresensitivetoMetribuzinthanothersChecknewlyreleasedvarietiesforsuitabilitytoyourarea

COMMENTS(1) Cow Pea and/or Blue Green Aphid(2) Native budworm(3/4) Etiella(5) Ascochyta(6/7) Grey mouldDo not exceed 800ml/Ha Paraquat 250 when crop topping to avoid possible residues


Red Lentils Gross Margin


$350 $400 $450 $500 $6000.3 -$87 -$72 -$58 -$43 -$14

Yield 0.9 $97 $141 $185 $229 $317t/ha 1.1 $158 $212 $266 $319 $427

1.5 $281 $354 $427 $501 $647MEDIUM RAINFALL

$350 $400 $450 $500 $6000.8 $5 $44 $84 $123 $201

Yield 1.5 $220 $293 $366 $440 $587t/ha 1.8 $312 $400 $488 $576 $752

2.4 $495 $613 $730 $848 $1,082HIGH RAINFALL

$350 $400 $450 $500 $6000.8 -$37 $2 $41 $81 $159

Yield 1.3 $116 $180 $244 $307 $434t/ha 2 $331 $429 $526 $624 $820

2.5 $484 $606 $728 $851 $1,095



$/ha $/ha

seed 1 3.89 3.98 spray 10 5.50 3.35 roll 1 1.20 1.34 harvest# 1 19.20 6.71TOTAL 29.79 15.38# Rates are for low rainfall zone. Extra cost in higher yielding situations

Repairs & Maint

Net Price $/t

Net Price $/t

Net Price $/t

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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RED LENTILSHISTORIC PRICES (post harvest)

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20

40

60

80

100

120

140

$/ha

Variable Costs

LowMedium


Red Lentils Imi Tolerant2018


Price (18/19 Forecast) 450 $450 $450Quality Small redYield (t/ha) 0.8 1.3 1.8GROSS INCOME $360 $585 $810


Seed Seed $0.42 /kg @ 35 $14.70 40 $16.80 45 $18.90Seed Inoculant $0.05 /kg @ 35 $1.75 40 $2.00 45 $2.25P-Pickel $68.00 /tonne 35 $2.38 40 $2.72 45 $3.06



Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsGlyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80trifluralin 480g/L $5.75 /litre @ 0.8 $4.60 0.8 $4.60 0.8 $4.60Tri-allate 500g/L $9.58 /litre @ $0.00 1.6 $15.33 1.6 $15.33Metribuzin 750 gm/kg $22.40 /kg @ 0.18 $4.03 0.24 $5.38 0.3 $6.72Imazethapyr 700g/kg $99.50 kg @ 0.07 $6.97 0.07 $6.97 0.07 $6.97Post-emergentsClethodim(incl Oil) $10.20 /litre @ 0.3 $5.39 0.5 $7.43 0.7 $9.47Haloxyfop 520g/L $38.90 /litre @ 0.04 $1.56 0.04 $1.56 0.04 $1.56Paraquat(Topping) $5.40 /litre @ 0.8 $4.32 0.8 $4.32 0.8 $4.32InsecticidesDimethoate (1) $8.45 /litre @ 0.4 $3.38 0.4 $3.38 0.4 $3.38Karate Zeon® (2) $115.50 /litre @ 0.024 $2.77 0.024 $2.77 0.024 $2.77Karate Zeon® (3) $115.50 /litre @ 0.024 $2.77 0.024 $2.77 0.024 $2.77Trojan (4) $116.00 /litre @ 0.025 $2.90 0.025 $2.90 0.025 $2.90FungicidesChlorothalonil (5) $12.40 /litre @ $0.00 1.6 $19.84 2.4 $29.76Carbendazim (6) $12.90 /litre @ 0.5 $6.45 1 $12.90 1 $12.90Procymidone (7) $26.00 /litre @ $0.00 $0.00 0.5 $13.00



Contract WorkAerial sprayingWindrowingInsurance $12.00 /$1000 @ $4.32 $7.02 $9.72Other

TOTAL VARIABLE COSTS $209 $296 $363GROSS MARGIN/hectare $151 $289 $447Break Even Price (to cover variable costs only) $261 $227 $202Break Even Yield (to cover variable costs only) 0.46 0.66 0.81Gross Margin based on last 5 year average price $433 $747 $1,080

RED LENTILS Imi Tolerant GROSS MARGIN

COMMENT(1) Cow Pea and/or Blue Green Aphid (2) Native budworm control (3/4) Etiella(5) Ascochyta (6,7) Grey mouldDo not exceed 800ml/Ha Paraquat 250 when crop topping to avoid possible residues

AGRONOMIC NOTESImazethapyr is a permit use


Red Lentils Imi Tolerant


$350 $400 $450 $500 $6000.3 -$80 -$66 -$51 -$36 -$7

Yield 0.8 $73 $112 $151 $190 $268t/ha 1.1 $165 $218 $272 $326 $434

1.5 $287 $360 $434 $507 $654MEDIUM RAINFALL

$350 $400 $450 $500 $6000.8 $9 $48 $87 $127 $205

Yield 1.3 $162 $226 $289 $353 $480t/ha 1.8 $315 $403 $492 $580 $756

2.4 $499 $617 $734 $851 $1,086HIGH RAINFALL

$350 $400 $450 $500 $6000.8 -$36 $3 $43 $82 $160

Yield 1.3 $117 $181 $245 $308 $435t/ha 1.8 $271 $359 $447 $535 $711

2.5 $485 $607 $730 $852 $1,096



$/ha $/ha

seed 1 3.89 3.98 spray 10 5.50 3.35 roll 1 1.20 1.34 harvest# 1 19.20 6.71TOTAL 29.79 15.38# Rates are for low rainfall zone. Extra cost in higher yielding situations

Repairs & Maint

Net Price $/t

Net Price $/t

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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RED LENTILSHISTORIC PRICES (post harvest)

0

20

40

60

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140

$/ha

Variable Costs

LowMedium


Field Peas Gross Margin2018


Price (18/19 Forecast) $300 $300 $300Quality Kaspa typeYield (t/ha) 1 1.5 2.2GROSS INCOME $300 $450 $660


SeedSeed $0.29 /kg @ 90 $25.65 100 $28.50 110 $31.35Seed Grading $25.40 /tonne @ 90 $2.29 100 $2.54 110 $2.79P-Pickel $68.00 /tonne @ $0.00 100 $6.80 110 $7.48Apron® XL $262.50 /tonne @ $0.00 $0.00 110 $28.88



Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsTrifluralin 480g/L $5.75 /litre @ 1.5 $8.63 2 $11.50 2 $11.50Tri-allate 500g/L $9.58 /litre @ $0.00 1.6 $15.33 1.6 $15.33Glyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Metribuzin 750 gm/kg $22.40 /kg @ 0.18 $4.03 0.24 $5.38 0.3 $6.72Post-emergents Diflufenican $35.88 /litre @ 0.15 $5.38 0.15 $5.38 0.15 $5.38MCPA Amine $8.75 /litre @ 0.1 $0.88 0.1 $0.88 0.1 $0.88Clethodim(incl Oil) $10.20 /litre @ 0.3 $5.39 0.5 $7.43 0.7 $9.47Haloxyfop 520g/L $38.90 /litre @ 0.04 $1.56 0.04 $1.56 0.04 $1.56Paraquat(Topping) $5.40 /litre @ 0.8 $4.32 0.8 $4.32 0.8 $4.32InsecticidesKarate Zeon® (1) $115.50 /litre @ 0.024 $2.77 0.024 $2.77 0.024 $2.77Karate Zeon® (2) $115.50 /litre @ $0.00 0.024 $0.92 0.024 $0.92Dimethoate (3) $8.45 /litre @ 0.1 $0.85 0.1 $0.85 0.1 $0.85Fungicides Tebuconazole (4) $12.10 /litre @ 0.145 $1.75 0.145 $1.75 0.145 $1.75



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

Insurance $16.00 /$1000 @ $4.80 $7.20 $10.56Other $0.00 /ha $0.00

$0.00 /ha $0.00TOTAL VARIABLE COSTS $207 $280 $363GROSS MARGIN/hectare $93 $170 $297Break Even Price (to cover variable costs only) $207 $186 $165Break Even Yield (to cover variable costs only) 0.69 0.93 1.21Gross Margin based on last 5 year average price $174 $292 $475

FIELD PEAS GROSS MARGIN

COMMENTS(1) Native budworm control (2) Pea weevil border spray (3) RLEM

AGRONOMIC NOTESRecently released varieties are more suited to lower rainfall situations


Field Peas Gross Margin


$240 $270 $300 $330 $3600.75 -$17 $5 $27 $49 $71

Yield 1 $35 $64 $93 $122 $152t/ha 1.25 $86 $123 $159 $196 $232

1.5 $138 $181 $225 $269 $313MEDIUM RAINFALL

$240 $270 $300 $330 $3601 -$20 $9 $38 $68 $97

Yield 1.5 $83 $127 $170 $214 $258t/ha 2 $186 $244 $303 $361 $419

2.5 $289 $362 $435 $508 $581HIGH RAINFALL

$240 $270 $300 $330 $3601.5 $24 $68 $112 $156 $200

Yield 2 $127 $186 $244 $302 $361t/ha 2.2 $168 $233 $297 $361 $425

3 $333 $421 $508 $596 $684



$/ha $/ha seed 1 3.89 3.98 spray 9 4.95 3.02 roll 1 1.20 1.34 harvest# 1 19.20 6.71TOTAL 29.24 15.05# Rates are for low rainfall zone. Extra cost in higher yielding situations

Repairs & Maint

Net Price $/t

Net Price $/t

Net Price $/t

-100

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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FIELD PEASHISTORIC PRICES(post harvest)

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Variable Costs

Low Medium High


Faba Bean Gross Margin2018


Price (18/19 Forecast) $330 $330 $330Quality Fie Grade 1Yield (t/ha) 0.8 1.6 2.8GROSS INCOME $264 $528 $924





Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsGlyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Trifluralin 480g/L $5.75 /litre @ 1.5 $8.63 2 $11.50 2 $11.50Simazine 900g/kg $7.30 /kg @ 0.83 $6.06 0.83 $6.06 0.83 $6.06Post-emergents Clethodim(incl Oil) $10.20 /litre @ 0.3 $5.39 0.5 $7.43 0.7 $9.47Haloxyfop 520g/L $38.90 /litre @ 0.04 $1.56 0.04 $1.56 0.04 $1.56Paraquat(Desiccant) $5.40 /litre @ 0.8 $4.32 0.8 $4.32 0.8 $4.32InsecticidesChlorpyrifos (1) $7.20 /litre @ 0.14 $1.01 0.14 $1.01 0.14 $1.01Karate Zeon® (2) $115.50 /litre @ 0.024 $2.77 0.024 $2.77 0.024 $2.77Dimethoate (3) $8.45 /litre @ 0.5 $4.23 0.5 $4.23 0.5 $4.23FungicidesTebuconazole(4) $12.10 /litre @ $0.00 0.3 $3.63 0.3 $3.63Mancozeb-low r/f $8.90 /kg @ 1.7 $15.13 0 $0.00 0 $0.00Mancozeb-Med/high $8.90 /kg @ 0 $0.00 5.1 $45.39 5.1 $45.39Procymidone $26.00 /litre @ $0.00 $0.00 0.5 $13.00Carbendazim 2 applic $12.90 /litre @ 0.5 $6.45 1 $12.90



Contract WorkAerial spraying $14.00 /ha @ $0.00 1 $14.00 1 $14.00

Insurance $12.00 /$1000 @ $3.17 $6.34 $11.09


FABA BEAN GROSS MARGIN

COMMENTS(1) RLEM control (2) Native Budworm control (3) Cow pea aphid (4) Cercospora Mancozeb for Ascochyta. Procymidone and Carbendazim for chocalate spot

AGRONOMIC NOTESNo allowance is made in this gross margin as to the economic benefit of bean stubble to livestock.


