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Farm Gross Margin Guide

A gross margin template for crop and livestock enterprises

2016

The GRDC’s Farming the Business manual is for farmers and advisers to improve their farm business management skills.It is segmented into three modules to address the following critical questions:

Module 1: What do I need to know about business to manage my farm business successfully?

Module 2: Where is my business now and where do I want it to be?

Module 3: How do I take my business to the next level?

The Farming the Business manual is available as:

Hard copy – Freephone 1800 11 00 44 and quote Order Code: GRDC873 There is a postage and handling charge of $10.00. Limited copies available.

pdF – Downloadable from the GRDC website – www.grdc.com.au/FarmingTheBusiness or

eBook – Go to www.grdc.com.au/FarmingTheBusinesseBook for the Apple iTunes bookstore, and download the three modules and sync the eBooks to your iPad.

Mike Krause

Farming

the Business

Module 1

Mike Krause

Module 2

Mike Krause

Module 3

Mike Krause

Level 4, 4 National Circuit, Barton ACT 2600 | PO Box 5367, Kingston ACT 2604 | T +61 2 6166 4500 | F +61 2 6166 4599 | E [email protected] | W www.grdc.com.au

GRDC_A4_FB_Manual.indd 1 29/05/2015 4:18 pm


Farm Gross Margin 2016A gross margin template for crop and livestock enterprises

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

y Provides templates which allow easy calculation of your own Gross Margins

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

A Rural Solutions SA publication

Sponsored by SAGIT and GRDC

ISBN 978-1-921779-89-3

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 2016

The GRDC’s Farming the Business manual is for farmers and advisers to improve their farm business management skills.It is segmented into three modules to address the following critical questions:

Module 1: What do I need to know about business to manage my farm business successfully?

Module 2: Where is my business now and where do I want it to be?

Module 3: How do I take my business to the next level?

The Farming the Business manual is available as:

Hard copy – Freephone 1800 11 00 44 and quote Order Code: GRDC873 There is a postage and handling charge of $10.00. Limited copies available.

pdF – Downloadable from the GRDC website – www.grdc.com.au/FarmingTheBusiness or

eBook – Go to www.grdc.com.au/FarmingTheBusinesseBook for the Apple iTunes bookstore, and download the three modules and sync the eBooks to your iPad.

Mike Krause

Farming

the Business

Module 1

Mike Krause

Module 2

Mike Krause

Module 3

Mike Krause

Level 4, 4 National Circuit, Barton ACT 2600 | PO Box 5367, Kingston ACT 2604 | T +61 2 6166 4500 | F +61 2 6166 4599 | E [email protected] | W www.grdc.com.au

GRDC_A4_FB_Manual.indd 1 29/05/2015 4:18 pm

2016 Farm Gross Margin Guide

Farm Gross Margin and Enterprise Planning Guide 2016The Rural Solutions SA Farm Gross Margins Guide is produced annually in South Australia. It incorporates latest information on input and output pricing to give estimates of the relative profitability of different farm enterprises, to aid decision making in enterprise selection. 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.

Each year farmers are confronted with an array of challenges brought on by the vagaries of weather, production and marketing. Once again, the 2015 season presented a number of difficulties including frosts, variable rainfall and a hot, dry finish. Cropping results have been very variable depending on locations. Where seasonal conditions have allowed, stock enterprises have continued to perform well, with, in particular, the beef industry enjoying significant price rises through the 2015 production season.

The requirement into the future will be to maintain profitable farming systems in the face of ever increasing cost structures and further production challenges. Improving our skill and knowledge of all aspects of our farm business will be the key to meeting the challenge.

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 support a number of initiatives in this area including Farm Business Updates, Newsletters and Factsheets. The South Australian Grain Industry Trust (SAGIT) also invests more than $1.4 million a year in supporting research crucial to advancing the SA grain industry. Rural Solutions SA is a business with a mission to work with clients to enhance competitiveness by developing and growing businesses.

Overall prospects for farming remain good and we can expect to go through a period of growth. Change will no doubt continue and there will be the need to adopt new technologies and to increase the effectiveness of existing operations to improve profitability. It will also be necessary to consider different ways of managing risk whilst maximising profit to improve total farm income. This will involve close examination of the key drivers of both profit and risk.

We know that each farmer and their farm business is different and so a ‘one size fits all’ approach will not work. This document provides a template for primary producers to calculate their own gross margins using data relevant to their own situation. An editable Excel based version has also been developed for cropping gross margins and will soon be available for download on the GRDC and PIRSA websites. This version will allow farmers to feed in their own numbers and ask the ‘what if’ type questions appropriate to their own situation. The subsequent gross margins can then be used as a base for developing their farm program and building and analysing budgets for the coming year. The guide is to help inform your decisions and compare options – it does not make the decisions for you.

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


*** Stop Press ***Editable Version Available

An Excel based editable version of the cropping Gross Margins shown in this guide will soon be available from the following websites:

www.sagit.com.au

www.grdc.com.au/FarmGrossMarginGuide

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

Michael Treloar Chairman SAGIT

Keith Pengilley Chairman, GRDC Southern Panel

Daniel CasementExecutive Director,Rural Solutions SA

RSSA delivers innovative agribusiness solutions increasing client profitability and value

AREAS OF EXPERTISE Sustainable agriculture and farming systems

Agronomy & Soil productivity

Livestock systems

Horticulture and irrigation systems

Seafood industry development

Business and strategic planning

Industry and policy development

Market and value chain development

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


ContentsIntroduction ................................................................................................................................................. 2

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

Strategies for Maximising Returns from Individual Enterprises .................................................................. 5

Commentary on 2015/16 Gross Margins ..................................................................................................... 7

2016 Gross Margin Estimates ..................................................................................................................... 8

Gross Margins ............................................................................................................................................10

Gross Margins – Cereals ............................................................................................................................11APW Wheat .......................................................................................................................................12

Durum Wheat.....................................................................................................................................14

Malting Barley ....................................................................................................................................16

Feed Barley........................................................................................................................................18

Milling Oats ....................................................................................................................................... 20

Triticale ............................................................................................................................................. 22

Export Oaten Hay ...............................................................................................................................24

Gross Margins – Pulses ............................................................................................................................. 26Vetch ................................................................................................................................................ 28

Lupins .............................................................................................................................................. 30

Red Lentils ........................................................................................................................................ 32

Field Peas ......................................................................................................................................... 34

Faba Beans....................................................................................................................................... 36

Chickpeas ......................................................................................................................................... 38

Gross Margins – Canola ............................................................................................................................ 40Canola – Conventional ....................................................................................................................... 42

Canola – Triazine tolerant ................................................................................................................... 44

Canola – Clearfield ............................................................................................................................ 46

Gross Margins – Livestock ........................................................................................................................ 50Prime 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

Prime Lambs – Pastoral Zone ............................................................................................................ 62

Self Replacing Merino Flock – Pastoral Zone ....................................................................................... 64

Merino Wethers – Pastoral Zone ........................................................................................................ 66

Cleanskin Sheep – Cereal Zone .......................................................................................................... 68

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

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

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

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

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

2016 Farm Gross Margin Guide2

IntroductionThis book provides a format and general estimates for crop and livestock gross margin profit for broadacre enterprises across Southern Australia. It provides a base to easily calculate individual producers gross margins using the templates provided.

A blank format is included as well as a blank column on every page, along with a full list of product and input costs as a guide for those wishing to construct their own gross margins.

What are Gross MarginsThe 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.

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 rate.

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 Southern Australia. They should be treated strictly as a base guide only and adapted by users for their particular situations.

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

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

Sensitivity analysis tables are included in the book to help determine the impact on the gross margin of significant changes in yield and price.

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

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

KEY POINT

Make your own adjustments to the gross margins in this book to adapt to your own situation


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. Some of these other factors include:

y Stage of rotation- weed, pests, nutrition and disease levels

y Suitability of proposed land use to land class- are there physical restrictions which limit enterprise selection?

y Availability of suitable plant, equipment, labour and/or infrastructure to carry-out the enterprise.

y Risk- What is the sensitivity of the enterprise to adverse circumstances (e.g. poor yields or prices) and can the farm business afford to carry this risk?

y Integration of livestock in a mixed cropping situation and the need for appropriate pasture supplies for grazing animals

y Personal preference- Being favourably disposed towards something generally means that you will do it better. Running livestock is an interesting example.

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 (eg cereals on legumes) and negative (eg canola on canola)

For more information on the use of Gross Margin analysis, refer to the following GRDC publications:

SAGIT websitewww.sagit.com.au

Farm Financial Tool – Crop Gross Margin Budgethttp://www.grdc.com.au/GRDC-FS-FFT-CropGrossMarginBudget

Farm Financial Tool – Livestock Gross Margin Budget http://www.grdc.com.au/GRDC-FS-FFT-LivestockGrossMarginBudget

Calculating Your Own Gross MarginsAn Excel based editable version of the cropping Gross Margins shown in this guide soon be available for download from the following web sites:

www.sagit.com.au

www.grdc.com.au/FarmGrossMarginGuide

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

Rates and types of fertiliser and weed control treatments will obviously vary for different situations. Remember that these calculations are not meant to be an exact science – roughly right is better than precisely wrong! Use your own estimates when the values vary significantly from those included in the example.

Calculating the break even yield needed to cover variable costs will give some indication of the riskiness or exposure of the particular enterprise. Remember, of course, that there are many other costs (in addition to the variable costs) which need to be covered before a profit is made – these 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.


Strategies for Maximising Returns from Individual Enterprises

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

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

Lighter Mallee type soils 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 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 http://www.grdc.com.au/GRDC-FS-BFDCN

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

Phosphorous Replacement LevelsCrop 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® (www.yieldprophet.com.au) or the CSIRO developed Yield and N Calculator. https://data.csiro.au/dap/.

CropWatchCropWatch is a FREE electronic newsletter service provided by SARDI and distributed through Jon Lamb Communications and reports on crop diseases throughout SA. http://www.pir.sa.gov.au/research/services/reports_and_newsletters/crop_watch

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


Commentary On 2015/16 Gross Margins What happened in 2015Results for the 2015 season across the South Australia have been very variable. In most areas, crop establishment was quite reasonable with good winter rains encouraging optimism. However, in a repeat of 2014, a dry finish combined with a very hot spell in early October and some frosts saw significant reduction in potential, particularly in later districts. Legumes, in particular, were affected and reduced supply combined with good overseas demand saw pulse prices generally rise later in the season. Cereal prices have been held in check by ample world supplies and the withdrawal of China from the feed grain market.

In 2015, canola generally performed much better than in 2014. The return to better pricing also aided gross margins for this crop.

Livestock industries have continued to perform very solidly in 2015. Wool prices year on year are up about 10% from 2014. Demand for livestock meat remains very strong with, in particular, beef showing strong price rises through 2015.

Expectations for 2016As shown in 2015, grain pricing can change considerably over the course of the year- changing exchange rates and international factors are important drivers. And it should be emphasised that future grain pricing remains uncertain and estimates used in this Gross Margins analysis could vary substantially from those which are actually obtained.

While cereals remain solid performers in the lower rainfall districts, higher risk crops, in particular, lentils stand up very well in a gross margin sense (even given the expectations of much lower pricing than that achieved in 2015) providing modest yields can be obtained. Oaten hay also shows good margins in the lower rainfall areas, although this crop has higher demands around logistics and the weather risk at cutting. It should be noted that the malting barley gross margin needs to be adjusted for quality risk if malting grade is not usually achieved. In this case, a high yielding feed barley variety is likely to prove a viable alternative.

In medium and high rainfall districts, lentils continue to stand out as potentially very profitable, providing the production risks and challenges of this crop can be managed.

Canola gross margins are potentially similar or better than cereals in the medium and high rainfall districts.

Continuing expected strong demand for red meat see livestock gross margins performing well. With sheep, self-replacing Merino ewe flocks remain quite profitable with meat related products from these flocks increasing in importance. Reproductive rates are a strong determinate of the final gross margin achieved for livestock enterprises. Substantial rises in beef prices see the expected returns from this enterprise on a DSE basis finally becoming competitive with sheep.


Commodity $/ha Low Medium High PastoralZone

CerealZone

HighR/F Zone

APW Wheat 223 366 598 Prime Lambs 25 40 40Durum 251 446 759 Merino breeders 33 40 41Malt Barley 216 335 505 Merino wethers 21 28 28Feed Barley 204 293 439 31Milling Oats 93 268 443 25 25 30Triticale 119 228 368Oaten Hay 325 392 452Grain Vetch 159 355 516Lupins 117 282 418Lentils 286 614 1,026Field Peas 152 291 617Faba Beans 125 350 801Chickpeas (Kabuli) 125 417 766Canola- Conv 224 400 691Canola-TT 145 289 581Canola-Clear 177 330 623

Beef CattleCleanskin

The tables below summarise the anticipated gross margins for all crops and livestock for 2016.

2016 GROSS MARGIN ESTIMATES

Enterprise $/dse

LIVESTOCKCROPPING

Commodity Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016 5 yr Average

2016 Estimate

APW Wheat ($/t) 214 280 260 290 250 259 260Durum ($/t) 280 305 340 550 370 369 350Malt Barley ($/t) 220 260 255 320 290 269 260Feed Barley ($/t) 200 240 215 270 205 226 220Milling Oats ($/t) 180 215 190 240 290 223 240Feed Oats ($/t) 170 205 180 230 275 212 220Triticale ($/t) 170 220 200 240 210 208 210Grain Vetch ($/t) 280 500 380 650 850 532 500Lupins ($/t) 155 260 305 335 380 287 350Lentils ($/t) 410 480 630 940 1340 760 800Field Peas ($/t) 300 330 320 400 550 380 400Faba Beans ($/t) 370 470 420 490 560 462 450Chickpeas 6-8mm Kabuli ($/t) 500 575 440 530 1050 619 600Canola ($/t) 500 540 490 480 530 508 520Oaten Hay ($/t) 140 160 155 160 170 157 180

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: 16/17 Forecast Grain Prices: Forecast grain prices for 16/17 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.

2016 Gross Margin Estimates

Commodity Prices Historical Data


Comparative returns between farm enterprises – High Rainfall

Comparative returns between farm enterprises – Medium Rainfall

Comparative returns between farm enterprises – Low Rainfall

$0

$200

$400

$600

$800

$1,000

$1,200

GM

$/h

aCropping Gross Margin per Hectare

High Rainfall

$0

$50

$100

$150

$200

$250

$300

$350

GM

$/h

a

Cropping Gross Margin per Hectare Low Rainfall

$0

$100

$200

$300

$400

$500

$600

$700

GM

$/h

a

Cropping Gross Margin per Hectare Medium Rainfall

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

GM

$/d

se

Livestock Gross Margin per dse High Rainfall

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

GM

$/d

seLivestock Gross Margin per dse

Cereal Zone

$0

$5

$10

$15

$20

$25

$30

$35

GM

$/d

se

Livestock Gross Margin per dse Pastoral Zone


Gross Margins The gross margins in this book are designed to provide a template only, for users to adapt to their own situation, and should not be relied upon as representative of any one particular situation.

Below is an example of how these gross margins may be adapted to suit individual circumstances. A copy of a blank gross margin sheet, which may be photocopied to calculate your own gross margin, is included at the rear of this publication.

