Farm Gross Margin & Enterprise Planning Guide

Transcription

1 Farm Gross Margin & Enterprise Planning Guide 2014 A gross margin template for crop and livestock enterprises

2 Get the latest stored grain information online storedgrain.com.au Booklets and fact sheets on all things grain storage Contact your regional specialist to arrange a workshop SOUTHERN REGION Workshops in all regions covering topics such as: Economics of on-farm storage Grain storage hygiene Aeration cooling or drying Managing high moisture Fumigation Insect pest management Managing different storages Storage facility design Storing pulses and oilseeds Peter Botta pbotta@bigpond.com

3 Farm Gross Margin & Enterprise Planning Guide 2014 A gross margin template for crop and livestock enterprises ycompare the gross margin profitability of enterprises, paddocks and rotations yassist with decision making ycompare the sensitivity of profit of enterprises to a change in production, costs and price A Rural Solutions SA publication Sponsored by SAGIT and GRDC ISBN DISCLAIMER This guide has been prepared in good faith on the basis of the information available at the date of publication without any independent verification. The South Australian Grain Industry Trust, Rural Solutions SA and the Grains Research and Development Corporation do not guarantee or warrant the accuracy, reliability, completeness or currency of the information in this guide nor its usefulness in achieving any purpose. Readers are responsible for assessing the relevance and accuracy of the content of this guide. The South Australian Grain Industry Trust, Rural Solutions SA and the Grains Research and Development Corporation will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on the information in this Farm Gross Margin Guide. Published February 2014 A gross margin template for crop and livestock enterprises

4 Farm Gross Margin and Enterprise Planning Guide Broadacre farmers in South Australia continue to operate in a challenging environment. The 2013 season was generally above average across the state, although the exceptional potential which existed in early spring was often not realised due to some less than favourable weather events which occurred prior to and during harvest. Some cropping areas in SA have now experienced several reasonable production seasons in a row. Other areas have not been as fortunate. The requirement into the future will be to maintain profitable farming systems in the face of ever increasing cost structures and production challenges. Improving our skill and knowledge of all aspects of our farm business will be the key to meeting the challenge. 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. This publication 2014 Farm Gross Margin Guide will help farmers and their advisers compare the gross margins of enterprises, paddocks and rotations and their respective sensitivity to changes in production, cost and price to ultimately make the best decisions to maximise the chances of a successful 2014 season. We know that each farmer and their farm business is different and so a one size fits all approach will not work. The templates and sensitivity analysis provided in this guide allows you to feed in your own figures and ask the what if type questions appropriate to you and your situation. The guide is to help inform your decisions and compare options it does not make the decisions for you. This guide is one of few publications that provide gross margins for both crops and livestock enterprises across the range of South Australian rainfall zones. 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 Farm Gross Margin & Enterprise Planning Guide

5 Jim Heaslip Chairman SAGIT Keith Pengilley Chairman GRDC Southern Panel Daniel Casement Executive Director, Rural Solutions SA A gross margin template for crop and livestock enterprises

6 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

7 Contents Introduction... 2 Using Gross Margins for Farm Planning... 4 Strategies for Maximising Returns from Individual Enterprises... 5 Commentary on 2014 Gross Margins Gross Margin Estimates... 8 Gross Margins...10 Gross Margins Cereals...11 APW Wheat...12 Durum Wheat...14 Malting Barley...16 Feed Barley...18 Milling Oats Triticale Export Oaten Hay...24 Gross Margins Pulses Vetch Lupins Red Lentils Field Peas Faba Beans Chickpeas Gross Margins Canola Canola Conventional Canola Triazine tolerant Canola Clearfield Gross Margins Livestock Prime Lambs High Rainfall Self Replacing Merino Flock High Rainfall Merino Wethers High Rainfall Prime Lambs Cereal Zone Self Replacing Merino Flock Cereal Zone Merino Wethers Cereal Zone Prime Lambs Pastoral Zone Self Replacing Merino Flock Pastoral Zone Merino Wethers Pastoral Zone Cleanskin Sheep Cereal Zone Beef Cattle High Rainfall Beef Cattle Medium Rainfall Beef Cattle Low Rainfall...74 Appendices Blank Pro Forma A gross margin template for crop and livestock enterprises

8 Introduction This book provides a format and general estimates for calculating crop and livestock gross margin profit and enterprise profitability for broadacre enterprises across Southern Australia. It provides a base to easily calculate gross margins and to use for cash flow planning. A blank format is included as well as a blank column on every page, along with a full list of product and input costs as a guide for those wishing to construct their own gross margins. What are Gross Margins The gross margin for a farm enterprise is one measure of profitability that is a useful tool for cash flow planning and determining the relative profitability of farm enterprises. They can also be used to assist in assessing the opportunity to develop new farm enterprises. Gross margin profit is the difference between the annual gross income for that enterprise and the variable costs directly associated with the enterprise. In constructing gross margins, fixed (overhead) costs are ignored, as it is considered that they will be incurred regardless of the level of the enterprise undertaken. The gross margin of different enterprises should not be compared if they have different overhead costs. 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. ycompare the relative profitability of current farm enterprises, paddocks or rotations yestimate changes in enterprise profit caused by changes in price, cost or yields ypinpoint high cost or low income areas in the existing farm plan y Evaluate the profitability of a re-organisation of the farm enterprise mix 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 Farm Gross Margin & Enterprise Planning Guide

9 Limitations of Gross margins The gross margins prepared within this publication have been designed to represent average case scenarios within the respective rainfall zones of Southern Australia. They should be treated strictly as a base guide only and adapted by users for their particular situations. Gross margins are best used to compare enterprises that make use of the same resources on the property. They cannot be used where varying capital input is needed for an enterprise. Cropping and livestock gross margins can only be compared if all capital resources are already on the property. KEY POINT Make your own adjustments to the gross margins in this book to adapt to your own Estimates of inputs and production can vary from what actually occurs. Although a crop might have the highest gross margin, it might be the most sensitive to variation. Commodity prices, seasonal conditions, pests and disease can significantly affect the eventual gross margin. Risk can be assessed by comparing gross margins calculated with varying values for an input. Sensitivity analysis tables are included in the book to help determine the impact on the gross margin of significant changes in yield and price. Agronomic information including chemical rates is provided as a guide only and exact agronomic recommendations will vary with location, soil type and a number of other factors. Gross margins have been broadly delineated into production zones based on rainfall. Average annual rainfall zones have been classified as Low Rainfall (<350 mm), Medium Rainfall ( mm) and High Rainfall (>400mm). A gross margin template for crop and livestock enterprises 3

10 Using Gross Margins for Farm Planning Gross margins are just one component of a whole range of factors which go into enterprise selection for paddocks and zones on a farming property. Some of these other factors include: ystage of rotation: weed, pests, nutrition and disease levels ysuitability of proposed land use to land class: are there physical restrictions which limit enterprise selection? yavailability of suitable plant, equipment, labour and/or infrastructure to carryout the enterprise yrisk: 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? yintegration of livestock in a mixed cropping situation and the need for appropriate pasture supplies for grazing animals. Gross Margins on their own do not make the decision on enterprise selection across the property. Each activity undertaken on a farming property will have an impact on other activities: ysome may be complimentary such as cropping enterprises which provide a feed base to livestock through crop residues ycrops 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: Farm Financial Tool- Crop Gross Margin Budget Farm Financial Tool- Livestock Gross Margin Budget Calculating Your Own Gross Margins Rates and types of fertiliser and weed control treatments will obviously vary for different situations. Remember that these calculations are not meant to be an exact science roughly right is better than precisely wrong! Use your own estimates when the values vary significantly from those included in the example. Calculating the break-even yield needed to cover variable costs will give some indication of the riskiness or exposure of the particular enterprise. Remember, of course, that there are many other costs (in addition to the variable costs) which need to be covered before a profit is made 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 Farm Gross Margin & Enterprise Planning Guide

11 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 that 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 yrainfall events above 40 mm in December/January should result in some stored moisture with summer weed control yless than 40 mm rainfall events may still warrant summer weed control for ease of seeding operations and nutrient retention (mainly N). ystrong case to apply zero tolerance summer weed control policy on light soils with no sub-soil limitations. Heavier soils ymay require larger rainfall events (up to 100 mm) in December/January to store soil moisture if soils are already very dry ysmaller rainfall events from February onwards will warrant control of germinated weeds ycontrol of summer weeds earlier than February may also be dependant on other considerations e.g. improved ease of sowing, low cost of control, nutrient retention. Maximising Time of Sowing Benefits Early seeding generally provides the most reliable yield outcome, particularly in low rainfall situations. However, frost prone areas have special considerations that need to be taken into account. Sowing Opportunity with Early Break Frost Risk Start Sowing Low After mid April Medium After 25th April High After early May ysow at the optimum time, even in high frost risk areas. Use appropriate varieties to manage flowering time. ythe yield loss from moisture and temperature stress during spring will usually be far greater than the damage caused by frost. ythe 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. A gross margin template for crop and livestock enterprises 5

12 Ensuring Efficient Fertiliser Practices Aim to maintain soil nutrient status at appropriate levels to maximise sustainable and profitable production. Phosphorous Replacement Levels Crop Removal Removal plus losses # Cereal grain 3 kg/t 4 kg/t Pulses 4 kg/t 5 kg/t Canola 7 kg/t 8 kg/t Cereal hay 2 kg/t 2.5 kg/t # higher rates may be required on calcareous / ironstone soils or those with moderate to low available P. Reduce P application on soils with sub soil constrains when: ymoderate to low stored soil moisture yand crop sown more than 3 weeks after the optimum sowing date. A new DGT phosphorus test (from Diffusive Gradients in Thin films) has been developed by Dr Sean Mason of Adelaide University and is now commercially available. Details ( N Fertiliser Wide range of soil types, rotational histories and climatic conditions means that Nitrogen requirements of crops will vary considerably. Assess opening N supply (e.g. by using deep soil sampling) and then monitor yield and N requirements through models such as Yield Prophet ( or the CSIRO developed Yield and N Calculator. ( CropWatch CropWatch is a FREE electronic newsletter service provided by SARDI and distributed through Jon Lamb Communications and reports on crop diseases throughout SA. PestFacts PestFacts is a FREE electronic newsletter service, produced by SARDI, designed to keep growers and advisers informed about invertebrate pest-related issues and solutions as they emerge during the growing season. PestFacts issues warnings (or reminders) for a range of invertebrate pests of all broad-acre crops including pulses, oilseeds, cereals and fodder crops. ( Farm Gross Margin & Enterprise Planning Guide

13 Commentary On 2014 Gross Margins Cropping gross margins estimates for 2014 are generally similar to the same estimates made prior to the 2013 cropping season. The one exception for this is chickpeas, where international factors have seen a significant easing in prices, resulting in the expectations of lower margins. 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. Cereal production remains the standout performer in lower rainfall districts with bread wheat showing the highest gross margin. The malting barley gross margin needs to be adjusted for quality risk if malting grade is not usually achieved. In this case, a high yielding feed barley variety is likely to prove a viable alternative. Some cereal break crops in medium and high rainfall districts (notably lentils and canola) are showing improved returns over cereals. Higher production and/or marketing risks need to be factored into these returns. The gross margin for export oaten hay is reasonable in all districts if reasonable quality and yields can be obtained. Freight to the processor is a strong determinant of profitability of this crop. Grain vetch can be quite profitable in all districts but potential harvesting difficulties and limited markets require caution with this crop. Expectations of livestock returns are also relatively unchanged over the past 12 months. With sheep, enterprises based primarily on wool production are showing better gross margins than those primarily aimed at meat production. First cross ewes are relying on significantly improved weaning percentages to show returns similar to using Merino ewes as prime lamb mothers. Beef cattle continue to show expected returns on a DSE basis well below that available from sheep production. In part, this is due to the cost of hand feeding hay during periods of poor pasture growth. A gross margin template for crop and livestock enterprises 7

14 2014 Gross Margin Estimates The tables below summarise the anticipated gross margins for all crops and livestock for CROPPING LIVESTOCK Commodity Low Medium High Enterprise $/dse Pastoral Cereal High APW Wheat Prime Lambs Durum Merino breeders Malt Barley Merino wethers Feed Barley Cleanskin 18 Milling Oats Beef Cattle Triticale Oaten Hay Grain Vetch Lupins Lentils Field Peas Faba Beans Chickpeas (Kabuli) Canola- Conv Canola-TT Canola-Clear Commodity Prices Historical Data COMMODITY PRICES HISTORICAL DATA Historical commodity price data and trends can be used as a guide in assessing average returns over time and also the variability of those returns for any given commodity. NOTE: 14/15 Forecast Grain Prices: Forecast grain prices for 14/15 are affected by the value of the Australian Dollar, world consumption, and Australian and other major grain exporting countries production. Future pricing is uncertain and caution is needed with projections. Commodity Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan yr 2014 Average Estimate APW Wheat ($/t) Durum ($/t) Malt Barley ($/t) Feed Barley ($/t) Milling Oats ($/t) Feed Oats ($/t) Triticale ($/t) Grain Vetch ($/t) Lupins ($/t) Lentils ($/t) Field Peas ($/t) Faba Beans ($/t) Chickpeas 6-8mm Kabuli ($/t) Canola ($/t) Oaten Hay ($/t) Farm Gross Margin & Enterprise Planning Guide

15 Comparative returns between farm enterprises High Rainfall Cropping Gross Margin per Hectare High Rainfall Livestock Gross Margin per dse High Rainfall $700 $600 $500 $400 GM $300 $200 $100 $0 GM $/dse $35 $30 $25 $20 $15 $10 $5 $0 Comparative returns between farm enterprises Medium Rainfall Cropping Gross Margin per Hectare Medium Rainfall Livestock Gross Margin per dse Cereal Zone $400 $350 $300 $250 $200 $150 $100 GM $50 $0 GM $/dse $35 $30 $25 $20 $15 $10 $5 $0 Comparative returns between farm enterprises Low Rainfall Cropping Gross Margin per Hectare Low Rainfall Livestock Gross Margin per dse Pastoral Zone $250 $30 $200 $150 $100 GM $50 GM $/dse $25 $20 $15 $10 $5 $0 $0 A gross margin template for crop and livestock enterprises 9

16 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. 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 Export Oaten Hay Gross Margin 2014 INCOME YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $175 $155 $135 Quality Mixed grades Yield (t/ha) GROSS INCOME $613 $853 $1,080 VARIABLE COSTS Rate/ha Rate/ha Rate/ha C ost Low Medium High Seed Levies Seed $ $ $ $24.70 Seed Treatment $ $ $0.00 Fertiliser (Bulk) 18:20:0 $ $ $ $72.05 Urea $ $ $84.00 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Glyphosate 540 $ $ $ $8.88 Oxyfluorfen $ $ $ $1.35 Dual Gold $ $ $8.00 Diuron $ $ $ $4.68 Post-MCPA Amine $ $ $ $4.50 Insert your estimates based on projected yield and price Cost of seed should always be allowed even if using own seed Adjust for actual herbicide use. Consult cost section for costs of other chemicals and label information for rates Most GM s assume own equipment. Add or delete contract work component as required Break even yield is variable costs divided by price Insecticides Fungicides Operations Fuel & Oil Repairs & Maintenance $10.54 $7.84 $11.60 $8.63 $12.65 $9.41 Freight Hay $ $ $ $ Fertiliser (t) $ $ $ $5.20 Contract Work Hay mowing $ $ $ $45.00 Super Conditioner $ $ $ $35.00 Hay baling $ $ $ $ Insurance $2.50 $1.53 $2.13 $2.70 TOTAL VARIABLE COSTS $396 $576 $808 GROSS MARGIN/hectare $217 $276 $272 Break Even Price (to cover variable costs only) $113 $105 $101 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $98 $199 $320 Break even price is variable costs divided by yield COMMENTS Price 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 NOTES The use of a super conditioner can significantly reduce drying time and subsequently risk with less chance of a quality downgrade. No allowance has been make for cost of raking Farm Gross Margin & Enterprise Planning Guide