Faba Bean Gross Margin


$250 $290 $330 $370 $4100.4 -$97 -$81 -$66 -$50 -$34

Yield 0.8 -$11 $21 $52 $83 $114t/ha 1.5 $140 $199 $258 $316 $375

2 $248 $326 $404 $483 $561MEDIUM RAINFALL

$250 $290 $330 $370 $4101 -$51 -$12 $27 $66 $106

Yield 1.6 $78 $141 $204 $266 $329t/ha 2 $165 $243 $321 $399 $477

2.5 $272 $370 $468 $566 $663HIGH RAINFALL

$250 $290 $330 $370 $4101 -$100 -$61 -$22 $17 $56

Yield 2 $115 $194 $272 $350 $428t/ha 2.8 $288 $397 $507 $616 $726

4 $546 $703 $859 $1,016 $1,172




Repairs & Maint

Net Price $/t

Net Price $/t

Net Price $/t

-100

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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FABA BEANSHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High


Chickpeas (6-8mm Kabuli) Gross Margin2018


Price (18/19 Forecast) $700 $700 $700Quality 6-8 mm KabuliYield (t/ha) 0.7 1.1 1.6GROSS INCOME $490 $770 $1,120

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

Seed $0.90 /kg @ 90 $81.00 100 $90.00 110 $99.00Seed Inoculant $50.00 /tonne @ 90 $4.50 100 $5.00 110 $5.50P-Pickel $68.00 /tonne @ 90 $6.12 100 $6.80 110 $7.48



Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentstrifluralin 480g/L $5.75 /litre @ 1.5 $8.63 2 $11.50 2 $11.50Tri-allate 500g/L $9.58 /litre @ $0.00 1.6 $15.33 1.6 $15.33Glyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Balance® $0.13 /gram @ 75 $9.75 100 $13.00 100 $13.00Metribuzin 750 gm/kg $22.40 /kg @ 0.18 $4.03 0.24 $5.38 0.3 $6.72Post-emergentsClethodim(incl Oil) $10.20 /litre @ 0.3 $5.39 0.5 $7.43 0.7 $9.47Haloxyfop 520g/L $38.90 /litre @ 0.04 $1.56 0.04 $1.56 0.04 $1.56InsecticidesChlorpyrifos (RLEM) $7.20 /litre @ 0.14 $1.01 0.14 $1.01 0.14 $1.01Karate Zeon® $115.50 /litre @ 0.024 $2.77 0.024 $2.77 0.024 $2.77FungicidesChlorothalonil $12.40 /litre @ 2 $29.76 3.2 $39.68 4 $49.60Carbendazim $12.90 /litre @ $0.00 $0.00 0.5 $6.45DesiccationParaquat $5.40 /litre @ 0.8 $4.32 0.8 $4.32 0.8 $4.32



Contract WorkAerial spraying $14.00 /ha @ $0.00 $0.00 $0.00Windrowing $38.00 /ha @ $0.00 0 $0.00 0 $0.00Insurance $10.00 /$1000 @ $4.90 $7.70 $11.20Other $0.00 /ha

$0.00 /haTOTAL VARIABLE COSTS $287 $371 $443GROSS MARGIN/hectare $203 $399 $677Break Even Price (to cover variable costs only) $411 $337 $277Break Even Yield (to cover variable costs only) 0.41 0.53 0.63Gross Margin based on last 5 year average price $289 $536 $875

CHICKPEAS (6-8mm Kabuli) GROSS MARGIN

COMMENTSSeed is inoculated with a Group N inoculant. Do not exceed 800ml/Ha Paraquat 250 when desiccating 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


Chickpeas (6-8mm Kabuli) Gross Margin


$500 $600 $700 $800 $1,0000.4 -$73 -$33 $6 $45 $123

Yield 0.7 $65 $134 $203 $271 $408t/ha 1.2 $295 $413 $530 $648 $883

1.8 $571 $747 $924 $1,100 $1,453MEDIUM RAINFALL

$500 $600 $700 $800 $1,0000.5 -$92 -$43 $6 $55 $153

Yield 1.1 $184 $292 $399 $507 $723t/ha 1.8 $505 $682 $858 $1,035 $1,387

2.3 $735 $961 $1,186 $1,411 $1,862HIGH RAINFALL

$500 $600 $700 $800 $1,0001 $87 $185 $283 $381 $577

Yield 1.5 $317 $464 $611 $758 $1,052t/ha 1.6 $363 $520 $677 $833 $1,147

2.5 $777 $1,022 $1,267 $1,512 $2,002

HISTORIC PRICES AND TRENDSHISTORIC PRICES AND TRENDS



Repairs & Maint

Net Price $/t

Net Price $/t

Net Price $/t

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1400

1600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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CHICKPEAHISTORIC PRICES (post harvest)

0

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100

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140

$/ha

Variable Costs

LowMedium


Canola Gross Margin Conventional Hybrid2018


Price (18/19 Forecast) $500 $500 $500Quality 42% oilYield (t/ha) 0.8 1.5 2.2GROSS INCOME $400 $750 $1,100


Seed Seed $25.00 /kg @ 1 $25.00 1.5 $37.50 2 $50.00

LeviesGRDC Levies 1.0% Gross Income $4.00 $7.50 $11.00State levies $0.50 /tonne sold $0.40 $0.75 $1.10

Fertiliser (Bulk)18:20:0 $660 /tonne @ 35 $23.10 55 $36.30 75 $49.50Flutriafol (on fert) $26.00 /litre @ 0.2 $5.20 0.2 $5.20 0.2 $5.20Urea $480 /tonne @ 50 $24.00 100 $48.00 150 $72.00SOA $427 /tonne @ 50 $21.35 50 $21.35 100 $42.70

Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsGlyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Rustler (Propyzamide) $22.00 /litre @ 0 $0.00 1 $22.00 1 $22.00Trifluralin 480g/L $5.75 /litre @ 1.5 $8.63 2 $11.50 2 $11.50Post-emergentsHaloxyfop 520g/L $38.90 /litre @ 0.04 $1.56 0.04 $1.56 0.04 $1.56Clethodim(incl Oil) $10.20 /litre @ 0.3 $5.39 0.5 $7.43 0.7 $9.47Clopyralid 600g/L $39.60 /litre @ 0.075 $2.97 0.075 $2.97 0.075 $2.97Glypho (pre-harvest) (4) $6.00 /litre @ 2 $12.00 2 $12.00 2 $12.00InsecticidesChlorpyrifos 500g/L $7.20 /litre @ 0.5 $3.60 0.5 $3.60 0.5 $3.60Talstar $27.28 /litre @ 0.04 $1.09 0.04 $1.09 0.04 $1.09Transform (1) $155.00 /litre 0.1 $15.50 0.1 $15.50 0.1 $15.50Karate Zeon®(2) $115.50 /litre @ 0.024 $2.77 $0.00 $0.00Affirm (3) $73.90 /litre @ 0 $0.00 0.3 $22.17 0.3 $22.17



Contract WorkAerial spraying $14.00 /ha @ $0.00 1 $14.00 1 $14.00Windrowing $38.00 /ha @ $0.00 1 $38.00 1 $38.00Insurance $12.00 /$1000 @ $4.80 $9.00 $13.20Urea spreading $8.50 /ha @ 1 $8.50 2 $17.00 2 $17.00


CANOLA GROSS MARGIN Conventional Hybrid

COMMENTS(1) Green Peach Aphid (2) Native Budworm-Low rainfall (3) DBM and Native Budworm(4) Weedmaster DST registered for this purpose

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 and intensive cropping systems. Ensure insect control and good seed/soil contact when sowing. Assumes direct heading in low rainfall/yielding situations. Direct heading is becoming more widely used in all zones.In low rainfall situations, oil penalties may apply- conversely oil bonuses may be expected in high rainfall areas


Canola Gross Margin Conventional Hybrid


$400 $450 $500 $550 $6000.3 -$121 -$106 -$91 -$77 -$62

Yield 0.8 $62 $101 $140 $180 $219t/ha 1.1 $172 $226 $280 $333 $387

1.5 $318 $392 $465 $538 $612MEDIUM RAINFALL

$400 $450 $500 $550 $6000.7 -$138 -$104 -$70 -$36 -$2

Yield 1.5 $154 $227 $301 $374 $448t/ha 2 $337 $435 $533 $630 $728

2.5 $520 $642 $764 $887 $1,009HIGH RAINFALL

$400 $450 $500 $550 $6001 -$110 -$62 -$13 $36 $85

Yield 1.5 $72 $146 $219 $292 $366t/ha 2.2 $328 $436 $544 $651 $759

3 $621 $768 $914 $1,061 $1,208




Repairs & Maint

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Canola Gross Margin Triazine Tolerant2018


Price (18/19 Forecast) $500 $500 $500Quality 42% oilYield (t/ha) 0.7 1.3 2GROSS INCOME $350 $650 $1,000


Seed Seed $21.50 /kg @ 2.5 $53.75 3 $64.50 3.5 $75.25



Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsAtrazine (900 g/kg) $7.00 /kg @ 1.1 $7.70 1.1 $7.70 1.1 $7.70Trifluralin 480g/L $5.75 /litre @ 1.5 $8.63 2 $11.50 2 $11.50Glyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Rustler (Propyzamide) $22.00 /litre @ 0 $0.00 1 $22.00 1 $22.00Post-emergentsClethodim(incl Oil) $10.20 /litre @ 0.3 $5.39 0.5 $7.43 0.7 $9.47Haloxyfop 520g/L $38.90 /litre @ 0.04 $1.56 0.04 $1.56 0.04 $1.56Clopyralid 600g/L $39.60 /litre @ 0.075 $2.97 0.075 $2.97 0.075 $2.97Glypho (pre-harvest) (4) $6.00 /litre @ 2 $12.00 2 $12.00 2 $12.00InsecticidesChlorpyrifos 500g/L $7.20 /litre @ 0.5 $3.60 0.5 $3.60 0.5 $3.60Talstar $27.28 /litre @ 0.04 $1.09 0.04 $1.09 0.04 $1.09Transform (1) $155.00 /litre 0.1 $15.50 0.1 $15.50 0.1 $15.50Karate Zeon®(2) $115.50 /litre @ 0.024 $2.77 $0.00 $0.00Affirm (3) $73.90 /litre @ 0 $0.00 0.3 $22.17 0.3 $22.17


Freight Grain (t) $25.00 /tonne @ 0.7 $17.50 1.3 $32.50 2 $50.00Fertiliser (t) $20.00 /tonne @ 0.125 $2.50 0.185 $3.70 0.295 $5.90



CANOLA GROSS MARGIN Triazine Tolerant

COMMENTS(1) Green Peach Aphid (2) Native Budworm-Low rainfall (3) DBM and NativeBudworm. (4) Weedmaster DST registered for this purpose

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.Assumes direct heading in low rainfall/ yielding situations. Direct heading is becoming morewidely used in all zones.In low rainfall situations, oil penalties may apply- conversely oil bonuses may be expected inhigh rainfall areas.


