Profit Series

Profit Series 

2019 

Professional Edition

COPYRIGHT AND DISCLAIMER 

Profit Series 

2018/19 

Copyright 

Material in this report including text and images 

is protected by copyright law and is copyrighted 

to Farmanco Management Consultants Pty Ltd. 

No part of this publication may be distributed 

or reproduced in part or whole, or relied 

upon by third parties for any use without 

written permission of Farmanco Management 

Consultants Pty Ltd. 

Confidentiality 

Farmanco Management Consultants Pty 

Ltd considers the confidentiality of client 

financial data of paramount significance; as a 

consequence Farmanco will not publish data 

that identifies individual clients and as such, 

data that is presented in this report is an 

amalgamation of all data received by Farmanco. 

Farmanco Management Consultants Pty Ltd 

has put time and effort into developing the 

Profit Series. We recognise that continual 

improvement is needed to continue to provide 

the best possible information to assist in 

the decision making process for businesses. 

Farmanco Management Consultants Pty Ltd 

welcomes any suggestions on improvements to 

the Profit Series family of reports. 

Photo Credits 

Front Cover: Carter, A. 2013, Canola Fields. Business Performance Divider: Taylor, M. 2019, Feeding for a pot of gold. Cropping Divider: Page, M. 2017, Hay. 

Livestock Divider: Carter, A. 2017, Stand-off. Machinery Efficiency Divider: Rignall, R - McIntosh & Son. 2019, New Holland CR9.90.

CONTENTS 

Rainfall Zone Map 1 

Introduction 2 

BUSINESS PERFORMANCE CROPPING LIVESTOCK MACHINERY EFFICIENCY 

Business Performance Summary 7 Cropping Summary 36 Livestock Summary 89 Machinery Efficiency Summary 112 

GRAPHS 

Equity and Income 10 Wheat 38 Sheep Operating Profit 91 Seeding Capital 114 

Gross Farm Receipts 11 Barley 43 Lambs Weaned 92 Spraying Capital 115 

Variable Costs 12 Oats 48 Sheep Stocking Rate 94 Harvesting Capital 116 

Overhead Costs 13 Canola 53 Cattle Operating Profit 97 Kilowatts per Tyne 117 

Machinery Costs 14 Lupins 59 Calves Weaned 98 

Crop % by Return 17 Field Peas 61 Cattle Stocking Rate 99 

Finance Costs 18 Hay 63 

Internal Rate of Return (IRR) 19 Wages 68 

Return by Rainfall 21 Labour 69 

Cropped Ha by Operating Profit 22 Fertiliser 70 

TABLES 

Chemicals 71 

Fuel & Oil 72 

Repairs 73 

Phosphorus 74 

Potassium 75 

Lime 76 

Land, Labour & Machinery 23 Rainfall 77 Sheep Production 102 Seeding Efficiency 118 

Assets & Liabilities 24 Grain Marketing Summary 77 Cattle Production 106 Spraying Efficiency 118 

Profit History 25 Crop Production 78 Enterprise Analysis 108 Harvesting Efficiency 118 

Business Resource Indicators 31 Enterprise Analysis 80 

Business Cost Indicators 33 

© Farmanco | Business Edition Profit Series 2019

Farmanco Rainfall and Geographic Zones 

5 Year Average Return on Assets Managed 

Northern Zone 

Southern Zone 

Eastern Zone 

Eastern States 

Total 

Geographic Zone 

112 clients 

99 clients 

49 clients 

30 clients 

290 clients 

Client Base Summary 2018/19 

Rainfall Zone 

Low Rainfall Zone 

47 clients 

Medium Rainfall Zone 

181 clients 

High Rainfall Zone 

62 clients 

Total 

290 clients 

Eastern States 

5 Yr Av. Return on Assets Managed 2018 Return on Assets Managed 

4.04% 0.22% 


Low Rainfall Zone 

5 Yr Av. Return on Assets 

Managed 

2018 Return on Assets 

Managed 

Northern 7.39% 21.73% 

Southern 3.46% 4.69% 

Eastern 4.10% 4.29% 


Medium Rainfall Zone 


Managed 


Managed 

Northern 6.18% 14.32% 

Southern 5.43% 7.60% 

Eastern 8.09% 9.77% 


High Rainfall Zone 


Managed 


Managed 

Northern 4.58% 8.39% 

Southern 6.65% 7.61% 

Eastern 7.76% 11.54% 

© Farmanco | Business Edition Profit Series 2019 Page 1

INTRODUCTION 

Welcome to the Profit Series for the 2018 season in 

Australia. 