17 Gross Margins Cereals Cereals 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 more profitable alternatives such as lentils or canola. Varieties Wide range of varieties available. Refer NVT Online ( for latest National Variety Trial information and SARDI Sowing Guide 2014 ( for more information. Weed control Wide range of options available. Seek advice. Assessing the potential impact of Soil Borne Pathogens Levels 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: ycereal cyst nematode Take-all y (Gaeumannomyces graminis var tritici (Ggt) and G. graminis var avenae (Gga)) Rhizoctonia y barepatch (Rhizoctonia solani AG8) Crown y rot (Fusarium pseudograminearum and F. culmorum) yroot lesion nematode (Pratylenchus neglectus and P. thornei) Stem y nematode (Ditylenchus dipsaci) yblackspot 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 Postal address for PreDicta B samples: C/- SARDI RDTS Locked Bag 100 Glen Osmond SA 5064 For information on PreDicta B contact: Alan McKay alan.mckay@sa.gov.au Ph A gross margin template for crop and livestock enterprises 11

18 INCOME APW Wheat Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $250 $250 $250 Quality APW (Change Price for other grades) Yield (t/ha) GROSS INCOME $375 $675 $1,000 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Seed Cost Low Medium High Seed $ $ $ $23.40 Seed Treatment $ $ $ $4.41 Levies GRDC Levies 1.0% Gross Income $3.75 $6.75 $10.00 EPR & state levies $2.30 /tonne sold $3.45 $6.21 $9.20 Fertiliser (Bulk) 18:20:0 $ $ $ $52.40 Urea $560 $ $ $67.20 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Trifluralin 480g/L $ $ $ $6.00 $0.00 $0.00 $0.00 Glyphosate 540(1) $ $ $ $8.88 Oxyfluorfen $ $ $ $1.35 Sakura $ $ $ $38.35 Post-emergents M.C.P.A. LVE $ $ $ $6.30 Metsulfuron methyl(1) $ $ $ $0.85 Clopyralid (Lontrel) $ $ $ $2.25 Fungicides Tebuconazole $ $ $2.40 Prothioconazole (Prosaro) $ $ $10.05 Operations Fuel & Oil $15.24 $18.28 $21.33 Repairs & Maintenance $14.66 $17.60 $20.53 Freight Grain (t) $ $ $ $80.00 Fertiliser (t) $ $ $ $4.00 Contract Work Aerial spraying $14.00 $ $ $14.00 Urea spreading $12.00 $ $ $24.00 Insurance $8.50 $3.19 $5.74 $8.5 Other $0.00 /ha $0.00 /ha TOTAL VARIABLE COSTS $160 $331 $435 GROSS MARGIN/hectare $215 $344 $565 Break Even Price (to cover variable costs only) $106 $123 $109 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $221 $354 $580 COMMENTS (1) Includes Surfactant at 0.1% To calculate using different grades (AH1, ASW, Feed) substitute different prices using appropriate grade spreads. AGRONOMIC NOTES Nitrogen requirements will vary depending on individual paddocks - seek advice. If targeting higher protein (AH1) additional N inputs will be required Farm Gross Margin & Enterprise Planning Guide

19 APW Wheat Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL Cash Price $/t $200 $225 $250 $275 $ $32 -$20 -$8 $5 $17 Yield 1 $55 $79 $104 $128 $153 t/ha 1.5 $142 $179 $215 $252 $289 2 $229 $278 $327 $376 $425 MEDIUM RAINFALL Cash Price $/t $200 $225 $250 $275 $ $84 -$60 -$35 -$11 $14 Yield 2 $90 $139 $188 $237 $286 t/ha 2.7 $211 $278 $344 $410 $ $351 $437 $522 $608 $694 HIGH RAINFALL Cash Price $/t $200 $225 $250 $275 $300 2 $20 $69 $118 $168 $217 Yield 3 $194 $268 $342 $415 $489 t/ha 4 $368 $466 $565 $663 $761 5 $542 $665 $788 $910 $1, Variable Costs Low Medium High HISTORIC PRICES AND TRENDS APW 10.5% WHEAT HISTORIC PRICES (Post Harvest) $/tonne Year Machinery Costs - Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 13

20 INCOME Durum Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $280 $ $ Quality Durum 13% Yield (t/ha) GROSS INCOME $336 $616 $952 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Seed Cost Low Medium High Seed $ $ $ $40.80 Seed Treatment $ $ $ $5.88 Levies GRDC Levies 1.0% Gross Income $3.36 $6.16 $9.52 EPR & state levies $3.30 /tonne sold $3.96 $7.26 $11.22 Fertiliser (Bulk) Granulock 1% Zn $ $ $ $56.40 Urea $560 $ $ $67.20 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Trifluralin 480g/L $ $ $ $6.00 Boxer Gold $13.75 $ $ $34.38 Glyphosate 540 $ $ $ $8.88 Oxyfluorfen $ $ $ $1.35 Post-emergents MCPA LVE $ $ $ $4.50 Metsulfuron methyl(1) $ $ $ $0.85 Insecticides Fungicides Operations Fuel & Oil $15.24 $18.28 $21.33 Repairs & Maintenance $14.66 $17.60 $20.53 Freight Grain (t) $ $ $ $68.00 Fertiliser (t) $ $ $ $4.00 Contract Work Aerial spraying $14.00 $0.00 $0.00 $0.00 Urea spreading $12.00 $ $ $24.00 Insurance $8.50 $2.86 $5.24 $8.09 Other TOTAL VARIABLE COSTS $170 $304 $413 GROSS MARGIN/hectare $166 $312 $539 Break Even Price (to cover variable costs only) $141 $138 $121 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $187 $350 $597 COMMENTS (1) Includes Surfactant at 0.1% Assumes durum follows a legume crop or pasture. Price assumes Durum 13% is achieved. AGRONOMIC NOTES Some Durum varieties have a narrow safety margin with broadleaf herbicides - seek advice. The effect is worse when the crop is under stress Farm Gross Margin & Enterprise Planning Guide

21 Durum Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL $200 $240 $280 $320 $ $66 -$51 -$35 -$19 -$3 Yield 1.2 $72 $119 $166 $213 $261 t/ha 2 $211 $289 $368 $446 $ $349 $459 $569 $679 $789 MEDIUM RAINFALL $200 $240 $280 $320 $ $18 $77 $136 $195 $254 Yield 2.2 $140 $226 $312 $399 $485 t/ha 3 $278 $396 $514 $631 $749 4 $451 $608 $765 $922 $1,079 HIGH RAINFALL $200 $240 $280 $320 $ $57 $2 $61 $120 $179 Yield 2.5 $116 $215 $313 $411 $509 t/ha 3.4 $272 $406 $539 $673 $ $462 $639 $816 $992 $1, Variable Costs Low Medium High HISTORIC PRICES AND TRENDS DURUM HISTORIC PRICES (post harvest) $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 15

22 INCOME Malting Barley Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $240 $240 $240 Quality Malting Yield (t/ha) GROSS INCOME $360 $600 $840 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Seed Cost Low Medium High Seed $ $ $ $20.40 Seed Treatment $ $ $ $3.92 Levies GRDC Levies 1.0% Gross Income $3.60 $6.00 $8.40 EPR & state levies $2.10 /tonne sold $3.15 $5.25 $7.35 Fertiliser (Bulk) 18:20:0 $ $ $ $52.40 Urea $560 $ $ $56.00 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Trifluralin 480g/L $ $ $ $9.00 Glyphosate 540 $ $ $ $8.88 Oxyfluorfen $ $ $ $1.35 Boxer Gold $13.75 $ $ $34.38 Post-emergents 2,4- D Amine $ $ $ $7.50 Metsulfuron methyl(1) $ $ $ $0.85 Clopyralid (Lontel) $ $ $ $3.00 Fungicides Propoconazole $ $ $ $4.05 Prosaro $ $ $ $13.40 Insecticides Operations Fuel & Oil $15.24 $18.28 $21.33 Repairs & Maintenance $14.66 $17.60 $20.53 Freight Grain (t) $ $ $ $70.00 Fertiliser (t) $ $ $ $3.60 Contract Work Aerial spraying $ $ $ $0.00 Urea Spreading $12.00 $ $ $24.00 Insurance $8.50 $3.06 $5.10 $7.1 Other TOTAL VARIABLE COSTS $175 $309 $397 GROSS MARGIN/hectare $185 $291 $443 Break Even Price (to cover variable costs only) $117 $124 $114 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $180 $284 $432 COMMENTS Assumes barley follows wheat. Price assumes Malting grade is achieved which is high risk. Achieving feed grade would result in lower Gross Margin. Having to windrow barley will reduce GM by around $25/ha. AGRONOMIC NOTES Urea may not be required following a legume pasture or grain legume crop Farm Gross Margin & Enterprise Planning Guide

23 Malting Barley Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL $180 $210 $240 $270 $ $58 -$43 -$29 -$14 $1 Yield 1 $19 $49 $78 $108 $137 t/ha 1.5 $97 $141 $185 $229 $273 2 $174 $233 $292 $350 $409 MEDIUM RAINFALL $180 $210 $240 $270 $ $165 -$151 -$136 -$121 -$106 Yield 1.5 -$11 $33 $78 $122 $166 t/ha 2.5 $144 $217 $291 $365 $ $298 $401 $505 $608 $711 HIGH RAINFALL $180 $210 $240 $270 $ $73 -$29 $16 $60 $104 Yield 2.5 $82 $155 $229 $303 $376 t/ha 3.5 $236 $339 $443 $546 $ $391 $523 $656 $788 $ Variable Costs Low Medium High HISTORIC PRICES AND TRENDS MALT BARLEY HISTORIC PRICES (post harvest) $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 17

24 INCOME Feed Barley Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $200 $200 $200 Quality Feed 1 Yield (t/ha) GROSS INCOME $340 $560 $800 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Seed Cost Low Medium High Seed $ $ $ $17.20 Seed Treatment $ $ $ $3.92 Levies GRDC Levies 1.0% Gross Income $3.40 $5.60 $8.00 EPR & state levies $1.80 /tonne sold $3.06 $5.04 $7.20 Fertiliser (Bulk) 18:20:0 $ $ $ $52.40 Urea $560 $ $ $84.00 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Trifluralin 480g/L $ $ $ $9.00 Glyphosate 540 $ $ $ $8.88 Oxyfluorfen $ $ $ $1.35 Boxer Gold $13.75 $ $ $34.38 Post-emergents 2,4- D Amine $ $ $ $7.50 Metsulfuron methyl(1) $ $ $ $0.85 Fungicides Propoconazole $ $ $ $4.05 Prosaro $ $ $ $13.40 Insecticides Operations Fuel & Oil $15.24 $18.28 $21.33 Repairs & Maintenance $14.66 $17.60 $20.53 Freight Grain (t) $ $ $ $80.00 Fertiliser (t) $ $ $ $4.60 Contract Work Aerial spraying $ $ $ $14.00 Urea spreading $12.00 $0.00 $ $12.00 Insurance $8.50 $2.89 $4.76 $6.8 Other TOTAL VARIABLE COSTS $173 $325 $431 GROSS MARGIN/hectare $167 $235 $369 Break Even Price (to cover variable costs only) $102 $116 $108 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $163 $229 $361 COMMENTS Assumes barley follows wheat. Having to windrow barley will reduce GM by around $25/ha. AGRONOMIC NOTES Urea would not be required following a legume pasture or grain legume crop Farm Gross Margin & Enterprise Planning Guide

25 Feed Barley Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL $150 $175 $200 $225 $ $4 $20 $45 $69 $94 Yield 1.7 $83 $125 $167 $208 $250 t/ha 2.4 $171 $230 $289 $348 $407 3 $246 $320 $394 $467 $541 MEDIUM RAINFALL $150 $175 $200 $225 $ $103 -$74 -$44 -$15 $15 Yield 2 -$3 $46 $95 $144 $194 t/ha 2.8 $98 $166 $235 $304 $ $198 $286 $375 $463 $551 HIGH RAINFALL $150 $175 $200 $225 $ $79 -$29 $20 $69 $118 Yield 3 $47 $121 $194 $268 $341 t/ha 4 $172 $270 $369 $467 $565 5 $298 $420 $543 $666 $ Variable Costs Low Medium High HISTORIC PRICES AND TRENDS FEED BARLEY HISTORIC PRICES (post harvest) $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray harvest# TOTAL A gross margin template for crop and livestock enterprises 19

26 INCOME Milling Oats Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $180 $180 $180 Quality Milling Yield (t/ha) GROSS INCOME $180 $378 $576 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Seed Cost Low Medium High Seed $ $ $ $15.20 Seed Treatment $ $ $ $3.92 Levies GRDC Levies 1.0% Gross Income $1.80 $3.78 $5.76 EPR & state levies $2.00 /tonne sold $2.00 $4.20 $6.40 Fertiliser (Bulk) 18:20:0 $ $ $ $52.40 Urea $560 $ $ $56.00 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Glyphosate 540 $ $ $ $8.88 Oxyfluorfen $ $ $ $1.35 Dual Gold $ $ $ $8.00 Diuron $ $ $ $4.68 Post-MCPA Amine $ $ $ $4.50 Fungicides Tebuconazole $ $ $ $1.74 Operations Fuel & Oil $15.24 $18.28 $21.33 Repairs & Maintenance $14.66 $17.60 $20.53 Freight Grain (t) $ $ $ $64.00 Fertiliser (t) $ $ $ $3.60 Contract Work Aerial spraying Windrowing Insurance $8.50 $1.53 $3.21 $4.90 Other TOTAL VARIABLE COSTS $143 $223 $303 GROSS MARGIN/hectare $37 $155 $273 Break Even Price (to cover variable costs only) $143 $106 $95 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $34 $148 $263 COMMENTS Assumes oats follows a cereal. If following a legume less N will be required. AGRONOMIC NOTES None Farm Gross Margin & Enterprise Planning Guide

27 Milling Oats Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL $140 $160 $180 $200 $ $60 -$50 -$41 -$31 -$21 Yield 1 -$3 $17 $37 $56 $76 t/ha 1.5 $55 $85 $114 $143 $173 2 $113 $152 $191 $231 $270 MEDIUM RAINFALL $140 $160 $180 $200 $ $55 -$35 -$15 $4 $24 Yield 2.1 $72 $114 $155 $196 $237 t/ha 3 $176 $235 $294 $353 $412 4 $292 $370 $449 $527 $606 HIGH RAINFALL $140 $160 $180 $200 $ $107 -$87 -$67 -$48 -$28 Yield 2 $9 $48 $87 $126 $166 t/ha 3.2 $147 $210 $273 $336 $398 4 $240 $318 $397 $475 $ Variable Costs Low Medium High HISTORIC PRICES AND TRENDS MILLING OATS HISTORIC PRICES (post harvest) 300 $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 21

28 INCOME Triticale Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $190 $190 $190 Quality Yield (t/ha) GROSS INCOME $228 $399 $570 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Cost Low Medium High Seed Seed $ $ $ $17.00 Seed Treatment $ $ $ $4.17 Levies GRDC Levies 1.0% Gross Income $2.28 $3.99 $5.70 EPR & state levies $1.70 /tonne sold $2.04 $3.57 $5.10 Fertiliser (Bulk) 18:20:0 $ $ $ $52.40 Urea $560 $ $ $56.00 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Trifluralin 480g/L $ $ $ $6.00 Glyphosate 540 $ $ $ $8.88 Oxyfluorfen $ $ $ $1.35 Post-emergents MCPA LVE $ $ $4.50 MCPA amine $ $4.50 $0.00 $0.00 Metsulfuron methyl(1) 5 $ $ $0.85 Achieve (2) $ $ $30.08 Insecticides Fungicides Operations Fuel & Oil $15.24 $18.28 $21.33 Repairs & Maintenance $14.66 $17.60 $20.53 Freight Grain (t) $ $ $ $75.00 Fertiliser (t) $ $ $ $3.60 Contract Work Aerial spraying Urea spreading Insurance $8.50 $1.94 $3.39 $4.85 Other TOTAL VARIABLE COSTS $150 $260 $337 GROSS MARGIN/hectare $78 $139 $233 Break Even Price (to cover variable costs only) $125 $124 $112 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $76 $134 $227 COMMENTS This rate of fertiliser assumes triticale follows a cereal. (1) Surfactant at 0.1% (2) Surfactant at 0.75% AGRONOMIC NOTES None Farm Gross Margin & Enterprise Planning Guide