Canola Gross Margin Triazine Tolerant


$400 $450 $500 $550 $6000.3 -$152 -$137 -$123 -$108 -$93

Yield 0.7 -$6 $28 $63 $97 $131t/ha 1.1 $140 $194 $248 $302 $356

1.5 $287 $360 $433 $507 $580MEDIUM RAINFALL

$400 $450 $500 $550 $6000.7 -$163 -$129 -$95 -$60 -$26

Yield 1.3 $56 $120 $183 $247 $311t/ha 2 $312 $410 $508 $606 $703

2.5 $495 $617 $740 $862 $984HIGH RAINFALL

$400 $450 $500 $550 $6001 -$128 -$79 -$31 $18 $67

Yield 1.5 $54 $128 $201 $275 $348t/ha 2 $237 $335 $433 $531 $629

2 $237 $335 $433 $531 $629




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Canola Gross Margin Clearfield Hybrid2018


Price (18/19 Forecast) $500 $500 $500Quality 42% oilYield (t/ha) 0.75 1.4 2.1GROSS INCOME $375 $700 $1,050


Seed Seed $25.00 /kg @ 1 $25.00 1.5 $37.50 2 $50.00



Chemicals-HerbicidesSummer Weed Control Various Allow $25.00 $25.00 $25.00Pre-emergentsGlyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Trifluralin 480g/L $5.75 /litre @ 1.5 $8.63 2 $11.50 2 $11.50Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Rustler (Propyzamide) $22.00 /litre @ 0 $0.00 1 $22.00 1 $22.00Post-emergentsIntervix $28.00 /litre @ 0.4 $11.20 0.6 $16.80 0.6 $16.80Adjuvant $4.70 /litre @ 0.375 $1.76 0.375 $1.76 0.375 $1.76Clethodim(incl Oil) $10.20 /litre @ 0.3 $5.39 0.5 $7.43 0.7 $9.47Clopyralid 600g/L $39.60 /litre @ 0.075 $2.97 0.075 $2.97 0.075 $2.97Glypho (pre-harvest) (4) $6.00 /litre @ 2 $12.00 2 $12.00 2 $12.00InsecticidesChlorpyrifos 500g/L $7.20 /litre @ 0.5 $3.60 0.5 $3.60 0.5 $3.60Talstar $27.28 /litre @ 0.04 $1.09 0.04 $1.09 0.04 $1.09Transform (1) $155.00 /litre 0.1 $15.50 0.1 $15.50 0.1 $15.50Karate Zeon®(2) $115.50 /litre @ 0.024 $2.77 $0.00 $0.00Affirm (3) $73.90 /litre @ 0 $0.00 0.3 $22.17 0.3 $22.17





CANOLA GROSS MARGIN Clearfield Hybrid

COMMENTS(1) Green Peach Aphid (2) Native Budworm-Low rainfall (3) DBM and NativeBudworm. (4) Weedmaster DST registered for this purpose

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.Assumes direct heading in low rainfall/yielding situations. Direct heading is becoming morewidely used in all zonesIn low rainfall situations, oil penalties may apply conversely oil bonuses may be expected in highrainfall areas.


Canola Gross Margin Clearfield Hybrid


$400 $450 $500 $550 $6000.3 -$132 -$117 -$103 -$88 -$73

Yield 0.75 $33 $69 $106 $143 $179t/ha 1.1 $161 $214 $268 $322 $376

1.5 $307 $380 $454 $527 $600MEDIUM RAINFALL

$400 $450 $500 $550 $6000.7 -$155 -$121 -$87 -$53 -$19

Yield 1.4 $101 $169 $237 $306 $374t/ha 2 $320 $418 $516 $613 $711

2.5 $503 $625 $747 $870 $992HIGH RAINFALL

$400 $450 $500 $550 $6001 -$127 -$79 -$30 $19 $68

Yield 1.5 $55 $129 $202 $275 $349t/ha 2.1 $275 $378 $480 $583 $686

2.7 $494 $626 $758 $890 $1,022HISTORIC PRICES AND TRENDS



Repairs & Maint

Net Price $/t

Net Price $/t

Net Price $/t

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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Sown Pasture (Vetch) Gross Margin2018


Carrying Capacity (dry sheep equivalents winter grazed) 4 7 10

$63.00 $63.00 $63.00GROSS INCOME $252 $441 $630

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


Levies$0.00 $0.00 $0.00



Pre-emergentsGlyphosate 540 $6.00 /litre @ 1.2 $7.20 1.2 $7.20 1.2 $7.20Carfentrazone 400g/L $190.00 /litre @ 0.02 $3.80 0.02 $3.80 0.02 $3.80Metribuzin 750 gm/kg $22.40 /kg @ 0.2 $4.48 0.25 $5.60 0.3 $6.72Post-emergentsClethodim(incl Oil) $10.20 /litre @ 0.4 $6.41 0.5 $7.43 0.5 $7.43Haloxyfop 520g/L $38.90 /litre @ 0.075 $2.92 0.075 $2.92 0.075 $2.92Glypho 540 (desiccant) $6.00 /litre @ 1.5 $9.00 1.5 $9.00 1.5 $9.00

InsecticidesDimethoate (1) $8.45 /litre @ 0.4 $3.38 0.4 $3.38 0.4 $3.38Dimethoate (2) $8.45 /litre @ 0.1 $0.85 0.1 $0.85


Freight Grain (t) $0.00 $0.00 $0.00Fertiliser (t) $20.00 /tonne @ 0.04 $0.80 0.06 $1.20 0.08 $1.60

Contract WorkAerial spraying

Insurance /$1000 @ $0.00 $0.00 $0.00Other

TOTAL VARIABLE COSTS $86 $106 $127GROSS MARGIN/hectare $166 $335 $503

SOWN PASTURE (VETCH) GROSS MARGIN

Estimated return per dse based on self replacing Merino Ewe flock (Cereal Zone)

AGRONOMIC NOTESCOMMENTSSeed is not treated with a fungicide or graded.

(1) Cow pea aphid (2) RLEM


Sown Pasture (Vetch) Gross Margin

GROSS MARGIN SENSITIVITY LOW RAINFALL GM/dse

$55 $60 $63 $70 $752 $24 $34 $40 $54 $64

Carrying 4 $134 $154 $166 $194 $214Capacity 6 $244 $274 $292 $334 $364

(dse) 8 $354 $394 $418 $474 $514MEDIUM RAINFALL

GM/dse$55 $60 $63 $70 $75

3 $59 $74 $83 $104 $119Carrying 5 $169 $194 $209 $244 $269Capacity 7 $279 $314 $335 $384 $419

(dse) 9 $389 $434 $461 $524 $569HIGH RAINFALL

GM/dse$55 $60 $63 $70 $75

4 $93 $113 $125 $153 $173Carrying 7 $258 $293 $314 $363 $398Capacity 10 $423 $473 $503 $573 $623

(dse) 12 $533 $593 $629 $713 $773


$/ha $/ha seed 1 3.89 3.98 spray 4 2.20 1.34 roll 0.00 0.00 harvest# 0.00 0.00TOTAL 6.09 5.32# Rates are for low rainfall zone. Extra cost in higher yielding situations

Repairs & Maint

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Self-Regenerating Pasture Gross Margin

2018INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATECarrying Capacity (dry sheep equivalents winter grazed) 4 7 10

$63.00 $63.00 $63.00GROSS INCOME $252 $441 $630

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

Seed Seed /kg @ $0.00 $0.00 $0.00Seed Inoculant /kg @ $0.00 $0.00 $0.00

Levies$0.00 $0.00 $0.00

Fertiliser (Bulk)Superphosphate $360 /tonne @ 80 $28.80 120 $43.20 160 $57.60


Pre-emergents/litre @ $0.00 $0.00 $0.00/litre @ $0.00 $0.00 $0.00

Post-emergentsClethodim(incl Oil) $10.20 /litre @ 0.4 $6.41 0.5 $7.43 0.5 $7.43Haloxyfop 520g/L $38.90 /litre @ 0.075 $2.92 0.075 $2.92 0.075 $2.92Broadstrike® $0.40 /gram @ $0.00 25 $10.00 50 $20.00Paraquat(Topping) $5.40 /litre @ 0.8 $4.32 0.8 $4.32 0.8 $4.32Insecticides

$0.00 $0.00 $0.00Dimethoate (1) $8.45 /litre @ 0.085 $0.72 0.085 $0.72 0.085 $0.72


Freight Grain (t) $0.00 $0.00 $0.00Fertiliser (t) $20.00 /tonne @ 0.08 $1.60 0.12 $2.40 0.16 $3.20

Contract WorkFert Spreading $8.50 /ha @ 1 $8.50 1 $8.50 1 $8.50

Insurance /$1000 @ $0.00 $0.00 $0.00Other

TOTAL VARIABLE COSTS $56 $82 $107GROSS MARGIN/hectare $196 $359 $523

SELF REGENERATING PASTURE GROSS MARGIN

Estimated return per dse based on self replacing Merino Ewe flock (Cereal Zone)

COMMENTS(1) RLEM

AGRONOMIC NOTES


Self-Regenerating Pasture Gross Margin


$55 $60 $63 $70 $752 $54 $64 $70 $84 $94


(dse) 8 $384 $424 $448 $504 $544MEDIUM RAINFALL

$55 $60 $63 $70 $753 $83 $98 $107 $128 $143


(dse) 9 $413 $458 $485 $548 $593HIGH RAINFALL

$55 $60 $63 $70 $754 $113 $133 $145 $173 $193


(dse) 12 $553 $613 $649 $733 $793


$/ha $/ha seed 0 0.00 0.00 spray 3 1.65 1.01 roll 0.00 0.00 harvest# 0.00 0.00TOTAL 1.65 1.01# Rates are for low rainfall zone. Extra cost in higher yielding situations

GM/dse

GM/dse

Repairs & Maint

GM/dse 0

10

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$/ha

Variable Costs

Low Medium High


Plus, remember to follow SAGIT on social media!

/SAGITFund @SAGrainTrust bit.ly/SAGITYouTube

4558

Plus the ever-useful resources:• Application forms

• Project funding guidelines• Farm Gross Margin Guide

• SARDI Sowing Guide• Brome Grass Bulletin

S A G I T

SAGIT’s new website features individual summaries of each research project and

its outcomes, videos and photos.

www.sagit.com.au


Plus, remember to follow SAGIT on social media!


4558

Plus the ever-useful resources:• Application forms

• Project funding guidelines• Farm Gross Margin Guide

• SARDI Sowing Guide• Brome Grass Bulletin

S A G I T

SAGIT’s new website features individual summaries of each research project and

its outcomes, videos and photos.

www.sagit.com.au

Providing premier seed testing and seed certification services to Australia’s seed and grain industries.

Acknowledged specialists in:

• Seed testing: Purity, germination, tetrazolium, moisture, and many other tests.

• Certification: OECD, AOSCA, domestic schemes, SureSeed®

• Program, ISTA certificates, phytosanitary declarations.

• Field Inspection services

• Seed lot sampling training

We deliver:

• secure online access to test results

• email delivery of test result updates and electronic certificates of analysis

1300 928 170pir.sa.gov.au/seeds


Prime Lambs Gross Margin – High Rainfall (450mm+)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

2018INCOME YOUR

$ ESTIMATEWool (kg greasy) 4423.2 Kg [ ave price 471 c/kg ] $20,834Sales 1339 animals [ ave price $135.45 per hd] $181,320

GROSS INCOME $202,154

VARIABLE COSTSShearing

Shearing 970 sheep @ $301.96 /100 $2,929(Federal awards) 19 rams @ $603.92 /100 $115Shed labour 5 days @ $227.68 /day $1,138Woolclasser 2.50 days @ $287.71 /day $719Superannuation (on ordinary wages only) @ 9.5% wages $466Work Cover (includes super + o'time etc) @ 4.0% total $196Wool packs 26 packs @ $11.20 /pack $291Shed sundries 989 sheep @ $0.15 /head $148Lice control 989 sheep @ $1.52 /head $1,507Crutch & Wig 990 ewes @ $87.57 /100 $867

19 rams @ $175.14 /100 $33Marking

Lamb marking 1150 lambs @ $1.15 /head $1,323Ear tags 1150 lambs @ $0.40 /head $460

Animal Health drench 3190 sheep @ $0.43 /head $1,378 vaccinate 3320 sheep @ $0.33 /head $1,089 blowfly control 1000 sheep @ $1.30 /head $1,302Stock purchases

Purchases (refer opposite page) $69,768Sale Costs

Freight livestock 189 culls @ $4.00 /head $756

212 ewes @ $4.00 /head $8491150 prime lambs @ $4.00 /head $4,600

wool 26 bales @ $17.00 /bale $442Stock selling charges

commission/insurance @ 6.0% gross $ $10,879 yard fees 1339 head @ $0.85 /head $1,138

levy-sheep 189 head @ $0.20 /head $38levy-lambs 1150 head @ $1.50 /head $1,725SA sheep industry 1339 head @ $0.55 /head $736Wool selling chargesbrokerage/testing/insurance @ $0.27 /kg $1,194wool levy @ 2.0% gross $417

Feed and Other Costs hay 20.4 tonne @ $180.00 /tonne $3,672 grain 24.6 tonnes @ $225.00 /tonne $5,535

Insurance $250,750 value @ $2.00 /$'000 $502Water 1840 DSE's @ $1.50 /DSE $2,760Veh Fuel, R&M 1840 DSE's @ $1.20 /DSE $2,208Other 1840 DSE's @ $0.50 /DSE $920

TOTAL VARIABLE COSTS $122,101GROSS MARGIN TOTAL $80,053GROSS MARGIN/hectare $522GROSS MARGIN/DSE $44COMMENTS 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 pasture expenses such as seed, fertiliser and chemicals. These need to be separately accounted for.