Eric Nankivell 

The Profit Series is a powerful 

benchmarking tool that helps you to 

identify strengths and weaknesses 

in your business by comparison 

to others. It is rare to have a 

benchmarking service to this level of 

detail so put it to good use in your 

business. 

The key to making this whole process possible in the 

past has been our Aplus software. However, we now 

have a platform where any grower in Australia can be 

part of the benchmarking set. This comes with its own 

challenges as the process needs to be good enough 

to ensure that the quality of data entered does not 

compromise our data set. Richard Brake has taken 

on this challenge and is also looking at new ways to 

present this data rather than just numbered graphs. 

The numbered series is only available to those who 

contribute data to the Profit Series. A copy of the Profit 

Series is available to industry generally on our website, 

but this is a dot series and it does not show businesses’ 

ranking numbers. This is still valuable for trend data 

between rainfall zones and localities. 

There is a major change to our ranking system this 

year which could shuffle your number around a bit. 

Traditionally, we have calculated the return based on 

the Operating Return on Production Assets (ORPA). 

Hence, if you had a 2,000ha farm and leased 2,000ha 

more, you would have a greater return on assets 

(providing you made a profit after making the lease 

payments) because your land value is only the 2,000ha 

you own. 

However, we have done some work on the suitability 

of this approach when measuring and comparing 

productive performance and have concluded that when 

it comes to productivity, we should be including the 

value of leased land (profit before the lease payment) 

in our ranking number. This measure is the Return on 

Assets Managed (ROAM). 

The outcome of this change will tend to see businesses 

with leasing and sharefarming agreements drop down 

the ranking (in profitable years) and 100% land-owning 

businesses will tend to be elevated, unless, of course, 

either is performing well above the average, overall. 

Introductions to each section are from different 

members of our management team including Rob 

Sands (Business), Richard Brake (Livestock), Greg 

Easton (Crop) and David Ward (Machinery). We look 

forward to challenging you and your business partners 

to look for opportunities to continue to improve. 

HOW TO READ THE PROFIT SERIES 

A unique book is printed for each business that 

participates. 

You can follow the data for your own business in every 

graph and table. 

Your ranking number is shown on each graph as a larger 

number in distinctive brackets. 

In the tables, your number is shown in the top righthand 

corner. 

Your business may not be represented in this data if: 

• The information provided to your consultant was not 

complete; 

• The measure is not relevant to your business; 

• Your number is an outlier and the graph scale has 

been altered to make most data points more legible. 

Figures outside the graph boundaries are still 

included in the trend-line; 

• Newer clients may not have a full five years of data. 

If you are not included this year, be sure to ask your 

consultant how your business can be included in the next 

Profit Series. Alternatively, you can now also enter your 

data through our online Profit Analyser portal, and we 

will produce a numbered book for you during this year: 

https://my-profit-analyser.farmanco.com.au/ 

For more information about the Profit Series and the 

Profit Analyser Portal, please take a look at our website 

www.farmanco.com.au 

Reading the Graphs 

Be sure to read the graph heading and axis labels 

carefully. Given this information, you should be able 

to work out where you expect your number to be and 

why (not just relying on the graph showing you where 

it is!). This helps in developing both an understanding 

of your business and the trend shown on each graph. 

Remember that each graph is derived from one of 

the associated tables. These tables will have further 

information about the range of performance within 

each zone, including the top and bottom 25% in each 

rainfall zone as well as for the whole client base. 

If you are unsure about the interpretation of a figure, 

call your consultant or put it on the agenda for your 

mid-year review. 

The graphs are colour-coded as follows: 

Low Rainfall=Red 

450mm 


INTRODUCTION 

All clients are ranked according to their five year 

average Return on Assets Managed and receive a 

number where 1 = the most profitable business in 

that five year period. This year there are 290 clients, 

where 290 is the lowest ranked. 

The top 25% of clients (numbers 1 to 73) are identified 

with brackets around their ranking numbers. 

With this information, you should be able to readily 

identify your performance in relation to the others 

across all zones, in your own rainfall zone and in the 

top 25%. 

Understanding Top and Bottom 25% Columns in the 

Tables 

Each rainfall zone has its own top 25% and bottom 

25%, which is based on the ranking in that zone only. 

The top 25% and the bottom 25% for all clients is based 

on the ranking across all the clients, not the combined 

average of the top 25% for each rainfall zone. 

In 2018, the low rainfall clients performed very well, 

and this has pushed 30 (out of 47) of these businesses 

into the top 25% of all clients, while the high rainfall 

zone has only 4 (out of 62) businesses in the top 25% 

of all clients. This result means that when you compare 

the top 25% for all clients to the average for all clients, 

you need to be careful how you interpret the figures. 