2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $210 $180 $160Quality Mixed gradesYield (t/ha) 3.50 5.50 8

GROSS INCOME $735 $990 $1,280

VARIABLE COSTS Rate/ha Rate/ha Rate/ha

Cost Low $/ha Medium $/ha High $/haSeed

LeviesSeed $290.00 /tonne @ 90 $26.10 120 $34.80 130 $37.70

Seed Treatment $0.00 /tonne @ 0 $0.00 0 $0.00

Fertiliser (Bulk)18:20:0 $720 /tonne @ 60 $43.20 80 $57.60 110 $79.20Urea $500 /tonne @ 30 15.00$ 75 $37.50 150 $75.00

Chemicals-Herbicides

Summer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsGlyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Oxyfluorfen $21.00 /litre @ 0.075 $1.58 0.075 $1.58 0.075 $1.58Dual Gold $16.00 /litre @ 0.5 $8.00 0.5 $8.00Diuron $11.70 /Kg @ 0.4 $4.68 0.4 $4.68 0.4 $4.68Post-MCPA Amine $10.00 /litre @ 0.5 $5.00 0.5 $5.00 0.5 $5.00Pre cutting-Glypho (1) $6.00 /litre @ 1 $6.00 2 $12.00 2 $12.00InsecticidesFungicides

OperationsFuel & Oil $7.00 $7.69 $8.39Repairs & Maintenance $7.84 $8.63 $9.41

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

Contract WorkHay mowing $45.00 /ha @ 1.0 $45.00 1.0 $45.00 1.0 $45.00Super Conditioner $25-35.00 /ha @ 1.0 $25.00 1.0 $30.00 1.0 $35.00Hay baling $20.00 /bale @ 3.5 $93.33 5.5 $157.14 8.0 $246.15Insurance $2.50 /$1000 @ $1.84 $2.48 $3.20

TOTAL VARIABLE COSTS $410 $598 $828GROSS MARGIN/hectare $325 $392 $452Break Even Price (to cover variable costs only) $117 $109 $103Break Even Yield (to cover variable costs only) 1.95 3.32 5.17Gross Margin based on last 5 year average price $147 $277 $444

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

Adjust fertiliser rates to your own situation considering prior rotation

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

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

Break even yield is variable costs divided by price

Insert your estimates based on projected yield and price

Cost of seed should always be allowed evenif using own seed

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

Break even price isvariable costs divided by yield

Export Oaten Hay Gross Margin


Gross Margins – CerealsCereals are generally regarded as lower risk and form the base of most rotations. However, the importance of cereals in the rotation varies across rainfall districts- they have historically shown to be the most profitable part of the rotation in lower rainfall districts, while in higher rainfall, more productive regions, cereals may be used as “break” crops for potentially more profitable alternatives such as lentils or canola (but beware of the potentially higher risk associated with these crops).

VarietiesWide range of varieties available. Refer NVT Online (http://www.nvtonline.com.au/) for latest National Variety Trial information and SARDI Sowing Guide 2015 http://grdc.com.au/SASowingGuide2015

Weed controlWide range of options available. Seek advice.

Assessing the potential impact of Soil Borne PathogensLevels of some soil borne pathogens (cereals as well as some break crops) can be assessed using the PreDicta B service provided by SARDI. PreDicta B (B = broadacre) is a DNA based soil testing service to identify which soilborne pathogens pose a significant risk to broadacre crops prior to seeding.

It has been developed for cropping regions in southern Australia and includes tests for:

y Cereal cyst nematode

y Take-all (Gaeumannomyces graminis var tritici (Ggt) and G. graminis var avenae (Gga)) y Rhizoctonia barepatch (Rhizoctonia solani AG8) y Crown rot (Fusarium pseudograminearum and F. culmorum) y Root lesion nematode (Pratylenchus neglectus and P. thornei) y Stem nematode (Ditylenchus dipsaci) y Blackspot of peas (Mycosphaerella pinodes, Phoma medicaginis var pinodella and Phoma koolunga)

Grain producers can access PreDicta B via agronomists accredited by SARDI to interpret the results and provide advice on management options to reduce the risk of yield loss.

PreDicta B samples are processed weekly from February to mid May (prior to crops being sown) to assist with planning the cropping program.

PreDicta B is not intended for in-crop diagnosis. This is best achieved by sending samples of affected plants to your local plant pathology laboratory.

Note changes to sampling protocol. For more information refer http://pir.sa.gov.au/research/services/molecular_diagnostics/predicta_b

Postal address for PreDicta B samples: C/- SARDI RDTSLocked Bag 100Glen Osmond SA 5064

For information on PreDicta B contact: Shawn Rowe [email protected] Phone: 0477 744 305


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $260 $260 $260Quality APW (Change Price for other grades)Yield (t/ha) 1.5 2.7 4

GROSS INCOME $390 $702 $1,040

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

SeedSeed $0.25 /kg @ 60 $15.00 80 $20.00 90 $22.50Seed Treatment $0.05 /kg @ 60 $2.94 80 $3.92 90 $4.41

LeviesGRDC Levies 1.0% Gross Income $3.90 $7.02 $10.40EPR & state levies $3.30 /tonne sold $4.95 $8.91 $13.20

Fertiliser (Bulk)18:20:0 $720 /tonne @ 40 $28.80 60 $43.20 80 $57.60Urea $500 /tonne @ $0.00 60 $30.00 120 $60.00

Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsTrifluralin 480g/L $7.50 /litre @ 1 $7.50 1 $7.50 1 $7.50Glyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Oxyfluorfen $21.00 /litre @ 0.075 $1.58 0.075 $1.58 0.075 $1.58Sakura (1) $340.00 /kg @ $0.00 0.118 $40.12 0.118 $40.12Post-emergentsTopik (2) $65.00 /litre @ 0.065 $7.04 0.085 $8.34 0.085 $8.34M.C.P.A. LVE $10.00 /litre @ 0.5 $5.00 0.7 $7.00 0.7 $7.00Metsulfuron methyl(3) $0.08 /gm @ 5 $0.85 5 $0.85 5 $0.85Clopyralid (Lontrel) $25.00 /kg @ 0.075 $1.88 0.075 $1.88 0.075 $1.882,4-DAmine(625g/l)(4) $6.00 /kg @ $0.00 $0.00 1.2 $7.20Fungicides

Tebuconazole $12.00 /litre @ 0.2 $2.40 0.2 $2.40 Prothioconazole(Prosaro) $70.00 /litre @ 0.15 $10.50 0.15 $10.50


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 0.12 $2.40 0.20 $4.00

Contract WorkAerial spraying $14.00 /ha @ $0.00 1 $14.00 1 $14.00Urea spreading $8.50 /ha @ $0.00 1 $8.50 2 $17.00Insurance $8.50 /$1000 @ $3.32 $5.97 $8.8Other $0.00 /ha

$0.00 /haTOTAL VARIABLE COSTS $167 $336 $442GROSS MARGIN/hectare $223 $366 $598Break Even Price (to cover variable costs only) $111 $125 $111Break Even Yield (to cover variable costs only) 0.64 1.29 1.70Gross Margin based on last 5 year average price $221 $363 $593

APW WHEAT GROSS MARGIN

COMMENTS(2) Includes Oil @ 0.5%(3) Includes Surfactant at 0.1% (4) Second broadleaf spray

AGRONOMIC NOTESNitrogen requirements will vary depending on individual paddocks- seek advice.If targeting higher protein (AH1) additional N inputs will be required.(1) Boxer Gold could be an option at a similar cost

APW Wheat Gross Margin


GROSS MARGIN SENSITIVITY LOW RAINFALL Cash Price $/t

$220 $240 $260 $280 $3000.5 -$28 -$18 -$9 $1 $11

Yield 1 $68 $88 $107 $127 $147

t/ha 1.5 $164 $194 $223 $253 $282

2.5 $357 $406 $455 $504 $553

3.5 $550 $618 $687 $756 $824MEDIUM RAINFALL

Cash Price $/t$220 $240 $260 $280 $300

1 -$68 -$48 -$28 -$9 $11Yield 2 $125 $164 $203 $243 $282

t/ha 2.7 $260 $313 $366 $419 $4723.5 $414 $483 $551 $620 $6894.5 $607 $695 $783 $872 $960

HIGH RAINFALL Cash Price $/t

$220 $240 $260 $280 $3002 $55 $95 $134 $173 $212

Yield 3 $248 $307 $366 $425 $483t/ha 4 $441 $519 $598 $676 $755

5 $633 $731 $829 $928 $1,0266 $826 $944 $1,061 $1,179 $1,297

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 3.976 spray 4 2.20 1.34 harvest# 1 8.57 4.7925TOTAL 14.66 10.11# Rates are for low rainfall zone. Extra cost in higher yielding situations

APW WHEAT GROSS MARGIN

Repairs & Maint

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300

350

400

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$/to

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Year

APW 10.5% WHEATHISTORIC PRICES (Post Harvest)

Forward Price for 2016/17 as at Jan 2016 $260/tonne

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High

APW Wheat Gross Margin


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $350 $350.00 $350.00Quality Durum 13%

Yield (t/ha) 1.2 2.2 3.4

GROSS INCOME $420 $770 $1,190

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



Fertiliser (Bulk)Granulock 1% Zn $780 /tonne @ 40 $31.20 60 $46.80 80 $62.40Urea $500 /tonne @ $0.00 100 $50.00 150 $75.00


Summer Weed Control Various Allow $20.00 $20.00 $20.00Trifluralin 480g/L $7.50 /litre @ 1 $7.50 1 $7.50 1 $7.50Boxer Gold $15.70 /litre @ $0.00 2.5 $39.25 2.5 $39.25Glyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Oxyfluorfen $21.00 /litre @ 0.075 $1.58 0.075 $1.58 0.075 $1.58Post-emergentsMCPA LVE $10.00 /litre @ 0.5 $5.00 0.5 $5.00 0.5 $5.00Metsulfuron methyl(1) $0.08 /gram @ 5 $0.85 5 $0.85 5 $0.852,4-DAmine(625g/l)(2) $6.00 /kg @ $0.00 $0.00 1.2 $7.20InsecticidesFungicides



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 @ $3.57 $6.55 $10.12Other


DURUM GROSS MARGIN

COMMENTSAssumes durum follows a legume crop or pasture.Price assumes Durum 13% is achieved(1) includes surfactant at 0.1% .(2) Second broadleaf spray

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


GROSS MARGIN SENSITIVITY LOW RAINFALL Net Price $/t

$250 $300 $350 $400 $4500.4 -$45 -$25 -$6 $14 $34

Yield 1.2 $133 $192 $251 $310 $368

t/ha 2 $311 $409 $507 $605 $7032.8 $488 $626 $763 $900 $1,038

MEDIUM RAINFALL Net Price $/t

$250 $300 $350 $400 $4501.5 $75 $148 $222 $295 $369

Yield 2.2 $230 $338 $446 $554 $662t/ha 3 $408 $555 $702 $849 $997

4 $630 $826 $1,022 $1,219 $1,415HIGH RAINFALL

Net Price $/t$250 $300 $350 $400 $450

1.5 $4 $77 $151 $224 $298Yield 2.5 $226 $348 $471 $594 $716t/ha 3.4 $426 $592 $759 $926 $1,093

4.5 $670 $891 $1,111 $1,332 $1,553


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

Operation No. Fuel

$/ha $/ha


DURUM GROSS MARGIN

Repairs & Maint

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400

500

600

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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DURUMHISTORIC PRICES (post harvest)

0

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140

160

$/ha

Variable Costs

Low Medium High

Durum Gross Margin


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $260 $260 $260Quality MaltingYield (t/ha) 1.5 2.5 3.5

GROSS INCOME $390 $650 $910





Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsTrifluralin 480g/L $7.50 /litre @ 1.5 $11.25 1.8 $13.50 1.8 $13.50Glyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Oxyfluorfen $21.00 /litre @ 0.075 $1.58 0.075 $1.58 0.075 $1.58Boxer Gold $15.70 /litre @ $0.00 2.5 $39.25 2.5 $39.25Post-emergents2,4- D Amine $6.00 /litre @ 1.2 $7.20 1.5 $9.00 1.5 $9.00Metsulfuron methyl(1) $0.08 /gm @ 5 $0.85 5 $0.85 5 $0.85Clopyralid (Lontel) $25.00 /kg @ 0.1 $2.50 0.1 $2.50 0.1 $2.502,4-DAmine(625g/l)(2) $6.00 /kg @ $0.00 $0.00 1.2 $7.20FungicidesPropiconazole $13.50 /litre @ 0.5 $6.75 0.3 $4.05 0.3 $4.05Prosaro $70.00 /litre @ $0.00 0.2 $14.00 0.2 $14.00Insecticides



Contract WorkAerial spraying $14.00 /ha @ 0 $0.00 0 $0.00 0 $0.00Urea Spreading $8.50 /ha @ $0.00 1 $8.50 2 $17.00Insurance $8.50 /$1000 @ $3.32 $5.53 $7.7Other


MALTING BARLEY GROSS MARGIN

COMMENTSAssumes barley follows wheat. Price assumes Malting grade is achieved which is high risk. Achieving feed grade would result in lower Gross Margin. Having to windrow barley will reduce GM by around $25/ha (1) Includes surfactant @ 0.1 %(2) Second broadleaf spray

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

Malting Barley Gross Margin



$220 $240 $260 $280 $3000.5 -$36 -$27 -$17 -$7 $3

Yield 1 $60 $80 $100 $119 $139

t/ha 1.5 $157 $187 $216 $246 $275

2 $254 $293 $333 $372 $411

3 $448 $507 $565 $624 $683MEDIUM RAINFALL

Net Price $/t$220 $240 $260 $280 $300

0.5 -$150 -$141 -$131 -$121 -$111Yield 1.5 $43 $73 $102 $132 $161

t/ha 2.5 $237 $286 $335 $384 $4333.5 $431 $499 $568 $637 $705

4 $527 $606 $684 $763 $841HIGH RAINFALL

Net Price $/t$220 $240 $260 $280 $300

1.5 -$20 $10 $39 $68 $98Yield 2.5 $174 $223 $272 $321 $370t/ha 3.5 $367 $436 $505 $573 $642

4.5 $561 $649 $738 $826 $9146 $851 $969 $1,087 $1,205 $1,323


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

$/ha $/ha


MALTING BARLEY GROSS MARGIN

0

50

100

150

200

250

300

350

400

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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MALT BARLEYHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High

Malting Barley Gross Margin


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $220 $220 $220Quality Feed 1Yield (t/ha) 1.7 2.8 4






Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsTrifluralin 480g/L $7.50 /litre @ 1.5 $11.25 1.8 $13.50 1.8 $13.50Glyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Oxyfluorfen $21.00 /litre @ 0.075 $1.58 0.075 $1.58 0.075 $1.58Boxer Gold $15.70 /litre @ $0.00 2.5 $39.25 2.5 $39.25Post-emergents2,4- D Amine $6.00 /litre @ 1.2 $7.20 1.5 $9.00 1.5 $9.00Metsulfuron methyl(1) $0.08 /gm @ 5 $0.85 5 $0.85 5 $0.852,4-DAmine(625g/l)(2) $6.00 /kg @ $0.00 $0.00 1.2 $7.20FungicidesPropiconazole $13.50 /litre @ 0.5 $6.75 0.3 $4.05 0.3 $4.05Prosaro $70.00 /litre @ $0.00 0.2 $14.00 0.2 $14.00Insecticides



Contract WorkAerial spraying $14.00 /ha @ 0 $0.00 0 $0.00 1 $14.00Urea spreading $8.50 /ha @ $0.00 1 $8.50 2 $17.00Insurance $8.50 /$1000 @ $3.18 $5.24 $7.5Other


FEED BARLEY GROSS MARGIN

COMMENTSAssumes barley follows wheatHaving to windrow barley will reduce GM by around $25/ha(1) Includes surfactant @ 0.1%(2) Second broadleaf spray

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

Feed Barley Gross Margin



$180 $200 $220 $240 $2600.5 -$48 -$39 -$29 -$19 -$9

Yield 1.2 $60 $83 $107 $130 $154

t/ha 1.7 $137 $170 $204 $237 $270

2.5 $260 $309 $358 $408 $457

3.5 $415 $483 $552 $621 $689MEDIUM RAINFALL

Net Price $/t$180 $200 $220 $240 $260

1.2 -$63 -$40 -$16 $7 $31Yield 2 $60 $99 $139 $178 $217

t/ha 2.8 $184 $238 $293 $348 $4033.6 $307 $378 $448 $519 $5904.2 $400 $482 $565 $647 $729

HIGH RAINFALL Net Price $/t

$180 $200 $220 $240 $2602 -$27 $12 $51 $91 $130

Yield 3 $127 $186 $245 $304 $363t/ha 4 $282 $360 $439 $517 $596

5 $436 $534 $632 $730 $8296 $590 $708 $826 $944 $1,062



$/ha $/ha


FEED BARLEY GROSS MARGIN

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350

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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FEED BARLEYHISTORIC PRICES (post harvest)

Forward Price 2016/17 as at Jan 2016 $210/tonne

0

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40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High

Feed Barley Gross Margin


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $240 $240 $240Quality Milling

Yield (t/ha) 1 2.1 3.2







Summer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsGlyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Oxyfluorfen $21.00 /litre @ 0.075 $1.58 0.075 $1.58 0.075 $1.58Dual Gold $16.00 /litre @ 0.5 $8.00 0.5 $8.00 0.5 $8.00Diuron $11.70 /kg @ 0.4 $4.68 0.4 $4.68 0.4 $4.68Post-MCPA Amine $10.00 /litre @ 0.5 $5.00 0.5 $5.00 0.5 $5.00Fungicides

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

Fuel & Oil $10.11 $12.13 $14.15Repairs & Maintenance $14.66 $17.60 $20.53


Contract WorkAerial sprayingUrea spreading $8.50 /ha @ $0.00 1 $8.50 2 $17.00Insurance $8.50 /$1000 @ $2.04 $4.28 $6.53Other


MILLING OATS GROSS MARGIN

COMMENTSAssumes oats follows a cereal. If following a legume less N will be required.