Prime Lambs Gross Margin – High Rainfall (450mm+)

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 $110.00 6.5 $20,020c.f.a rams 6 $50.00 4.5 $300lambs 1150 $140.00 20 weeks $161,000TOTAL 1339 $135.45 $181,320PURCHASES Number Price/hd Age yrs Totalewes 212 $280 1.5 $59,462rams 7 $1,500 1.5 $10,306

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 $4.73 $20,625crossbred rams 19 3.00 $3.60 $210

TOTAL 989 4423 $20,834

FEEDINGHay Kgs Fed No weeks Total

Number Cost ($/T) per week of Feeding cost ($)ewes 1000 $180 2.5 8 $3,600rams 20 $180 2.5 8 $72

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

ewes 1000 $225 3.0 8 $5,400rams 20 $225 3.0 10 $135

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

95% 105% 115% 125% 135% 145%$115 $18 $23 $29 $34 $40 $45$120 $21 $26 $32 $37 $43 $49$125 $23 $29 $35 $41 $46 $52$130 $25 $32 $38 $44 $50 $56

Average $135 $28 $34 $41 $47 $53 $60Lamb Sale $140 $30 $37 $44 $50 $57 $63Price ($/hd) $145 $33 $40 $46 $53 $60 $67

$150 $35 $42 $49 $57 $64 $71$155 $38 $45 $52 $60 $67 $75$160 $40 $48 $55 $63 $71 $78$165 $42 $50 $58 $66 $74 $82

PRIME LAMB GROSS MARGIN - HIGH RAINFALL

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%





ewes 970 4.50 $4.73 $20,625crossbred rams 19 3.00 $3.60 $210

TOTAL 989 4423 $20,834




ewes 1000 $225 3.0 8 $5,400rams 20 $225 3.0 10 $135


95% 105% 115% 125% 135% 145%$115 $18 $23 $29 $34 $40 $45$120 $21 $26 $32 $37 $43 $49$125 $23 $29 $35 $41 $46 $52$130 $25 $32 $38 $44 $50 $56


$150 $35 $42 $49 $57 $64 $71$155 $38 $45 $52 $60 $67 $75$160 $40 $48 $55 $63 $71 $78$165 $42 $50 $58 $66 $74 $82

PRIME LAMB GROSS MARGIN - HIGH RAINFALL


Self Replacing Merino Flock - High Rainfall (450mm+)AssumptionsAve Breeding Ewe Fibre Diameter 19 Total DSE's 2390Number of breeding ewes 1000 Stocking rate (DSE/Ha) 12.0

2018INCOME YOUR

$ ESTIMATEWool (kg greasy) 9134 Kg [ ave price 1178 c/kg ] $107,604Sales 862 animals [ ave price $139.67 per hd] $120,440



Shearing 2324 sheep @ $301.96 /100 $7,018(Federal Awards) 25 rams @ $603.92 /100 $151Shed labour 12 days @ $227.68 /day $2,732Woolclasser 6 days @ $287.71 /day $1,726Superannuation (on ordinary wages only) @ 9.5% wages $1,105Work Cover (includes super + o'time etc) @ 4.0% total $509Wool packs 54 packs @ $11.20 /pack $605Shed sundries 2349 sheep @ $0.15 /head $352Lice Control 2349 sheep @ $1.52 /head $3,580Crutch & wig 1424 sheep @ $87.57 /100 $1,247

25 rams @ $175.14 /100 $44Marking

Lamb marking 900 lambs @ $1.40 /head $1,260Pain relief 900 lambs @ $0.45 /head $405Ear tags 900 lambs @ $0.40 /head $360

Animal Health drench 3900 sheep @ $0.43 /head $1,685 vaccinate 3275 sheep @ $0.33 /head $1,074 blowfly control 1500 sheep @ $1.30 /head $1,953Sale and Purchase Costs

Purchases 7 Merino rams @ $2,000.00 /head $14,000Freight 862 sheep @ $4.00 /head $3,448

54 bales @ $17.00 /bale $918Stock selling charges

commission/insurance @ 6.0% gross $7,226 yard fees 862 head @ $0.85 /head $733 Sheep trans levy 412 head @ $0.20 /head $82

Lamb trans levy 450 head @ $1.50 /head $675SA sheep industry 862 head @ $0.55 /head $474Wool selling chargesbrokerage/testing/insurance @ $0.27 /kg $2,466Industry levy @ 2.0% gross $2,152

Feed and other CostsHand Feeding $5,498Insurance $331,728 value @ $2.00 /$'000 $663Water 2390 DSE's @ $1.50 /DSE $3,585Veh Fuel, R&M 2390 DSE's @ $1.20 /DSE $2,868Other 2390 DSE's @ $0.50 /DSE $1,195

TOTAL VARIABLE COSTS $71,790GROSS MARGIN TOTAL $156,254GROSS MARGIN/hectare $785

$65GROSS 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 pasture expenses such as seed, fertiliser and chemicals. These need to be separately accounted for.


Self Replacing Merino Flock - High Rainfall (450mm+)

PRODUCTION DATAStocking 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 51% 0%Ram percentage 2.5% 2.5 0% 0%Age wethers sold (yrs) 0.5 3.5 0% 0%Years rams kept 4 4.5 0% 0%Flock death rate 3% 5.5 0% 0%Average weaning rate 90% 6.5 100% 0%

SALES Number Price/hd Totalc.f.a ewes 182 $105.00 $19,110c.f.a merino rams 6 $50.00 $300ewe hoggets 224 $220.00 $49,280wether lambs 450 $115.00 $51,750TOTAL 862 $139.67 $120,440

STOCK HEALTH Number of times

Number DSE Drench Vacc. Blowflyewes 1000 1.8 2 1 1ewe hoggets 450 1.2 2 1 1wether weaners 0 0.8 1 1 0merino lambs 900 0.0 1 2 0merino rams 25 2.0 4 1 2TOTAL 2375 2390 3900 3275 1500Total Value $331,728

FEEDINGFeed Number of Hay kg/ animal Total

Animals Cost ($/T) cost ($)Oats/barley 833 $225 10 /ewe $1,874Lupins 833 $300 10 /ewe $2,499Lupins 375 $300 10 /weaner $1,125Total $5,498

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

ewes 981 5.70 5592 70% 3914ewe 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 5.68 7784Total 2349 9134 6394

FLOCK STRUCTURE This table shows the number of merino sheep in each age group at matingClass 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 450 212 206 200 194 188 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)

1000 1100 1170 1200 1300 1400$110 $49 $52 $55 $56 $60 $64$115 $50 $54 $57 $58 $62 $65$120 $52 $56 $58 $60 $63 $67$125 $54 $57 $60 $61 $65 $69

Average $130 $55 $59 $62 $63 $67 $70Sale Price $135 $57 $61 $63 $65 $68 $72All Sheep $140 $59 $63 $65 $66 $70 $74

($/hd) $145 $61 $64 $67 $68 $72 $75$150 $62 $66 $69 $70 $73 $77$155 $64 $68 $70 $71 $75 $79$160 $66 $69 $72 $73 $77 $81


Merino Wethers - High Rainfall (450mm+)Assumptions:Average Wether Fibre Diametre 19 Total DSE's 1200Number of adult wethers 1000 Stocking rate (DSE/Ha) 12.0

2018INCOME YOUR

$ ESTIMATEWool (kg greasy) 6790 Kg [ave price 1178 c/kg ] $79,993Sales 182 animals [ave price $125.00 per hd] $22,796


EXPENSESShearing

Shearing 970 sheep @ $301.96 /100 $2,929Shed labour 5 days @ $227.68 /day $1,138Woolclasser 3 days @ $287.71 /day $719Superannuation (on ordinary wages only) @ 9.5% wages $455Work Cover (on wages+super+o'time etc) @ 4.0% total $210Wool packs 40 packs @ $11.20 /pack $448Shed sundries 970 sheep @ $0.15 /head $146Lice control 970 sheep @ $1.52 /head $1,478Crutching 1000 sheep @ $87.57 /100 $876

Animal Health drench 1000 sheep @ $0.43 /head $432 vaccinate 1000 sheep @ $0.33 /head $328 blowfly control 1000 sheep @ $1.30 /head $1,302

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

Purchases 212 wethers @ $115.00 /head $24,380Sale costs and other

Freight livestock 395 @ $4.00 /head $1,580wool 40 bales @ $17.00 /bale $680

Stock selling charges commission/insurance @ 6.0% gross $1,368 yard fees 182 head @ $0.85 /head $155

transaction levy 182 head @ $0.20 /head $36SA sheep industry 182 head @ $0.55 /head $100Wool selling chargesbrokerage/testing/insurance @ $0.27 /kg $1,833Industry levy @ 2.00% gross $1,600Other ExpensesHand Feeding $2,700Insurance 120000 value @ $2.00 /$'000 $240Water 1200 DSE's @ $1.50 /DSE $1,800Veh Fuel, R&M 1200 DSE's @ $1.00 /DSE $1,200Other Expenses 1200 DSE's @ $0.50 /DSE $600

TOTAL VARIABLE COSTS $48,733GROSS MARGIN $54,056GROSS MARGIN/hectare $541GROSS MARGIN/DSE $45

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 pasture expenses such as seed, fertiliser and chemicals. These need to be separately accounted for.