29 Triticale Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL $150 $170 $190 $220 $ $41 -$29 -$18 $0 $18 Yield 1.2 $31 $55 $78 $114 $149 t/ha 1.8 $104 $139 $174 $227 $ $176 $223 $270 $341 $411 MEDIUM RAINFALL $150 $170 $190 $220 $ $76 -$57 -$37 -$8 $22 Yield 2.1 $56 $97 $139 $200 $262 t/ha 3 $165 $224 $282 $371 $459 4 $285 $364 $442 $560 $678 HIGH RAINFALL $150 $170 $190 $220 $ $126 -$107 -$87 -$57 -$28 Yield 2 -$6 $34 $73 $132 $191 t/ha 3 $115 $174 $233 $321 $409 4 $235 $314 $392 $510 $ Variable Costs Low Medium High HISTORIC PRICES AND TRENDS TRITICALE HISTORIC PRICES (post harvest) $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 23

30 INCOME Export Oaten Hay Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $175 $155 $135 Quality Mixed grades Yield (t/ha) GROSS INCOME $613 $853 $1,080 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Cost Low Medium High Seed Levies Seed $ $ $ $24.70 Seed Treatment $ $ $0.00 Fertiliser (Bulk) 18:20:0 $ $ $ $72.05 Urea $ $ $84.00 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Glyphosate 540 $ $ $ $8.88 Oxyfluorfen $ $ $ $1.35 Dual Gold $ $ $8.00 Diuron $ $ $ $4.68 Post-MCPA Amine $ $ $ $4.50 Insecticides Fungicides Operations Fuel & Oil $10.54 $11.60 $12.65 Repairs & Maintenance $7.84 $8.63 $9.41 Freight Hay $ $ $ $ Fertiliser (t) $ $ $ $5.20 Contract Work Hay mowing $ $ $ $45.00 Super Conditioner $ $ $ $35.00 Hay baling $ $ $ $ Insurance $2.50 $1.53 $2.13 $2.70 TOTAL VARIABLE COSTS $396 $576 $808 GROSS MARGIN/hectare $217 $276 $272 Break Even Price (to cover variable costs only) $113 $105 $101 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $98 $199 $320 COMMENTS Price 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 NOTES The use of a super conditioner can significantly reduce drying time and subsequently risk with less chance of a quality downgrade. No allowance has been make for cost of raking Farm Gross Margin & Enterprise Planning Guide

31 Export Oaten Hay Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL $125 $150 $175 $185 $ $98 -$60 -$23 -$8 $14 Yield 2.5 -$28 $35 $97 $122 $159 t/ha 3.5 $42 $130 $217 $252 $ $112 $225 $337 $382 $449 MEDIUM RAINFALL $115 $135 $155 $175 $ $147 -$107 -$67 -$27 $13 Yield 3.5 -$59 $10 $80 $150 $220 t/ha 5.5 $57 $167 $276 $386 $ $173 $323 $472 $622 $772 HIGH RAINFALL $95 $115 $135 $155 $ $47 $112 $272 $431 $591 Yield 6 -$119 $0 $120 $240 $359 t/ha 8 -$47 $112 $272 $431 $ $25 $224 $424 $ Variable Costs Low Medium High HISTORIC PRICES AND TRENDS OATEN HAY HISTORIC PRICES $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray roll TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 25

32 Gross Margins Pulses The use of grain legumes and canola as break crops for cereals provide rotational advantages for subsequent cereal crops. However, particularly in low rainfall areas, these crops are regarded as inherently more risky both financially and environmentally. Pulse Australia ( have developed the TOP 10 FOR PULSES PRE- SOWING to help reduce this risk. Full details can be accessed at: 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 plantback 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 widespread. 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: 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 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 Farm Gross Margin & Enterprise Planning Guide

33 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. A gross margin template for crop and livestock enterprises 27

34 INCOME Vetch Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $400 $400 $400 Quality Morava vetch Yield (t/ha) GROSS INCOME $280 $480 $640 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Seed Cost Low Medium High Seed $ $ $ $13.30 Seed Inoculant $ $ $ $0.63 Levies GRDC Levies 1.0% Gross Income $2.80 $4.80 $6.40 EPR &state levies $3.30 /tonne sold $2.31 $3.96 $5.28 Fertiliser (Bulk) MAP $ $ $ $52.40 Foliar Trace Elem Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Lexone $ $ $ $9.00 Trifluralin 480g/L $ $ $ $9.00 Glyphosate 540 $ $ $ $8.88 Post-emergents Select (incl Oil) $ $ $ $9.51 Paraquat(Topping) $8.00 /litre 0.8 $ $ $6.40 Insecticides Dimethoate (1) $ $ $ $4.00 omethoate (2) $ $ $1.45 Karate Zeon (3) $ $ $ $3.96 Operations Fuel & Oil $20.65 $24.78 $28.92 Repairs & Maintenance $27.04 $32.45 $37.86 Freight Grain (t) $ $ $ $40.00 Fertiliser (t) $ $ $ $1.60 Contract Work Aerial spraying Insurance $12.00 $3.36 $5.76 $7.68 Other TOTAL VARIABLE COSTS $177 $228 $266 GROSS MARGIN/hectare $103 $252 $374 Break Even Price (to cover variable costs only) $253 $190 $166 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $90 $230 $345 COMMENTS Seed is not treated with a fungicide or graded. (1) Cow pea aphid, (2) RLEM, (3) Native budworm. Do not exceed 800 ml/ha Paraquat when crop topping to avoid possible residue issues. AGRONOMIC NOTES Lexone (Metribuzin) not recommended on some varieties seek advice (also applies to Diuron on vetch). Harvest and marketing difficulties are common with this crop Farm Gross Margin & Enterprise Planning Guide

35 Vetch Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL $300 $350 $400 $450 $ $71 -$57 -$42 -$27 -$13 Yield 0.7 $35 $69 $103 $137 $171 t/ha 1.1 $141 $194 $248 $302 $ $247 $320 $393 $467 $540 MEDIUM RAINFALL $300 $350 $400 $450 $ $78 -$58 -$39 -$19 $0 Yield 0.8 $28 $67 $106 $146 $185 t/ha 1.2 $134 $193 $252 $310 $ $293 $381 $469 $557 $645 HIGH RAINFALL $300 $350 $400 $450 $ $5 $44 $83 $123 $162 Yield 1.2 $111 $170 $229 $287 $346 t/ha 1.6 $217 $295 $374 $452 $ $456 $578 $700 $823 $ Variable Costs Low Medium High HISTORIC PRICES AND TRENDS VETCH HISTORIC PRICES (post harvest) $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray roll harvest# TOTAL A gross margin template for crop and livestock enterprises 29

36 INCOME Lupins Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $280 $280 $280 Quality Yield (t/ha) GROSS INCOME $252 $420 $560 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Cost Low Medium High Seed Seed $ $ $ $27.45 Seed Inoculant $ $ $ $1.62 Roval seed treat Levies GRDC Levies 1.0% Gross Income $2.52 $4.20 $5.60 EPR &state levies $2.60 /tonne sold $2.34 $3.90 $5.20 Fertiliser (Bulk) MAP $ $ $52.40 Foliar Trace Elem Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Trifluralin 480g/L $ $ $ $9.00 Glyphosate 540 $ $ $ $8.88 Simazine Granules $ $ $ $6.31 Post-emergents Paraquat(Topping) $8.00 /litre 0.8 $ $ $6.40 Select (incl Oil) $ $ $ $9.51 Insecticides Talstar (1) $ $ $ $1.76 Karate Zeon (2) $ $ $ $3.96 Operations Fuel & Oil $17.45 $20.94 $24.43 Repairs & Maintenance $19.19 $23.03 $26.87 Freight Grain (t) $ $ $ $50.00 Fertiliser (t) $ $ $ $1.60 Contract Work Aerial spraying $14.00 $0 $0.00 $0.00 Insurance $10.00 $2.52 $4.20 $5.60 Other TOTAL VARIABLE COSTS $184 $229 $267 GROSS MARGIN/hectare $68 $191 $293 Break Even Price (to cover variable costs only) $204 $153 $133 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $39 $143 $229 COMMENTS Seed is not treated with a fungicide or graded. (1) RLEM, (2) Native budworm. Do not exceed 800 ml/ha Paraquat when crop topping to avoid possible residue issues. AGRONOMIC NOTES None Farm Gross Margin & Enterprise Planning Guide

37 Lupins Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL $150 $200 $250 $300 $ $94 -$70 -$45 -$21 $4 Yield 0.9 -$47 -$3 $42 $86 $130 t/ha 1.5 $25 $98 $172 $245 $319 2 $85 $183 $281 $379 $477 MEDIUM RAINFALL $150 $200 $250 $300 $ $120 -$95 -$71 -$46 -$22 Yield 1 -$60 -$11 $38 $87 $136 t/ha 1.5 $0 $73 $147 $220 $294 2 $59 $157 $255 $353 $451 HIGH RAINFALL $150 $200 $250 $300 $ $81 -$32 $17 $66 $115 Yield 1.5 -$21 $52 $126 $199 $273 t/ha 2 $39 $137 $235 $333 $ $98 $221 $343 $466 $ Variable Costs Low Medium High HISTORIC PRICES AND TRENDS LUPINS HISTORIC PRICES (post harvest) $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 31

38 INCOME Red Lentils Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) 550 $550 $550 Quality Nugget Yield (t/ha) GROSS INCOME $385 $660 $990 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Cost Low Medium High Seed Seed $ $ $ $31.50 Seed Inoculant $ $ $ $0.90 P-Pickel $82.00 /tonne 50 $ $4.10 Levies GRDC Levies 1.0% Gross Income $3.85 $6.60 $9.90 EPR &state levies $5.30 /tonne sold $3.71 $6.36 $9.54 Fertiliser (Bulk) MAP $ $ $ $39.30 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Glyphosate 540 $ $ $ $8.88 trifluralin 480g/L $ $ $ $9.00 Terbyne $ $ $ $21.00 Broadstrike $0.72 $ $ $18.00 Paraquat(Topping) $ $ $ $6.40 Select (incl Oil) $ $ $ $9.51 Insecticides Karate Zeon (1) $ $ $ $3.96 omethoate (2) $ $ $ $1.45 Fungicides Mancozeb (3) $10.00 $0.00 $ $22.00 Carbendazim (4) $ $ $ $22.00 Operations Fuel & Oil $21.66 $26.00 $30.33 Repairs & Maintenance $20.94 $25.13 $29.32 Freight Grain (t) $ $ $ $54.00 Fertiliser (t) $ $ $ $1.20 Contract Work Aerial spraying Windrowing Insurance $12.00 $4.62 $7.92 $11.88 Other TOTAL VARIABLE COSTS $222 $298 $364 GROSS MARGIN/hectare $163 $362 $626 Break Even Price (to cover variable costs only) $317 $249 $202 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $215 $450 $759 COMMENTS (1) Native budworm control, (2) RLEM, (3) Ascochyta, (4) Grey mould. Do not exceed 800 ml/ha Paraquat when crop topping to avoid possible residues. AGRONOMIC NOTES Inoculate with Group E inoculant. Northfield and Nipper more sensitive to Lexon than other varieties. Check newly released varieties for suitability to your area Farm Gross Margin & Enterprise Planning Guide

39 Red Lentils Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL $450 $500 $550 $600 $ $67 -$53 -$38 -$23 -$9 Yield 0.7 $95 $129 $163 $197 $231 t/ha 1.1 $256 $310 $364 $418 $ $418 $492 $565 $638 $712 MEDIUM RAINFALL $450 $500 $550 $600 $ $1 $31 $60 $89 $119 Yield 1.2 $244 $303 $362 $420 $479 t/ha 1.8 $487 $575 $663 $751 $ $730 $847 $965 $1,082 $1,199 HIGH RAINFALL $450 $500 $550 $600 $ $45 $84 $123 $162 $201 Yield 1.3 $247 $311 $375 $438 $502 t/ha 1.8 $450 $538 $626 $714 $ $733 $855 $978 $1,100 $1, Variable Costs Low Medium High HISTORIC PRICES AND TRENDS RED LENTILS HISTORIC PRICES (post harvest) $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray roll harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 33

40 INCOME Field Peas Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $300 $300 $300 Quality Kaspa Yield (t/ha) GROSS INCOME $300 $450 $750 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Cost Low Medium High Seed Seed $ $ $ $35.20 Seed Grading $ $ $ $2.79 P-Pickel $82.00 $ $ $9.02 Inoculant $18.00 $0.00 $ $1.98 Levies GRDC Levies 1.0% Gross Income $3.00 $4.50 $7.50 EPR &state levies $2.30 /tonne sold $2.30 $3.45 $5.75 Fertiliser (Bulk) MAP $ $ $ $52.40 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Trifluralin 480g/L $ $ $ $9.00 Glyphosate 540 $ $ $ $8.88 Post-emergents Terbyne $ $ $ $21.00 Select (incl Oil) $ $ $ $9.51 Paraquat(Topping) $ $ $ $6.40 Insecticides Karate Zeon (1) $ $ $ $3.96 Karate Zeon (2) $ $ $ $1.32 Omethoate (3) $ $ $ $1.45 Fungicides Tebuconazole (4) $12.00 $ $ $1.74 Operations Fuel & Oil $21.66 $26.00 $30.33 Repairs & Maintenance $28.14 $33.77 $39.40 Freight Grain (t) $ $ $ $62.50 Fertiliser (t) $ $ $ $1.60 Contract Work $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Insurance $16.00 $4.80 $7.20 $12.00 Other $0.00 /ha $0.00 $0.00 /ha $0.00 TOTAL VARIABLE COSTS $219 $279 $344 GROSS MARGIN/hectare $81 $171 $406 Break Even Price (to cover variable costs only) $219 $186 $137 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $75 $162 $391 COMMENTS (1) Native budworm control, (2) Pea weavil border spray, (3) RLEM, (4) Powdery Mildew AGRONOMIC NOTES Recently released Kaspa type varieties are more suited to lower rainfall situations Farm Gross Margin & Enterprise Planning Guide

41 Field Peas Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL $240 $270 $300 $330 $ $29 -$7 $15 $37 $59 Yield 1 $23 $52 $81 $110 $140 t/ha 1.25 $74 $111 $147 $184 $ $126 $170 $214 $257 $301 MEDIUM RAINFALL $240 $270 $300 $330 $ $20 $9 $39 $68 $97 Yield 1.5 $83 $127 $171 $215 $259 t/ha 2 $187 $245 $304 $362 $ $290 $363 $436 $509 $582 HIGH RAINFALL $240 $270 $300 $330 $ $54 $98 $141 $185 $229 Yield 2 $157 $215 $274 $332 $391 t/ha 2.5 $260 $333 $406 $479 $552 3 $363 $451 $539 $626 $ Variable Costs Low Medium High HISTORIC PRICES AND TRENDS FIELD PEAS HISTORIC PRICES(post harvest) 500 $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray roll harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 35

42 INCOME Faba Bean Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $370 $370 $370 Quality Fiesta Yield (t/ha) GROSS INCOME $296 $592 $1,036 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Seed Cost Low Medium High Seed $ $ $ $67.20 Seed Inoculant $0.00 $0.00 $0.00 $0.00 Levies GRDC Levies 1.0% Gross Income $2.96 $5.92 $10.36 EPR &state levies $0.30 /tonne sold $0.24 $0.48 $0.84 Fertiliser (Bulk) MAP $ $ $ $52.40 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Glyphosate 540 $ $ $ $8.88 Trifluralin 480g/L $ $ $ $9.00 Simazine 900g/kg $ $ $ $6.31 Post-emergents Select (incl Oil) $ $ $ $9.51 Insecticides omethoate (1) $ $ $ $2.90 Karate Zeon (2) $ $ $ $3.96 Dimethoate (3) $ $ $ $5.00 Fungicides Tebuconazole(4) $12.00 $ $ $3.60 Mancozeb-low r/f $ $ $ $0.00 Mancozeb-Med/high $ $ $ $51.00 Carbendazim 2 applic $ $ $22.00 Operations Fuel & Oil $17.96 $21.55 $25.14 Repairs & Maintenance $19.74 $23.69 $27.64 Freight Grain (t) $ $ $ $70.00 Fertiliser (t) $ $ $ $1.60 Contract Work Aerial spraying $14.00 $ $ $28.00 Insurance $12.00 $3.55 $7.10 $12.43 TOTAL VARIABLE COSTS $212 $357 $438 GROSS MARGIN/hectare $84 $235 $598 Break Even Price (to cover variable costs only) $265 $223 $156 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $83 $232 $593 COMMENTS (1) RLEM control, (2) Native budworm control, (3) Cow pea aphid, (4) Cercospora Mancozeb for Ascochyta, Carbendazim for chocolate spot. AGRONOMIC NOTES Seed is not treated with a fungicide but is inoculated with a strain SU303 inoculant. No allowance is made in this Gross Margin as to the economic benefit of bean stubble to livestock Farm Gross Margin & Enterprise Planning Guide