AGRONOMIC NOTES

Milling Oats Gross Margin



$200 $220 $240 $280 $3200.5 -$34 -$24 -$14 $6 $25

Yield 1 $53 $73 $93 $132 $171

t/ha 1.5 $140 $170 $199 $258 $3172 $227 $267 $306 $384 $463


$200 $220 $240 $280 $3201 -$6 $14 $33 $72 $112

Yield 2.1 $185 $227 $268 $350 $433t/ha 3 $342 $401 $460 $577 $695

4 $516 $594 $673 $830 $987HIGH RAINFALL

Net Price $/t$200 $220 $240 $280 $320

1 -$65 -$46 -$26 $13 $52Yield 2 $109 $148 $187 $266 $344t/ha 3.2 $317 $380 $443 $569 $694

4 $457 $535 $614 $771 $928


Machinery Costs- Assuming full ownership of machinery

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

Operation No. Fuel

$/ha $/ha


MILLING OATS GROSS MARGIN

Repairs & Maint

0

50

100

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250

300

350

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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MILLING OATSHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

$/ha

Variable Costs

Low Medium High

Milling Oats Gross Margin


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $210 $210 $210QualityYield (t/ha) 1.3 2.4 3.5






Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsTrifluralin 480g/L $7.50 /litre @ 1 $7.50 1 $7.50 1 $7.50Glyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Oxyfluorfen $21.00 /litre @ 0.075 $1.58 0.075 $1.58 0.075 $1.58Post-emergentsMCPA LVE $10.00 /litre @ 0 0.5 $5.00 0.5 $5.00MCPA amine $10.00 /litre @ 0.5 $5.00 $0.00 $0.00Metsulfuron methyl(1) $0.08 /gm @ 5 $0.85 5 $0.85 5 $0.85Achieve® (2) $60.00 /kg @ $0.00 0.4 $27.66 0.4 $27.66InsecticidesFungicides



Contract WorkAerial sprayingUrea spreading $8.50 /ha @ $0.00 1 $8.50 2 $17.00Insurance $8.50 /$1000 @ $2.32 $4.28 $6.25Other


TRITICALE GROSS MARGIN

COMMENTSThis rate of fertiliser assumes triticale follows a cereal(1) Surfactant at 0.1% (2) Surfactant at 0.75%

AGRONOMIC NOTES

Triticale Gross Margin



$150 $180 $210 $240 $2700.5 -$54 -$39 -$24 -$9 $5

Yield 1 $6 $36 $65 $95 $124

t/ha 1.3 $42 $80 $119 $157 $195

2 $126 $184 $243 $302 $361

3 $245 $333 $422 $510 $598MEDIUM RAINFALL

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

1 -$81 -$51 -$22 $7 $37Yield 1.6 -$9 $38 $85 $132 $179

t/ha 2.4 $86 $157 $228 $298 $3693.2 $182 $276 $370 $465 $559

4 $277 $395 $513 $631 $748HIGH RAINFALL

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

1.5 -$77 -$33 $12 $56 $100Yield 2.5 $43 $116 $190 $264 $337t/ha 3.5 $162 $265 $368 $471 $574

4.5 $282 $414 $547 $679 $8125.5 $401 $563 $725 $887 $1,049



$/ha $/ha


TRITICALE GROSS MARGIN

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250

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350

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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TRITICALEHISTORIC PRICES (post harvest)

0

20

40

60

80

100

120

$/ha

Variable Costs

Low Medium High

Triticale Gross Margin


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $210 $180 $160Quality Mixed gradesYield (t/ha) 3.50 5.50 8

GROSS INCOME $735 $990 $1,280

VARIABLE COSTS Rate/ha Rate/ha Rate/ha

Cost Low $/ha Medium $/ha High $/haSeed

LeviesSeed $290.00 /tonne @ 90 $26.10 120 $34.80 130 $37.70

Seed Treatment $0.00 /tonne @ 0 $0.00 0 $0.00

Fertiliser (Bulk)18:20:0 $720 /tonne @ 60 $43.20 80 $57.60 110 $79.20Urea $500 /tonne @ 30 15.00$ 75 $37.50 150 $75.00


Summer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsGlyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Oxyfluorfen $21.00 /litre @ 0.075 $1.58 0.075 $1.58 0.075 $1.58Dual Gold $16.00 /litre @ 0.5 $8.00 0.5 $8.00Diuron $11.70 /Kg @ 0.4 $4.68 0.4 $4.68 0.4 $4.68Post-MCPA Amine $10.00 /litre @ 0.5 $5.00 0.5 $5.00 0.5 $5.00Pre cutting-Glypho (1) $6.00 /litre @ 1 $6.00 2 $12.00 2 $12.00InsecticidesFungicides


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

Contract WorkHay mowing $45.00 /ha @ 1.0 $45.00 1.0 $45.00 1.0 $45.00Super Conditioner $25-35.00 /ha @ 1.0 $25.00 1.0 $30.00 1.0 $35.00Hay baling $20.00 /bale @ 3.5 $93.33 5.5 $157.14 8.0 $246.15Insurance $2.50 /$1000 @ $1.84 $2.48 $3.20



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




$250 $230 $210 $190 $1701.5 $75 $46 $16 -$14 -$44

Yield 2.5 $270 $220 $170 $121 $71

t/ha 3.5 $465 $395 $325 $255 $186

4.5 $660 $570 $480 $390 $300MEDIUM RAINFALL

Net Price $/t$140 $160 $180 $200 $220

2 -$118 -$78 -$38 $2 $42Yield 3.5 $7 $77 $146 $216 $286

t/ha 5.5 $173 $283 $392 $502 $612

7.5 $339 $489 $638 $788 $938HIGH RAINFALL

Net Price $/t$120 $140 $160 $180 $200

8 $133 $292 $452 $612 $771Yield 6 $11 $131 $250 $370 $490t/ha 8 $133 $292 $452 $612 $771

10 $255 $454 $654 $853 $1,053



$/ha $/ha

seed 1 3.89 3.98 spray 5 2.75 1.68 roll 1 1.20 1.34

TOTAL 7.84 7.00# Rates are for low rainfall zone. Extra cost in higher yielding situations


Repairs & Maint

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20

40

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120

140

160

180

200

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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OATEN HAYHISTORIC PRICES

0

50

100

150

200

250

300

350

$/ha

Variable Costs

Low Medium High



Gross Margins – PulsesThe use of grain legumes and canola as break crops for cereals provide rotational advantages for subsequent cereal crops. However, particularly in low rainfall areas, these crops are regarded as inherently more risky both financially and environmentally. Pulse Australia (www.pulseaus.com.au) have developed the “TOP 10” FOR PULSES PRE-SOWING to help reduce this risk. Full details can be accessed at:http://www.pulseaus.com.au/storage/app/media/crops/2011_SPB-Pulses-Presowing.pdf

Pulse Australia’s Top 10 hints for pulses are as follows:

1. Match the crop and variety choice to paddock conditions and rotations. � There are a range of new varieties available for most pulse species. Seed prices will reflect commodity

values and production costs.

� Grading of retained seed to increase its overall size may be needed after years with a dry finish.

� Which pulse species and variety, chosen for the location will be based on risk, crop adaptation and rotation. Be aware of the different soil and climate requirements as well as disease resistance profiles and agronomic requirements. Residual herbicide damage is a potential risk so check herbicide labels for plant-back periods based on rainfall, soil pH and use-age rates

2. There are ways to minimise disease risk without compromising sowing time. � Pulse fungal risk does not disappear after a dry year, but increases after a wet year in which foliar disease

was more wide-spread. Paddock selection is critical, while sowing time and canopy management are also important in disease management - and inexpensive to implement. See disease management guides and foliar fungicide options for each pulse crop at: www.pulseaus.com.au.

� Note that seed testing for seed-borne disease and virus is advisable. Weed management in pulse crops is furthermore becoming critical for yield potential and paddock health.

� Sow field peas based on the “blackspot management guide” for WA, SA and Victoria at http://www.extensionaus.com.au/blackspot-manager-for-field-peas

3. Stubble presence is becoming increasingly important for moisture retention. � Pulses sown early often perform best in drier years, particularly when sown into stubble, and in wider

rows. Do not sow too early for the crop or district as the disease risk will increase in wetter years.

� Germination and vigour test all kept seed and calculate sowing rates to achieve optimum plant populations.

� Bare ground dries rapidly during summer, and in dry winters and spring.

� Precision inter-row sowing into standing cereal stubble has advantages for soil moisture and aphids

� Dry sowing can generally work well for pulses, provided there is adequate subsoil moisture to give growers confidence.


4. Know the potential weed burden and seed set from previous year, and plan accordingly.5. Lentils – early sowing is beneficial and virus testing of seed is important.

� Excessive delays in sowing lentils to minimise disease and/or frost risk can have a negative impact in drier years.

� Dry springs can mean lack of harvest height with delayed sowing.

� Standing stubble can improve pulse standability, harvest height and yield

� Foliar disease protection is often a necessity, especially in a wetter season, and must start before canopy closure.

6. Field Peas – seed test for PSbMV and bacterial blight. � Field peas handle drier conditions well, but can be very susceptibility to frost damage.

� Field peas make very good quality hay in cases where they fail to pod or fill seeds.

� Seed testing is important for Bacterial blight and Pea Seed borne Mosaic Virus (PSbMV) because both are seed borne.

7. Beans – match the variety to sowing date, location and intended fungicide strategy. � Early sowing is more feasible with the newer varieties, improved farming systems and a better

understanding of disease control. This combination enables yield benefits and increased pod height without necessarily creating a major disease risk.

� Disease risk increases with early sowing so this must be managed with a protective strategy

� Beans suit dry sowing. Delayed sowing of beans to achieve additional weed knockdown does reduce yield potential. Avoid sowing into high weed seed numbers unless in wide rows with inter-row spraying planned.

8. Chickpea – paddock selection and seed inoculation are essential. � Paddock selection is absolutely critical with chickpea because of their poor early vigour and maturity that

virtually eliminates crop topping as an option.

� Do not sow chickpeas too early to ensure that flowering and pod set is under warmer conditions (>150 average).

� Always inoculate your chickpea seed prior to sowing.

9. Lupins – early sowing and virus testing of seed are important � Early sowing is highly beneficial in lupins, particularly in high rainfall, cold southern areas.

� New inoculants, including granular, can give growers more confidence in sowing lupins dry should it be needed.

� Virus seed testing is advisable before sowing lupins.

10. Minimise viruses by managing crop canopy, avoiding bare soil, and controlling aphids. � Minimising aphid presence will be important in virus control

� Gaucho350 SD seed dressing can assist in early aphid and virus protection, particularly when sowing early.

� Regularly monitor for and control mites, cutworm and early aphid flights.


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $500 $500 $500Quality Morava vetch

Yield (t/ha) 0.7 1.2 1.6


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

Seed Seed $0.85 /kg @ 25 $21.25 35 $29.75 35 $29.75Seed Inoculant $0.05 /kg @ 25 $1.13 35 $1.58 35 $1.58

LeviesGRDC Levies 1.0% Gross Income $3.50 $6.00 $8.00

Fertiliser (Bulk)MAP $720 /tonne @ 40 $28.80 60 $43.20 80 $57.60


Summer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsLexone $0.03 /gm @ 300 $9.00 300 $9.00 300 $9.00Trifluralin 480g/L $7.50 /litre @ 1.2 $9.00 1.5 $11.25 1.7 $12.75Glyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Oxyfluorfen $21.00 /litre @ 0.075 $1.58 0.075 $1.58 0.075 $1.58Post-emergentsSelect (incl Oil) $12.00 /litre @ 0.4 $7.61 0.5 $8.81 0.5 $8.81Verdict® 520 $48.00 /litre @ 0.075 $3.60 0.075 $3.60 0.075 $3.60Paraquat(Topping) $7.00 /litre 0.8 $5.60 0.8 $5.60 0.8 $5.60InsecticidesDimethoate (1) $10.00 /litre @ 0.4 $4.00 0.4 $4.00 0.4 $4.00omethoate (2) $29.00 /litre @ 0.05 $1.45 0.05 $1.45Karate Zeon® (3) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96



Contract WorkAerial spraying

Insurance $12.00 /$1000 @ $4.20 $7.20 $9.60Other


VETCH GROSS MARGIN

COMMENTSSeed is not treated with a fungicide or graded. (1) Cow pea aphid (2) RLEM (3) Native budworm

Do not exceed 800 ml/Ha Paraquat when crop topping to avoid possible residue issues

AGRONOMIC NOTESLexone (Metribuzin) not recommended on some varieties. Seek advice (also applies to using Diuron on vetch)Harvest and marketing difficulties are common with this cropVetch is a dual purpose crop and grain production following grazing is possible. This can markedly influence Gross Margin performance

Vetch Gross Margin



$300 $400 $500 $600 $7000.3 -$85 -$56 -$26 $3 $32

Yield 0.7 $22 $91 $159 $228 $296

t/ha 1.1 $130 $237 $345 $453 $5601.5 $237 $384 $531 $677 $824


$300 $400 $500 $600 $7000.4 -$95 -$56 -$17 $22 $62

Yield 0.8 $12 $91 $169 $247 $325t/ha 1.2 $120 $237 $355 $472 $589

1.8 $281 $457 $633 $809 $985HIGH RAINFALL

Net Price $/t$300 $400 $500 $600 $700

0.8 -$12 $66 $144 $223 $301Yield 1.2 $95 $213 $330 $447 $565t/ha 1.6 $203 $359 $516 $672 $829

2.5 $444 $689 $933 $1,178 $1,422



$/ha $/ha

seed 1 3.89 3.98 spray 5 2.75 1.68 roll 1 1.20 1.34 harvest# 1 19.20 6.71TOTAL 27.04 13.70# Rates are for low rainfall zone. Extra cost in higher yielding situations

VETCH GROSS MARGIN

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Vetch Gross Margin


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $350 $350 $350Quality

Yield (t/ha) 0.9 1.5 2


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

Seed Seed $0.38 /kg @ 90 $34.20 90 $34.20 90 $34.20Seed Inoculant $0.05 /kg @ 90 $4.05 90 $4.05 90 $4.05Roval seed treat

LeviesGRDC Levies 1.0% Gross Income $3.15 $5.25 $7.00EPR &state levies $2.60 /tonne sold $2.34 $3.90 $5.20

Fertiliser (Bulk)MAP $720 /tonne @ 40 28.8 60 $43.20 80 $57.60Foliar Trace Elem


Summer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsTrifluralin 480g/L $7.50 /litre @ 1.2 $9.00 1.5 $11.25 1.7 $12.75Glyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Simazine Granules $7.60 /kg @ 0.83 $6.31 0.83 $6.31 0.83 $6.31Oxyfluorfen $21.00 /litre @ 0.075 $1.58 0.075 $1.58 0.075 $1.58Post-emergentsSelect (incl Oil) $12.00 /litre @ 0.4 $7.61 0.5 $8.81 0.5 $8.81Verdict® 520 $48.00 /litre @ 0.075 $3.60 0.075 $3.60 0.075 $3.60Paraquat(Topping) $7.00 /litre @ 0.8 $5.60 0.8 $5.60 0.8 $5.60InsecticidesTalstar (1) $44.00 /litre @ 0.04 $1.76 0.04 $1.76 0.04 $1.76Karate Zeon® (2) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96