Merino Wethers - High Rainfall (450mm+)

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 $125.00 5.5 $22,750TOTAL 182 $22,750PURCHASES Number Price/hd Age yrs Totalwethers 212 $115 0.5 $24,422

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

Number $/head Wt (Kgs) ratingwethers 1000 $120 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 225 $0Hay 15 kg/wether 180 $2,700Lupins kg/wether 300 $0Total $2,700

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

1000 1100 1178 1200 1300 1400$100 $32 $37 $41 $43 $48 $54$105 $32 $38 $42 $43 $49 $54$110 $33 $39 $43 $44 $50 $55$115 $34 $39 $44 $45 $50 $56

Average $120 $34 $40 $44 $46 $51 $57Sale Price $125 $35 $41 $45 $46 $52 $57of wethers $130 $36 $41 $46 $47 $53 $58

($/hd) $135 $37 $42 $46 $48 $53 $59$140 $37 $43 $47 $48 $54 $59$145 $38 $44 $48 $49 $55 $60$150 $39 $44 $49 $50 $55 $61


Prime Lambs Gross Margin - Cereal Zone (250 - 450mm) 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

2018INCOME YOUR




Shearing 970 sheep @ $301.96 /100 $2,929(Federal awards) 24 rams @ $603.92 /100 $145Shed labour 5 days @ $227.68 /day $1,138Woolclasser 2.5 days @ $287.71 /day $719Work Cover (includes super + o'time etc) @ 9.50% total $469Superannuation (on ordinary wages only) @ 4.00% wages $197Wool packs 38 packs @ $11.20 /pack $426Shed sundries 994 sheep @ $0.15 /head $149Lice control 994 sheep @ $0.46 /head $456Crutch & Wig 0 lambs @ $87.57 /100 $0

1019 ewes @ $87.57 /100 $892Marking

Lamb marking 950 lambs @ $1.15 /head $1,093Ear tags 950 lambs @ $0.40 /head $380

Animal Health drench 2000 sheep @ $0.43 /head $864 vaccinate 2925 sheep @ $0.26 /head $772 blowfly control 1000 sheep @ $1.30 /head $1,302Stock purchases

Purchases (refer to opposite page) $70,420Sale Costs

Freight livestock 239 culls @ $4.00 /head $956

262 ewes @ $4.00 /head $1,046950 prime lambs @ $4.00 /head $3,800


commissioninsurance @ 6.0% gross $9,466 yard fees 1189 head @ $0.85 /head $1,011

levy-sheep 239 head @ $0.20 /head $48levy-lambs 950 head @ $1.50 /head $1,425SA sheep industry lev 1189 head @ $0.55 /head $654Wool selling chargesbrokerage/testing/insurance @ $0.27 kg $1,722Industry levy @ 2.0% gross $1,186

Feed and Other CostsWater 1850 DSE's @ $2.50 /DSE $4,625Veh Fuel, R&M 1850 DSE's @ $1.20 /DSE $2,220Other 1850 DSE's @ $0.50 /DSE $925

hay 20.5 tonne @ $180.00 /tonne $3,690 grain 24.8 tonnes @ $225.00 /tonne $5,569

Insurance $215,125 value @ $2.00 /$'000 $430TOTAL VARIABLE COSTS $121,770GROSS MARGIN TOTAL $95,267GROSS MARGIN/hectare $309GROSS MARGIN/DSE $51COMMENTSThe 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 pasture expenses such as seed, fertiliser and weed control. These need to be separately accounted for.


Prime Lambs Gross Margin - Cereal Zone (250 - 450mm)

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 $105.00 5.5 $24,360c.f.a rams 8 $50.00 4.5 $400lambs 950 $140.00 20 weeks $133,000TOTAL 1189 132.59 $157,760PURCHASES Number Price/hd Age yrs Totalewes 262 $220 1.5 $57,538rams 9 $1,500 1.5 $12,883



SHEARING Wool cut price TotalNumber kg/hd $

ewes 970 6.50 $9.36 59015crossbred rams 24 3.00 $3.60 262

TOTAL 994 6378 59277




ewes 1000 $225 3.0 8 $5,400rams 25 $225 3.0 10 $169


75% 85% 95% 105% 115% 125%$115 $29 $34 $39 $45 $50 $55$120 $31 $36 $42 $47 $53 $59$125 $33 $38 $44 $50 $56 $62$130 $34 $41 $47 $53 $59 $65


$150 $42 $49 $56 $63 $71 $78$155 $44 $51 $59 $66 $73 $81$160 $46 $54 $61 $69 $76 $84$165 $48 $56 $64 $71 $79 $87


Self Replacing Merino Flock - Cereal Zone (250 - 450mm)AssumptionsAve Breeding Ewe Fibre Diameter 21 Total DSE's 2420Number of breeding ewes 1000 Stocking rate (DSE/Ha) 6.0

2018INCOME YOUR




Shearing 2398 sheep @ $301.96 /100 $7,241(Federal Awards) 25 rams @ $603.92 /100 $151Shed labour 8 days @ $227.68 /day $1,821Woolclasser 4.0 days @ $287.71 /day $1,151Superannuation (on ordinary wages only) @ 9.5% wages $985Work Cover (includes super + o'time etc) @ 4.0% total $454Wool packs 65 packs @ $11.20 /pack $728Shed sundries 2423 sheep @ $0.15 /head $363Lice control 2423 sheep @ $1.52 /head $3,693Crutch & wig 1448 sheep @ $87.57 /100 $1,268

25 rams @ $175.14 /100 $44Marking

Lamb marking 950 lambs @ $1.40 /head $1,330Pain relief 900 lambs @ $0.45 /head $405Ear tags 950 lambs @ $0.40 /head $380

Animal Health drench 2475 sheep @ $0.43 /head $1,069 vaccinate 3400 sheep @ $0.26 /head $898 blowfly control 1500 sheep @ $1.30 /head $1,953Sale and Purchase Costs


65 bales @ $17.00 /bale $1,105Stock selling charges

commission/insurance @ 6.0% gross $7,577 yard fees 912 head @ $0.85 /head $775 sheep tran levy 437 head @ $0.20 /head $87

lamb trans levy 475 head @ $1.50 /head $713SA Sheep industry 912 head @ $0.55 /head $501wool selling chargesbrokerage/testing/insurance @ $0.27 /kg $2,992Industry levy @ 2.0% gross $2,074


TOTAL VARIABLE COSTS $78,674GROSS MARGIN TOTAL $151,319GROSS MARGIN/hectare $375

$63GROSS 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 pasture expenses such as seed, fertiliser and weed control. These need to be separately accounted for.


Self Replacing Merino Flock - Cereal Zone (250 - 450mm)

PRODUCTION DATAStocking rate (DSE/Ha) 6.0 Culling Rate (% per each group)Total DSE's 2420 Age group Ewes WethersSHEEP GRAZING AREA 285 0.5 0% 100%Number of ewes mated 1000 1.5 49% 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 95% 6.5 100% 0%Prime lamb weaning % 0%% mated for prime lms 0%

SALES Number Price/hd Totalc.f.a ewes 204 $105.00 $21,420c.f.a merino rams 6 $50.00 $300ewe hoggets 227 $220.00 $49,940wether lambs 475 $115.00 $54,625TOTAL 912 $138.54 $126,285


Number DSE Drench Vacc. Blowflyewes 1000 1.8 1 1 1ewe hoggets 475 1.2 1 1 1wether weaners 0 0.8 1 1 1merino lambs 950 0.0 1 2 0merino rams 25 2.0 2 1 1TOTAL 2450 2420 2475 3400 1500Total Value $339,424

FEEDINGFeed Number of Fodder kg/ animal Total

Animals Cost ($/T) cost ($)Oats/barley 1000 $225 24 /ewe $5,400Hay 1000 $180 20 /ewe $3,600Lupins 475 $300 10 /weaner $1,425Total $10,425




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

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

800 900 936 1000 1100 1200$110 $46 $51 $52 $55 $60 $64$115 $48 $53 $54 $57 $62 $66$120 $50 $54 $56 $59 $63 $68$125 $52 $56 $58 $61 $65 $70

Average $130 $53 $58 $60 $62 $67 $71Sale Price $135 $55 $60 $61 $64 $69 $73All Sheep $139 $57 $61 $63 $66 $70 $75

($/hd) $145 $59 $63 $65 $68 $72 $77$150 $60 $65 $67 $69 $74 $78$155 $62 $67 $68 $71 $76 $80$160 $64 $69 $70 $73 $77 $82


Merino Wethers - Cereal Zone (250 - 450mm)Assumptions:Average Wether Fibre Diameter 21 Total DSE's 1200Number of adult wethers 1000 Stocking rate (DSE/Ha) 6.0

2018INCOME YOUR



EXPENSESShearing

Shearing 970 sheep @ $301.96 /100 $2,929Shed labour 4 days @ $227.68 /day $911Woolclasser 2 days @ $287.71 /day $575Superannuation (on ordinary wages only) @ 9.5% wages $365Work Cover (on wages+super+o'time etc) @ 4.0% total $168Wool packs 43 packs @ $11.20 /pack $482Shed sundries 970 sheep @ $0.15 /head $146Lice control 970 sheep @ $1.52 /head $1,478Crutching 1000 sheep @ $87.57 /100 $876






transaction levy 182 head @ $0.20 /head $36SA sheep industry 182 head @ $0.55 /head $100Wool selling chargesbrokerage/testing/insurance @ $0.27 /kg $1,964Industry levy @ 2.0% gross $1,362Other ExpensesHand Feeding $2,700Insurance 120000 value @ $2.00 /$'000 $240Water 1200 DSE's @ $2.50 /DSE $3,000Veh Fuel, R&M 1200 DSE's @ $1.00 /DSE $1,200Other Expenses 1200 DSE's @ $0.50 /DSE $600

TOTAL VARIABLE COSTS $49,344GROSS MARGIN $41,546GROSS MARGIN/hectare $208GROSS MARGIN/DSE $35


Merino Wethers - Cereal Zone (250 - 450mm)

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 225 $0Hay 15 kg/wether 180 $2,700Lupins kg/wether 300 $0Total $2,700


800 900 936 1000 1100 1200$100 $23 $29 $31 $35 $41 $47$105 $24 $30 $32 $36 $42 $47$110 $24 $30 $32 $36 $42 $48$115 $25 $31 $33 $37 $43 $49

Average $120 $26 $32 $34 $38 $44 $50Sale Price $125 $27 $32 $35 $38 $44 $50of wethers $130 $27 $33 $35 $39 $45 $51

($/hd) $135 $28 $34 $36 $40 $46 $52$140 $29 $35 $37 $41 $47 $52$145 $29 $35 $37 $41 $47 $53$150 $30 $36 $38 $42 $48 $54


Cleanskin Sheep - Cereal Zone (250 - 450mm)Assumptions

Total DSE's 2750Number of breeding ewes 1000 Stocking rate (DSE/Ha) 6.0

2018INCOME YOUR

$ ESTIMATE

Sales 1453 animals [ ave price $143.92 per hd] $209,160GROSS INCOME $209,160

VARIABLE COSTS$0

MarkingLamb marking 1500 lambs @ $1.15 /head $1,725Ear tags 1500 lambs @ $0.40 /head $600

Animal Health drench 3300 sheep @ $0.43 /head $1,426 vaccinate 4775 sheep @ $0.26 /head $1,261 blowfly control 0 sheep @ $1.30 /head $0

Lice control 0 sheep @ $1.52 /head $0Sale and Purchase Costs

Purchases 7 rams @ $1,500.00 /head $10,500Freight 204 ewes @ $4.00 /head $816

6 rams @ $4.00 /head $24494 hoggets @ $4.00 /head $1,976750 lambs @ $4.00 /head $3,000

Stock selling charges commission/insurance @ 6.0% gross $12,550 yard fees 1453 head @ $0.85 /head $1,235 sheep tran levy 703 head @ $0.20 /head $141

lamb trans levy 750 head @ $1.50 /head $1,125SA Sheep industry 1453 head @ $0.55 /head $799

$0$0


TOTAL VARIABLE COSTS $59,819GROSS MARGIN TOTAL $149,341GROSS MARGIN/hectare $326GROSS MARGIN /DSE $54COMMENTSAssumes flock is fully wool shedding and therefore no shearing, crutching or lice control costs are included. Assumes only one lambing per year.No allowance has been made for pasture expenses such as seed, fertiliser and weed control. These need to be separately accounted for.