43 Faba Bean Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL $300 $350 $370 $400 $ $78 -$58 -$50 -$39 -$19 Yield 0.8 $30 $69 $84 $108 $147 t/ha 1.5 $217 $291 $320 $364 $437 2 $351 $449 $488 $547 $645 MEDIUM RAINFALL $300 $350 $370 $400 $ $36 $13 $33 $62 $111 Yield 1.6 $125 $203 $235 $282 $360 t/ha 2 $232 $330 $369 $428 $ $367 $489 $538 $611 $733 HIGH RAINFALL $300 $350 $370 $400 $ $76 -$27 -$8 $22 $71 Yield 2 $192 $290 $329 $388 $485 t/ha 2.8 $407 $543 $598 $680 $817 4 $728 $924 $1,002 $1,119 $1, Variable Costs Low Medium High HISTORIC PRICES AND TRENDS FABA BEANS HISTORIC PRICES (post harvest) $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 37

44 INCOME Chickpeas (6-8mm Kabuli) Gross Margin 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $440 $440 $440 Quality 6-8 mm Kabuli Yield (t/ha) GROSS INCOME $308 $572 $880 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Seed Cost Low Medium High Seed $ $ $ $48.40 Seed Inoculant $ $ $ $1.98 P-Pickel $ $ $ $9.02 Levies GRDC Levies 1.0% Gross Income $3.08 $5.72 $8.80 EPR &state levies $5.30 /tonne sold $3.71 $6.89 $10.60 Fertiliser (Bulk) MAP $ $ $ $52.40 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents trifluralin 480g/L $ $ $ $9.00 Glyphosate 540 $ $ $ $8.88 Balance $ $ $ $38.00 Post-emergents Select (incl Oil) $ $ $ $9.51 Insecticides Omethoate $ $ $ $1.45 Karate Zeon $ $ $ $3.96 Fungicides Chlorothalonil $ $ $ $42.00 Dessication Paraquat $ $ $ $6.40 Operations Fuel & Oil $17.45 $20.94 $24.43 Repairs & Maintenance $19.19 $23.03 $26.87 Freight Grain (t) $ $ $ $50.00 Fertiliser (t) $ $ $ $1.60 Contract Work Aerial spraying $14.00 $0.00 $ $14.00 Windrowing $35.00 $ $ $0.00 Insurance $10.00 $3.08 $5.72 $8.80 Other $0.00 /ha $0.00 /ha TOTAL VARIABLE COSTS $253 $318 $396 GROSS MARGIN/hectare $55 $254 $484 Break Even Price (to cover variable costs only) $362 $245 $198 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $113 $362 $650 COMMENTS Seed is inoculated with a Group N inoculant. Do not exceed 800ml/Ha Paraquat when desiccating to avoid possible residue issues. AGRONOMIC NOTES Price is heavily dependent on grade and quality seek advice. May need to store product for up to 12 months before marketing Farm Gross Margin & Enterprise Planning Guide

45 Chickpeas (6-8mm Kabuli) Gross Margin GROSS MARGIN SENSITIVITY LOW RAINFALL $350 $400 $440 $500 $ $101 -$81 -$66 -$42 -$23 Yield 0.7 -$7 $27 $55 $96 $ Variable Costs t/ha 1.2 $149 $208 $255 $326 $ $337 $425 $496 $601 $690 MEDIUM RAINFALL $350 $400 $440 $500 $ $111 -$86 -$67 -$37 -$13 Yield 1.3 $139 $203 $254 $330 $394 t/ha 1.8 $296 $384 $454 $560 $ $452 $565 $655 $790 $903 HIGH RAINFALL $350 $400 $440 $500 $ $5 $44 $83 $142 $191 Yield 1.5 $151 $225 $283 $372 $445 t/ha 2 $307 $405 $484 $601 $699 3 $620 $767 $885 $1,061 $1, Low Medium High HISTORIC PRICES AND TRENDS HISTORIC PRICES AND TRENDS 900 CHICKPEA HISTORIC PRICES (post harvest) 800 $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 39

46 Gross Margins Canola Canola now plays an important role in many rotations as an excellent break to most cereal diseases. It is traditionally regarded as a higher risk crop, but, as with pulses, this risk can be managed, particularly in lower rainfall areas, by following some important principles. Variety selection Refer SARDI Sowing Guide 2014 ( more information. 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: ymatching 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. ythe 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. ythe 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 Excerpt from Module 1: Managing Production Risk, authored by Kirrily Condon (Junee NSW) for the Better Break Crops project of the Australian Oilseeds Federation funded by GRDC (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: yin 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. yin 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. yin 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 Farm Gross Margin & Enterprise Planning Guide

47 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 rain fall 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 moisture stored by summer weed control Paddock with less than 50mm PAW eg. low summer rainfall, with limited opportunity to store water Sowing opportunity before 1 May Sowing opportunity after 1 May Sowing opportunity before 1 May Sowing opportunity after 1 May Low rainfall areas: opportunity canola crop Low/medium rainfall areas: consider replacing canola with field peas, chickpeas or short season barley Low/medium rainfall areas: consider replacing canola with vetch or lupins Low/medium rainfall areas: consider replacing canola with fallow, field peas or short season barley High rainfall areas: consider reducing area sown to canola High rainfall areas: consider dry sowing if conditions are suitable High rainfall areas: consider reducing area sown to canola Canola Production Risk - Decision support tree A gross margin template for crop and livestock enterprises 41

48 INCOME Canola Gross Margin Conventional Hybrid 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $480 $480 $480 Quality Yield (t/ha) GROSS INCOME $384 $720 $1,056 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Cost Low Medium High Seed Seed $ $ $ $50.00 Levies GRDC Levies 1.0% Gross Income $3.84 $7.20 $10.56 EPR &state levies $5.00 /tonne sold $4.00 $7.50 $11.00 Fertiliser (Bulk) 18:20:0 $ $ $ $49.13 Urea $560 $ $ $78.40 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Glyphosate 540 $ $ $ $8.88 Trifluralin 480g/L $ $ $ $9.00 Post-emergents Select (incl Oil) $ $ $ $9.51 Clopyralid 300g/L $ $ $ $4.50 Insecticides Chlorpyrifos 500g/L $ $ $ $2.00 Talstar (1) $ $ $ $1.76 Aphid Control $4.00 $4.00 $4.00 Karate Zeon (1) $ $ $ $3.96 Operations Fuel & Oil $16.25 $19.50 $22.75 Repairs & Maintenance $15.76 $18.92 $22.07 Freight Grain (t) $ $ $ $55.00 Fertiliser (t) $ $ $ $4.30 Contract Work Aerial spraying $14.00 $ $ $14.00 Windrowing $35.00 $ $ $35.00 Insurance $12.00 $4.61 $8.64 $12.67 Urea spreading $12.00 $ $ $12.00 TOTAL VARIABLE COSTS $185 $363 $440 GROSS MARGIN/hectare $199 $357 $616 Break Even Price (to cover variable costs only) $231 $242 $200 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $221 $397 $675 COMMENTS (1) Native Budworm control (1 in 4 years). In low rainfall situations, oil penalties may apply conversely oil bonuses may be expected in high rainfall areas. AGRONOMIC NOTES A maximum of 15 units of nitrogen and 10 units of phosphorus should be applied with seed. Nitrogen rate dependent on target yield. Sulphur required on sandy, neutral/acid soils and intensive cropping systems. Ensure insect control and good seed/soil contact when sowing. Assumes direct heading in low rainfall/yielding situations Farm Gross Margin & Enterprise Planning Guide

49 Canola Gross Margin Conventional Hybrid GROSS MARGIN SENSITIVITY LOW RAINFALL $400 $450 $480 $500 $ $44 -$29 -$21 -$15 $0 Yield 0.8 $137 $176 $199 $215 $254 t/ha 1.1 $245 $299 $331 $353 $ $389 $463 $507 $536 $609 MEDIUM RAINFALL $400 $450 $480 $500 $ $50 -$15 $5 $19 $53 Yield 1.5 $239 $313 $357 $386 $459 t/ha 2 $420 $518 $577 $616 $ $601 $723 $796 $845 $967 HIGH RAINFALL $400 $450 $480 $500 $550 1 $10 $59 $88 $108 $157 Yield 1.5 $191 $264 $308 $337 $411 t/ha 2.2 $443 $551 $616 $659 $ $552 $674 $747 $796 $ Variable Costs Low Medium High HISTORIC PRICES AND TRENDS CANOLA HISTORIC PRICES $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 43

50 INCOME Canola Gross Margin Triazine Tolerant 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $480 $480 $480 Quality Yield (t/ha) GROSS INCOME $336 $624 $960 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Cost Low Medium High Seed Seed $ $ $ $43.75 Levies GRDC Levies 1.0% Gross Income $3.36 $6.24 $9.60 EPR &state levies $5.00 /tonne sold $3.50 $6.50 $10.00 Fertiliser (Bulk) 18:20:0 $ $ $ $49.13 Urea $560 $ $ $67.20 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Simazine 900g/kg $ $ $ $15.20 Trifluralin 480g/L $ $ $ $9.00 Glyphosate 540 $ $ $ $8.88 Post-emergents Select (incl Oil) $ $ $ $9.51 Clopyralid 300g/L $ $ $ $4.50 Insecticides Chlorpyrifos 500g/L $ $ $ $2.00 Talstar (1) $ $ $ $1.76 Aphid Control $4.00 $4.00 $4.00 Karate Zeon (1) $ $ $ $3.96 Operations Fuel & Oil $16.25 $19.50 $22.75 Repairs & Maintenance $15.76 $18.92 $22.07 Freight Grain (t) $ $ $ $50.00 Fertiliser (t) $ $ $ $3.90 Contract Work Aerial spraying $14.00 $ $ $14.00 Windrowing $35.00 $ $ $35.00 Insurance $12.00 $4.03 $7.49 $11.52 Urea spreading $12.00 $ $ $12.00 TOTAL VARIABLE COSTS $195 $354 $430 GROSS MARGIN/hectare $141 $270 $530 Break Even Price (to cover variable costs only) $279 $273 $215 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $160 $305 $584 COMMENTS (1) Native Budworm control (1 in 4 years). In low rainfall situations, oil penalties may apply conversely oil bonuses may be expected in high rainfall areas. AGRONOMIC NOTES A maximum of 15 units of nitrogen and 10 units of phosphorus should be applied with seed. Nitrogen rate dependent on target yield. Sulphur required on sandy, neutral/acid soils and intensive cropping systems. Ensure insect control and good seed/soil contact when sowing. Assumes direct heading in low rainfall/ yielding situations Farm Gross Margin & Enterprise Planning Guide

51 Canola Gross Margin Triazine Tolerant GROSS MARGIN SENSITIVITY LOW RAINFALL $400 $450 $480 $500 $ $59 -$44 -$35 -$29 -$15 Yield 0.7 $86 $120 $141 $154 $189 t/ha 1.1 $230 $284 $316 $338 $ $375 $448 $492 $522 $595 MEDIUM RAINFALL $400 $450 $480 $500 $ $49 -$15 $6 $20 $54 Yield 1.3 $168 $231 $270 $295 $359 t/ha 2 $421 $518 $577 $616 $ $601 $724 $797 $846 $968 HIGH RAINFALL $400 $450 $480 $500 $550 1 $13 $61 $91 $110 $159 Yield 1.5 $193 $267 $311 $340 $413 t/ha 2 $374 $472 $530 $569 $ $554 $677 $750 $799 $ Variable Costs Low Medium High HISTORIC PRICES AND TRENDS CANOLA HISTORIC PRICES $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 45

52 INCOME Canola Gross Margin Clearfield Hybrid 2014 YOUR Rainfall Zone LOW MEDIUM HIGH ESTIMATE Price (14/15 Forecast) $480 $480 $480 Quality Yield (t/ha) GROSS INCOME $360 $672 $1,008 VARIABLE COSTS Rate/ha Rate/ha Rate/ha Cost Low Medium High Seed Seed $ $ $ $50.00 Levies GRDC Levies 1.0% Gross Income $3.60 $6.72 $10.08 EPR &state levies $5.00 /tonne sold $3.75 $7.00 $10.50 Fertiliser (Bulk) 18:20:0 $ $ $ $49.13 Urea $560 $ $ $72.80 Chemicals-Herbicides Summer Weed Control Various Allow $20.00 $20.00 $20.00 Pre-emergents Glyphosate 540 $ $ $ $8.88 Trifluralin 480g/L $ $ $ $9.00 Post-emergents Intervix $ $ $ $24.00 Select (incl Oil) $ $ $ $9.51 Clopyralid 300g/L $ $ $ $4.50 Insecticides Chlorpyrifos 500g/L $ $ $ $2.00 Talstar (1) $ $ $ $1.76 Aphid control $4.00 $4.00 $4.00 Karate Zeon (1) $ $ $ $3.96 Operations Fuel & Oil $16.25 $19.50 $22.75 Repairs & Maintenance $15.76 $18.92 $22.07 Freight Grain (t) $ $ $ $52.50 Fertiliser (t) $ $ $ $4.10 Contract Work Aerial spraying $14.00 $ $ $14.00 Windrowing $35.00 $ $ $35.00 Insurance $12.00 $4.32 $8.06 $12.10 Urea spreading $12.00 $ $ $12.00 TOTAL VARIABLE COSTS $207 $380 $455 GROSS MARGIN/hectare $153 $292 $553 Break Even Price (to cover variable costs only) $276 $272 $216 Break Even Yield (to cover variable costs only) Gross Margin based on last 5 year average price $173 $330 $610 COMMENTS (1) Native Budworm control (1 in 4 years). In low rainfall situations, oil penalties may apply conversely oil bonuses may be expected in high rainfall areas. AGRONOMIC NOTES A maximum of 15 units of nitrogen and 10 units of phosphorus should be applied with seed. Nitrogen rate dependent on target yield. Sulphur required on sandy, neutral/acid soils and intensive cropping systems. Ensure insect control and good seed/soil contact when sowing. Assumes direct heading in low rainfall/yielding situations Farm Gross Margin & Enterprise Planning Guide

53 Canola Gross Margin Clearfield Hybrid GROSS MARGIN SENSITIVITY LOW RAINFALL $400 $450 $480 $500 $ $68 -$53 -$45 -$39 -$24 Yield 0.75 $95 $131 $153 $168 $205 t/ha 1.1 $221 $275 $307 $329 $ $365 $439 $483 $512 $585 MEDIUM RAINFALL $400 $450 $480 $500 $ $71 -$36 -$16 -$2 $32 Yield 1.4 $182 $251 $292 $319 $388 t/ha 2 $399 $497 $555 $595 $ $580 $702 $775 $824 $946 HIGH RAINFALL $400 $450 $480 $500 $ $8 $41 $70 $90 $138 Yield 1.5 $172 $246 $290 $319 $392 t/ha 2.1 $389 $492 $553 $594 $ $534 $656 $729 $778 $900 HISTORIC PRICES AND TRENDS Variable Costs Low Medium High CANOLA HISTORIC PRICES $/tonne Year Machinery Costs- Assuming full ownership of machinery (Fuel and repairs only- excludes depreciation and other ownership costs) Operation No. Repairs & Maint Fuel seed spray harvest# TOTAL # Rates are for low rainfall zone. Extra cost in higher yielding situations A gross margin template for crop and livestock enterprises 47

54 Eyre Peninsula Land Use Support (EPLUS) Program The Eyre Peninsula Land Use Support (EPLUS) Program aims to build the capacity of Eyre Peninsula communities, farming businesses and local industries to enable them to respond to changes brought on by exploration programs in the region and potential mining developments. The program provides a one-stop-shop for information, targeted workshops throughout the region and linkages to existing support services. To find out more about EPLUS or to participate in the program phone Bart Dessart (08)