A production example is the top 25% of all clients are 

growing lower yielding crops than average, but if you 

look across the rainfall zones, that is not true. A cost 

example is machinery capital spend is lower in the top 

25% than the average, so lower machinery spending 

is what the top 25% are doing, however, the opposite 

is the case if you look at the data within rainfall zone 

numbers for the low and medium rainfall zones. 

Reading Averages in the Tables 

There are two different types of averages used in the 

Profit Series. They are highlighted in the tables with 

either a “Y” or an “N” in the “0’s” column. The “Y” tells 

you the average includes “zero” values. For example, 

take the following three numbers: 10, 0, 20. The 

average in this case will be 10. 

However, with some measures, it may not make sense 

to include a "0" value in the average. For example, 

there may be a zero value for a wheat yield because 

a client did not grow wheat. You do not really want to 

reduce the average wheat yield by this zero value. In 

this case, the “0’s” column is denoted by a “N”. The 

average of 10, 0, 20 would be read as 10, 20 and the 

average would be 15. 

In the example above, the “No.” column would also 

reflect the appropriate number used in the average. 

For example, the “Y” above would show the client 

count for this item as “3”, while the “N” would record 

the number of clients in the average as “2”. 

Those responsible for collating the Profit Series this 

year were Richard Brake and Cassandra Mansell, with 

support from the Management Team. 

If you have any suggestions for improving, changing or 

even adding any new measures, please speak to your 

consultant or a Profit Series team member. 

Definitions 

1. Calculation of Profit 

The following formula sets out how the farm business 

profit has been calculated: 

Calculated Income (See Note 2) 

Plus Other Farm Income 

Less Adjusted Variable Costs (See Note 3) 

= Gross Margin 

Less Adjusted Overheads 

Less Machinery Replacement Allowance (See Note 4) 

Less Maintenance of Land & Improvements Allowance (See 

Note 5) 

Less Management Allowance/Imputed Salary (See Note 6) 

=Return on Assets Managed (ROAM) 

NOTE: This is the point of performance ranking in 

this Profit Series and is based on an average over five 

years. This profit measure is before capital growth, 

finance costs and lease/share farming payments. 

The next steps: 

Less Financing Costs (Interest & Fees) 

Less Interest on Machinery HP or Lease 

Less Farm Lease & Share Farm Net Payments 

=Net Farm Profit (Before Tax) 

Photo: Glancy, S. 2019, Sheep in Road 


INTRODUCTION 

Less Calculated Farm Tax 

=Net Farm Profit (After Tax) 

=Return on Equity (After Tax) 

+/- Change in Land Value and Water Assets 

=Net Farm Profit (Including Capital Gain) 

+/- Non-Farm Income (Net of Costs) 

+/- Non-Farm Asset Capital Gain or Loss 

+/- Non-Farm Tax 

=Net Business Profit (After Tax) 

Existing clients can find this calculation on the Profit 

History page in their annual review. One of the key 

advantages of this Farmanco analysis over other 

agricultural analyses done in Australia is that it is based 

on a real profit rather than a cash flow analysis. This 

takes a greater amount of thought and time to do but 

it is much more useful. 

For your own business, the important figure is the 

Return on Farm Equity. This figure uses the performance 

of your business after the cost of financing and shows 

how well you are using finance, farm leases and share 

Photo: Rignall, R - McIntosh & Son. 2018, Capture 

farm arrangements to leverage a better result from 

your business. If Return on Equity is consistently greater 

than the Return on Assets then the level of gearing has 

been good for your business. 

2. Calculated Income 

The key points to this calculation are: 

Crop & livestock income is calculated as the actual price 

received (or estimated to receive if the grain is pooled 

or wool stored) for the total quantity of grain produced 

for sale in the analysis year, all livestock sold in the 

analysis year, and all wool shorn in the analysis year. 

The grain price received (or estimated) takes into account 

grade/quality premium/discounts and is calculated 

back to an equivalent Free In Store (FIS) price. Where 

grain has been delivered to a local user, we add on the 

Upcountry Freight and Grain Handling Fees to calculate 

the equivalent price for grain that would be exported 

from the nearest port. The price used is also before 

the costs of End Point Royalties or levies as these are 

included in operating costs and may or may not be paid 

by the purchaser. Using this equivalent price allows us 

to compare all the grain prices and grain income across 

Australia on the same basis. 

At review time when this data is put together, any pool 

prices, stored grain and stored wool are an estimate. Of 

course, the eventual return may be quite different. A key 

point with the Farmanco process is that at the following 

year’s review, we update the equivalent cash price for 

the previous year’s produce so that historical incomes 

are accurate. This results in the long term analysis being 

more accurate. 