Cleanskin Sheep - Cereal Zone (250 - 450mm)

PRODUCTION DATAStocking rate (DSE/Ha) 6.0 Culling Rate (% per each group)Total DSE's 2750 Age group Ewes WethersSHEEP GRAZING AREA 458 0.5 0% 100%Number of ewes mated 1000 1.5 68% 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 150% 6.5 100% 0%

SALES Number Price/hd Total

c.f.a ewes 204 $110.00 $22,440c.f.a rams 6 $50.00 $300ewe hoggets 494 $180.00 $88,920wether lambs 750 $130.00 $97,500TOTAL 1453 $143.92 $209,160

STOCK HEALTH

Number DSE Drench Vacc. Blowfly Liceewes 1000 1.8 1 1 0 0ewe hoggets 750 1.2 1 1 0 0wether weaners 0 0.8 1 1 0 0lambs 1500 0.0 1 2 0 0rams 25 2.0 2 1 0 0TOTAL 3275 2750 3300 4775 0 0Total Value $471,344

FEEDINGNumber of Fodder kg/ Animal Total

Feed Animals Cost ($/T) cost ($)Oats/barley 1000 $225 24 /ewe $5,400Hay 1000 $180 20 /ewe $3,600Lupins 750 $300 10 /weaner $2,250Total $11,250

Number of times

FLOCK STRUCTURE This table shows the number of sheep in each age group at matingClass 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 750 234 216 199 183 169 0

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

SENSITIVITY ANALYSISGROSS MARGIN/DSE Average Weaning Percentage

120 135 150 165 180 190$110 $35 $42 $49 $56 $63 $67$115 $36 $43 $50 $57 $64 $69$120 $38 $45 $52 $59 $66 $71$125 $39 $46 $53 $60 $68 $72$130 $40 $47 $54 $62 $69 $74

Sale Price $135 $41 $48 $56 $63 $71 $76Lambs $140 $42 $49 $57 $64 $72 $77($/hd) $145 $43 $50 $58 $66 $74 $79

$150 $44 $52 $59 $67 $75 $80$155 $45 $53 $61 $69 $77 $82$160 $46 $54 $62 $70 $78 $84


Prime Lambs Gross Margin - Pastoral Zone (<250mm)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

2018INCOME YOUR




Shearing 950 sheep @ $301.96 /100 $2,869(Federal awards) 24 rams @ $603.92 /100 $145Shed labour 5 days @ $227.68 /day $1,138Woolclasser 2.50 days @ $287.71 /day $719Superannuation (on ordinary wages only) @ 9.5% wages $463Work Cover (on wages+super+o'time etc) @ 4.0% total $195Wool packs 34 packs @ $11.20 /pack $381Shed sundries 974 sheep @ $0.15 /head $146Lice control 974 sheep @ $1.52 /head $1,484Crutch & Wig 800 lambs @ $87.57 /100 $701

998 adults @ $87.57 /100 $874Marking

Lamb marking 800 lambs @ $1.15 /head $920Ear tags 800 lambs @ $0.40 /head $320

Animal Health drench 0 sheep @ $0.43 /head $0 vaccinate 1825 sheep @ $0.26 /head $482 blowfly control 1000 sheep @ $1.30 /head $1,302Stock purchases

Purchases (refer opposite page) $69,409Sale Costs

Freight livestock 220 culls @ $7.00 /head $1,540

270 ewes @ $7.00 /head $1,887800 prime lambs @ $7.00 /head $5,600


commission/insurance @ 6.0% gross $6,903 yard fees 1020 head @ $0.85 /head $867

levy-sheep 220 head @ $0.20 /head $44levy-lambs 800 head @ $1.50 /head $1,200SA sheep industry 1020 head @ $0.55 /head $561wool selling chargesIndustry levy @ 2.0% gross $949brokerage/testing/insurance @ $0.27 /kg $1,558

Feed and Other CostsWater 1858 DSE's @ $1.50 /DSE $2,786Veh Fuel, R&M 1858 DSE's @ $1.70 /DSE $3,158Other 1858 DSE's @ $0.50 /DSE $929

hay 0.0 tonne @ $180.00 /tonne $0 grain 0.0 tonnes @ $225.00 /tonne $0

Insurance $204,813 value @ $2.00 /$'000 $410TOTAL VARIABLE COSTS $110,517GROSS MARGIN TOTAL $51,988GROSS MARGIN/hectare $3.92GROSS MARGIN/DSE $28COMMENTSThe 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.


Prime Lambs Gross Margin - Pastoral Zone (<250mm)

PRODUCTION DATA







TOTAL 974 5771 47453


Number Cost ($/T) per week of Feeding cost ($)ewes 1000 $180 3.0 0 $0rams 24 $180 3.0 0 $0


ewes 1000 $225 0.0 0 $0rams 24 $225 3.0 0 $0


50% 60% 70% 80% 90% 100%$85 $5 $9 $12 $16 $20 $23$90 $6 $10 $14 $18 $22 $26$95 $7 $12 $16 $20 $24 $28

$100 $9 $13 $18 $22 $26 $31Average $105 $10 $15 $19 $24 $29 $33

Lamb Sale $110 $11 $16 $21 $26 $31 $36Price ($/hd) $115 $12 $18 $23 $28 $33 $38

$120 $14 $19 $25 $30 $35 $41$125 $15 $21 $26 $32 $38 $43$130 $16 $22 $28 $34 $40 $46$135 $18 $24 $30 $36 $42 $49

PRIME LAMB GROSS MARGIN - PASTORAL ZONE

PRODUCTION DATA







TOTAL 974 5771 47453


Number Cost ($/T) per week of Feeding cost ($)ewes 1000 $180 3.0 0 $0rams 24 $180 3.0 0 $0


ewes 1000 $225 0.0 0 $0rams 24 $225 3.0 0 $0


50% 60% 70% 80% 90% 100%$85 $5 $9 $12 $16 $20 $23$90 $6 $10 $14 $18 $22 $26$95 $7 $12 $16 $20 $24 $28

$100 $9 $13 $18 $22 $26 $31Average $105 $10 $15 $19 $24 $29 $33

Lamb Sale $110 $11 $16 $21 $26 $31 $36Price ($/hd) $115 $12 $18 $23 $28 $33 $38

$120 $14 $19 $25 $30 $35 $41$125 $15 $21 $26 $32 $38 $43$130 $16 $22 $28 $34 $40 $46$135 $18 $24 $30 $36 $42 $49

PRIME LAMB GROSS MARGIN - PASTORAL ZONE


Self Replacing Merino Flock - Pastoral Zone (<250mm)AssumptionsAve Breeding Ewe Fibre Diameter 22 Total DSE's 2660Number of breeding ewes 1000 Stocking rate (DSE/Ha) 0.14

2018INCOME YOUR




Shearing 2550 sheep @ $301.96 /100 $7,700(Federal Awards) 29 rams @ $603.92 /100 $175Shed labour 10 days @ $227.68 /day $2,277Woolclasser 5 days @ $287.71 /day $1,439Superannuation (on ordinary wages only) @ 9.5% wages $1,101Work Cover (includes super + o'time etc) @ 4.0% total $508Wool packs 68 packs @ $11.20 /pack $762Shed sundries 2579 sheep @ $0.15 /head $387Lice control 2579 sheep @ $1.52 /head $3,930Crutch & wig 1750 sheep @ $87.57 /100 $1,532

MarkingLamb marking 800 lambs @ $1.40 /head $1,120Pain relief 900 lambs @ $0.45 /head $405Ear tags 800 lambs @ $0.40 /head $320


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


68 bales @ $17.00 /bale $1,156Stock selling charges

commission/insurance @ 6.0% gross $5,321 yard fees 717 head @ $0.85 /head $609

transaction levy 717 head @ $0.20 /head $143SA sheep industry 717 head @ $0.35 /head $251Wool selling chargesbrokerage/testing/insurance @ $0.27 /kg $3,127Industry levy @ 2.0% gross $1,918

Feed and other CostsHand Feeding $0Insurance $325,508 value @ $2.00 /$'000 $651Water 2660 DSE's @ $1.50 /DSE $3,990Veh Fuel, R&M 2660 DSE's @ $1.70 /DSE $4,522Other 2660 DSE's @ $0.50 /DSE $1,330

TOTAL VARIABLE COSTS $67,795GROSS MARGIN TOTAL $116,780GROSS MARGIN/hectare $6.15

$44GROSS 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.


Self Replacing Merino Flock - Pastoral Zone (<250mm)PRODUCTION DATAStocking rate (DSE/Ha) 0.14 Culling Rate (% per each group)Total DSE's 2660 Age group Ewes WethersSHEEP GRAZING AREA 19000 0.5 0% 0%Number of ewes mated 1000 1.5 42% 100%Ram percentage 3.0% 2.5 0% 0%Age wethers sold (yrs) 1 3.5 0% 0%Years rams kept 4 4.5 0% 0%Flock death rate 5% 5.5 0% 0%Average weaning rate 80% 6.5 100% 0%Prime lamb weaning % 0%% mated for prime lms 0%

SALES Number Price/hd Totalc.f.a ewes 171 $105.00 $17,955c.f.a merino rams 7 $45.00 $315ewe hoggets 159 $180.00 $28,620wether hoggets 380 $110.00 $41,800TOTAL 717 $123.77 $88,690


Number DSE Drench Vacc. Jetewes 1000 1.8 0 1 1ewe hoggets 400 1.2 0 1 0wether weaners 400 0.8 0 0 0merino lambs 800 0.0 0 2 0merino rams 30 2.0 0 1 0TOTAL 2630 2660 0 3030 1000Total Value $325,508

FEEDINGFeed Number of Hay kg/ animal Total

Animals Cost ($/T) fed cost ($)Oats/barley 1000 $225 0.0 /ewe $0Hay 1000 $180 0.0 /ewe $0Lupins 800 $300 0.0 /weaner $0Total $0




Wethers 400 0 0 0 0 0 0Rams 8 8 7 7 0 0

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

700 750 800 828 900 950$100 $32 $35 $37 $38 $41 $43$105 $34 $36 $38 $39 $42 $44$110 $35 $37 $39 $40 $43 $46$115 $36 $38 $40 $42 $45 $47

Average $120 $37 $40 $42 $43 $46 $48Sale $124 $39 $41 $43 $44 $47 $49

Price ($/hd) $130 $40 $42 $44 $45 $49 $51$135 $41 $43 $46 $47 $50 $52$140 $43 $45 $47 $48 $51 $53$145 $44 $46 $48 $49 $52 $54$150 $45 $47 $49 $51 $54 $56


Merino Wethers - Pastoral Zone (<250mm)Assumptions:Average Wether Fibre Diameter 22 Total DSE's 1200Number of adult wethers 1000 Stocking rate (DSE/Ha) 0.14

2018INCOME YOUR

$ ESTIMATEWool (kg greasy) 6720 Kg [ave price 828 c/kg ] $55,642Sales 226 animals [ave price $120.00 per hd] $27,061


EXPENSESShearing

Shearing 960 sheep @ $301.96 /100 $2,899Shed labour 4 days @ $227.68 /day $911Woolclasser 2 days @ $287.71 /day $575Superannuation (on ordinary wages only) @ 9.5% wages $417Work Cover (on wages+super+o'time etc) @ 4.0% total $169Wool packs 40 packs @ $11.20 /pack $448Shed sundries 960 sheep @ $0.15 /head $144Lice control 960 sheep @ $1.52 /head $1,463Crutching 1000 sheep @ $87.57 /100 $876






transaction levy 226 head @ $0.20 /head $45SA sheep industry 226 head @ $0.55 /head $124Wool selling chargesbrokerage/testing/insurance @ $0.27 /kg $1,814Industry levy @ 2.0% gross $1,113Other ExpensesHand Feeding $0Insurance 107500 value @ $2.00 /$'000 $215Water 1200 DSE's @ $1.50 /DSE $1,800Veh Fuel, R&M 1200 DSE's @ $1.50 /DSE $1,800Other Expenses 1200 DSE's @ $0.50 /DSE $600

TOTAL VARIABLE COSTS $48,181GROSS MARGIN $34,521GROSS MARGIN/hectare $4.03GROSS MARGIN/DSE $29

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.