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

Insurance $10.00 /$1000 @ $3.15 $5.25 $7.00Other


LUPINS GROSS MARGIN

COMMENTSSeed is not treated with a fungicide or graded.(1) RLEM(2) Native budworm Do not exceed 800ml/Ha when crop topping with Paraquat to avoid any possible residue issues

AGRONOMIC NOTES

Lupins Gross Margin



$250 $300 $350 $400 $4500.5 -$58 -$33 -$9 $16 $40

Yield 0.9 $29 $73 $117 $162 $206

t/ha 1.5 $160 $233 $307 $380 $4542 $268 $366 $464 $562 $660


$250 $300 $350 $400 $4500.5 -$82 -$58 -$33 -$9 $16

Yield 1 $27 $76 $125 $174 $223t/ha 1.5 $135 $209 $282 $356 $429

2 $244 $342 $440 $538 $636HIGH RAINFALL

Net Price $/t$250 $300 $350 $400 $450

1 $4 $53 $102 $151 $200Yield 1.5 $113 $186 $260 $333 $407t/ha 2 $222 $320 $418 $516 $614

2.5 $330 $453 $575 $698 $820



$/ha $/ha


LUPINS GROSS MARGIN

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Lupins Gross Margin


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) 800 $800 $800Quality Nugget

Yield (t/ha) 0.7 1.2 1.8

GROSS INCOME $560 $960 $1,440


Seed Seed $1.34 /kg @ 50 $67.00 50 $67.00 50 $67.00Seed Inoculant $0.05 /kg @ 50 $2.25 50 $2.25 50 $2.25P-Pickel $72.00 /tonne 50 $3.60 50 $3.60




Summer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsGlyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40trifluralin 480g/L $7.50 /litre @ 1.25 $9.38 1.25 $9.38 1.25 $9.38Terbyne 875 $26.50 /kg @ 0.9 $23.85 0.9 $23.85 0.9 $23.85Broadstrike® $0.60 /gram @ $0.00 25 $15.00 25 $15.00Select (incl Oil) $12.00 /litre @ 0.4 $7.61 0.5 $8.81 0.5 $8.81Verdict® 520 $48.00 /litre @ 0.075 $3.60 0.075 $3.60 0.075 $3.60Paraquat(Topping) $7.00 /litre @ 0.8 $5.60 0.8 $5.60 0.8 $5.60InsecticidesKarate Zeon® (1) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96Karate Zeon® (2) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96omethoate (3) $29.00 /litre @ 0.05 $1.45 0.05 $1.45 0.05 $1.45Trojan (4) $175.00 /litre @ 0.025 $4.38 0.025 $4.38 0.025 $4.38FungicidesMancozeb (5) $10.00 kg @ $0.00 $0.00 2.2 $22.00Carbendazim (6) $22.00 /kg @ 0.5 $11.00 1 $22.00 1 $22.00



Contract WorkAerial sprayingWindrowing

Insurance $12.00 /$1000 @ $6.72 $11.52 $17.28Other

TOTAL VARIABLE COSTS $274 $346 $414GROSS MARGIN/hectare $286 $614 $1,026Break Even Price (to cover variable costs only) $392 $288 $230Break Even Yield (to cover variable costs only) 0.34 0.43 0.52Gross Margin based on last 5 year average price $258 $566 $954

RED LENTILS GROSS MARGIN

COMMENT(1) Native budworm control (2) Etiella (3) RLEM (4) Etiella (5)

Ascochyta (6) Grey mouldDo not exceed 800ml/Ha Paraquat when crop topping to avoid possible residues

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

Red Lentils Gross Margin



$600 $700 $800 $900 $1,0000.3 -$72 -$43 -$13 $16 $45

Yield 0.7 $149 $217 $286 $354 $423

t/ha 1.1 $369 $477 $584 $692 $8001.5 $590 $737 $883 $1,030 $1,177


$600 $700 $800 $900 $1,0000.6 $48 $107 $166 $224 $283

Yield 1.2 $379 $497 $614 $731 $849t/ha 1.8 $710 $886 $1,062 $1,238 $1,414

2.4 $1,041 $1,276 $1,510 $1,745 $1,980HIGH RAINFALL

Net Price $/t$600 $700 $800 $900 $1,000

0.8 $122 $200 $279 $357 $435Yield 1.3 $398 $525 $652 $779 $906t/ha 1.8 $674 $850 $1,026 $1,202 $1,378

2.5 $1,060 $1,304 $1,549 $1,793 $2,038



$/ha $/ha

seed 1 3.89 3.98 spray 7 3.85 2.35 roll 1 1.20 1.34 harvest# 1 12.00 6.71


RED LENTILS GROSS MARGIN

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RED LENTILSHISTORIC PRICES (post harvest)

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140

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Red Lentils Gross Margin


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $400 $400 $400Quality Kaspa

Yield (t/ha) 1 1.5 2.5

GROSS INCOME $400 $600 $1,000


SeedSeed $0.55 /kg @ 90 $49.50 100 $55.00 110 $60.50Seed Grading $25.40 /tonne @ 90 $2.29 100 $2.54 110 $2.79P-Pickel $72.00 /tonne @ $0.00 100 $7.20 110 $7.92Inoculant $45.00 /tonne @ $0.00 $0.00 110 $4.95



Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsTrifluralin 480g/L $7.50 /litre @ 1.2 $9.00 1.5 $11.25 1.7 $12.75Glyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Post-emergentsTerbyne $26.50 /kg @ 1 $26.50 1 $26.50 1 $26.50Select (incl Oil) $12.00 /litre @ 0.4 $7.61 0.5 $8.81 0.5 $8.81Verdict® 520 $48.00 /litre @ 0.075 $3.60 0.075 $3.60 0.075 $3.60Paraquat(Topping) $7.00 /litre @ 0.8 $5.60 0.8 $5.60 0.8 $5.60InsecticidesKarate Zeon® (1) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96Karate Zeon® (2) $165.00 /litre @ $0.00 0.024 $1.32 0.024 $1.32Omethoate (3) $29.00 /litre @ 0.05 $1.45 0.05 $1.45 0.05 $1.45FungicidesTebuconazole (4) $12.00 /litre @ $0.00 0.145 $1.74 0.145 $1.74



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

Insurance $16.00 /$1000 @ $6.40 $9.60 $16.00Other $0.00 /ha $0.00

$0.00 /ha $0.00TOTAL VARIABLE COSTS $248 $309 $383GROSS MARGIN/hectare $152 $291 $617Break Even Price (to cover variable costs only) $248 $206 $153Break Even Yield (to cover variable costs only) 0.62 0.77 0.96Gross Margin based on last 5 year average price $132 $261 $567

FIELD PEAS GROSS MARGIN

COMMENTS(1) Native budworm control (2) Pea weevil border spray (3) RLEM (4) Powdery Mildew.

AGRONOMIC NOTESRecently released varieties are more suited to lower rainfall situations

Field Peas Gross Margin



$300 $350 $400 $450 $5000.75 -$11 $25 $62 $98 $135

Yield 1 $55 $104 $152 $201 $250

t/ha 1.25 $121 $182 $243 $304 $3651.5 $187 $260 $333 $406 $480


$300 $350 $400 $450 $5001 $12 $61 $110 $158 $207

Yield 1.5 $145 $218 $291 $364 $437t/ha 2 $277 $374 $472 $569 $667

2.5 $409 $531 $653 $775 $896HIGH RAINFALL

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

1.5 $108 $181 $254 $327 $401Yield 2 $241 $338 $436 $533 $630t/ha 2.5 $373 $495 $617 $738 $860

3 $506 $652 $798 $944 $1,090



$/ha $/ha

seed 1 3.89 3.98 spray 7 3.85 2.35 roll 1 1.20 1.34 harvest# 1 19.20 6.71TOTAL 28.14 14.38

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

FIELD PEA GROSS MARGIN

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Field Peas Gross Margin


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $450 $450 $450Quality Fie Grade 1Yield (t/ha) 0.8 1.6 2.8

GROSS INCOME $360 $720 $1,260


Seed Seed $0.56 /kg @ 100 $56.00 110 $61.60 130 $72.80Seed Inoculant $0.00 /kg @ $0.00 $0.00 $0.00



Chemicals-HerbicidesSummer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsGlyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Trifluralin 480g/L $7.50 /litre @ 0.8 $6.00 0.8 $6.00 0.8 $6.00Simazine 900g/kg $7.60 /kg @ 0.83 $6.31 0.83 $6.31 0.83 $6.31Post-emergentsSelect (incl Oil) $12.00 /litre @ 0.4 $7.61 0.5 $8.81 0.5 $8.81Verdict® 520 $48.00 /litre @ 0.075 $3.60 0.075 $3.60 0.075 $3.60Paraquat(Desiccant) $7.00 /litre @ 0.8 $6.05 0.8 $6.05 0.8 $6.05Insecticidesomethoate (1) $29.00 /litre @ 0.1 $2.90 0.1 $2.90 0.1 $2.90Karate Zeon® (2) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96Dimethoate (3) $10.00 /litre @ 0.5 $5.00 0.5 $5.00 0.5 $5.00FungicidesTebuconazole(4) $12.00 /kg @ $0.00 0.3 $3.60 0.3 $3.60Mancozeb-low r/f $10.00 /kg @ 1.7 $17.00 0 $0.00 0 $0.00Mancozeb-Med/high $10.00 /kg @ 0 $0.00 5.1 $51.00 5.1 $51.00Carbendazim 2 applic $22.00 /kg @ 0.5 $11.00 1 $22.00



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

Insurance $12.00 /$1000 @ $4.32 $8.64 $15.12


FABA BEAN GROSS MARGIN

COMMENTS(1) RLEM control (2) Native Budworm control (3) Cow pea aphid

(4) Cercospora Mancozeb for Ascochyta Carbendazim for chocalate spot

AGRONOMIC NOTESSeed is not treated with a fungicide but is inoculated with a strain SU303 inoculant. No allowance is made in this gross margin as to the economic benefit of bean stubble to livestock.

Faba Bean Gross Margin



$350 $400 $450 $500 $5500.4 -$78 -$59 -$39 -$20 $0

Yield 0.8 $47 $86 $125 $164 $204

t/ha 1.5 $267 $340 $414 $487 $5602 $424 $522 $620 $717 $815


$350 $400 $450 $500 $5501 $5 $54 $103 $152 $201

Yield 1.6 $194 $272 $350 $428 $507t/ha 2 $319 $417 $515 $613 $711

2.5 $476 $599 $721 $843 $965HIGH RAINFALL

Net Price $/t$350 $400 $450 $500 $550

1 -$38 $11 $60 $109 $158Yield 2 $276 $374 $472 $569 $667t/ha 2.8 $527 $664 $801 $938 $1,075

4 $904 $1,100 $1,295 $1,491 $1,686



$/ha $/ha


FABA BEAN GROSS MARGIN

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Faba Bean Gross Margin


2016INCOME YOUR

Rainfall Zone LOW MEDIUM HIGH ESTIMATEPrice (16/17 Forecast) $600 $600 $600Quality 6-8 mm Kabuli

Yield (t/ha) 0.7 1.3 2

GROSS INCOME $420 $780 $1,200

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

Seed $1.05 /kg @ 90 $94.50 100 $105.00 110 $115.50Seed Inoculant $45.00 /tonne @ 90 $4.05 100 $4.50 110 $4.95P-Pickel $72.00 /tonne @ 90 $6.48 100 $7.20 110 $7.92




Summer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentstrifluralin 480g/L $7.50 /litre @ 1.25 $9.38 1.25 $9.38 1.25 $9.38Glyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Balance® $0.22 /gram @ 100 $22.00 100 $22.00 100 $22.00

Post-emergentsSelect (incl Oil) $12.00 /litre @ 0.4 $7.61 0.5 $8.81 0.5 $8.81Verdict® 520 $48.00 /litre @ 0.075 $3.60 0.075 $3.60 0.075 $3.60InsecticidesOmethoate $29.00 /litre @ 0.05 $1.45 0.05 $1.45 0.05 $1.45Karate Zeon® $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96FungicidesChlorothalonil $18.00 /litre @ 1 $18.00 1.5 $27.00 2 $36.00

DesiccationParaquat $7.00 /litre @ 0.8 $5.60 0.8 $5.60 0.8 $5.60


Freight

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

Contract WorkAerial spraying $14.00 /ha @ $0.00 $0.00 $0.00Windrowing $35.00 /ha @ $0.00 0 $0.00 0 $0.00Insurance $10.00 /$1000 @ $4.20 $7.80 $12.00Other $0.00 /ha

$0.00 /haTOTAL VARIABLE COSTS $295 $363 $434GROSS MARGIN/hectare $125 $417 $766Break Even Price (to cover variable costs only) $421 $279 $217Break Even Yield (to cover variable costs only) 0.49 0.61 0.72Gross Margin based on last 5 year average price $138 $441 $804

CHICKPEAS (6-8mm Kabuli) GROSS MARGIN

COMMENTSSeed is inoculated with a Group N inoculant. Do not excced 800ml/Ha Paraquat 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


GROSS MARGIN SENSITIVITY LOW RAINFALLNet Price $/t

$400 $500 $600 $800 $1,0000.4 -$121 -$82 -$42 $36 $114

Yield 0.7 -$12 $56 $125 $262 $399

t/ha 1.2 $169 $286 $404 $639 $8741.8 $386 $562 $738 $1,091 $1,444

MEDIUM RAINFALLNet Price $/t

$400 $500 $600 $800 $1,0000.5 -$127 -$78 -$29 $69 $167

Yield 1.3 $162 $289 $417 $672 $926t/ha 1.8 $343 $519 $696 $1,048 $1,401

2.3 $524 $749 $974 $1,425 $1,876HIGH RAINFALL

Net Price $/t$400 $500 $600 $800 $1,000

1 $12 $110 $208 $404 $600Yield 1.5 $193 $340 $487 $781 $1,075t/ha 2 $374 $570 $766 $1,158 $1,550

3 $735 $1,029 $1,323 $1,911 $2,499

HISTORIC PRICES AND TRENDSHISTORIC PRICES AND TRENDS


$/ha $/ha


CHICKPEAS GROSS MARGIN

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Chickpeas (6-8mm Kabuli) Gross Margin


Gross Margins – CanolaCanola now plays an important role in many rotations as an excellent break to most cereal diseases. Its reputation as a high risk crop was highlighted by the generally poor yield results achieved in 2014, but results in previous years had been quite good. The risk can be potentially managed, particularly in lower rainfall areas, by following some important principles.

Variety selectionRefer SARDI Sowing Guide 2015 http://grdc.com.au/SASowingGuide2015

The main features to consider when selecting a canola variety are maturity, yield, oil content, blackleg resistance, agronomic characteristics (early vigour and height), economics and the weed spectrum of the paddock. This Gross Margin guide includes three commonly used herbicide related production systems in South Australia (Conventional, Triazine Tolerant and Clearfield).

Consider:

y Matching maturity of variety to the rainfall and growing season length. The maturity of varieties relative to each other can vary between locations, years and sowing time.

y The likely weed spectrum: do you need a herbicide-tolerant production system? Remember that triazine tolerant varieties will incur a yield and oil penalty (compared to other varieties) when grown in situations where they are not warranted. Herbicide residues from previous years may also dictate which system should be used.

y The level of blackleg resistance required: a high level of resistance is preferred in mid to long season areas or when grown near last year’s canola stubble.

Using knowledge of Plant Available Water at seeding to reduce production risk.

The following discussion on managing production risk with canola was produced by Kirrily Condon, Grassroots Agronomy, NSW for the 2013 Canola Technology Updates (reproduced with permission):

‘Knowledge of the critical thresholds for PAW and sowing time, supported by calculations of potential yield, can help growers make tactical sowing decisions to minimise the downside risk of growing canola. The magnitude of these decisions will usually depend on the rainfall zone. For example:

y In low rainfall areas, canola may not be planned in the rotation but may be considered as an opportunity crop if the critical thresholds for PAW and sowing date are met.

y In medium rainfall areas, canola is often planned for the rotation but may be replaced with an alternative, such as a pulse crop, short season barley or fallow, if the critical thresholds for PAW and sowing date are not met.

y In high rainfall areas, the rotation is less likely to be changed, but the proportion of the rotation intended for canola may be reduced if the critical thresholds for PAW and sowing date are not met.