55 When we state we are committed to serving the seed testing and seed certification needs of Australia s seed and grain industries We really mean it Because when it comes to testing seed we ve been doing it for almost a century Our business is all about delivering quality and value to our clients. We deliver quality and service excellence through our comprehensive knowledge, technical and staff expertise and our outstanding on line support systems. Accurate results Online, on time Every time Peter Smith Manager, Seed Services Australia

56 Prime Lamb Gross Margin High Rainfall (450mm+) Assumptions Ave Breeding Ewe Fibre Diameter 28 Total DSE's 1840 Number of breeding ewes (First Cross) 1000 Stocking rate (DSE/Ha) 12.0 First cross ewe - Terminal meat sire 2014 INCOME YOUR $ ESTIMATE Wool (kg greasy) Kg [ ave price 397 c/kg ] $17,573 Sales 1339 animals [ ave price $84.29 per hd] $112,840 GROSS INCOME $130,413 VARIABLE COSTS Shearing Shearing 970 $ /100 $2,656 (Federal awards) 19 $ /100 $104 Shed labour 5 $ /day $1,028 Woolclasser 2.50 $ /day $615 Superannuation (on ordinary wages 9.5% wages $418 Work Cover (includes super + o'time 4.0% total $176 Wool packs 26 $11.50 /pack $299 Shed sundries 989 $0.15 /head $148 Lice control 989 $0.83 /head $821 Crutch & Wig 990 $87.42 /100 $ $ /100 $33 Marking Lamb marking 1150 $1.00 /head $1,150 Ear tags 1150 $0.35 /head $403 Animal Health drench 3190 $0.19 /head $598 vaccinate 3320 $0.24 /head $797 blowfly control 1000 $1.20 /head $1,200 Stock purchases Purchases $43,722 Sale Costs Freight livestock 189 $3.50 /head $ $3.50 /head $ prime $3.50 /head $4,025 wool 26 $10.00 /bale $260 Stock selling charges 5.5% gross $ $6,206 yard fees 1339 $0.70 /head $937 levy-sheep 189 $0.20 /head $38 levy-lambs 1150 $1.50 /head $1,725 SA sheep industry 1339 $0.35 /head $469 Wool selling charges $0.22 /kg $973 wool 2.0% gross $351 Feed and Other Costs hay 20.4 $ /tonne $3,264 grain 24.6 $ /tonne $4,920 Insurance $149,275 $2.00 /$'000 $299 Water 1840 $2.50 /DSE $4,600 Fuel 1840 $0.70 /DSE $1,288 Other 1840 $0.50 /DSE $920 TOTAL VARIABLE COSTS $86,714 GROSS MARGIN TOTAL $43,700 GROSS MARGIN/hectare $285 GROSS MARGIN/DSE $24 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 superphosphate application Farm Gross Margin & Enterprise Planning Guide

57 Prime Lamb Gross Margin High Rainfall Stocking rate (DSE/Ha) 12.0 Culling Rate (% from each group) Total DSE's 1840 Age group Ewes Wethers SHEEP GRAZING AREA % Number of ewes mated % Ram percentage 2% 2.5 0% Age ewes bought (yrs) % Age ewes culled % Years rams kept % Flock death rate 3% % Average weaning rate 115% % Lambs carried over 0% SALES Number Price/hd Age Total c.f.a ewes 182 $ $9,100 c.f.a rams 6 $ $240 lambs 1150 $ weeks $103,500 TOTAL 1339 $84.29 $112,840 PURCHASES Number Price/hd Age yrs Total ewes 212 $ $38,226 rams 7 $ $5,497 STOCK HEALTH REQUIREMENTS Number of times Number Drench Vacc. Blowfly DSE ewes rams lambs TOTAL SHEARING Wool cut Number kg/hd Price Total ewes $4.00 $17,443 crossbred rams $2.25 $131 TOTAL $17,573 FEEDING Number Hay Kgs Fed No weeks Total Cost ($/T) per week of Feeding cost ($) ewes 1000 $ $3,200 rams 20 $ $64 Number Grain Kgs Fed No weeks Total Cost ($/T) per week of Feeding cost ($) ewes 1000 $ $4,800 rams 20 $ $120 G.M. SENSITIVITY GROSS MARGIN/DSE Average Weaning Rate (%) 85% 95% 105% 115% 125% 135% $65 $0 $3 $6 $9 $12 $15 $70 $2 $6 $9 $12 $15 $18 $75 $5 $8 $11 $15 $18 $22 $80 $7 $11 $14 $18 $22 $25 Average $85 $9 $13 $17 $21 $25 $29 Lamb Sale $90 $11 $15 $20 $24 $28 $32 Price ($/hd) $95 $13 $18 $22 $27 $31 $36 $100 $16 $20 $25 $30 $34 $39 $105 $18 $23 $28 $33 $38 $43 $110 $20 $25 $30 $36 $41 $46 $115 $22 $28 $33 $39 $44 $49 A gross margin template for crop and livestock enterprises 51

58 Self Replacing Merino Flock - High Rainfall (450mm+) Assumptions Ave Breeding Ewe Fibre Diameter 19.5 Total DSE's 2390 Number of breeding ewes 1000 Stocking rate (DSE/Ha) INCOME YOUR $ ESTIMATE Wool (kg greasy) 9426 Kg [ ave price 800 c/kg ] $75,420 Sales 862 animals [ ave price $69.06 per hd] $59,550 GROSS INCOME $134,970 VARIABLE COSTS Shearing Shearing 2324 $ /100 $6,363 (Federal Awards) 25 $ /100 $137 Shed labour 9 $ /day $1,851 Woolclasser 5 $ /day $1,107 Superannuation (on ordinary wages 9.5% wages $898 Work Cover (includes super + o'time 4.0% total $414 Wool packs 55 $11.50 /pack $633 Shed sundries 2349 $0.15 /head $352 Lice Control 2349 $0.83 /head $1,950 Crutch & wig 1424 $87.42 /100 $1, $ /100 $44 Marking Lamb marking $1.30 /head $1,170 Ear tags 900 $0.35 /head $315 Animal Health drench 2400 $0.19 /head $450 vaccinate 3275 $0.24 /head $786 blowfly control 1475 $1.20 /head $1,770 Sale and Purchase Costs Purchases 7 Merino $1, /head $7,000 Freight 862 $3.50 /head $3, $10.00 /bale $550 Stock selling charges 5.5% gross $3,275 yard fees 862 $0.70 /head $603 Sheep trans levy 412 $0.20 /head $82 Lamb trans levy 450 $1.50 /head $675 SA sheep industry 862 $0.35 /head $302 Wool selling charges $0.22 /kg $2,074 Industry 2.0% gross $1,508 Feed and other Costs Hand Feeding $7,789 Insurance $164,019 $2.00 /$'000 $328 Water 2390 $2.50 /DSE $5,975 Fuel 2390 $0.70 /DSE $1,673 Other 2390 $0.50 /DSE $1,195 TOTAL VARIABLE COSTS $55,531 GROSS MARGIN TOTAL $79,438 GROSS MARGIN/hectare $399 GROSS MARGIN /DSE $33 COMMENTS The wool price is 90% the wool price for that micron. This takes into account the lower value of bellies, skirtings, locks etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance feed requirements of a 2 year old, 50 Kg liveweight Merino Wether with a body condition score of 2. No allowance has been made for superphosphate application Farm Gross Margin & Enterprise Planning Guide

59 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 Wethers SHEEP GRAZING AREA % 100% Number of ewes mated % 0% Ram percentage 2.5% 2.5 5% 0% Age wethers sold (yrs) % 0% Years rams kept % 0% Flock death rate 3% 5.5 5% 0% Average weaning rate 90% % 0% SALES Number Price/hd Total c.f.a ewes 204 $50.00 $10,200 c.f.a merino rams 6 $40.00 $240 ewe hoggets 203 $ $24,360 wether lambs 450 $55.00 $24,750 TOTAL 862 $69.06 $59,550 STOCK HEALTH Number of times Number DSE Drench Vacc. Blowfly ewes ewe hoggets wether weaners merino lambs merino rams TOTAL Total Value $164,019 FEEDING Feed Number of Hay Total kg/ animal Animals Cost ($/T) cost ($) Oats/barley 833 $ /ewe $3,998 Hay 833 $ /ewe $2,666 Lupins 375 $ /weaner $1,125 Total $7,789 SHEARING Wool cut Total Yield Total Number kg/hd Greasy kg (%) Clean kg ewes % 4119 ewe hoggets % 1396 wether weaners % 0 lambs % 945 merino rams % 138 Adults Total FLOCK STRUCTURE This table shows the number of merino sheep in each age group at mating Class of Age Group Sheep 0.5 y.o. 1.5 y.o. 2.5 y.o. 3.5 y.o. 4.5 y.o. 5.5 y.o. 6.5 y.o. Ewes Wethers Rams SENSITIVITY ANALYSIS GROSS MARGIN/DSE Average Greasy Wool Price (c/kg) $40 $18 $19 $21 $23 $25 $27 $45 $19 $21 $23 $25 $27 $29 $50 $21 $23 $25 $27 $29 $31 $55 $23 $25 $27 $28 $30 $32 Average $60 $24 $26 $28 $30 $32 $34 Sale Price $65 $26 $28 $30 $32 $34 $36 All Sheep $69 $27 $29 $31 $33 $35 $37 ($/hd) $75 $29 $31 $33 $35 $37 $39 $80 $31 $33 $35 $37 $39 $41 $85 $33 $35 $37 $39 $41 $43 $90 $35 $37 $38 $40 $42 $44 A gross margin template for crop and livestock enterprises 53

60 Merino Wethers - High Rainfall (450mm+) Assumptions: Average Wether Fibre Diametre 19.5 Gross Margin per Ha $347 Number of adult wethers 1000 Gross Margin per DSE $29 Total DSE's 1200 Gross Margin/Wether $35 Stocking rate (DSE/Ha) INCOME YOUR $ ESTIMATE Wool (kg greasy) 6790 Kg [ave price 800 c/kg ] $54,327 Sales 182 animals [ave price $70.00 per hd] $12,766 GROSS INCOME $67,092 EXPENSES Shearing Shearing 970 $ /100 $2,656 Shed labour 4 $ /day $823 Woolclasser 2 $ /day $492 Superannuation (on ordinary wages 9.5% wages $377 Work Cover (on wages+super+o'time 4.0% total $174 Wool packs 40 $11.50 /pack $460 Shed sundries 970 $0.15 /head $146 Lice control 970 $0.83 /head $805 Crutching 1000 $87.42 /100 $874 Animal Health drench 1000 $0.19 /head $188 vaccinate 1000 $0.24 /head $240 blowfly control 1000 $1.20 /head $1,200 Other Expenses 0 $0.00 /head $0 Stock Purchases Purchases 212 $55.00 /head $11,660 Sale costs and other Freight livestock $3.50 /head $1,383 wool 40 $10.00 /bale $400 Stock selling charges 5.5% gross $702 yard fees 182 $0.70 /head $127 transaction levy 182 $0.20 /head $36 SA sheep industry 182 $0.35 /head $64 Wool selling charges $0.22 /kg $1,494 Industry 2.00% gross $1,087 Other Expenses Hand Feeding $2,400 Insurance $2.00 /$'000 $125 Water 1200 $2.50 /DSE $3,000 fuel 1200 $0.70 /DSE $840 Other Expenses 1200 $0.50 /DSE $600 TOTAL VARIABLE COSTS $32,351 GROSS MARGIN $34,741 GROSS MARGIN/hectare $347 GROSS MARGIN/DSE $29 COMMENTS The wool price is 90% the wool price for that micron. This takes into account the lower value of bellies, skirtings,locks etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance feed requirements of a 2 year old, 50 Kg liveweight Merino Wether with a body condition score of 2. No allowance has been made for superphosphate application Farm Gross Margin & Enterprise Planning Guide

61 Merino Wethers - High Rainfall PRODUCTION DATA Stocking rate (DSE/Ha) 12.0 Culling Rate (% from each group) Stock Total DSE's 1200 Age group Ewes Wethers No's SHEEP GRAZING AREA % 212 Number of wethers % 206 Flock death rate 3% 2.5 0% 200 Age wethers bought (yrs) % 194 Age wethers culled % % SALES Number Price/hd Age Total c.f.a wethers 182 $ $12,740 TOTAL 182 $12,740 PURCHASES Number Price/hd Age yrs Total wethers 212 $ $11,680 STOCK VALUE AND D.S.E REQUIREMENT Number Value Ave Live DSE $/head Wt (Kgs) rating wethers 1000 $ TOTAL 1000 STOCK HEALTH REQUIREMENTS Number of times DSE Number Drench Vacc. Blowfly rating wethers TOTAL SHEARING Number Wool cut Total Yield Total kg/hd Greasy kg (%) Clean kg wethers % 4753 TOTAL HAND FEEDING kg fed /animal $/tonne Total Oats/barley kg/wether 200 $0 Hay 15 kg/wether 160 $2,400 Lupins kg/wether 300 $0 Total $2,400 SENSITIVITY TABLE GROSS MARGIN/DSE Average Greasy Wool Price (c/kg) $45 $17 $20 $23 $25 $28 $31 $50 $18 $21 $23 $26 $29 $32 $55 $18 $21 $24 $27 $30 $32 $60 $19 $22 $25 $28 $30 $33 Average $65 $20 $23 $25 $28 $31 $34 Sale Price $70 $21 $23 $26 $29 $32 $34 of wethers $75 $21 $24 $27 $30 $32 $35 ($/hd) $80 $22 $25 $28 $30 $33 $36 $85 $23 $26 $28 $31 $34 $37 $90 $23 $26 $29 $32 $35 $37 $95 $24 $27 $30 $33 $35 $38 A gross margin template for crop and livestock enterprises 55

62 Prime Lamb Gross Margin - Cereal Zone ( mm) Assumptions Ave Breeding Ewe Fibre Diameter 21 Total DSE's 1850 Number of breeding ewes (Merino) 1000 Stocking rate (DSE/Ha) 6.0 Merino ewe - Terminal meat sire 2014 INCOME YOUR $ ESTIMATE Wool (kg greasy) 6378 Kg [ ave price 741 c/kg ] $47,262 Sales 1189 animals [ ave price $73.90 per hd] $87,920 GROSS INCOME $135,182 VARIABLE COSTS Shearing Shearing 970 $ /100 $2,656 (Federal awards) 24 $ /100 $131 Shed labour 5 $ /day $1,028 Woolclasser 2.5 $ /day $615 Work Cover (includes super + o'time 9.50% total $421 Superannuation (on ordinary wages 4.00% wages $177 Wool packs 38 $11.50 /pack $437 Shed sundries 994 $0.15 /head $149 Lice control 994 $0.46 /head $456 Crutch & Wig 0 $87.42 /100 $ $87.42 /100 $891 Marking Lamb marking 950 $1.00 /head $950 Ear tags 950 $0.35 /head $333 Animal Health drench 2000 $0.19 /head $375 vaccinate 2925 $0.20 /head $585 blowfly control 1000 $1.20 /head $1,200 Stock purchases Purchases $38,255 Sale Costs Freight livestock 239 $3.50 /head $ $3.50 /head $ prime $3.50 /head $3,325 wool 38 $10.00 /bale $380 Stock selling charges 5.5% gross $4,836 yard fees 1189 $0.70 /head $832 levy-sheep 239 $0.20 /head $48 levy-lambs 950 $1.50 /head $1,425 SA sheep industry levy 1189 $0.35 /head $416 Wool selling charges $0.22 kg $1,403 Industry 2.0% gross $945 Feed and Other Costs Water 1850 $2.50 /DSE $4,625 Fuel 1850 $0.70 /DSE $1,295 Other 1850 $0.50 /DSE $925 hay 20.5 $ /tonne $3,280 grain 24.8 $ /tonne $4,950 Insurance $114,500 $2.00 /$'000 $229 TOTAL VARIABLE COSTS $79,325 GROSS MARGIN TOTAL $55,857 GROSS MARGIN/hectare $181 GROSS MARGIN/DSE $30 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 Farm Gross Margin & Enterprise Planning Guide