3. Adjusted Costs 

Costs are adjusted to make sure that those incurred 

represent the true costs to the business for that 

production year. For example, inputs that were 

purchased in a previous year but used in the current 

year will be added to expenditure for this year’s 

analysis. 

Conversely, those inputs purchased within the period 

but carried over for use next year are removed from 

the costs. 

4. Machinery Replacement Allowance 

This allowance is calculated as approximately 10% of 

the average of the opening and closing values. This 

allowance is intended to represent the annual cost 

of maintaining the capability of plant and machinery. 

Actual machinery purchasing costs for a given year are 

not necessarily relevant to calculating profit. However, 

the average cost over the long term should equate to 

the 10% allowance being used. 

5. Infrastructure Allowance 

This allowance has been calculated based on your 

current assessment of the value of improvements. 

For example, a residence that would cost $300,000 

to replace today, has an expected life of 70 years 

and is currently 35 years old is considered to have a 

value of $150,000 today. The annual replacement 


cost of this residence is considered to be $4,286 p.a. 

($300,000/70years). Therefore, its value with 35 years 

left is considered to be 35 x $4,286 = $150,000. The 

combination of all infrastructure items equals the 

Infrastructure Allowance. 

This allowance approximates the annual capital cost 

of replacing improvements and caring for your land. 

It represents the essential costs to maintain the base 

productive capacity. It is a true cost (but not necessarily 

a cash cost in any one year) that has to be accounted 

for when calculating profitability. 

6. Management Allowance 

This is not your personal drawings as seen in your 

cash flow. Your actual drawings, for various reasons, 

might be under or over the true cost of managing your 

particular business. For example, if they are higher 

than the real cost then you have, in effect, chosen to 

spend some of your profits (or make your loss worse!). 

So for the purpose of profit calculation, we calculate 

the management allowance on the likely commercial 

cost of employing someone to manage the business. 

For 2018, this was $80,000 + 1% of turnover per 

management unit. Additional salary package costs 

are accounted for in variable costs (e.g. rent, fuel, 

electricity, phone, vehicle and some repairs, etc). This 

often equates to a salary package of between $105,000 

and $115,000. 

7. Growing Season Rainfall (GSR) and Rainfall Zones 

GSR is based on your monthly rainfall records from April 

to October with adjustments for effective summer rain 

and ineffective growing season rainfall. 

The rainfall zones are depicted on page 1. 

8. Total Farm Assets 

This is taken from the Asset and Liability statement 

at the start of the analysis period for the purposes of 

return on asset calculations. 

9. Effective Hectares 

For most businesses, these will equal the Arable 

Hectares. For some businesses, there will be a 

significant area that is effective for grazing purposes 

but is unable to be cropped. The analysis is based on 

effective hectares. 

10. Crop % 

The proportion of effective hectares cropped excluding 

NUA or crop sprayed out.. 

11. Winter Grazed Hectares 

Photo: Page, M. 2018, Fairley Moonrise 

Effective Hectares Less Area Cropped. 

12. Labour Units 

Labour units are determined in the business details 

section of your annual review report. At this point, 

an assessment is made of the number of labour 

units - people working full time in the business plus 

casual employees as a proportion of a labour unit. For 

example, a business where father and son work full 

time and an employee is required during seeding and 

harvest for a total of eight weeks during the year will 

equate to 2.15 labour units. 


BUSINESS PERFORMANCE 

Business Performance


2018 was a year of extremes, with some businesses 

having their best year ever and some businesses 

having their worst year ever. Prices were above 

average across all commodities, however, drought 

affected many businesses in Eastern Australia and 

there were areas in Western Australia that had well 

below average winter rainfall as well as frost. Overall, 

benchmarked businesses in 2018 produced an 

average farm income of $799/ha, which is the highest 

for the last 20 years and was $149/ha above the next 

best average income of $650/ha in 2013. The average 

Return on Assets Managed (ROAM) was 6.11%. This 

makes it the fourth best ROAM generated in the last 

20 years. Increases in land values and costs, since 

2013, have meant that despite 2018 farm income 

being 23% above 2013, the ROAM for 2018 was 38% 

lower than 2013. The good profits generated in 2018 

have seen the average Net Equity % increase from 84% 

to 87%. This means that the average farm business is 

now able to consider expansion or further investment 

in their current business. 

The Farm Income of $799/ha is well above the previous 

five years and continues the long-term trend of 

increasing farm income over time. Cropping continues 

to be the main contributor, providing 83% of Farm 

Income, with an average income of $868/ha. 