Merino Wethers - Pastoral Zone (<250mm)

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% 0Number of wethers 1000 1.5 0% 266Flock death rate 4% 2.5 0% 255Age wethers bought (yrs) 1.5 3.5 0% 245Age wethers culled 5.5 4.5 0% 235

5.5 100%







wethers 960 7.00 6720 63% 4234TOTAL 960 6720 4234


Oats/barley 0 kg/wether 225 $0Hay 0 kg/wether 180 $0Lupins 0 kg/wether 300 $0Total $0


700 750 800 828 900 950$95 $17 $20 $23 $24 $28 $31

$100 $18 $21 $24 $25 $29 $32$105 $19 $22 $25 $26 $30 $33$110 $20 $23 $25 $27 $31 $34

Average $115 $21 $24 $26 $28 $32 $35Sale $120 $22 $24 $27 $29 $33 $35

Price ($/hd) $125 $23 $25 $28 $30 $34 $36$130 $24 $26 $29 $31 $34 $37$135 $24 $27 $30 $31 $35 $38$140 $25 $28 $31 $32 $36 $39$145 $26 $29 $32 $33 $37 $40


Beef Cattle - High RainfallAssumptions: (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 $6,000Cows c.f.a 10 years old sold for $1,500Uses 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 1888 Herd DSEStocking rate 10 DSE/ha Drench cows 2 xArea required 189 hectares Drench calves 1 xFeeds 35 kg/DSE hay equivalent supplement

2018INCOME YOUR

$ ESTIMATEStock sales 54 vealers @ 280 kg liveweight@ $3.00 /kg L/W $45,360

22 yearlings 420 kg liveweight@ $3.20 /kg L/W $29,568Culls 10 Cows @ 550 kg liveweight@ $2.00 /kg L/W $10,545

1 bull@ $1,500GROSS INCOME $86,973

VARIABLE COSTSBull PurchasesNo. of bulls 1 $6,000.00 total $6,000Veterinary & MedicinesDrench - cows 2x calves 1x 290 @ $4.11 /head $1,193Ear Tags NLIS 90 @ $4.75 /tag $428Lice Treatments 100 @ $4.11 /dose $411Vaccine (5 in 1) 180 @ $0.47 /dose $85

Supplementary FeedHay 66 tonne @ $180.00 /tonne $11,880Grain 0.00 t/head @ $225.00 /tonne $0Blocks/ Mineral Mix 100 @ $5.00 /head $500Sale costs and otherInsurance $119,000 @ $2.00 /$1000 $238Water 1888 dse's @ $1.50 $2,832Veh Fuel, R&M 1888 dse's @ $1.00 $1,888Other 1888 dse's @ $0.50 $944Transport: Lvstk 87 head @ $30.00 /head $2,598

Commission @ 6.0% $5,218Levies @ $5.00 /head $433

TOTAL VARIABLE COSTS $34,647GROSS MARGIN TOTAL $52,326GROSS MARGIN PER COW $523GROSS MARGIN/DSE $27.71GROSS MARGIN/hectare $277.14COMMENTSLivestock weight will vary between cattle breed, feed type and ageNo allowance has been made for pasture expenses such as seed, fertiliser and weed control. These need to be separately accounted for.


Beef Cattle - High Rainfall

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

$2.00 $2.50 $3.00 $3.50 $4.0060% $60 $131 $202 $274 $34565% $93 $173 $253 $333 $41270% $127 $215 $303 $391 $48075% $160 $257 $354 $450 $547

Weaning 80% $194 $299 $404 $509 $614% 85% $228 $341 $454 $568 $681

90% $261 $383 $505 $627 $74895% $295 $425 $555 $685 $816100% $328 $467 $606 $744 $883

PER DSE$/kg Liveweight(yearlings/steers)

$2.00 $2.50 $3.00 $3.50 $4.0060% $3 $7 $11 $15 $1865% $5 $9 $13 $18 $2270% $7 $11 $16 $21 $2575% $8 $14 $19 $24 $29

Weaning 80% $10 $16 $21 $27 $33% 85% $12 $18 $24 $30 $36

90% $14 $20 $27 $33 $4095% $16 $23 $29 $36 $43100% $17 $25 $32 $39 $47

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Beef Cattle - Cereal ZoneAssumptions: (Breeding young cattle for local trade, grass fattened)

Breeding Cow 14.5 DSE 100 Cow breeding herdCalf Weaning 90% 13 cows replaced per yearHerd Deaths 3% 3% Bulls bought for $6,000Cows c.f.a 10 years old sold for $1,500Uses 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 1960 Herd DSEStocking rate 5.00 DSE/ha Drench cows 2 xArea required 392 hectares Drench calves 1 xFeeds 35 kg/DSE hay equivalent supplement

2018INCOME YOUR

$ ESTIMATEStock sales 45 vealers @ 270 kg liveweight @ $3.20 /kg L/W $38,880

31 yearlings 400 kg liveweight @ $3.00 /kg L/W $37,200Culls 10 Cows @ 550 kg liveweight @ $2.00 /kg L/W $10,545


VARIABLE COSTSBull PurchasesNo. of bulls 1 @ $6,000 total $6,000Veterinary & MedicinesDrench - cows 2x calves 1x 290 @ $4.11 /head $1,193Ear Tags 90 @ $4.75 /tag $428Lice Treatments 100 @ $4.11 /dose $411Vaccine (5 in 1) 180 @ $0.47 /dose $85

Supplementary FeedHay 68 tonne @ $180.00 /tonne $12,240Grain 0.00 t/head @ $225.00 /tonne $0Blocks/ Mineral Mix 100 @ $5.00 /head $500Sale costs and otherInsurance $119,000 @ $2.00 /$1000 $238Water 1960 dse's @ $2.50 $4,900Veh Fuel, R&M 1960 dse's @ $1.00 $1,960Other 1960 dse's @ $0.50 $980Transport: Lvstk 87 head @ $30.00 /head $2,598


TOTAL VARIABLE COSTS $37,253GROSS MARGIN TOTAL $50,873GROSS MARGIN PER COW $509GROSS MARGIN/DSE $25.95GROSS MARGIN/hectare $129.77COMMENTSNoallowancehasbeenmadeforpastureexpensessuchasseed,fertiliserandweedcontrol.Theseneedtobeseparatelyaccounted for.


Beef Cattle - Cereal Zone

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

$2.00 $2.50 $3.00 $3.50 $4.0060% $38 $110 $183 $255 $32865% $71 $152 $233 $314 $39570% $105 $194 $283 $373 $46275% $138 $236 $334 $431 $529

Weaning 80% $172 $278 $384 $490 $596% 85% $205 $320 $434 $549 $663

90% $239 $362 $484 $607 $73095% $272 $404 $535 $666 $797100% $306 $445 $585 $724 $864

PER DSE$/kg Liveweight(yearlings/steers)

$2.00 $2.50 $3.00 $3.50 $4.0060% $2 $6 $9 $13 $1765% $4 $8 $12 $16 $2070% $5 $10 $14 $19 $2475% $7 $12 $17 $22 $27

Weaning 80% $9 $14 $20 $25 $30% 85% $10 $16 $22 $28 $34

90% $12 $18 $25 $31 $3795% $14 $21 $27 $34 $41100% $16 $23 $30 $37 $44

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Beef Cattle - PastoralAssumptions: (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 $4,500Cows c.f.a 10 years old sold for $1,500Uses 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

2018INCOME YOUR

$ ESTIMATEStock sales 67 yearlings 360 kg liveweight @ $2.80 /kg $67,536Culls 10 Cows @ 550 kg lwt @ $1.85 /kg $10,175


VARIABLE COSTSBull DepreciationBull purchase 1 @ $4,500 total $4,500Veterinary & MedicinesDrench 0 @ $4.11 /head $0Ear Tags 80 @ $4.75 /tag $380Lice Treatments 196 @ $4.11 /dose $806Vaccine (5 in 1) 160 @ $0.47 /dose $76Supplementary FeedHay 45 tonne @ $180.00 /tonne $8,100Grain 0.00 t/head @ $225.00 /tonne $0Sale costs and otherInsurance $111,500 @ $2.00 /$1000 $223Water 2248 dse's @ $2.50 $5,620Veh Fuel, R&M 2248 dse's @ $1.00 $2,248Other 2248 dse's @ $0.50 $1,124Transport: Lvstk 78 head @ $30.00 /head $2,340


TOTAL VARIABLE COSTS $30,559GROSS MARGIN TOTAL $48,652GROSS MARGIN PER COW $487GROSS MARGIN/DSE $21.64GROSS MARGIN/hectare $54.10COMMENTSFeed costs include an allowance for drought fodder.Livestock weight will vary between cattle breed, feed type and age.


Beef Cattle - Pastoral

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

$2.00 $2.50 $2.80 $3.00 $3.5060% $150 $234 $285 $319 $40365% $186 $279 $335 $373 $46670% $222 $324 $386 $427 $52975% $258 $369 $436 $481 $592

Weaning 80% $294 $414 $487 $535 $655% 85% $330 $459 $537 $589 $718

90% $366 $504 $587 $643 $78195% $402 $549 $638 $697 $844100% $438 $594 $688 $751 $907

PER DSE$/kg LWT (yearlings/steers)

$2.00 $2.50 $2.80 $3.00 $3.5060% $7 $10 $13 $14 $1865% $8 $12 $15 $17 $2170% $10 $14 $17 $19 $2475% $11 $16 $19 $21 $26

Weaning 80% $13 $18 $22 $24 $29% 85% $15 $20 $24 $26 $32

90% $16 $22 $26 $29 $3595% $18 $24 $28 $31 $38100% $19 $26 $31 $33 $40

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Farm Costs - Livestock 2018Note: The following costs have been collected from a number of regional sources and should be seen as an approximate guide only. Costs will vary depending on situation. Users of this publication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required. SHEEP

Lice Control Avenge $19.05 /litre$1.52 /80ml dose

Extinosad $46.20 /litre$1.39 /30ml dose

Piranah $673.20 /litre$6.73 per 10ml=100lts wash

Drench Triguard $36.00 /litre$0.43 /12ml dose

Moximax $23.20 /litre$0.28 /12ml dose

Dynamax Capsules $345.00 /100 capsules$3.45 /capsule

Vaccine Glanvac 3 $66.00 /250ml$0.26 /1ml dose

Glanvac 3B12 $110.00 /250ml$0.44 /1ml dose

Glanvac 6 $82.00 /250ml$0.33 /1ml dose

Glanvac 6B12 $141.00 /250ml$0.56 /1ml dose

Cobalife Vit B12 $55.00 /500ml$0.11 /1ml dose

Eryvac $160.00 /250ml$0.64 /1ml dose

Blowfly Control Clik $54.25 /litre$1.30 /24 ml dose

Proguard $52.20 /litre$104.40 per 2L=1000l jetting fluid

Zinjet $65.40 /litre$130.08 per 2L=1000l jetting fluid

Wool packs nylon $11.20 eaShearing Sheep $301.96 /100

Rams $603.92 /100Shed labour $227.68 /dayWool classer $287.71 daySuperannuation 9.50% wagesWork Cover-Allow 4.00% totalShed sundries $0.15 /head

Crutching Sheep $87.57 /100Rams $175.14 /100

Lamb marking Mulesing / materials $1.40 /headMarking only $1.15 /headEar tags $0.40 /head

Stock selling Commission/insurance 6.0%Yard fees $0.85 /headSheep transaction levy $0.20 /headLamb transaction levy $1.50 /headSA sheep industry levy $0.35 /headWool brokerage / testing / insur $0.27 /kgWool levy 2.0%