63 Prime Lamb Gross Margin - Cereal Zone PRODUCTION DATA Stocking rate (DSE/Ha) 6.0 Culling Rate (% from each group) Total DSE's 1850 Age group Ewes Wethers SHEEP GRAZING AREA % Number of ewes mated % Ram percentage 2.5% 2.5 0% Age ewes bought (yrs) % Age ewes culled % Years rams kept % Flock death rate 3% 6.5 0% Average weaning rate 95% % Lambs carried over 0% SALES Number Price/hd Age Total c.f.a ewes 232 $ $11,600 c.f.a rams 8 $ $320 lambs 950 $ weeks $76,000 TOTAL $87,920 PURCHASES Number Price/hd Age yrs Total ewes 262 $ $31,384 rams 9 $ $6,871 STOCK HEALTH REQUIREMENTS Number of times Number Drench Vacc. Blowfly DSE ewes rams lambs TOTAL SHEARING Wool cut Total Number Price kg/hd $ ewes $ crossbred rams $ TOTAL FEEDING Number Hay Kgs Fed No weeks Total Cost ($/T) per week of Feeding cost ($) ewes 1000 $ $3,200 rams 25 $ $80 Number Grain Kgs Fed No weeks Total Cost ($/T) per week of Feeding cost ($) ewes 1000 $ $4,800 rams 25 $ $150 G.M. SENSITIVITY GROSS MARGIN/DSE Average Weaning Rate (%) 75% 85% 95% 105% 115% 125% $55 $13 $16 $18 $20 $23 $25 $60 $15 $18 $20 $23 $26 $28 $65 $17 $20 $23 $26 $29 $32 $70 $19 $22 $25 $28 $32 $35 Average $75 $21 $24 $28 $31 $35 $38 Lamb Sale $80 $23 $27 $30 $34 $38 $41 Price ($/hd) $85 $25 $29 $33 $37 $40 $44 $90 $27 $31 $35 $39 $43 $48 $95 $29 $33 $37 $42 $46 $51 $100 $31 $35 $40 $45 $49 $54 $105 $32 $37 $42 $47 $52 $57 A gross margin template for crop and livestock enterprises 57

64 Self Replacing Merino Flock - Cereal Zone ( mm) Assumptions Ave Breeding Ewe Fibre Diameter 21 Total DSE's 2360 Number of breeding ewes 1000 Stocking rate (DSE/Ha) INCOME YOUR $ ESTIMATE Wool (kg greasy) Kg [ ave price 747 c/kg ] $79,286 Sales 813 animals [ ave price $67.86 per hd] $55,175 GROSS INCOME $134,461 VARIABLE COSTS Shearing Shearing 2250 $ /100 $6,161 (Federal Awards) 25 $ /100 $137 Shed labour 8 $ /day $1,645 Woolclasser 4.0 $ /day $984 Superannuation (on ordinary wages 9.5% wages $848 Work Cover (includes super + o'time 4.0% total $391 Wool packs 62 $11.50 /pack $713 Shed sundries 2274 $0.15 /head $341 Lice control 2274 $0.83 /head $1,887 Crutch & wig 1400 $87.42 /100 $1, $ /100 $44 Marking Lamb marking 850 $1.30 /head $1,105 Ear tags 850 $0.35 /head $298 Animal Health drench 2325 $0.19 /head $436 vaccinate 3150 $0.20 /head $630 blowfly control 1450 $1.20 /head $1,740 Sale and Purchase Costs Purchases 7 Merino $1, /head $7,000 Freight 813 $3.50 /head $2, $10.00 /bale $620 Stock selling charges 5.5% gross $3,035 yard fees 813 $0.70 /head $569 sheep tran levy 388 $0.20 /head $78 lamb trans levy 425 $1.50 /head $638 SA Sheep industry 813 $0.35 /head $285 wool selling charges $0.22 /kg $2,335 Industry 2.0% gross $1,586 Feed and other Costs Hand Feeding $9,275 Insurance $156,084 $2.00 /$'000 $312 Water 2360 $2.50 /DSE $5,900 Fuel 2360 $0.70 /DSE $1,652 Other 2360 $0.50 /DSE $1,180 TOTAL VARIABLE COSTS $55,892 GROSS MARGIN TOTAL $78,569 GROSS MARGIN/hectare $200 GROSS MARGIN /DSE $33 COMMENTS The wool price is 90% the wool price for that micron. This takes into account the lower value of bellies, skirtings,locks etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance feed requirements of a 2 year old, 50 Kg liveweight Merino Wether with a body condition score of Farm Gross Margin & Enterprise Planning Guide

65 PRODUCTION DATA Stocking rate (DSE/Ha) 6.0 Culling Rate (% per each group) Total DSE's 2360 Age group Ewes Wethers SHEEP GRAZING AREA % 100% Number of ewes mated % 0% Ram percentage 2.5% 2.5 5% 0% Age wethers sold (yrs) % 0% Years rams kept % 0% Flock death rate 3% 5.5 5% 0% Average weaning rate 85% % 0% Prime lamb weaning % 0% % mated for prime lms 0% SALES Number Price/hd Total c.f.a ewes 204 $50.00 $10,200 c.f.a merino rams 6 $40.00 $240 ewe hoggets 178 $ $21,360 wether lambs 425 $55.00 $23,375 TOTAL 813 $67.86 $55,175 STOCK HEALTH Number of times Number DSE Drench Vacc. Blowfly ewes ewe hoggets wether weaners merino lambs merino rams TOTAL Total Value $156,084 FEEDING Feed Number of Fodder Total kg/ animal Animals Cost ($/T) cost ($) Oats/barley 1000 $ /ewe $4,800 Hay 1000 $ /ewe $3,200 Lupins 425 $ /weaner $1,275 Total $9,275 SHEARING Wool cut Total Yield Total Number kg/hd Greasy kg (%) Clean kg ewes % 4337 ewe hoggets % 1566 wether weaners % 0 lambs % 1156 merino rams % 159 Adults Total FLOCK STRUCTURE Self Replacing Merino Flock - Cereal Zone This table shows the number of merino sheep in each age group at mating Class of Age Group Sheep 0.5 y.o. 1.5 y.o. 2.5 y.o. 3.5 y.o. 4.5 y.o. 5.5 y.o. 6.5 y.o. Ewes Wethers Rams SENSITIVITY ANALYSIS GROSS MARGIN/DSE Average Greasy Wool Price (c/kg) $35 $18 $21 $23 $25 $27 $29 $40 $20 $22 $24 $27 $29 $31 $45 $22 $24 $26 $28 $30 $33 $50 $23 $25 $27 $30 $32 $34 Average $55 $25 $27 $29 $31 $34 $36 Sale Price $60 $26 $29 $31 $33 $35 $37 All Sheep $68 $29 $31 $33 $36 $38 $40 ($/hd) $70 $30 $32 $34 $36 $39 $41 $75 $31 $34 $36 $38 $40 $42 $80 $33 $35 $37 $40 $42 $44 $85 $35 $37 $39 $41 $43 $46 A gross margin template for crop and livestock enterprises 59

66 Merino Wethers - Cereal Zone ( mm) Assumptions: Average Wether Fibre Diameter 21 Gross Margin per Ha $173 Number of adult wethers 1000 Gross Margin per DSE $29 Total DSE's 1200 Gross Margin/Wether $35 Stocking rate (DSE/Ha) INCOME YOUR $ ESTIMATE Wool (kg greasy) 7275 Kg [ ave price 747 c/kg ] $54,344 Sales 182 animals [ ave price $70.00 per hd] $12,766 GROSS INCOME $67,110 EXPENSES Shearing Shearing 970 $ /100 $2,656 Shed labour 4 $ /day $823 Woolclasser 2 $ /day $492 Superannuation (on ordinary wages 9.5% wages $330 Work Cover (on wages+super+o'time 4.0% total $152 Wool packs 43 $11.50 /pack $495 Shed sundries 970 $0.15 /head $146 Lice control 970 $0.83 /head $805 Crutching 1000 $87.42 /100 $874 Animal Health drench 1000 $0.19 /head $188 vaccinate 1000 $0.20 /head $200 blowfly control 1000 $1.20 /head $1,200 Other Expenses 0 $0.00 /head $0 Stock Purchases Purchases 212 $55.00 /head $11,660 Sale costs and other Freight livestock $3.50 /head $1,383 wool 43 $10.00 /bale $430 Stock selling charges 5.5% gross $702 yard fees 182 $0.70 /head $127 transaction levy 182 $0.20 /head $36 SA sheep industry 182 $0.35 /head $64 Wool selling charges $0.22 /kg $1,601 Industry 2.0% gross $1,087 Other Expenses Hand Feeding $2,400 Insurance $2.00 /$'000 $125 Water 1200 $2.50 /DSE $3,000 fuel 1200 $0.70 /DSE $840 Other Expenses 1200 $0.50 /DSE $600 TOTAL VARIABLE COSTS $32,415 GROSS MARGIN $34,695 GROSS MARGIN/hectare $173 GROSS MARGIN/DSE $29 COMMENTS The wool price is 90% the wool price for that micron. This takes into account the lower value of bellies, skirtings, locks etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance feed requirements of a 2 year old, 50 kg liveweight Merino wether with a body condition score of 2. No allowance has been made for superphosphate application Farm Gross Margin & Enterprise Planning Guide

67 Merino Wethers - Cereal Zone PRODUCTION DATA Stocking rate (DSE/Ha) 6.0 Culling Rate (% from each group) Stock Total DSE's 1200 Age group Ewes Wethers No's SHEEP GRAZING AREA % 212 Number of wethers % 206 Flock death rate 3% 2.5 0% 200 Age wethers bought (yrs) % 194 Age wethers culled % % SALES Number Price/hd Age Total c.f.a wethers 182 $ $12,740 TOTAL 182 $12,740 PURCHASES Number Price/hd Age yrs Total wethers 212 $ $11,680 STOCK VALUE AND D.S.E REQUIREMENT Number Value Ave Live DSE $/head Wt (Kgs) rating wethers 1000 $ TOTAL 1000 STOCK HEALTH REQUIREMENTS Number of times DSE Number Drench Vacc. Blowfly rating wethers TOTAL SHEARING Number Wool cut Total Yield Total kg/hd Greasy kg (%) Clean kg wethers % 4947 TOTAL HAND FEEDING kg fed /animal $/tonne Total Oats/barley 0 kg/wether 200 $0 Hay 15 kg/wether 160 $2,400 Lupins kg/wether 300 $0 Total $2,400 SENSITIVITY TABLE GROSS MARGIN/DSE Average Greasy Wool Price (c/kg) $45 $20 $23 $25 $28 $31 $34 $50 $20 $23 $26 $29 $32 $35 $55 $21 $24 $27 $30 $33 $36 $60 $22 $25 $27 $31 $34 $37 Average $65 $22 $25 $28 $31 $34 $37 Sale Price $70 $23 $26 $29 $32 $35 $38 of wethers $75 $24 $27 $30 $33 $36 $39 ($/hd) $80 $25 $28 $30 $33 $36 $39 $85 $25 $28 $31 $34 $37 $40 $90 $26 $29 $32 $35 $38 $41 $95 $27 $30 $33 $36 $39 $42 A gross margin template for crop and livestock enterprises 61

68 Assumptions Prime Lamb Gross Margin - Pastoral Zone (<250mm) (Lambs sold to specialist finisher) Ave Breeding Ewe Fibre Diameter 22 Total DSE's 1858 Number of breeding ewes 1000 Stocking rate (DSE/Ha) 0.14 Merino ewes - Terminal meat sire INCOME 2014 YOUR $ ESTIMATE Wool (kg greasy) 5771 Kg [ ave price 675 c/kg ] $38,943 Sales 1020 animals [ ave price $56.77 per hd] $57,880 GROSS INCOME $96,823 VARIABLE COSTS Shearing Shearing 950 $ /100 $2,601 (Federal awards) 24 $ /100 $131 Shed labour 5 $ /day $1,028 Woolclasser 2.50 $ /day $615 Superannuation (on ordinary wages 9.5% wages $416 Work Cover (on wages+super+o'time 4.0% total $175 Wool packs 34 $11.50 /pack $391 Shed sundries 974 $0.15 /head $146 Lice control 974 $0.83 /head $808 Crutch & Wig 800 $87.42 /100 $ $87.42 /100 $872 Marking Lamb marking 800 $1.00 /head $800 Ear tags 800 $0.35 /head $280 Animal Health drench 0 $0.19 /head $0 vaccinate 1825 $0.20 /head $365 blowfly control 1000 $1.20 /head $1,200 Stock purchases Purchases $36,389 Sale Costs Freight livestock 220 $6.00 /head $1, $6.00 /head $1, prime $6.00 /head $4,800 wool 34 $12.00 /bale $408 Stock selling charges 5.5% gross $3,183 yard fees 1020 $0.70 /head $714 levy-sheep 220 $0.20 /head $44 levy-lambs 800 $1.50 /head $1,200 SA sheep industry 1020 $0.35 /head $357 wool selling charges Industry 2.0% gross $779 $0.22 /kg $1,270 Feed and Other Costs Water 1858 $2.50 /tonne $4,644 Fuel 1858 $0.70 /tonne $1,300 Other 1858 $0.50 /DSE $929 hay 0.0 $ /DSE $0 grain 0.0 $ /DSE $0 Insurance $102,375 $2.00 /$'000 $205 TOTAL VARIABLE COSTS $69,687 GROSS MARGIN TOTAL $27,135 GROSS MARGIN/hectare $2.05 GROSS MARGIN/DSE $15 COMMENTS The wool price is 90% the wool price for that micron. This takes into account the lower value of bellies, skirtings,locks etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance feed requirements of a 2 year old, 50 Kg liveweight Merino Wether with a body conditionscore of Farm Gross Margin & Enterprise Planning Guide

69 PRODUCTION DATA Prime Lamb Gross Margin - Pastoral Zone Stocking rate (DSE/Ha) 0.14 Culling Rate (% from each group) Total DSE's 1858 Age group Ewes Wethers SHEEP GRAZING AREA % Number of ewes mated % Ram percentage 2.5% 2.5 0% Age ewes bought (yrs) % Age ewes culled % Years rams kept % Flock death rate 5% 6.5 0% Average weaning rate 80% % Lambs carried over 0% SALES Number Price/hd Age Total c.f.a ewes 220 $ $9,900 c.f.a rams 0 $ $0 lambs 800 $ weeks $48,000 TOTAL 1020 $56.77 $57,900 PURCHASES Number Price/hd Age yrs Total ewes 270 $ $32,346 rams 7 $ $4,043 STOCK HEALTH REQUIREMENTS Number of times Number Drench Vacc. Blowfly DSE ewes rams lambs TOTAL SHEARING Number Wool cut kg/hd Price Total ewes $ crossbred rams $ TOTAL FEEDING Number Hay Kgs Fed No weeks Total Cost ($/T) per week of Feeding cost ($) ewes 1000 $ $0 rams 24 $ $0 Number Grain Kgs Fed No weeks Total Cost ($/T) per week of Feeding cost ($) ewes 1000 $ $0 rams 24 $ $0 G.M. SENSITIVITY GROSS MARGIN/DSE Average Weaning Rate (%) 50% 60% 70% 80% 90% 100% $30 -$1 $0 $1 $2 $3 $4 $35 $1 $2 $3 $4 $6 $7 $40 $2 $3 $5 $6 $8 $9 $45 $3 $5 $7 $9 $10 $12 Average $50 $5 $7 $9 $11 $13 $15 Lamb Sale $55 $6 $8 $10 $13 $15 $17 Price ($/hd) $60 $7 $10 $12 $15 $17 $20 $65 $8 $11 $14 $17 $19 $22 $70 $10 $13 $16 $19 $22 $25 $75 $11 $14 $17 $21 $24 $27 $80 $12 $16 $19 $23 $26 $30 A gross margin template for crop and livestock enterprises 63