The following decision-support tree (Figure 2) has been adapted from an example produced by James Hunt, CSIRO, highlighting the options growers may consider depending on their ability to meet the critical thresholds for plant available water and sowing time. It is important to remember that although summer rainfall plays a significant role in determining whether the thresholds are met, its value is limited unless growers have adopted diligent summer weed control practices to maximise moisture conservation. Nitrogen applications and plant density (canopy management) can also have a significant impact on soil moisture conditions in-crop and should be managed carefully to avoid excessive early growth and water use, particularly in low rainfall seasons or environments. However it should also be noted that canola requires approximately 80kg of nitrogen (soil + fertiliser + mineralisation) per tonne of expected yield in favourable seasons to maximise potential.’

Paddock with more than 50mm PAW

eg. Following good summer rainfall, long fallow or brown manure, with moister stored

by summer weed control

Sowing opportunity

before 1 May

Sowing opportunity

before 1 May

Low rainfall areas: opportunity canola crop

Low/medium rainfall areas: consider replacing canola with vetch or lupins

High rainfall areas: consider reducing area sown to canola

Sowing opportunity after 1 May

Sowing opportunity after 1 May

Low/medium rainfall areas: consider replacing canola with field peas, chickpeas or short season barley

High rainfall areas: consider ‘dry sowing’ if conditions are suitable

Low/medium rainfall areas: consider replacing canola with fallow, field peas or short season barley

High rainfall areas: consider reducing area sown to canola

Paddock with less than 50mm PAW

eg. Low summer rainfall with limited opportunity to store water

Figure 2: Canola Production Risk – decision support tree


2016INCOME YOUR


Yield (t/ha) 0.8 1.5 2.2

GROSS INCOME $416 $780 $1,144


Seed Seed $27.00 /kg @ 1.5 $40.50 2 $54.00 2 $54.00

LeviesGRDC Levies 1.0% Gross Income $4.16 $7.80 $11.44State levies $0.30 /tonne sold $0.24 $0.45 $0.66



Summer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsGlyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Oxyfluorfen 240g/L $21.00 /litre @ 0.1 $2.10 0.1 $2.10 0.1 $2.10Rustler (Propyzamide) $21.00 /litre @ 0 $0.00 1 $21.00 1 $21.00Trifluralin 480g/L $7.50 /litre @ 1.2 $9.00 1.5 $11.25 1.7 $12.75Post-emergentsVerdict® 520 $48.00 /litre @ 0.075 $3.60 0.075 $3.60 0.075 $3.60Select (incl Oil) $12.00 /litre @ 0.4 $7.61 0.5 $8.81 0.5 $8.81Clopyralid 300g/L $25.00 /litre @ 0.15 $3.75 0.15 $3.75 0.15 $3.75InsecticidesChlorpyrifos 500g/L $10.00 /litre @ 0.5 $5.00 0.5 $5.00 0.5 $5.00Talstar $44.00 /litre @ 0.04 $1.76 0.04 $1.76 0.04 $1.76Aphid Control $4.00 $4.00 $4.00Karate Zeon®(1) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96


Freight


Contract WorkAerial spraying $14.00 /ha @ $0.00 1 $14.00 1 $14.00Windrowing $35.00 /ha @ $0.00 1 $35.00 1 $35.00Insurance $12.00 /$1000 @ $4.99 $9.36 $13.73Urea spreading $8.50 /ha @ $0.00 1 $8.50 1 $8.50


CANOLA GROSS MARGIN Conventional Hybrid

COMMENTSDiamondback moth control may be required (1) Native Budworm control (1 in 4 years) . In low rainfall situations, oil penalties may apply conversely oil bonuses may be expected in high rainfall areas.

AGRONOMIC NOTESA maximum of 15 units of nitrogen and 10 units of phosphorus should be applied with seed.Nitrogen rate dependent on target yield. Sulphur required on sandy, neutral/acid soils andintensive cropping systems. Ensure insect control and good seed/soil contact when sowing.Assumes direct heading in low rainfall/yielding situations. Direct heading is becoming morewidely used in all zones

Canola Gross Margin Conventional Hybrid



$400 $460 $520 $580 $6400.3 -$52 -$35 -$17 $0 $18

Yield 0.8 $131 $178 $224 $271 $318

t/ha 1.1 $240 $305 $369 $434 $499

1.5 $387 $475 $563 $651 $739MEDIUM RAINFALL

Net Price $/t$400 $460 $520 $580 $640

0.7 -$68 -$27 $14 $55 $96Yield 1.5 $224 $312 $400 $488 $576t/ha 2 $407 $525 $642 $759 $877

2.5 $590 $737 $884 $1,030 $1,177HIGH RAINFALL

Net Price $/t$400 $460 $520 $580 $640

1 -$6 $52 $111 $170 $229Yield 1.5 $177 $265 $353 $441 $529t/ha 2.2 $433 $562 $691 $820 $949

3 $726 $902 $1,078 $1,254 $1,430



$/ha $/ha

seed 1 3.89 3.98 spray 6 3.30 2.01 harvest# 1 8.57 4.79


CANOLA GROSS MARGIN

Repairs & Maint

0

100

200

300

400

500

600

700

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$/to

nne

Year

CANOLA HISTORIC PRICES

0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High

Canola Gross Margin Conventional Hybrid


2016INCOME YOUR


Yield (t/ha) 0.7 1.3 2

GROSS INCOME $364 $676 $1,040


Seed Seed $18.00 /kg @ 3.5 $63.00 3.5 $63.00 3.5 $63.00




Summer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsSimazine 900g/kg $7.60 /kg @ 1.1 $8.36 1.5 $11.40 2 $15.20Trifluralin 480g/L $7.50 /litre @ 1.2 $9.00 1.5 $11.25 1.7 $12.75Glyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Oxyfluorfen 240g/L $21.00 /litre @ 0.1 $2.10 0.1 $2.10 0.1 $2.10Rustler (Propyzamide) $21.00 /litre @ 0 $0.00 1 $21.00 1 $21.00Post-emergentsSelect (incl Oil) $12.00 /litre @ 0.4 $7.61 0.5 $8.81 0.5 $8.81Verdict® 520 $48.00 /litre @ 0.075 $3.60 0.075 $3.60 0.075 $3.60Clopyralid 300g/L $25.00 /litre @ 0.15 $3.75 0.15 $3.75 0.15 $3.75InsecticidesChlorpyrifos 500g/L $10.00 /litre @ 0.5 $5.00 0.5 $5.00 0.5 $5.00Talstar $44.00 /litre @ 0.04 $1.76 0.04 $1.76 0.04 $1.76Aphid Control $4.00 $4.00 $4.00Karate Zeon®(1) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96


Freight

Grain (t) $25.00 /tonne @ 0.7 $17.50 1.3 $32.50 2 $50.00Fertiliser (t) $20.00 /tonne @ 0.035 $0.70 0.135 $2.70 0.195 $3.90



CANOLA GROSS MARGIN Triazine Tolerant

COMMENTSDiamondback moth control may be required (1) Native Budworm control (1 in 4 years) . In low rainfall situations, oil penalties may apply conversely oil bonuses may be expected in high rainfall areas.

AGRONOMIC NOTESA maximum of 15 units of nitrogen and 10 units of phosphorus should be applied with seed.Nitrogen rate dependent on target yield. Sulphur required on sandy, neutral/acid soils andintensive cropping systems. Ensure insect control and good seed/soil contact when sowing.Assumes direct heading in low rainfall/ yielding situations. Direct heading is becoming morewidely used in all zones

Canola Gross Margin Triazine Tolerant



$400 $460 $520 $580 $6400.3 -$83 -$66 -$48 -$30 -$13

Yield 0.7 $63 $104 $145 $186 $227

t/ha 1.1 $210 $274 $339 $403 $468

1.5 $356 $444 $532 $620 $708MEDIUM RAINFALL

Net Price $/t$400 $460 $520 $580 $640

0.7 -$84 -$42 -$1 $40 $81Yield 1.3 $136 $212 $289 $365 $441t/ha 2 $392 $509 $627 $744 $862

2.5 $575 $722 $868 $1,015 $1,162HIGH RAINFALL

Net Price $/t$400 $460 $520 $580 $640

1 -$20 $39 $97 $156 $215Yield 1.5 $163 $251 $339 $427 $515t/ha 2 $346 $463 $581 $698 $815

2.5 $529 $676 $822 $969 $1,116



$/ha $/ha



CANOLA GROSS MARGIN

Repairs & Maint

0

100

200

300

400

500

600

700

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$/to

nne

Year


0

20

40

60

80

100

120

$/ha

Variable Costs

Low Medium High

Canola Gross Margin Triazine Tolerant


2016INCOME YOUR


Yield (t/ha) 0.75 1.4 2.1

GROSS INCOME $390 $728 $1,092


Seed Seed $29.00 /kg @ 1.5 $43.50 2 $58.00 2 $58.00




Summer Weed Control Various Allow $20.00 $20.00 $20.00Pre-emergentsGlyphosate 540 $7.00 /litre @ 1.2 $8.40 1.2 $8.40 1.2 $8.40Trifluralin 480g/L $7.50 /litre @ 1.2 $9.00 1.5 $11.25 1.7 $12.75Oxyfluorfen 240g/L $21.00 /litre @ 0.1 $2.10 0.1 $2.10 0.1 $2.10Rustler (Propyzamide) $21.00 /litre @ 0 $0.00 1 $21.00 1 $21.00Post-emergentsIntervix $42.50 /litre @ 0.6 $25.50 0.6 $25.50 0.6 $25.50Adjuvant $5.00 /litre @ 0.375 $1.88 0.375 $1.88 0.375 $1.88Select (incl Oil) $12.00 /litre @ 0.4 $7.61 0.5 $8.81 0.5 $8.81Clopyralid 300g/L $25.00 /litre @ 0.15 $3.75 0.15 $3.75 0.15 $3.75InsecticidesChlorpyrifos 500g/L $10.00 /litre @ 0.2 $2.00 0.2 $2.00 0.2 $2.00Talstar $44.00 /litre @ 0.04 $1.76 0.04 $1.76 0.04 $1.76Aphid control $4.00 $4.00 $4.00Karate Zeon®(1) $165.00 /litre @ 0.024 $3.96 0.024 $3.96 0.024 $3.96


Freight




CANOLA GROSS MARGIN Clearfield Hybrid

COMMENTSDiamondback moth control may be required

(1) Native Budworm control (1 in 4 years) . In low rainfall situations, oil penalties may apply conversely oil bonuses may be expected in high rainfall areas.

AGRONOMIC NOTESA maximum of 15 units of nitrogen and 10 units of phosphorus should be applied with seed.Nitrogen rate dependent on target yield. Sulphur required on sandy, neutral/acid soils andintensive cropping systems. Ensure insect control and good seed/soil contact when sowing.Assumes direct heading in low rainfall/yielding situations. Direct heading is becoming morewidely used in all zones

Canola Gross Margin Clearfield Hybrid



$400 $460 $520 $580 $6400.3 -$76 -$59 -$41 -$23 -$6

Yield 0.75 $89 $133 $177 $221 $265

t/ha 1.1 $217 $281 $346 $410 $475

1.5 $363 $451 $539 $627 $715MEDIUM RAINFALL

Net Price $/t$400 $460 $520 $580 $640

0.7 -$91 -$49 -$8 $33 $74Yield 1.4 $166 $248 $330 $412 $494t/ha 2 $385 $502 $620 $737 $855

2.5 $568 $715 $861 $1,008 $1,155HIGH RAINFALL

Net Price $/t$400 $460 $520 $580 $640

1 -$26 $33 $92 $150 $209Yield 1.5 $157 $245 $333 $421 $509t/ha 2.1 $377 $500 $623 $746 $870

2.7 $596 $755 $913 $1,072 $1,230



$/ha $/ha



CANOLA GROSS MARGIN

Repairs & Maint

0

100

200

300

400

500

600

700

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$/to

nne

Year


0

20

40

60

80

100

120

140

$/ha

Variable Costs

Low Medium High

Canola Gross Margin Clearfield Hybrid

Rural Solutions SAYour trusted partner and key delivery agent for agribusiness, fisheries and aquaculture, natural resource management, mining and energy and regional development sectors

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Then the answer is to have your sowing seed tested by Seed Services Australia.

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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

2016INCOME YOUR

$ ESTIMATEWool (kg greasy) 4423.2 Kg [ ave price 532 c/kg ] $23,532Sales 1339 animals [ ave price $111.26 per hd] $148,930

GROSS INCOME $172,462

VARIABLE COSTSShearing

Shearing 970 sheep @ $287.03 /100 $2,784(Federal awards) 19 rams @ $574.06 /100 $109Shed labour 5 days @ $216.40 /day $1,082Woolclasser 2.50 days @ $259.69 /day $649Superannuation (on ordinary wages only) @ 9.5% wages $439Work Cover (includes super + o'time etc) @ 4.0% total $185Wool packs 26 packs @ $11.00 /pack $286Shed sundries 989 sheep @ $0.15 /head $148Lice control 989 sheep @ $1.13 /head $1,113Crutch & Wig 990 ewes @ $83.24 /100 $824

19 rams @ $166.48 /100 $32Marking

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

Animal Health drench 3190 sheep @ $0.45 /head $1,436 vaccinate 3320 sheep @ $0.47 /head $1,554 blowfly control 1000 sheep @ $1.29 /head $1,290Stock purchases

Purchases $49,344Sale 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 @ $10.00 /bale $260Stock selling charges

commission/insurance @ 5.5% gross $ $8,191 yard fees 1339 head @ $0.70 /head $937

levy-sheep 189 head @ $0.20 /head $38levy-lambs 1150 head @ $1.50 /head $1,725SA sheep industry 1339 head @ $0.35 /head $469Wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $973wool levy @ 2.0% gross $471

Feed and Other Costs hay 20.4 tonne @ $200.00 /tonne $4,080 grain 24.6 tonnes @ $250.00 /tonne $6,150

Insurance $188,563 value @ $2.00 /$'000 $377Water 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 $98,591GROSS MARGIN TOTAL $73,871GROSS MARGIN/hectare $482GROSS MARGIN/DSE $40

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

COMMENTS 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 Lamb 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 $90.00 6.5 $16,380c.f.a rams 6 $50.00 4.5 $300lambs 1150 $115.00 20 weeks $132,250TOTAL 1339 $111.26 $148,930PURCHASES Number Price/hd Age yrs Totalewes 212 $200 1.5 $42,473rams 7 $1,000 1.5 $6,871

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 $5.36 $23,375crossbred rams 19 3.00 $2.70 $157

TOTAL 989 4423 $23,532

FEEDINGHay Kgs Fed No weeks Total

Number Cost ($/T) per week of Feeding cost ($)ewes 1000 $200 2.5 8 $4,000rams 20 $200 2.5 8 $80

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

ewes 1000 $250 3.0 8 $6,000rams 20 $250 3.0 10 $150

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

95% 105% 115% 125% 135% 145%$90 $17 $21 $25 $29 $34 $38$95 $20 $24 $28 $33 $37 $41

$100 $22 $27 $31 $36 $41 $45$105 $24 $29 $34 $39 $44 $49

Average $110 $27 $32 $37 $42 $47 $53Lamb Sale $115 $29 $35 $40 $46 $51 $56Price ($/hd) $120 $32 $37 $43 $49 $54 $60

$125 $34 $40 $46 $52 $58 $64$130 $37 $43 $49 $55 $61 $68$135 $39 $46 $52 $58 $65 $71$140 $42 $48 $55 $62 $68 $75

PRIME LAMB GROSS MARGIN - HIGH RAINFALL

Stock type

Prime Lamb Gross Margin – High Rainfall


Assumptions

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

2016INCOME YOUR

$ ESTIMATEWool (kg greasy) 9134 Kg [ ave price 819 c/kg ] $74,805Sales 862 animals [ ave price $99.00 per hd] $85,370



Shearing 2324 sheep @ $287.03 /100 $6,671(Federal Awards) 25 rams @ $574.06 /100 $144Shed labour 12 days @ $216.40 /day $2,597Woolclasser 6 days @ $259.69 /day $1,558Superannuation (on ordinary wages only) @ 9.5% wages $1,042Work Cover (includes super + o'time etc) @ 4.0% total $480Wool packs 54 packs @ $11.00 /pack $594Shed sundries 2349 sheep @ $0.15 /head $352Lice Control 2349 sheep @ $1.13 /head $2,643Crutch & wig 1424 sheep @ $83.24 /100 $1,185