BEEFDrench Eprinex Pour-on $82.25 /litre

$4.11 /25ml doseEclipse Combination Pour-on $163.00 /litre

$4.48 /27.5ml doseCydectin Pour-on $60.00 /litre

$3.30 /55ml doseCattlemax Pour-on $50.75 /litre

$2.79 /55ml doseDectomax Pour-on $88.57 /litre

$4.87 /55ml doseFly and Lice Swish $73.00 /litre

$2.19 /30ml doseVaccine Ultravac 5 in 1 $59.00 /250 ml

$0.47 /2ml doseUltravac 7 in 1 $206.00 /250 ml

$2.06 /2.5ml doseMultimin Inj $335.00 /500 ml

$3.35 /5ml doseVit ADE $89.00 /500 ml

$0.89 /5ml doseCobalife Vit B12 $55.00 /500 ml

$0.55 /5ml doseNLIS Breeder Tags (incl levy) $4.75 eachIndicative freight costs for GM purposes Freight cattle in $30.00 /head

Freight cattle out $30.00 /headCattle levy $5.00 /head

FEED & OTHER COSTS Water $2.50 /DSEVeh fuel, R&M $1.00 /DSEOther $0.50 /DSEHay $180.00 /tonne incl freightFeed Cereal grain $225.00 /tonne incl freightLupins $300.00 /tonne incl freight

STOCK RETURNS 2015 Average (Clean) 2016 2017 Average Budget Base Budget Base WOOL- High Rainfall 28 mic 70%Yield 867 774 756 750 525 - High Rainfall 19 mic 70% Yld 1339 1484 1878 1870 1309 - Med Rainfall 21 mic 68% Yield 1278 1397 1533 1530 1040 - Low Rainfall 22 mic 63% Yield 1259 1380 1461 1460 920

- Crossbred Ram 32 mic 400


Farm Costs - Cropping 2018

CHEMICAL COSTS - HERBICIDES2,4-D Amine (625g/l) $4.50 /litre2,4-D LV Ester (680g/l) $6.50 /litreAchieve® WG $52.00 /kgAffinity® $122.50 /litreAptitude® $64.00 /kgAtlantis® (mesosulfuron 30g/L) $88.00 /litreAtrazine (900 g/kg) $7.00 /litreAxial® $150.00 /litreBalance ® $0.13 /gramBoxer Gold® $11.50 /litreBroadstrike® $0.40 /gramDiflufenican (Brodal) $35.88 /litreBromoxynil /MCPA $14.00 /litreCadence® (700gm/Kg Dicamba) $22.00 /kgChlorsulfuron 750g/kg (Glean) $0.06 /gramClopyralid 600g/L (Lontrel® Advanced) $39.60 /litreRexade® (New formulation of Crusader®) $330.00 /litreDiuron 900 gm a.i. granules $9.00 /kgFactor® (butroxydim 250g/kg) $0.13 /gramFlight® $19.50 /litreTriclopyr 755g/L $20.45 /litreTriclopyr 600g/L $13.70 /litreGlyphosate 540g/L $6.00 /litreGlyphosate 450g/L $4.50 /litreCarfentrazone 400g/L (Hammer) $190.00 /litreIntervix® $28.00 /litreMetribuzin 750 gm/kg $22.40 /kgM.C.P.A. LVE $8.85 /litreMCPA Amine (750g/L) $8.75 /litreMetsulfuron methyl $0.06 /gramOxyfluorfen 240g/L $14.00 /litreParadigm® $0.48 /gramParaquat 250 g/L $5.40 /litrePrecept® $16.00 /litrePropyzamide (500 g/L) $22.00 /litreQuizalofop 200g/L $15.66 /litreReglone® $20.00 /litreSakura® $340.00 /kgSentry® $0.22 /gramClethodim $10.20 /litreSharpen® $0.50 /gramSimazine Granules 900g/kg $7.30 /kgS-metolachlor 960g/L (Dual®Gold) $16.00 /litreImazethapyr 700g/kg $99.50 /kgSprayseed® $9.25 /litreStarane® Advanced (fluroxypyr 333g/L) $21.90 /litreTerbyne® 875 $27.50 /kgTopik® EC $38.80 /litreTri-allate 500g/L $9.58 /litreTriasulfuron 750g/kg (Logran) $0.08 /gmValor® $166.00 /kgVelocity® $31.50 /litreTrifluralin 480g/L $5.75 /litreHaloxyfop 520g/L (Verdict) $38.90 /litreTalinor $25.00 /litreProsulfocarb $11.90 /litre

CHEMICAL COSTS - ADJUVANTSUptake (Oil) $6.20 /litreBS-1000 (WETTER) $5.60 /litreSupercharge® $7.20 /litreHasten® $4.70 /litreBanjo® $4.95 /litreAdigor® $8.40 /litreHot-up® $5.00 /litreLI-700 $4.90 /litreSurfactant cost (with Achieve) Per Ha $4.05 Assume 75l/ha @ 0.75% surf.Oil Cost $2.33 Assume 75l/ha @0.5% oilWetter Cost per Ha $0.42 Assume 75l/ha @ 0.1% surf.


Farm Costs - Cropping 2018CHEMICAL COSTS - INSECTICIDES

Dimethoate 400g/L $8.45 /litreAlpha-cypermethrin 16g/L $6.43 /litreLambda-cyhalothrin (Karate Zeon®) $115.50 /litreTrojan® $116.00 /litreSumi-Alpha® Flex $9.70 /litrePyrinex® Super $8.95 /litreImidan® $13.20 /litrePirimicarb 500g/kg $31.20 /kgChlorpyrifos 500g/L $7.20 /litreBifenthrin 250g/L (Talstar®) $27.28 /litreImidacloprid 600 g/L $29.80 /litreTransform $155.00 /litreAffirm $73.90 /litreCruiser 350 $51.95 /litreCobalt $8.45 /litre

CHEMICAL COSTS - FUNGICIDESApron® XL 350 ES $350.00 /litreMancozeb 750g/kg $8.90 /kgVeto® 25C Flowable $14.80 /litreVibrance® $35.30 /litreEvergol Prime® $155.00 /litreRancona Dimension® $75.35 /litreBaytan® T Flowable $26.40 /kgPontiac® $24.50 /kgP-Pickel T $34.00 /litreCarbendazim 500g/kg $12.90 /kgTebuconazole 430 $12.10 /litrePropiconazole 250g/L $12.35 /litreChlorothalonil 720g/L $12.40 /litreProsaro® $74.50 /litreAmistar® $40.00 /litreTazer® Xpert $21.00 /litreSystiva® $199.00 /litreProcymidone 500g/L $26.00 /litreCogito® $26.25 /litreVeritas® $31.60 /litreEpoxiconazole 125g/L $17.00 /litreFlutriafol (500g/l) $26.00 /litreAviator X-Pro® $54.50 /litreUniform® $63.30 /litre

CHEMICAL COSTS - TRACE ELEMENTSZincsulphate $1.75 /litreCoppersulphate $3.60 /litreMangasulphate $1.45 /litre

FUEL COSTSTotal price - Diesel (GST Exc) $1.10 /litreRebate $0.39 /litreNet Price Diesel - $/litre $0.71 /l bulk includes rebate

FERTILISER COSTSMAP 10:22 $660 /tonneDAP 18:20 $660 /tonneUrea $480 /tonneSuperphosphate $360 /tonneGranulock Z18 $694 /tonneDAP + Urea 24:16 $639 /tonneDAP + Urea 28:13 $608 /tonneDAP + Urea 32:10 $577 /tonneSulphate of Ammonia $427 /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

Grain Pickling- Wheat Veto® 25C Flowable $14.80 -Barley Systiva® $298.50

Aphid Control - Cereals Imidacloprid (240ml/100Kg) $71.52 - Lupins Imidacloprid (300ml/100Kg) $89.40Inoculant Legumes $50.00 /tonne treated seedSeed Treatment Apron® XL 350 ES $262.50 /tonne treated seed

P-Pickle T $68.00 /tonne treated seed

Note- Assumes minimum standard of application for smuts and bunts. More expensive


Farm Costs - Livestock/Cropping 2018

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 $28.00CONTRACT RATES (indicative only- will be highly variable depending on situation) RangeGround Spraying $10.00 /hectareAerial spraying $14.00 /hectareContract harvesting cereals, low rainfall $50.00 /hectare $45-55/HaContract harvesting cereals, medium rainfall $65.00 /hectare $60-70/HaContract harvesting cereals, high rainfall $80.00 /hectare $75-85/HaContract harvesting pulse/canola, low rainfall $65.00 /hectare $60-70/HaContract harvesting pulse/canola, medium rainfa $80.00 /hectare $75-85/HaContract harvesting pulse/canola, high rainfall $90.00 /hectare $85-95/HaWindrowing $38.00 /hectareContract spreading $8.50 /hectare excludes cartageContract sowing $50.00 /hectareHaymakingContract mowing/ conditioning $50.00 /hectareHire of rake(supply own tractor and labour) $6.00 /hectareContract baling (725kg square bales) $25.00 /baleSuper conditioner (oaten hay) $25-40.00 /hectareHay Accumulation $3.00 /baleINSURANCE 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


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 & OilRepairs & 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 EXPENSESGROSS MARGIN /HECTARE

Gross Margin Pro forma

Rural Solutions SA’s team of qualified and highly-experienced industry consultants offer a deep understanding of their chosen fields and an established network of government and industry contacts.

Our areas of expertise include:

Delivering solutions to assist primary industries and regions to

grow, innovate and maximise potential

• Sustainable agriculture and farming systems

• Agronomy and soil productivity

• Livestock systems

• Horticulture and irrigation systems

• Business and strategic planning

• Industry and policy development

Email: [email protected] Phone: 1300 364 322

MORE INFORMATION:

MICHAEL TRELOARChair0427 765 [email protected]

MAX YOUNGTrustee0419 839 [email protected]

BRYAN SMITHTrustee0459 256 [email protected]

TED LANGLEYTrustee0407 398 [email protected]

CAROLINE RHODESGroup B Trustee0408 331 [email protected]

MALCOLM BUCKBYProject Manager08 8210 [email protected]

DR ALLAN MAYFIELDScientific Officer0418 818 [email protected]

SAGIT has invested almost $3 million in new projects in 2017-18 supporting research crucial to the advancement of the industry with funds from the 30c/tonne contribution on all grain delivered by SA growers.

SAGIT has invested in 26 projects including:

The SAGIT website features individual summaries of each research project and its outcomes, videos and photos. You can also access the Farm Gross Margin Guide and

the Brome Grass Bulletin online, plus application forms and funding guidelines.

And, remember to follow SAGIT on social media!

• Cereal Aphid Risk Assessment• Common vetch as a break crop for

marginal cropping systems• Copper management • Developing new capability for

research on Rhizoctonia• Development of dual purpose awnless

wheat varieties for frost management• Development of wheat population

using speed breeding for salinity tolerance

• Efficiency of fertiliser N products on calcareous and sandy soil types

• Enhanced N-use efficiency in durum through improved genetics

• Enhancing diagnostics and extension for Khapra Beetle

• AquaTill demonstration field day• Field testing of sodicity and salinity-

tolerant oat varieties • Further development of crown rot

resistance in durums• Increasing understanding of

micronutrient deficiency in the Upper North

• Improving monitoring and management of etiella in lentils

• MacKillop Farm Management Group Annual Trial Results Book

• Optimisation of Seed Terminator settings in the SA context

• Publication of the 2018 Farm Gross Margin Guide

• Regional internship in applied grains research

• SA Crop Variety Sowing Guide• SANTFA Conference 2018 – 2020• Seed to Store video clip competition• Spading header rows for grass

control, yields & soil protection• Swathing for barley grass weed

seed collection and applying drone technology

• Towards molecular selection for heat stress tolerance in field pea

• Uniform seed distribution along the row to increase yields and reduce seed costs

• Use of drones to non-destructively assess wheat varieties

www.sagit.com.au


SA GRAIN GROWERS FUNDING RESEARCH SOLUTIONS

S A G I T

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Documents

Farm Gross Margin and Enterprise Planning Guide 2018 gross margin template for crop and livestock enterprises Farm Gross Margin and Enterprise Planning Guide 2018 A gross margin template