70 Self Replacing Merino Flock - Pastoral Zone (<250mm) Assumptions Ave Breeding Ewe Fibre Diameter 22 Total DSE's 2610 Number of breeding ewes 1000 Stocking rate (DSE/Ha) INCOME YOUR $ ESTIMATE Wool (kg greasy) Kg [ ave price 680 c/kg ] $76,459 Sales 669 animals [ ave price $55.10 per hd] $36,865 GROSS INCOME $113,324 VARIABLE COSTS Shearing Shearing 2451 $ /100 $6,711 (Federal Awards) 29 $ /100 $159 Shed labour 10 $ /day $2,056 Woolclasser 5 $ /day $1,230 Superannuation (on ordinary wages 9.5% wages $965 Work Cover (includes super + o'time 4.0% total $445 Wool packs 66 $11.50 /pack $759 Shed sundries 2480 $0.15 /head $372 Lice control 2480 $0.83 /head $2,058 Crutch & wig 1701 $87.42 /100 $1,487 Marking Lamb marking 750 $1.30 /head $975 Ear tags 750 $0.35 /head $263 Animal Health drench 0 $0.19 /head $0 vaccinate 2905 $0.20 /head $581 blowfly control 1000 $1.20 /head $1,200 other 0 $0.00 /head $0 Sale and Purchase Costs Purchases 8 Merino $ /head $7,200 Freight 669 $6.00 /head $4, $12.00 /bale $792 Stock selling charges 5.5% gross $2,028 yard fees 669 $0.70 /head $468 transaction levy 669 $0.20 /head $134 SA sheep industry 669 $0.35 /head $234 Wool selling charges $0.22 /kg $2,472 Industry 2.0% gross $1,529 Feed and other Costs Hand Feeding $0 Insurance $139,397 $2.00 /$'000 $279 Water 2610 $2.50 /DSE $6,525 Fuel 2610 $0.70 /DSE $1,827 Other 2610 $0.50 /DSE $1,305 TOTAL VARIABLE COSTS $48,067 GROSS MARGIN TOTAL $65,257 GROSS MARGIN/hectare $3.50 GROSS MARGIN /DSE $25 COMMENTS The wool price is 90% the wool price for that micron. This takes into account the lower value of bellies, skirtings,locks etc. Super/workcover expenses relate only to shearing. DSE ratings are based on the maintenance feed requirements of a 2 year old, 50Kg liveweight Merino Wether with a body condition score of Farm Gross Margin & Enterprise Planning Guide

71 PRODUCTION DATA Stocking rate (DSE/Ha) 0.14 Culling Rate (% per each group) Total DSE's 2610 Age group Ewes Wethers SHEEP GRAZING AREA % 0% Number of ewes mated % 100% Ram percentage 3.0% 2.5 5% 0% Age wethers sold (yrs) % 0% Years rams kept % 0% Flock death rate 5% 5.5 5% 0% Average weaning rate 75% % 0% Prime lamb weaning % 0% % mated for prime lms 0% SALES Number Price/hd Total c.f.a ewes 193 $45.00 $8,685 c.f.a merino rams 7 $30.00 $210 ewe hoggets 113 $90.00 $10,170 wether hoggets 356 $50.00 $17,800 TOTAL 669 $55.10 $36,865 STOCK HEALTH Number of times Number DSE Drench Vacc. Jet ewes ewe hoggets wether weaners merino lambs merino rams TOTAL Total Value $139,397 FEEDING Feed Number of Hay kg/ animal Total Animals Cost ($/T) fed cost ($) Oats/barley 1000 $ /ewe $0 Hay 1000 $ /ewe $0 Lupins 750 $ /weaner $0 Total $0 SHEARING Wool cut Total Yield Total Number kg/hd Greasy kg (%) Clean kg ewes % 3665 ewe hoggets % 1152 wether weaners % 1152 lambs % 945 merino rams % 166 Adults Total FLOCK STRUCTURE Self Replacing Merino Flock - Pastoral Zone This table shows the number of merino sheep in each age group at mating Class of Age Group Sheep 0.5 y.o. 1.5 y.o. 2.5 y.o. 3.5 y.o. 4.5 y.o. 5.5 y.o. 6.5 y.o. Ewes Wethers Rams SENSITIVITY ANALYSIS GROSS MARGIN/HA Average Greasy Wool Price (c/kg) $30 $13 $16 $18 $19 $20 $22 $35 $15 $17 $19 $20 $21 $23 $40 $16 $18 $20 $21 $22 $24 $45 $17 $19 $21 $23 $23 $25 Average $50 $18 $20 $22 $24 $25 $27 Sale $55 $19 $22 $24 $25 $26 $28 Price ($/hd) $60 $21 $23 $25 $26 $27 $29 $65 $22 $24 $26 $27 $28 $30 $70 $23 $25 $27 $29 $29 $32 $75 $24 $26 $29 $30 $31 $33 $80 $26 $28 $30 $31 $32 $34 A gross margin template for crop and livestock enterprises 65

72 Merino Wethers - Pastoral Zone (<250mm) Assumptions: Average Wether Fibre Diameter 22 Gross Margin per Ha $3.2 Number of adult wethers 1000 Gross Margin per DSE $23 Total DSE's 1200 Gross Margin/Wether $28 Stocking rate (DSE/Ha) INCOME YOUR $ ESTIMATE Wool (kg greasy) 6720 Kg [ave price 680 c/kg ] $45,723 Sales 226 animals [ave price $60.00 per hd] $13,531 GROSS INCOME $59,253 EXPENSES Shearing Shearing 960 $ /100 $2,629 Shed labour 4 $ /day $823 Woolclasser 2 $ /day $492 Superannuation (on ordinary wages 9.5% wages $375 Work Cover (on wages+super+o'time 4.0% total $153 Wool packs 40 $11.50 /pack $460 Shed sundries 960 $0.15 /head $144 Lice control 960 $0.83 /head $797 Crutching 1000 $87.42 /100 $874 Animal Health drench 0 $0.19 /head $0 vaccinate 1000 $0.20 /head $200 blowfly control 1000 $1.20 /head $1,200 Other Expenses 0 $0.00 /head $0 Stock Purchases Purchases 266 $45.00 /head $11,970 Sale costs and other Freight livestock $6.00 /head $2,946 wool 40 $12.00 /bale $480 Stock selling charges 5.5% gross $744 yard fees 226 $0.70 /head $158 transaction levy 226 $0.20 /head $45 SA sheep industry 226 $0.35 /head $79 Wool selling charges $0.22 /kg $1,478 Industry 2.0% gross $914 Other Expenses Hand Feeding $0 Insurance $2.00 /$'000 $110 Water 1200 $2.50 /DSE $3,000 fuel 1200 $0.70 /DSE $840 Other Expenses 1200 $0.50 /DSE $600 TOTAL VARIABLE COSTS $31,511 GROSS MARGIN $27,743 GROSS MARGIN/hectare $3.24 GROSS MARGIN/DSE $23 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 Farm Gross Margin & Enterprise Planning Guide

73 Merino Wethers - Pastoral Zone PRODUCTION DATA Stocking rate (DSE/Ha) 0.14 Culling Rate (% from each group) Stock Total DSE's 1200 Age group Ewes Wethers No's SHEEP GRAZING AREA % 0 Number of wethers % 266 Flock death rate 4% 2.5 0% 255 Age wethers bought (yrs) % 245 Age wethers culled % % SALES Number Price/hd Age Total c.f.a wethers 226 $ $13,560 TOTAL 226 $13,560 PURCHASES Number Price/hd Age yrs Total wethers 266 $ $13,276 STOCK VALUE AND D.S.E REQUIREMENT Number Value Ave Live DSE $/head Wt (Kgs) rating wethers 1000 $ TOTAL 1000 STOCK HEALTH REQUIREMENTS Number of times DSE Number Drench Vacc. Blowfly rating wethers TOTAL SHEARING Number Wool cut Total Yield Total kg/hd Greasy kg (%) Clean kg wethers % 4234 TOTAL HAND FEEDING kg fed /animal $/tonne Total Oats/barley 0 kg/wether 200 $0 Hay 0 kg/wether 160 $0 Lupins 0 kg/wether 300 $0 Total $0 SENSITIVITY TABLE GROSS MARGIN/DSE Average Greasy Wool Price (c/kg) $35 $12 $14 $17 $19 $20 $22 $40 $12 $15 $18 $20 $21 $23 $45 $13 $16 $19 $20 $22 $24 $50 $14 $17 $20 $21 $22 $25 Average $55 $15 $18 $21 $22 $23 $26 Sale $60 $16 $19 $21 $23 $24 $27 Price ($/hd) $65 $17 $20 $22 $24 $25 $28 $70 $18 $20 $23 $25 $26 $29 $75 $19 $21 $24 $26 $27 $30 $80 $20 $22 $25 $27 $28 $30 $85 $20 $23 $26 $28 $29 $31 A gross margin template for crop and livestock enterprises 67

74 Assumptions Cleanskin Sheep - Cereal Zone ( mm) Total DSE's 2540 Number of breeding ewes 1000 Stocking rate (DSE/Ha) INCOME YOUR $ ESTIMATE $0 Sales 1109 animals [ ave price $76.96 per hd] $85,310 GROSS INCOME $85,310 VARIABLE COSTS $0 Marking Lamb marking 1150 $1.00 /head $1,150 Ear tags 1150 $0.35 /head $403 Animal Health drench 2775 $0.19 /head $520 vaccinate 3900 $0.20 /head $780 blowfly control 0 $1.20 /head $0 Lice control 0 $0.83 /head $0 Sale and Purchase Costs Purchases 7 $ /head $5,250 Freight 204 $3.50 /head $714 6 $3.50 /head $ $3.50 /head $1, $3.50 /head $2,013 Stock selling charges 5.5% gross $4,692 yard fees 1109 $0.70 /head $776 sheep tran levy 534 $0.20 /head $107 lamb trans levy 575 $1.50 /head $863 SA Sheep industry 1109 $0.35 /head $388 $0 $0 Feed and other Costs Hand Feeding $9,725 Insurance $211,632 $2.00 /$'000 $423 Water 2540 $2.50 /DSE $6,350 Fuel 2540 $0.70 /DSE $1,778 Other 2540 $0.50 /DSE $1,270 TOTAL VARIABLE COSTS $38,356 GROSS MARGIN TOTAL $46,954 GROSS MARGIN/hectare $111 GROSS MARGIN /DSE $18 COMMENTS Assumes flock is fully wool shedding and therefore no shearing, crutching or lice control costs are included. Assumes only one lambing per year Farm Gross Margin & Enterprise Planning Guide

75 Cleanskin Sheep - Cereal Zone PRODUCTION DATA Stocking rate (DSE/Ha) 6.0 Culling Rate (% per each group) Total DSE's 2540 Age group Ewes Wethers SHEEP GRAZING AREA % 100% Number of ewes mated % 0% Ram percentage 2.5% 2.5 5% 0% Age wethers sold (yrs) % 0% Years rams kept % 0% Flock death rate 3% 5.5 5% 0% Average weaning rate 115% % 0% SALES Number Price/hd Total c.f.a ewes 204 $45.00 $9,180 c.f.a rams 6 $40.00 $240 ewe hoggets 324 $ $35,640 wether lambs 575 $70.00 $40,250 TOTAL 1109 $76.96 $85,310 STOCK HEALTH Number of times Number DSE Drench Vacc. Blowfly Lice ewes ewe hoggets wether weaners lambs rams TOTAL Total Value $211,632 FEEDING Feed Number of Fodder Total kg/ animal Animals Cost ($/T) cost ($) Oats/barley 1000 $ /ewe $4,800 Hay 1000 $ /ewe $3,200 Lupins 575 $ /weaner $1,725 Total $9,725 FLOCK STRUCTURE Class of This table shows the number of sheep in each age group at mating Age Group Sheep 0.5 y.o. 1.5 y.o. 2.5 y.o. 3.5 y.o. 4.5 y.o. 5.5 y.o. 6.5 y.o. Ewes Wethers Rams SENSITIVITY ANALYSIS GROSS MARGIN/DSE Average Weaning Percentage $50 $9 $12 $14 $17 $19 $22 $55 $10 $13 $15 $18 $21 $23 $60 $11 $14 $16 $19 $22 $25 $65 $12 $15 $17 $20 $23 $26 $70 $13 $16 $19 $21 $24 $27 Sale Price $75 $13 $16 $20 $23 $26 $29 Lambs $80 $14 $17 $21 $24 $27 $30 ($/hd) $85 $15 $18 $22 $25 $28 $32 $90 $16 $19 $23 $26 $30 $33 $95 $17 $20 $24 $27 $31 $34 $100 $18 $21 $25 $28 $32 $36 A gross margin template for crop and livestock enterprises 69

76 Beef Cattle - High Rainfall Assumptions: (Breeding young cattle for local trade, grass fattened) Breeding Cow 15 DSE 100 Cow breeding herd Calf Weaning 90% 13 cows replaced per year Herd Deaths 3% 3% Bulls bought for $3,000 Cows c.f.a 10 years old sold for $1,000 Uses 13 heifers as replacements after 3 years Carry over calf 8 DSE 40% carryover to heavier weights 8 months 6 months extra carry over Heifers 15 months 1891 Herd DSE Stocking rate 10 DSE/ha Drench cows 2 x Area required 189 hectares Drench calves 1 x Feeds 35 kg/dse hay equivalent supplement INCOME Stock sales kg liveweight@ $1.75 /kg L/W $26, yearlings 420 kg liveweight@ $1.60 /kg L/W $14,992 Culls kg liveweight@ $1.10 /kg L/W $5,800 1 bull@ $1,000 GROSS INCOME $48, YOUR ESTIMATE VARIABLE COSTS Bull Purchases No. of bulls 1 $3, total $3,000 Veterinary & Medicines Drench - cows 2x calves 1x $4.28 /head $1,240 Ear Tags NLIS $4.90 /tag $441 Lice Treatments $0.00 /dose $0 Vaccine (5 in 1) $1.44 /dose $259 Supplementary Feed Hay 66 $ /tonne $10,560 Grain 0.00 $ /tonne $0 Blocks/ Mineral Mix $5.00 /head $500 Sale costs and other Insurance $2.00 /$1000 $238 Water 1891 $2.50 $4,726 Fuel 1891 $0.70 $1,323 Other 1891 $0.50 $945 Transport: Lvstk 87 $16.00 /head $1,390 Transport: Hay 66 $28.00 /tonne $1, % $2,654 $5.00 /head $434 TOTAL VARIABLE COSTS $29,560 GROSS MARGIN TOTAL $18,693 GROSS MARGIN PER COW $187 GROSS MARGIN/DSE $9.89 GROSS MARGIN/hectare $98.88 COMMENTS GM excludes cost of Superphosphate application which may or may not be an annual expense. Livestock weight will vary between cattle breed, feed type and age Farm Gross Margin & Enterprise Planning Guide

77 Beef Cattle - High Rainfall GROSS MARGIN SENSITIVITY PER COW $/kg Liveweight(yearlings/steers) $1.25 $1.50 $1.75 $2.00 $ % -$49 -$13 $22 $58 $94 65% -$28 $12 $52 $92 $132 70% -$7 $37 $81 $125 $169 75% $14 $62 $111 $159 $207 Weaning 80% $35 $87 $140 $192 $245 % 85% $56 $113 $169 $226 $283 90% $77 $138 $199 $260 $321 95% $98 $163 $228 $293 $ % $119 $188 $258 $327 $396 PER Ha $/kg Liveweight(yearlings/steers) $1.25 $1.50 $1.75 $2.00 $ % -$26 -$7 $12 $31 $50 65% -$15 $6 $27 $48 $70 70% -$4 $20 $43 $66 $90 75% $7 $33 $58 $84 $110 Weaning 80% $18 $46 $74 $102 $130 % 85% $30 $60 $90 $120 $150 90% $41 $73 $105 $137 $170 95% $52 $86 $121 $155 $ % $63 $100 $136 $173 $210 $/Cow Variable Costs Cost/cow A gross margin template for crop and livestock enterprises 71