25 rams @ $166.48 /100 $42Marking

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

Animal Health drench 3900 sheep @ $0.45 /head $1,755 vaccinate 3275 sheep @ $0.47 /head $1,533 blowfly control 1500 sheep @ $1.29 /head $1,935Sale and Purchase Costs

Purchases 7 Merino rams @ $1,400.00 /head $9,800Freight 862 sheep @ $4.00 /head $3,448

54 bales @ $10.00 /bale $540Stock selling charges

commission/insurance @ 5.5% gross $4,695 yard fees 862 head @ $0.70 /head $603 Sheep trans levy 412 head @ $0.20 /head $82

Lamb trans levy 450 head @ $1.50 /head $675SA sheep industry 862 head @ $0.35 /head $302Wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $2,009Industry levy @ 2.0% gross $1,496

Feed and other CostsHand Feeding $6,915Insurance $235,135 value @ $2.00 /$'000 $470Water 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 $63,014GROSS MARGIN TOTAL $97,161GROSS MARGIN/hectare $488

$41

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

GROSS 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 DATA

Stocking rate (DSE/Ha) 12.0 Culling Rate (% per each group)Total DSE's 2390 Age group Ewes WethersSHEEP GRAZING AREA 285 0.5 0% 100%Number of ewes mated 1000 1.5 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 $85.00 $15,470c.f.a merino rams 6 $50.00 $300ewe hoggets 224 $150.00 $33,600wether lambs 450 $80.00 $36,000TOTAL 862 $99.00 $85,370

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 $235,135

FEEDINGFeed Number of Hay kg/ animal Total

Animals Cost ($/T) cost ($)Oats/barley 833 $250 10 /ewe $2,083Lupins 833 $400 10 /ewe $3,332Lupins 375 $400 10 /weaner $1,500Total $6,915

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

SELF REPLACING MERINO FLOCK - HIGH RAINFALL

Stock type

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

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

Class of Age GroupSheep 0.5 y.o. 1.5 y.o. 2.5 y.o. 3.5 y.o. 4.5 y.o. 5.5 y.o. 6.5 y.o.Ewes 450 212 206 200 194 188 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)

750 800 819 850 900 950$70 $28 $30 $31 $32 $34 $36$75 $30 $32 $32 $34 $36 $37$80 $32 $33 $34 $35 $37 $39$85 $33 $35 $36 $37 $39 $41

Average $90 $35 $37 $38 $39 $41 $42Sale Price $95 $37 $39 $39 $40 $42 $44All Sheep $99 $38 $40 $41 $42 $44 $46

($/hd) $105 $40 $42 $43 $44 $46 $48$110 $42 $44 $44 $46 $47 $49$115 $44 $45 $46 $47 $49 $51$120 $45 $47 $48 $49 $51 $53

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


Assumptions:Average Wether Fibre Diametre 19.5 Gross Margin per Ha $336Number of adult wethers 1000 Gross Margin per DSE $28Total DSE's 1200 Gross Margin/Wether $34Stocking rate (DSE/Ha) 12.0

2016INCOME YOUR

$ ESTIMATEWool (kg greasy) 6790 Kg [ave price 819 c/kg ] $55,610Sales 182 animals [ave price $95.00 per hd] $17,325


EXPENSESShearing

Shearing 970 sheep @ $287.03 /100 $2,784Shed labour 5 days @ $216.40 /day $1,082Woolclasser 3 days @ $259.69 /day $649Superannuation (on ordinary wages only) @ 9.5% wages $429Work Cover (on wages+super+o'time etc) @ 4.0% total $198Wool packs 40 packs @ $11.00 /pack $440Shed sundries 970 sheep @ $0.15 /head $146Lice control 970 sheep @ $1.13 /head $1,091Crutching 1000 sheep @ $83.24 /100 $832

Animal Health drench 1000 sheep @ $0.45 /head $450 vaccinate 1000 sheep @ $0.47 /head $468 blowfly control 1000 sheep @ $1.29 /head $1,290

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

Purchases 212 wethers @ $80.00 /head $16,960Sale costs and other

Freight livestock 395 @ $4.00 /head $1,580wool 40 bales @ $10.00 /bale $400

Stock selling charges commission/insurance @ 5.5% gross $953 yard fees 182 head @ $0.70 /head $127

transaction levy 182 head @ $0.20 /head $36SA sheep industry 182 head @ $0.35 /head $64Wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $1,494Industry levy @ 2.00% gross $1,112Other ExpensesHand Feeding $3,000Insurance 87500 value @ $2.00 /$'000 $175Water 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 $39,361GROSS MARGIN $33,574GROSS MARGIN/hectare $336GROSS MARGIN/DSE $28

MERINO WETHERS - HIGH RAINFALL (450mm+)

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 $95.00 5.5 $17,290TOTAL 182 $17,290PURCHASES Number Price/hd Age yrs Totalwethers 212 $80 0.5 $16,989

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

Number $/head Wt (Kgs) ratingwethers 1000 $88 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 250 $0Hay 15 kg/wether 200 $3,000Lupins kg/wether 400 $0Total $3,000

MERINO WETHERS - HIGH RAINFALL

Stock type

Stock type

Stock type

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

750 800 819 850 900 950$60 $19 $22 $23 $25 $27 $30$65 $20 $23 $24 $25 $28 $31$70 $21 $23 $24 $26 $29 $32$75 $21 $24 $25 $27 $30 $32

Average $80 $22 $25 $26 $28 $30 $33Sale Price $95 $24 $27 $28 $30 $32 $35of wethers $100 $25 $28 $29 $30 $33 $36

($/hd) $105 $26 $28 $29 $31 $34 $37$110 $26 $29 $30 $32 $35 $37$115 $27 $30 $31 $33 $35 $38$120 $28 $31 $32 $33 $36 $39

MERINO WETHERS - HIGH RAINFALL

Merino Wethers - High Rainfall


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

2016INCOME YOUR




Shearing 970 sheep @ $287.03 /100 $2,784(Federal awards) 24 rams @ $574.06 /100 $138Shed labour 5 days @ $216.40 /day $1,082Woolclasser 2.5 days @ $259.69 /day $649Work Cover (includes super + o'time etc) @ 9.50% total $442Superannuation (on ordinary wages only) @ 4.00% wages $186Wool packs 38 packs @ $11.00 /pack $418Shed sundries 994 sheep @ $0.15 /head $149Lice control 994 sheep @ $0.46 /head $456Crutch & Wig 0 lambs @ $83.24 /100 $0

1019 ewes @ $83.24 /100 $848Marking

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

Animal Health drench 2000 sheep @ $0.45 /head $900 vaccinate 2925 sheep @ $0.37 /head $1,088 blowfly control 1000 sheep @ $1.29 /head $1,290Stock purchases


Freight livestock 239 culls @ $4.00 /head $956

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


commissioninsurance @ 5.5% gross $6,593 yard fees 1189 head @ $0.70 /head $832

levy-sheep 239 head @ $0.20 /head $48levy-lambs 950 head @ $1.50 /head $1,425SA sheep industry lev 1189 head @ $0.35 /head $416Wool selling chargesbrokerage/testing/insurance @ $0.22 kg $1,403Industry levy @ 2.0% gross $984

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 @ $200.00 /tonne $4,100 grain 24.8 tonnes @ $250.00 /tonne $6,188

Insurance $155,563 value @ $2.00 /$'000 $311TOTAL VARIABLE COSTS $95,785GROSS MARGIN TOTAL $73,309GROSS MARGIN/hectare $238GROSS MARGIN/DSE $40

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

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. No allowance has been made for pasture expenses such as seed, fertiliser and weed control. These need to be separately accounted for.

Prime Lamb 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 $85.00 5.5 $19,720c.f.a rams 8 $50.00 4.5 $400lambs 950 $105.00 20 weeks $99,750TOTAL 1189 100.74 $119,870PURCHASES Number Price/hd Age yrs Totalewes 262 $150 1.5 $39,230rams 9 $1,000 1.5 $8,588



SHEARING Wool cut price TotalNumber kg/hd $

ewes 970 6.50 $7.78 49028crossbred rams 24 3.00 $2.70 196

TOTAL 994 6378 49224


Number Cost ($/T) per week of Feeding cost ($)ewes 1000 $200 2.5 8 $4,000rams 25 $200 2.5 8 $100


ewes 1000 $250 3.0 8 $6,000rams 25 $250 3.0 10 $188


75% 85% 95% 105% 115% 125%$80 $20 $24 $27 $31 $35 $38$85 $22 $26 $30 $34 $38 $41$90 $24 $28 $32 $36 $41 $45$95 $26 $30 $35 $39 $43 $48


$115 $34 $39 $44 $50 $55 $61$120 $36 $41 $47 $53 $58 $64$125 $38 $43 $49 $55 $61 $67$130 $39 $46 $52 $58 $64 $70

PRIME LAMB GROSS MARGIN - CEREAL ZONE

Stock type

Prime Lamb Gross Margin - Cereal Zone


Assumptions

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

2016INCOME YOUR




Shearing 2250 sheep @ $287.03 /100 $6,458(Federal Awards) 25 rams @ $574.06 /100 $144Shed labour 8 days @ $216.40 /day $1,731Woolclasser 4.0 days @ $259.69 /day $1,039Superannuation (on ordinary wages only) @ 9.5% wages $890Work Cover (includes super + o'time etc) @ 4.0% total $410Wool packs 62 packs @ $11.00 /pack $682Shed sundries 2274 sheep @ $0.15 /head $341Lice control 2274 sheep @ $1.13 /head $2,558Crutch & wig 1400 sheep @ $83.24 /100 $1,165

25 rams @ $166.48 /100 $42Marking

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

Animal Health drench 2325 sheep @ $0.45 /head $1,046 vaccinate 3150 sheep @ $0.37 /head $1,172 blowfly control 1450 sheep @ $1.29 /head $1,871Sale and Purchase Costs

Purchases 7 Merino rams @ $1,400.00 /head $9,800Freight 813 sheep @ $4.00 /head $3,252


commission/insurance @ 5.5% gross $4,309 yard fees 813 head @ $0.70 /head $569 sheep tran levy 388 head @ $0.20 /head $78

lamb trans levy 425 head @ $1.50 /head $638SA Sheep industr 813 head @ $0.35 /head $285wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $2,335Industry levy @ 2.0% gross $1,651


TOTAL VARIABLE COSTS $66,542GROSS MARGIN TOTAL $94,331GROSS MARGIN/hectare $240

$40

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

GROSS 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 DATA

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

SALES Number Price/hd Totalc.f.a ewes 204 $85.00 $17,340c.f.a merino rams 6 $50.00 $300ewe hoggets 178 $150.00 $26,700wether lambs 425 $80.00 $34,000TOTAL 813 $96.35 $78,340


Number DSE Drench Vacc. Blowflyewes 1000 1.8 1 1 1ewe hoggets 425 1.2 1 1 1wether weaners 0 0.8 1 1 1merino lambs 850 0.0 1 2 0merino rams 25 2.0 2 1 1TOTAL 2300 2360 2325 3150 1450Total Value $221,616

FEEDINGFeed Number of Fodder kg/ animal Total

Animals Cost ($/T) cost ($)Oats/barley 1000 $250 24 /ewe $6,000Hay 1000 $200 20 /ewe $4,000Lupins 425 $400 10 /weaner $1,700Total $11,700



SELF REPLACING MERINO FLOCK - CEREAL ZONE

Stock type



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

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

650 700 778 800 850 900$65 $24 $26 $30 $31 $33 $35$70 $26 $28 $31 $32 $35 $37$75 $27 $30 $33 $34 $36 $38$80 $29 $31 $35 $36 $38 $40

Average $85 $31 $33 $36 $37 $39 $42Sale Price $90 $32 $34 $38 $39 $41 $43All Sheep $96 $34 $36 $40 $41 $43 $45

($/hd) $100 $36 $38 $41 $42 $44 $47$105 $37 $39 $43 $44 $46 $48$110 $39 $41 $44 $45 $48 $50$115 $40 $43 $46 $47 $49 $51

SELF REPLACING MERINO FLOCK - CEREAL ZONE

Self Replacing Merino Flock - Cereal Zone


Assumptions:Average Wether Fibre Diameter 21 Gross Margin per Ha $169Number of adult wethers 1000 Gross Margin per DSE $28Total DSE's 1200 Gross Margin/Wether $34Stocking rate (DSE/Ha) 6.0

2016INCOME YOUR



EXPENSESShearing

Shearing 970 sheep @ $287.03 /100 $2,784Shed labour 4 days @ $216.40 /day $866Woolclasser 2 days @ $259.69 /day $519Superannuation (on ordinary wages only) @ 9.5% wages $347Work Cover (on wages+super+o'time etc) @ 4.0% total $160Wool packs 43 packs @ $11.00 /pack $473Shed sundries 970 sheep @ $0.15 /head $146Lice control 970 sheep @ $1.13 /head $1,091Crutching 1000 sheep @ $83.24 /100 $832





Stock selling charges commission/insurance @ 5.5% gross $953 yard fees 182 head @ $0.70 /head $127

transaction levy 182 head @ $0.20 /head $36SA sheep industry 182 head @ $0.35 /head $64Wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $1,601Industry levy @ 2.0% gross $1,131Other ExpensesHand Feeding $3,000Insurance 87500 value @ $2.00 /$'000 $175Water 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 $40,187GROSS MARGIN $33,708GROSS MARGIN/hectare $169GROSS MARGIN/DSE $28

MERINO WETHERS - CEREAL ZONE (250 - 450mm)

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 weed control. These need to be separately accounted for.

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 250 $0Hay 15 kg/wether 200 $3,000Lupins kg/wether 400 $0Total $3,000

MERINO WETHERS - CEREAL ZONE


650 700 778 800 850 900$60 $15 $18 $23 $24 $27 $30$65 $16 $19 $24 $25 $28 $31$70 $17 $20 $25 $26 $29 $32$75 $18 $21 $25 $27 $30 $32

Average $90 $20 $23 $27 $29 $32 $35Sale Price $95 $21 $23 $28 $29 $32 $35of wethers $100 $21 $24 $29 $30 $33 $36

($/hd) $105 $22 $25 $30 $31 $34 $37$110 $23 $26 $30 $32 $35 $38$115 $23 $26 $31 $32 $35 $38$120 $24 $27 $32 $33 $36 $39

MERINO WETHERS - CEREAL ZONE

Merino Wethers - Cereal Zone


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

2016INCOME YOUR




Shearing 950 sheep @ $287.03 /100 $2,727(Federal awards) 24 rams @ $574.06 /100 $138Shed labour 5 days @ $216.40 /day $1,082Woolclasser 2.50 days @ $259.69 /day $649Superannuation (on ordinary wages only) @ 9.5% wages $437Work Cover (on wages+super+o'time etc) @ 4.0% total $184Wool packs 34 packs @ $11.00 /pack $374Shed sundries 974 sheep @ $0.15 /head $146Lice control 974 sheep @ $1.13 /head $1,096Crutch & Wig 800 lambs @ $83.24 /100 $666

998 adults @ $83.24 /100 $831Marking

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

Animal Health drench 0 sheep @ $0.45 /head $0 vaccinate 1825 sheep @ $0.37 /head $679 blowfly control 1000 sheep @ $1.29 /head $1,290Stock purchases


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 @ 5.5% gross $4,926 yard fees 1020 head @ $0.70 /head $714

levy-sheep 220 head @ $0.20 /head $44levy-lambs 800 head @ $1.50 /head $1,200SA sheep industry 1020 head @ $0.35 /head $357wool selling chargesIndustry levy @ 2.0% gross $812brokerage/testing/insurance @ $0.22 /kg $1,270

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 @ $200.00 /tonne $0 grain 0.0 tonnes @ $250.00 /tonne $0

Insurance $146,063 value @ $2.00 /$'000 $292TOTAL VARIABLE COSTS $84,472GROSS MARGIN TOTAL $45,709GROSS MARGIN/hectare $3.45GROSS MARGIN/DSE $25

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

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 conditionscore of 2.