78 Beef Cattle - Cereal Zone Assumptions: (Breeding young cattle for local trade, grass fattened) Breeding Cow 14.5 DSE 100 Cow breeding herd Calf Weaning 85% 13 cows replaced per year Herd Deaths 3% 3% Bulls bought for $3,000 Cows c.f.a 10 years old sold for $900 Uses 13 heifers as replacements after 3 years Carry over calf 8 DSE 50% carryover to heavier weights 8 months 6 months extra carry over Heifers 15 months 1941 Herd DSE Stocking rate 5.00 DSE/ha Drench cows 2 x Area required 388 hectares Drench calves 1 x Feeds 35 kg/dse hay equivalent supplement INCOME Stock sales kg $1.75 /kg L/W $20, yearlings 400 kg $1.60 /kg L/W $18,314 Culls kg $1.10 /kg L/W $5,800 1 bull@ $900 GROSS INCOME $45, YOUR ESTIMATE VARIABLE COSTS Bull Purchases No. of bulls $3,000 total $3,000 Veterinary & Medicines Drench - cows 2x calves 1x $4.28 /head $1,218 Ear Tags $4.90 /tag $417 Lice Treatments $0.00 /dose $0 Vaccine (5 in 1) $1.44 /dose $245 Supplementary Feed Hay 68 $ /tonne $10,880 Grain 0.00 $ /tonne $0 Blocks/ Mineral Mix $5.00 /head $500 Sale costs and other Insurance $2.00 /$1000 $235 Water 1941 $2.50 $4,852 Fuel 1941 $0.70 $1,359 Other 1941 $0.50 $970 Transport: Lvstk 82 $16.00 /km $1,307 Transport: Hay 68 $0.00 /tonne $0 5.5% $2,480 $5.00 /head $409 TOTAL VARIABLE COSTS $27,872 GROSS MARGIN TOTAL $17,223 GROSS MARGIN PER COW $172 GROSS MARGIN/DSE $8.87 GROSS MARGIN/hectare $44.37 COMMENTS None Farm Gross Margin & Enterprise Planning Guide

79 Beef Cattle - Cereal Zone GROSS MARGIN SENSITIVITY PER COW $/kg Liveweight(yearlings/steers) $1.25 $1.50 $1.75 $2.00 $ % -$30 $6 $42 $78 $115 65% -$10 $31 $71 $112 $152 70% $11 $56 $101 $145 $190 75% $32 $81 $130 $179 $228 Weaning 80% $53 $106 $159 $212 $265 % 85% $74 $131 $189 $246 $303 90% $95 $157 $218 $279 $341 95% $116 $182 $247 $313 $ % $137 $207 $277 $346 $416 PER Ha $/kg Liveweight(yearlings/steers) $1.25 $1.50 $1.75 $2.00 $ % -$8 $1 $11 $20 $30 65% -$2 $8 $18 $29 $39 70% $3 $14 $26 $37 $49 75% $8 $21 $33 $46 $59 Weaning 80% $14 $27 $41 $55 $68 % 85% $19 $34 $49 $63 $78 90% $25 $40 $56 $72 $88 95% $30 $47 $64 $81 $97 100% $35 $53 $71 $89 $107 $/Cow Variable Costs Cost/cow A gross margin template for crop and livestock enterprises 73

80 Beef Cattle - Pastoral Assumptions: (Breeding young cattle for store trade) Breeding Cow 15 DSE 100 Cow breeding herd Calf Weaning 80% 13 cows replaced per year Herd Deaths 3% 3% Bulls bought for $3,000 Cows c.f.a 10 years old sold for $900 Uses 13 heifers as replacements after 3 years Carry over calf 8 DSE 100% carryover to heavier weights 8 months 6 months extra carry over Heifers 15 months 2248 Herd DSE Stocking rate 2.5 DSE/ha Drench cows 0 x Area required 899 hectares Drench calves 0 x Feeds 20 kg/dse hay equivalent supplement INCOME Stock sales 67 yearlings 360 kg $1.50 /kg $36,180 Culls kg $1.00 /kg $5,500 1 bull@ $1,000 GROSS INCOME $42, YOUR ESTIMATE VARIABLE COSTS Bull Depreciation Bull purchase $3,000 total $3,000 Veterinary & Medicines Drench $4.28 /head $0 Ear Tags $4.90 /tag $392 Lice Treatments $0.00 /dose $0 Vaccine (5 in 1) $1.44 /dose $230 Supplementary Feed Hay 45 $ /tonne $7,200 Grain 0.00 $ /tonne $0 Sale costs and other Insurance $2.00 /$1000 $223 Water 2248 $2.50 $5,620 Fuel 2248 $0.70 $1,574 Other 2248 $0.50 $1,124 Transport: Lvstk 78 $16.00 /km $1,248 Transport: Hay 79 $0.00 /tonne $0 5.5% $2,347 $5.00 /head $390 TOTAL VARIABLE COSTS $23,349 GROSS MARGIN TOTAL $19,331 GROSS MARGIN PER COW $193 GROSS MARGIN/DSE $8.60 GROSS MARGIN/hectare $21.50 COMMENTS Feed costs include an allowance for drought fodder Farm Gross Margin & Enterprise Planning Guide

81 Beef Cattle - Pastoral GROSS MARGIN SENSITIVITY PER COW $/kg LWT yearlings/steers) $1.00 $1.25 $1.50 $1.75 $ % $1 $43 $85 $128 $170 65% $19 $66 $112 $159 $206 70% $37 $88 $139 $191 $242 75% $55 $111 $166 $222 $278 Weaning 80% $73 $133 $193 $254 $314 % 85% $91 $156 $220 $285 $350 90% $109 $178 $247 $317 $386 95% $127 $201 $274 $348 $ % $145 $223 $301 $380 $458 PER Ha $/kg LWT (yearlings/steers) $1.00 $1.25 $1.50 $1.75 $ % $0 $5 $9 $14 $19 65% $2 $7 $12 $18 $23 70% $4 $10 $15 $21 $27 75% $6 $12 $18 $25 $31 Weaning 80% $8 $15 $21 $28 $35 % 85% $10 $17 $25 $32 $39 90% $12 $20 $28 $35 $43 95% $14 $22 $31 $39 $47 100% $16 $25 $34 $42 $51 $/Cow Variable Costs Cost/cow A gross margin template for crop and livestock enterprises 75

82 Farm Costs 2014 Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Costs will vary depending on situation. Users of this publication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required. SHEEP Lice Control Extinosad $41.50 /litre $0.83 /20ml dose Drench Ivomec $15.00 /litre $0.19 /12.5ml dose Vaccine 3 in 1 $ ml $0.20 /1ml dose 6 in 1 $ ml $0.24 /1ml dose Blowfly Control Clik $50.00 /litre $1.20 /24 ml dose Wool packs nylon $11.50 ea Shearing Sheep $ /100 rams $ /100 shed labour $ /day wool classer $ day superannuation 9.50% wages Work Cover-Allow 4.00% total shed sundries $0.15 /head Crutching sheep $87.42 /100 rams $ /100 lamb marking mulesing / materials $1.30 /head marking only $1.00 /head ear tags $0.35 /head Stock purchaces purchase rams $ /head purchase wethers $45.00 /head Stock selling Sell wethers $70.00 /head freight sheep $3.50 /head $6.00 Pastoral freight lambs $3.50 /head $6.00 Pastoral freight bales $10.00 /bale $12.00 Pastoral commission/insurance 5.5% yard fees $0.70 /head sheep transaction levy $0.20 /head lamb transaction levy $1.50 /head SA sheep industry levy $0.35 /head wool brokerage / testing / insurance $0.22 /kg wool levy 2.0% BEEF Drench (backline) Genesis $ /litre $4.28 /25ml dose 7 in 1 vaccine $ /250 ml $ Trace Element treatments $3.00 /head HGP implant $1.75 Vitamin injection $1.30 NLIS Breeder Tags (incl levy) $4.90 each freight cattle in freight cattle out Catle levy $12.00 /head $16.00 /head $5.00 /head FEED & OTHER COSTS water $2.50 /DSE fuel $0.70 /DSE other $0.50 /DSE hay $ /tonne Feed Cereal grain $ /tonne lupins $ /tonne Farm Gross Margin & Enterprise Planning Guide

83 Farm Costs 2014 Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Users of this publication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required. CHEMICAL COSTS - HERBICIDES 2,4-D Amine (625g/l) $5.00 /litre Achieve WG $65.00 /kg Affinity $ /litre Atrazine (Gesaprim) $8.00 /litre Axial $ /litre Balance $0.38 /gram Boxer Gold $13.75 /litre Broadstrike $0.72 /gram Brodal Options $43.00 /litre Bromoxynil /MCPA $13.00 /litre Chlorsulfuron 750g/kg (Glean) $0.12 /gram Clopyralid 300g/L (Lontrel) $30.00 /litre Conclude $15.00 /litre Dicamba 500g/L $19.50 /litre Diclofop methyl 500g/L(Hoegrass ) $18.75 /litre Diuron 900 gm a.i. granules $11.70 /kg Glyphosate 540g/L $7.40 /litre Intervix $40.00 /litre Lexone (Metribuzin 750 gm/kg) $0.03 /gram M.C.P.A. LVE $9.00 /litre MCPA Amine (750g/L) $9.00 /litre Metsulfuron methyl $0.08 /gram Midas $23.00 /litre Oxyfluorfen 240g/L $18.00 /litre Paraquat $8.00 /litre Precept $16.00 /litre Quizalofop (Targa ) $10.00 /litre Reglone $20.00 /litre Sakura $ /kg Select $14.00 /litre Simazine Granules 900g/kg $7.60 /kg S-metolachlor 960g/L (Dual Gold) $16.00 /litre Sprayseed $11.00 /litre Terbyne 750 $21.00 /kg Tigrex $17.60 /litre Topik EC $65.00 /litre Tri-allate 500g/L $10.00 /litre Triasulfuron 750g/kg (Logran) $0.08 /gm Velocity $29.00 /litre Trifluralin 480g/L $6.00 /litre Verdict 520 $44.00 /litre CHEMICAL COSTS - ADJUVANTS Uptake (Oil) $6.70 /litre BS-1000 (WETTER) $6.00 /litre Supercharge $7.25 /litre Hasten $5.00 /litre Surfactant cost (with Achieve) Per Ha $4.08 Assume 0.75% surf. Oil Cost $2.51 Assume oil Wetter Cost per Ha $0.45 Assume 0.1% surf. CHEMICAL COSTS - INSECTICIDES Dimethoate 400g/L $10.00 /litre Omethoate 400g/L $29.00 /litre Alpha-cypermethrin 16g/L $7.00 /litre Lambda-cyhalothrin (Karate Zeon ) $ /litre 24mls/ha Imidan $13.00 /litre Maldison 500g/L $8.50 /litre Chlorpyrifos 500g/L $10.00 /litre Lorsban Talstar $44.00 /litre A gross margin template for crop and livestock enterprises 77

84 Farm Costs 2014 Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Users of this publication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required. CHEMICAL COSTS - FUNGICIDES Apron XL 350 ES Mancozeb 750g/kg Veteran C Vitavax 200 FF Baytan Armour C P-Pickel T Carbendazim 500g/kg Tebuconazole 430 Triadimefon 125g/L Propiconazole 250g/L Chlorothalonil 500g/L Prosaro Amistar Opus CHEMICAL COSTS - TRACE ELEMENTS Zincsulphate Coppersulphate Mangasulphate FUEL COSTS Total price - Diesel (GST Exc) Rebate Net Price Diesel - $/litre FERTILISER COSTS MAP 10:22 DAP 18:20 Urea Superphosphate Granulock 1% Zn DAP + Urea 24:16 DAP + Urea 28:13 DAP + Urea 32:10 $ /litre $10.00 /kg $25.00 /kg $30.00 /kg $30.00 /kg $30.00 /kg $41.00 /litre $22.00 /kg $12.00 /litre $8.70 /litre $13.50 /litre $21.00 /litre $67.00 /litre $55.00 /litre $30.00 /litre $1.45 /litre $3.60 /litre $1.45 /litre $1.45 /litre $0.38 /litre $1.07 /l bulk includes rebate $655 /tonne $655 /tonne $560 /tonne $326 /tonne $705 /tonne $655 /tonne $640 /tonne $625 /tonne GRAIN GRADING & PICKLING Cost /Tonne Grading cereals $22.00 other crops $24.00 Pickling cereals $1.30 other crops $1.40 Cleaning wheat $24.00 barley $25.00 peas $30.00 Smuticide - Cereals Veteran C $25.00 Note- Assumes minimum standard of application for smuts and bunts. More expensive options available which may give some control of foliar diseases. Seek advice Inoculant Legumes $18.00 Seed Treatment P-Pickle T $82.00 /tonne Farm Gross Margin & Enterprise Planning Guide

85 Farm Costs 2014 Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Users of this publication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required. STOCK RETURNS 2011 Average (Clean) 2012 Average (Clean) 2013 Average (Clean) Budget Base (Clean) Budget Base (Greasy) WOOL- High Rainfall 28 mic 70%Yield High Rainfall 19.5 mic 70% Yld Med Rainfall 21 mic 68% Yield Low Rainfall 22 mic 63% Yield Crossbred Ram 32 mic 250 FREIGHT COSTS (as included in Gross Margins) Cost /Tonne CANOLA $25.00 FERTILIZER $20.00 LENTILS $30.00 OTHER LEGUME GRAINS $25.00 CEREAL GRAINS $20.00 TRITICALE $25.00 HAY-OATEN $28.00 CONTRACT RATES (indicative only- will be highly variable depending on situation) aerial spraying $14.00 /hectare Contract harvesting cereals, low rainfall $40.00 /hectare Contract harvesting cereals, high rainfall $60.00 /hectare Contract harvesting pulse/canola, low rainfall $68.00 /hectare Contract harvesting pulse/canola, high rainfall $90.00 /hectare Windrowing $35.00 /hectare Contract spreading $32.00 /tonne includes cartage Contract spreading $12.00 /tonne excludes cartage Haymaking Contract mowing-up to $45.00 /hectare Contract raking $25.00 /hectare Contract baling (750kg square bales) $20.00 /bale Super conditioner (oaten hay) $ /hectare Farm Costs 2014 Note: The below costs have been collected from a number of regional sources and should be seen as an approximate guide only. Users of this publication should ascertain the relevance of these costs to their particular situation and make adjustments to gross margin budgets if required. INSURANCE COSTS Livestock Sheep and cattle Crops Cereals Chickpeas, lupins, safflower Faba beans, vetch, lentils, canola Field Peas $2.00 /$1,000 insured $8.50 /$1,000 insured $10.00 /$1,000 insured $12.00 /$1,000 insured $16.00 /$1,000 insured A gross margin template for crop and livestock enterprises 79

86 INCOME Gross Margin Proforma forma Average yield $ /tonne (estimated silo return) TOTAL INCOME EXPENSES Pool Charges & Interest $ /tonne Seed $ /tonne Seed $ /tonne treatment Fertiliser $ /tonne $ /tonne $ /tonne Chemicals Herbicides Insecticides Fungicides Machinery Fuel & Oil Repairs & Maintenance Freight Grain $ /tonne Fertiliser $ /tonne Contract Work $ /tonne $ /tonne Insurance Other $ /tonne $ /tonne TOTAL EXPENSES GROSS MARGIN /HECTARE Farm Gross Margin & Enterprise Planning Guide

87 Managing your soil to improve crop yield The New Horizons Program is helping to revolutionise broad acre farming in South Australia By applying recent advances in soil science that modify soil to a depth of 50 centimetres scientists think that productivity can be dramatically increased. To find out more about New Horizons phone Brett Bartel (08)

88 22 years of TARGETED RESEARCH for SA Growers TRUSTEES OF THE SA GRAIN INDUSTRY TRUST Jim Heaslip (Appila) Linda Eldredge (Clare) Michael Treloar (Cummins) David Shannon (Kapunda) Specialist Advisor, Tanja Morgan (Jabuk) The trustees are assisted in project allocation decisions by GPSA nominees Peter McCormack (Turretfield) and Scientific Adviser Dr Allan Mayfield. PROJECT MANAGEMENT Royal Agricultural & Horticultural Society of SA Malcolm Buckby (phone ) SA GRAIN INDUSTRY TRUST APPROVED PROJECTS Publication of 2014 Farm GM and Enterprise Planning Guide for SA; Pulse Breeding Australia Inaugural Pulse Conference - Sponsorship; Maximising productivity and managing risk through robust characterisation of variety specific response to agronomic practices; XRF as a tool for measuring crop nutrient contents in the laboratory and field; Traineeships in Applied Grains Research; Forage peas - a potential new break crop option for SA Hart advanced cropping systems and stubble handling; Development of a strand medic cultivar resistant to powdery mildew; Silverleaf nightshade control; Evaluating clethodim tolerance in canola; Improving canola establishment Evaluation equipment for Upper Eyre Peninsula agricultural events.