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


PRODUCTION DATA

Stocking rate (DSE/Ha) 0.14 Culling Rate (% from each group)Total DSE's 1858 Age group Ewes WethersSHEEP GRAZING AREA 13268 0.5 0%Number of ewes mated 1000 1.5 0%Ram percentage 2.5% 2.5 0%Age ewes bought (yrs) 1.5 3.5 0%Age ewes culled 5.5 4.5 100%Years rams kept 4 5.5 0%Flock death rate 5% 6.5 0%Average weaning rate 80%% Lambs carried over 0%

SALES Number Price/hd Age Totalc.f.a ewes 220 $80.00 5.5 $17,600c.f.a rams 0 $45.00 5.5 $0lambs 800 $90.00 16 weeks $72,000TOTAL 1020 $87.85 $89,600PURCHASES Number Price/hd Age yrs Totalewes 270 $150 1.5 $40,433rams 7 $1,000 1.5 $6,739



SHEARING Wool cut price TotalNumber kg/hd

ewes 950 6.00 $7.09 40424crossbred rams 24 3.00 $2.70 192

TOTAL 974 5771 40617


Number Cost ($/T) per week of Feeding cost ($)ewes 1000 $200 3.0 0 $0rams 24 $200 3.0 0 $0


ewes 1000 $250 0.0 0 $0rams 24 $250 3.0 0 $0


50% 60% 70% 80% 90% 100%$60 $5 $8 $10 $12 $15 $17$65 $6 $9 $12 $14 $17 $20$70 $8 $11 $14 $16 $19 $22$75 $9 $12 $15 $19 $22 $25


$95 $14 $18 $22 $27 $31 $35$100 $15 $20 $24 $29 $33 $38$105 $17 $21 $26 $31 $35 $40$110 $18 $23 $28 $33 $38 $43

PRIME LAMB GROSS MARGIN - PASTORAL ZONE

Stock type

Prime Lamb Gross Margin - Pastoral Zone


Assumptions

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

2016INCOME YOUR




Shearing 2451 sheep @ $287.03 /100 $7,035(Federal Awards) 29 rams @ $574.06 /100 $166Shed labour 10 days @ $216.40 /day $2,164Woolclasser 5 days @ $259.69 /day $1,298Superannuation (on ordinary wages only) @ 9.5% wages $1,013Work Cover (includes super + o'time etc) @ 4.0% total $467Wool packs 66 packs @ $11.00 /pack $726Shed sundries 2481 sheep @ $0.15 /head $372Lice control 2481 sheep @ $1.13 /head $2,791Crutch & wig 1701 sheep @ $83.24 /100 $1,416

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

Animal Health drench 0 sheep @ $0.45 /head $0 vaccinate 2905 sheep @ $0.37 /head $1,081 blowfly control 1000 sheep @ $1.29 /head $1,290

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

Purchases 8 Merino rams @ $900.00 /head $7,200Freight 669 sheep @ $7.00 /head $4,683


commission/insurance @ 5.5% gross $3,227 yard fees 669 head @ $0.70 /head $468

transaction levy 669 head @ $0.20 /head $134SA sheep industry 669 head @ $0.35 /head $234Wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $2,473Industry levy @ 2.0% gross $1,594

Feed and other CostsHand Feeding $0Insurance $221,866 value @ $2.00 /$'000 $444Water 2610 DSE's @ $1.50 /DSE $3,915Veh Fuel, R&M 2610 DSE's @ $1.70 /DSE $4,437Other 2610 DSE's @ $0.50 /DSE $1,305

TOTAL VARIABLE COSTS $51,964GROSS MARGIN TOTAL $86,427GROSS MARGIN/hectare $4.64

$33

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

GROSS 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 DATA

Stocking rate (DSE/Ha) 0.14 Culling Rate (% per each group)Total DSE's 2610 Age group Ewes WethersSHEEP GRAZING AREA 18643 0.5 0% 0%Number of ewes mated 1000 1.5 38% 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 75% 6.5 100% 0%Prime lamb weaning % 0%% mated for prime lms 0%

SALES Number Price/hd Totalc.f.a ewes 171 $80.00 $13,680c.f.a merino rams 7 $45.00 $315ewe hoggets 135 $120.00 $16,200wether hoggets 356 $80.00 $28,480TOTAL 669 $87.69 $58,675


Number DSE Drench Vacc. Jetewes 1000 1.8 0 1 1ewe hoggets 375 1.2 0 1 0wether weaners 375 0.8 0 0 0merino lambs 750 0.0 0 2 0merino rams 30 2.0 0 1 0TOTAL 2530 2610 0 2905 1000Total Value $221,866

FEEDINGFeed Number of Hay kg/ animal Total

Animals Cost ($/T) fed cost ($)Oats/barley 1000 $250 0.0 /ewe $0Hay 1000 $200 0.0 /ewe $0Lupins 750 $400 0.0 /weaner $0Total $0



SELF REPLACING MERINO FLOCK - PASTORAL ZONE

Stock type



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

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

550 600 650 709 750 800$60 $20 $22 $24 $26 $28 $30$65 $21 $23 $25 $28 $29 $31$70 $22 $24 $26 $29 $31 $33$75 $23 $25 $28 $30 $32 $34

Average $80 $25 $27 $29 $31 $33 $35Sale $88 $26 $29 $31 $33 $35 $37

Price ($/hd) $90 $27 $29 $31 $34 $35 $38$95 $28 $30 $32 $35 $37 $39

$100 $29 $31 $34 $36 $38 $40$105 $31 $33 $35 $37 $39 $41$110 $32 $34 $36 $39 $40 $42

SELF REPLACING MERINO FLOCK - PASTORAL ZONE

Self Replacing Merino Flock - Pastoral Zone


Assumptions:Average Wether Fibre Diameter 22 Gross Margin per Ha $3.0Number of adult wethers 1000 Gross Margin per DSE $21Total DSE's 1200 Gross Margin/Wether $26Stocking rate (DSE/Ha) 0.14

2016INCOME YOUR

$ ESTIMATEWool (kg greasy) 6720 Kg [ave price 709 c/kg ] $47,658Sales 226 animals [ave price $90.00 per hd] $20,296


EXPENSESShearing

Shearing 960 sheep @ $287.03 /100 $2,755Shed labour 4 days @ $216.40 /day $866Woolclasser 2 days @ $259.69 /day $519Superannuation (on ordinary wages only) @ 9.5% wages $393Work Cover (on wages+super+o'time etc) @ 4.0% total $161Wool packs 40 packs @ $11.00 /pack $440Shed sundries 960 sheep @ $0.15 /head $144Lice control 960 sheep @ $1.13 /head $1,080Crutching 1000 sheep @ $83.24 /100 $832





Stock selling charges commission/insurance @ 5.5% gross $1,116 yard fees 226 head @ $0.70 /head $158

transaction levy 226 head @ $0.20 /head $45SA sheep industry 226 head @ $0.35 /head $79Wool selling chargesbrokerage/testing/insurance @ $0.22 /kg $1,478Industry levy @ 2.0% gross $953Other ExpensesHand Feeding $0Insurance 85000 value @ $2.00 /$'000 $170Water 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 $42,250GROSS MARGIN $25,704GROSS MARGIN/hectare $3.00GROSS MARGIN/DSE $21

MERINO WETHERS - PASTORAL ZONE (<250mm)

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 250 $0Hay 0 kg/wether 200 $0Lupins 0 kg/wether 400 $0Total $0

MERINO WETHERS - PASTORAL ZONE


550 600 650 709 750 800$65 $8 $11 $14 $17 $19 $22$70 $9 $12 $15 $18 $20 $23$75 $10 $13 $16 $19 $21 $24$80 $11 $14 $16 $20 $22 $25

Average $85 $12 $15 $17 $21 $23 $26Sale $90 $13 $15 $18 $21 $24 $26

Price ($/hd) $95 $14 $16 $19 $22 $25 $27$100 $14 $17 $20 $23 $25 $28$105 $15 $18 $21 $24 $26 $29$110 $16 $19 $22 $25 $27 $30$115 $17 $20 $23 $26 $28 $31

MERINO WETHERS - PASTORAL ZONE

Merino Wethers - Pastoral Zone


Assumptions

Total DSE's 2570Number of breeding ewes 1000 Stocking rate (DSE/Ha) 6.0

2016INCOME YOUR

$ ESTIMATE$0

Sales 1158 animals [ ave price $109.61 per hd] $126,900GROSS INCOME $126,900

VARIABLE COSTS$0

MarkingLamb marking 1200 lambs @ $1.00 /head $1,200Ear tags 1200 lambs @ $0.35 /head $420

Animal Health drench 2850 sheep @ $0.45 /head $1,283 vaccinate 4025 sheep @ $0.37 /head $1,497 blowfly control 0 sheep @ $1.29 /head $0

Lice control 0 sheep @ $1.13 /head $0Sale and Purchase Costs

Purchases 7 rams @ $1,000.00 /head $7,000Freight 204 ewes @ $4.00 /head $816

6 rams @ $4.00 /head $24348 hoggets @ $4.00 /head $1,392600 lambs @ $4.00 /head $2,400

Stock selling charges commission/insurance @ 5.5% gross $6,980 yard fees 1158 head @ $0.70 /head $811 sheep tran levy 558 head @ $0.20 /head $112

lamb trans levy 600 head @ $1.50 /head $900SA Sheep industr 1158 head @ $0.35 /head $405

$0$0


TOTAL VARIABLE COSTS $48,024GROSS MARGIN TOTAL $78,876GROSS MARGIN/hectare $184GROSS MARGIN /DSE $31

CLEANSKIN SHEEP - CEREAL ZONE (250 - 450mm)

COMMENTSAssumes 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 2570 Age group Ewes WethersSHEEP GRAZING AREA 428 0.5 0% 100%Number of ewes mated 1000 1.5 60% 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 120% 6.5 100% 0%

SALES Number Price/hd Total

c.f.a ewes 204 $90.00 $18,360c.f.a rams 6 $50.00 $300ewe hoggets 348 $130.00 $45,240wether lambs 600 $105.00 $63,000

TOTAL 1158 $109.61 $126,900

STOCK HEALTH

Number DSE Drench Vacc. Blowfly LiceewesStock type

1000 1.8 1 1 0 0ewe hoggets 600 1.2 1 1 0 0wether weaners 0 0.8 1 1 0 0lambs 1200 0.0 1 2 0 0rams 25 2.0 2 1 0 0TOTAL 2825 2570 2850 4025 0 0Total Value $309,636

FEEDINGNumber of Fodder kg/ animal Total

Feed Animals Cost ($/T) cost ($)Oats/barley 1000 $250 24 /ewe $6,000Hay 1000 $200 20 /ewe $4,000Lupins 600 $400 10 /weaner $2,400Total $12,400

Number of times

CLEANSKIN SHEEP - CEREAL ZONE

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 600 234 216 199 183 169 0

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

SENSITIVITY ANALYSISGROSS MARGIN/DSE Average Weaning Percentage

100 110 120 130 140 150$85 $19 $23 $26 $30 $33 $37$90 $20 $24 $27 $31 $35 $38$95 $21 $25 $29 $32 $36 $40

$100 $22 $26 $30 $33 $37 $41$105 $23 $27 $31 $35 $39 $42

Sale Price $110 $24 $28 $32 $36 $40 $44Lambs $115 $25 $29 $33 $37 $41 $45($/hd) $120 $26 $30 $34 $38 $42 $47

$125 $27 $31 $35 $39 $44 $48$130 $28 $32 $36 $41 $45 $49$135 $28 $33 $37 $42 $46 $51

CLEANSKIN SHEEP - CEREAL ZONE

Cleanskin Sheep - Cereal Zone


Assumptions: (Breeding young cattle for local trade, grass fattened)Breeding Cow 15 DSE 100 Cow breeding herdCalf Weaning 90% 13 cows replaced per yearHerd Deaths 3% 3% Bulls bought for $3,000Cows c.f.a 10 years old sold for $1,200Uses 13 heifers as replacements after 3 yearsCarry over calf 8 DSE 40% carryover to heavier weightsWeaned @ 8 months 6 months extra carry overHeifers mated @ 15 months 1891 Herd DSEStocking rate 10 DSE/ha Drench cows 2 xArea required 189 hectares Drench calves 1 xFeeds 35 kg/DSE hay equivalent supplement

2016INCOME YOUR

ESTIMATEStock sales 54 vealers @ 280 kg liveweight@ $3.20 /kg L/W $48,384

22 yearlings 420 kg liveweight@ $3.00 /kg L/W $28,111Culls 10 Cows @ 550 kg liveweight@ $2.15 /kg L/W $11,336

1 bull@ $1,500GROSS INCOME $89,331

VARIABLE COSTSBull PurchasesNo. of bulls 1 $4,000.00 total $4,000Veterinary & MedicinesDrench - cows 2x calves 1x 290 @ $3.60 /head $1,044Ear Tags NLIS 90 @ $4.75 /tag $428Lice Treatments 100 @ $3.60 /dose $360Vaccine (5 in 1) 180 @ $1.82 /dose $328

Supplementary FeedHay 66 tonne @ $200.00 /tonne $13,200Grain 0.00 t/head @ $250.00 /tonne $0Blocks/ Mineral Mix 100 @ $5.00 /head $500Sale costs and otherInsurance $119,000 @ $2.00 /$1000 $238Water 1891 dse's @ $1.50 $2,836Veh Fuel, R&M 1891 dse's @ $1.00 $1,891Other 1891 dse's @ $0.50 $945Transport: Lvstk 87 head @ $20.00 /head $1,738

Commission @ 5.5% $4,913Levies @ $5.00 /head $434

TOTAL VARIABLE COSTS $32,854GROSS MARGIN TOTAL $56,476GROSS MARGIN PER COW $565GROSS MARGIN/DSE $29.87GROSS MARGIN/hectare $298.73

BEEF CATTLE - HIGH RAINFALL

COMMENTSLivestock 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% $85 $157 $228 $300 $37165% $119 $199 $279 $358 $43870% $153 $241 $329 $417 $50575% $186 $283 $379 $476 $573

Weaning 80% $220 $325 $430 $535 $640% 85% $253 $367 $480 $594 $707

90% $287 $409 $531 $652 $77495% $321 $451 $581 $711 $841

100% $354 $493 $631 $770 $909PER Ha

$/kg Liveweight(yearlings/steers)$2.00 $2.50 $3.00 $3.50 $4.00

60% $45 $83 $121 $158 $19665% $63 $105 $147 $190 $23270% $81 $127 $174 $221 $26775% $99 $150 $201 $252 $303

Weaning 80% $116 $172 $227 $283 $338% 85% $134 $194 $254 $314 $374

90% $152 $216 $281 $345 $41095% $170 $238 $307 $376 $445

100% $187 $261 $334 $407 $481

BEEF CATTLE - HIGH RAINFALL

0

20

40

60

80

100

120

140

$/C

ow

Variable Costs

Cost/cow

Beef Cattle - High Rainfall


Assumptions: (Breeding young cattle for local trade, grass fattened)Breeding Cow 14.5 DSE 100 Cow breeding herdCalf Weaning 85% 13 cows replaced per yearHerd Deaths 3% 3% Bulls bought for $3,000Cows c.f.a 10 years old sold for $1,200Uses 13 heifers as replacements after 3 yearsCarry over calf 8 DSE 50% carryover to heavier weightsWeaned @ 8 months 6 months extra carry overHeifers mated @ 15 months 1941 Herd DSEStocking rate 5.00 DSE/ha Drench cows 2 xArea required 388 hectares Drench calves 1 xFeeds 35 kg/DSE hay equivalent supplement

2016INCOME YOUR

ESTIMATEStock sales 43 vealers @ 270 kg liveweight @ $3.20 /kg L/W $36,720

29 yearlings 400 kg liveweight @ $3.00 /kg L/W $34,338Culls 10 Cows @ 550 kg liveweight @ $2.15 /kg L/W $11,336

1 bull@ $1,500


VARIABLE COSTSBull PurchasesNo. of bulls 1 @ $4,000 total $4,000Veterinary & MedicinesDrench - cows 2x calves 1x 285 @ $3.60 /head $1,026Ear Tags 85 @ $4.75 /tag $404Lice Treatments 100 @ $3.60 /dose $360Vaccine (5 in 1) 170 @ $1.82 /dose $309

Supplementary FeedHay 68 tonne @ $200.00 /tonne $13,600Grain 0.00 t/head @ $250.00 /tonne $0Blocks/ Mineral Mix 100 @ $5.00 /head $500Sale costs and otherInsurance $117,250 @ $2.00 /$1000 $235Water 1941 dse's @ $2.50 $4,852Veh Fuel, R&M 1941 dse's @ $1.00 $1,941Other 1941 dse's @ $0.50 $970Transport: Lvstk 82 head @ $20.00 /head $1,634



BEEF CATTLE - CEREAL ZONE

COMMENTSNo allowance has been made for pasture expenses such as seed, fertiliser and weed control. These need to be separately accounted for.

Beef Cattle - Cereal Zone


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

$2.00 $2.50 $3.00 $3.50 $4.0060% $70 $142 $215 $287 $36065% $103 $184 $265 $346 $42770% $137 $226 $315 $405 $49475% $170 $268 $366 $463 $561

Weaning 80% $204 $310 $416 $522 $628% 85% $237 $352 $466 $580 $695

90% $271 $394 $516 $639 $76295% $304 $435 $567 $698 $829

100% $338 $477 $617 $756 $896PER Ha

$/kg Liveweight(yearlings/steers)$2.00 $2.50 $3.00 $3.50 $4.00

60% $18 $37 $55 $74 $9365% $27 $47 $68 $89 $11070% $35 $58 $81 $104 $12775% $44 $69 $94 $119 $144

Weaning 80% $53 $80 $107 $134 $162

% 85% $61 $91 $120 $150 $17990% $70 $101 $133 $165 $19695% $78 $112 $146 $180 $214

100% $87 $123 $159 $195 $231

BEEF CATTLE - CEREAL ZONE

0

20

40

60

80

100

120

140

160

$/C

ow

Variable Costs

Cost/cow

Beef Cattle - Cereal Zone


Assumptions: (Breeding young cattle for store trade)Breeding Cow 15 DSE 100 Cow breeding herdCalf Weaning 80% 13 cows replaced per yearHerd Deaths 3% 3% Bulls bought for $3,000Cows c.f.a 10 years old sold for $1,100Uses 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

2016INCOME YOUR

ESTIMATEStock sales 67 yearlings 360 kg liveweight @ $3.00 /kg $72,360Culls 10 Cows @ 550 kg lwt @ $2.00 /kg $11,000

1 bull@ $1,500GROSS INCOME $84,860

VARIABLE COSTSBull DepreciationBull purchase 1 @ $3,000 total $3,000Veterinary & MedicinesDrench 0 @ $3.60 /head $0Ear Tags 80 @ $4.75 /tag $380Lice Treatments 196 @ $0.00 /dose $0Vaccine (5 in 1) 160 @ $1.82 /dose $291Supplementary FeedHay 45 tonne @ $200.00 /tonne $9,000Grain 0.00 t/head @ $250.00 /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 @ $20.00 /head $1,560



BEEF CATTLE - PASTORAL

COMMENTSFeed 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 $3.00 $3.50 $4.0060% $178 $263 $348 $432 $51765% $214 $308 $402 $495 $58970% $250 $353 $456 $558 $66175% $286 $398 $510 $621 $733

Weaning 80% $322 $443 $564 $684 $805% 85% $358 $488 $618 $747 $877

90% $394 $533 $672 $810 $94995% $430 $578 $726 $873 $1,021

100% $466 $623 $780 $936 $1,093PER Ha

$/kg LWT (yearlings/steers)$2.00 $2.50 $3.00 $3.50 $4.00

60% $20 $29 $39 $48 $5765% $24 $34 $45 $55 $6570% $28 $39 $51 $62 $7375% $32 $44 $57 $69 $81

Weaning 80% $36 $49 $63 $76 $89

% 85% $40 $54 $69 $83 $9890% $44 $59 $75 $90 $10695% $48 $64 $81 $97 $114

100% $52 $69 $87 $104 $122

BEEF CATTLE - PASTORAL

0

10

20

30

40

50

60

70

80

90

100

$/C

ow

Variable Costs

Cost/cow

Beef Cattle - Pastoral


SHEEPLice Control Avenge $18.75 /litre

$1.13 /20ml doseDrench Hat-trick $45.00 /litre

$0.45 /10ml dose

Vaccine 3 in 1 $93.00 250ml$0.37 /1ml dose

6 in 1 $117.00 250ml$0.47 /1ml dose

Blowfly Control Clik $53.75 /litre$1.29 /24 ml dose

Wool packs nylon $11.00 ea

Shearing Sheep $287.03 /100rams $574.06 /100shed labour $216.40 /daywool classer $259.69 daysuperannuation 9.50% wagesWork Cover-Allow 4.00% totalshed sundries $0.15 /head

Crutching sheep $83.24 /100rams $166.48 /100

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

Stock purchaces purchase rams $1,000.00 /headpurchase wethers $80.00 /head

Stock selling commission/insurance 5.5%yard fees $0.70 /headsheep transaction levy $0.20 /headlamb transaction levy $1.50 /headSA sheep industry levy $0.35 /headwool brokerage / testing $0.22 /kgwool levy 2.0%

BEEFDrench (backline) Genesis Pour-on $144.00 /litre

$3.60 /25ml dose

7 in 1 vaccine $182.00 /250 ml$1.82 /2.5ml dose

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

NLIS Breeder Tags (incl levy) $4.75 each

freight cattle in $15.00 /headfreight cattle out $20.00 /headCattle levy $5.00 /head

FEED & OTHER COSTS

water $2.50 /DSEVeh fuel, R&M $1.00 /DSEother $0.50 /DSEhay $200.00 /tonne incl freightFeed Cereal grain $250.00 /tonne incl freightlupins $400.00 /tonne incl freight

FARM COSTS - 2016Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Costs will varydepending on situation. Users of this publication should ascertain the relevance of these costs to their particular situation and make adjustments to grossmargin budgets if required.

Farm Costs 2016


CHEMICAL COSTS - HERBICIDES2,4-D Amine (625g/l) $6.00 /litreAchieve® WG $60.00 /kg

Affinity $170.00 /litreAtlantis (mesosulfuron 30g/L) $88.00 /litreAtrazine (Gesaprim) $8.00 /litre

Axial $149.00 /litreBalance ® $0.22 /gram

Boxer Gold $15.70 /litreBroadstrike® $0.60 /gramBrodal®Options $40.00 /litreBromoxynil /MCPA $14.00 /litreChlorsulfuron 750g/kg (Glean) $0.12 /gramClopyralid 300g/L (Lontrel) $25.00 /litreCrusader (pyroxsulam 30g/L) $68.00 /litreDicamba 500g/L $19.50 /litreDiuron 900 gm a.i. granules $11.70 /kgFactor (butroxydim 250g/kg) $0.13 /gramGarlon FallowMaster (triclopyr 755g/L) $20.45 /litreGlyphosate 540g/L $7.00 /litreHammer (carfentrazone 400g/L) $280.00 /litre

Intervix $42.50 /litreLexone (Metribuzin 750 gm/kg) $0.03 /gramM.C.P.A. LVE $10.00 /litreMCPA Amine (750g/L) $10.00 /litreMetsulfuron methyl $0.08 /gramOxyfluorfen 240g/L $21.00 /litreParadigm (200g/kg halauxifen + 200g/kg florasulam) $0.47 /gramParaquat $7.00 /litre

Precept $16.00 /litreQuizalofop (Targa®) $12.00 /litreReglone® $20.00 /litreSakura $340.00 /kgSelect® $12.00 /litreSimazine Granules 900g/kg $7.60 /kgS-metolachlor 960g/L (Dual®Gold) $16.00 /litreSprayseed® $11.00 /litreStarane Advanced (fluroxypyr 333g/L) $24.00 /litreTerbyne 875 $26.50 /kgTigrex® $15.00 /litreTopik® EC $65.00 /litreTri-allate 500g/L $12.20 /litreTriasulfuron 750g/kg (Logran) $0.08 /gm

Velocity $31.50 /litreTrifluralin 480g/L $7.50 /litreVerdict® 520 $48.00 /litre

CHEMICAL COSTS - ADJUVANTSUptake (Oil) $7.50 /litreBS-1000 (WETTER) $6.00 /litreSupercharge $6.50 /litreHasten $5.00 /litreSurfactant cost (with Achieve) Per Ha $3.66 Assume 75l/ha @ 0.75% surf.Oil Cost $2.81 Assume 75l/ha @0.5% oilWetter Cost per Ha $0.45 Assume 75l/ha @ 0.1% surf.

CHEMICAL COSTS - INSECTICIDESDimethoate 400g/L $10.00 /litreOmethoate 400g/L $29.00 /litreAlpha-cypermethrin 16g/L $8.00 /litreLambda-cyhalothrin (Karate Zeon®) $165.00 /litre 24mls/haImidan $12.50 /litreMaldison 500g/L $8.50 /litreChlorpyrifos 500g/L $10.00 /litre LorsbanTalstar $44.00 /litre

FARM COSTS - 2016Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Users of thispublication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required.

Farm Costs 2016


CHEMICAL COSTS - FUNGICIDESApron XL 350 ES $350.00 /litreMancozeb 750g/kg $10.00 /kgVeteran C $25.00 /kgVitavax 200 FF $30.00 /kgBaytan $30.00 /kgArmour C $30.00 /kgP-Pickel T $41.00 /litreCarbendazim 500g/kg $22.00 /kgTebuconazole 430 $12.00 /litreTriadimefon 125g/L $8.70 /litrePropiconazole 250g/L $13.50 /litreChlorothalonil 500g/L $18.00 /litreProsaro $70.00 /litreAmistar $38.00 /litreSystiva $199.00 /litreOpus $25.00 /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 $720 /tonneDAP 18:20 $720 /tonneUrea $500 /tonneSuperphosphate $330 /tonneDAP/MAP Plus 2% Zn $780 /tonneDAP + Urea 24:16 $691 /tonneDAP + Urea 28:13 $658 /tonneDAP + Urea 32:10 $625 /tonne

GRAIN GRADING & PICKLING Cost /TonneGrading cereals $22.00

other crops $24.00Pickling cereals $1.30

other crops $1.40Cleaning wheat $24.00

barley $25.00peas $30.00

Smuticide - Cereals Veteran C $25.00

Inoculant Legumes $45.00 /tonne treated seed

Seed Treatment P-Pickle T $72.00 /tonne treated seed

FARM COSTS - 2016

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

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

Farm Costs 2016


STOCK RETURNS

2013 Average (Clean)

2014Average (Clean)

2015Average (Clean)

BudgetBase

(Clean)

BudgetBase

(Greasy)WOOL - High Rainfall 28 mic 70%Yield 635 675 865 850 595

- High Rainfall 19.5 mic 70% Yield 1215 1178 1305 1300 910 - Med Rainfall 21 mic 68% Yield 1180 1160 1274 1270 864 - Low Rainfall 22 mic 63% Yield 1170 1150 1254 1250 788

- Crossbred Ram 32 mic 300

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

CONTRACT RATES (indicative only- will be highly variable depending on situation)Ground Spraying $10.00 /hectareAerial spraying $14.00 /hectareContract harvesting cereals, low rainfall $45.00 /hectareContract harvesting cereals, high rainfall $65.00 /hectareContract harvesting pulse/canola, low rainfall $72.00 /hectareContract harvesting pulse/canola, high rainfall $95.00 /hectareWindrowing $35.00 /hectareContract spreading $8.50 /hectare excludes cartageContract sowing $45.00 /hectareHaymakingContract mowing $45.00 /hectareHire of rake(supply own tractor and labour) $5.00 /hectareContract baling (650kg square bales) $20.00 /baleSuper conditioner (oaten hay) $25-35.00 /hectare

FARM COSTS- 2016Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Users of thispublication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required.

INSURANCE COSTSLivestock

Sheep and cattle $2.00 /$1,000 insured Crops

Cereals $8.50 /$1,000 insured Chickpeas, lupins, safflower $10.00 /$1,000 insured Faba beans, vetch, lentils, canola $12.00 /$1,000 insured Field Peas $16.00 /$1,000 insured

Farm Costs 2016


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 formaNEW HORIZONS the next revolution in agriculture

Managing your soils to improve productivity

New Horizons is a PIRSA initiative focusing on modifying the soil profile to 50 cm to overcome soil chemical and physical constraints. Two years of recent research from trials across South Australia show that crop yields can be substantially increased on sandy soils.

www.pir.sa.gov.au/newhorizons

NEW HORIZONS the next revolution in agriculture

SA GRAIN GROWERSFUNDING RESEARCH SOLUTIONS

GRAIN INDUSTRY RESEARCH UPDATE

S A G I TSouth Australian Grain Industry Trust

• Adopting profitable crop sequences in the SA Mallee – Mallee Sustainable Farming

• Assessing the adaptation of long season wheats in SA – Agrilink Agricultural Consultants

• Common vetch as a break crop for marginal cropping systems – SARDI

• Communicating innovations in precision agriculture: Factsheet series - SPAA

• Comparative effects of agricultural pesticides on SA soil microbial communities – University of South Australia

• Controlling rhizoctonia in disc-sown crops – SARDI

• Crown rot resistance in durums – SARDI

• Development of a strand medic cultivar resistant to powdery mildew – SARDI

• Dual-purpose canola for SA’s high rainfall zone – SARDI

• Extension and outreach of SAGIT funded projects – AgCommunicators

• Genetic characterisation and exploitation of heat stress tolerant barley germplasm - AGT

• Genetic characterisation and exploitation of heat stress tolerant durum germplasm – University of Adelaide

• Growing durum demand in SA: gross margin sensitivity analysis trials – University of Adelaide

• Hart advanced cropping systems and stubble handling – Hart Fieldsite Group

• Identifying the causes of unreliable nitrogen fixation by medic based pastures - SARDI

• Impact of seeding time and Pratylenchus neglectus on rhizoctonia fungicide yield responses – SARDI

• Improved drought stress tolerance in barley – University of Adelaide

• Improving canola establishment – SARDI

• Improving fertiliser efficiency and reducing disease impacts using fluid delivery systems – SARDI

• Improving pre-emergent herbicide efficacy in stubble retention systems – Hart Fieldsite Group

• Maximising productivity and managing risk through robust characterisation of variety specific response to agronomic practices – AGT

• Mould on faba bean seed affecting seed quality and meeting export standards – SARDI

• Novel cultural control for snails – SARDI

• Publication of the 2016 Farm Gross Margin Guide for SA – Rural Solutions SA

• Quantifying productivity and profitability gains with liquid injection systems on clay – Elders Rural Services

• Reassessing the value of phosphorus replacement strategies on fixing soils – University of Adelaide

• Regional internship in applied grains research – Hart Fieldsite Group

• SA Crop Variety Sowing Guides – SARDI

• Seed to Store YouTube Clip Competition - AgCommunicators

• Silverleaf nightshade – protecting clean farms and reducing SA yield losses – PIRSA

• Sulphur deficiency research in lentils and wheat – dune swale soils – Northern Sustainable Soils

• The application of bent-leg technologies to higher speed, tyned seeding of cereal grains – University of South Australia

• The first gene for grain yield in barley? - University of Adelaide

• The H sensor: a weed ID and mapping system – SPAA Precision Agriculture

• The Peter Waite Centenary Scholarship funded by SAGIT – University of Adelaide

• Traineeships in applied grains research – SARDI

The SA Grain Industry Trust will invest $2.19 million in new projects supporting research crucial to the advancement of the SA grain industry with funds coming from the 30c a tonne contribution on all grain delivered by SA grain growers.

IN 2015-16 SAGIT IS SUPPORTING 36 PROJECTS INCLUDING:For more informationon the SA GrainIndustry Trust and itsactivities contact:

Michael TreloarChairman0427 765 [email protected]

Max YoungSAGIT Trustee0419 839 [email protected]

Bryan SmithSAGIT Trustee0459 256 [email protected]

Malcolm BuckbyProject Manager08 8210 [email protected]

Dr Allan MayfieldScientific Officer0418 818 [email protected]

Research updates are available atwww.sagit.com.au

@SAGrainTrust

/SAGITFund

SAGIT AD OCTOBER 2015_FA.indd 1 8/10/2015 2:17 pm

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