The sheep enterprise generated the highest income 

for the last 20 years, at $488/ha, due to the best wool 

price average of $11.93/kg and the best average sheep 

price of $122/hd. 

Cattle income did recover from the drop in 2017 to 

reach $537/ha, which is the second-best average 

income for the cattle enterprise over the last 20 years. 

Chart 3 looks at the increase in crop income and sheep 

income above the rate of inflation. The average inflation 

over the last 20 years has been 2.5%. Crop income has 

improved by 3.6% more than inflation over the last 20 

years, which is an impressive result given the difficult 

© Farmanco | Business Edition Profit Series 2019 Page 7 


$/Effective Ha 

% Return on Capital 

$900 

$800 

$700 

$600 

$500 

$400 

$300 

$200 

$100 

$0 

15% 

13% 

11% 

9% 

7% 

5% 

3% 

1% 

-1% 

-3% 

$211 $203 $251 $180 

Chart 1: Farm Income $/eff. ha 

4.61% 

2.40% 3.05% -1.55% 

9.76% 

10.70% 

Return On Assets Managed 

1.00% 

4.00% 3.20% 

2.00% 

0.40% 

-1.10% -0.78% 

-2.12% 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

Chart 2: Return on Assets Managed 

$317 

$261 

$388 

starts and low winter rainfall that has dominated this 

period. Some of this increase is due to better grain 

yields, which have increased at 1.05% per year. The 

bigger part of the equation has been that grain prices 

have grown at 1.36% above inflation. 

Sheep income has improved dramatically over the last 

20 years and has increased by nearly 5.6% per year 

above inflation, which is 2.0% above the increase in 

crop income. The average sheep income in the last 10 

years, of $320/ha, is more than double the average 

for the previous 10 years of $147/ha. Despite the 

spectacular rise in the wool price over recent years, 

the sale prices of sheep at 5.8% > inflation have been 

Farm Income $/eff Ha 

$280 $297 $261 

$448 $464 $373 $358 

Wheat Price 

5.85% 

1.33% 

9.85% 

Crop Income 

4.90% 5.72% 6.13% 6.11% 

5.37% 

Wool Price 

Land Values 

Sheep Income 

Sheep Price 

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 

Chart 3: Margin Over Inflation 

$528 

$470 

$650 

$595 $603 

$645 $637 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

$799


a bigger driver than the wool price increase of 4.3% > 

inflation. Any sheep operations that haven’t changed 

the objectives of their sheep flock to capitalise on this 

change are unlikely to have the most profitable flocks. 

Unfortunately for the sheep industry, these increases 

are off a low base and the 2018 crop income of $868/ 

ha is still 78% more than 2018 sheep income of $488/ 

ha. 

Land values have increased sharply a couple of times in 

the last 20 years. The biggest increases tend to occur 

when areas get high grain prices and above average 

yields or a run of better years for the grain belt, and 

the increases in wool and sheep prices in the last three 

years have pushed up prices in the livestock dominant 

areas. Over the last 20 years, land values have increased 

by 5.9% after inflation across all regions of Australia. 

There is a range of increases from 4.2% to 6.9% across 

the different regions, with values at the top end being 

driven by higher levels of productivity for the region 

over several years. This boosts the balance sheets of 

businesses in the region, which increases the local 

demand and pushes values higher than regions that 

haven’t enjoyed a good run of seasons. 

Chart 2 shows that the Return on Assets Managed for 

2018 was 6.1%, which is the fourth best result in the 

last 20 years. The average ROAM over the last 20 years 

has been 3.4%. 

The last six years have produced an average return 

of 6.2%, with a range of 4.9% to 9.85%. This has 

been the highest and most consistent return for any 

six year period in the last 20 years. This has allowed 

many businesses to expand or repay debt, upgrade 

machinery and carry out soil amelioration works to 

protect the long-term productivity of their farms. This 

good run in many parts of Western Australia has seen 

land prices increase dramatically in recent years. Across 

all businesses, positive operating returns have now 

been recorded for the last 12 years. This average return 



% Net Equity 

100% 

95% 

90% 

85% 

80% 

75% 

70% 

65% 

60% 

55% 

50% 

91% 92% 92% 88% 

Chart 4: Net Equity (Year Closing) 

35.00% 

30.00% 

25.00% 

20.00% 

15.00% 

10.00% 

5.00% 

0.00% 

-5.00% 

-10.00% 

Chart 5: Internal Rate of Return (IRR) 

across all businesses masks the greater variation for 

individual businesses, with many businesses recording 

significant losses in 2007, 2009, 2010, and 2012. It is 

worth noting that the operating return is calculated 

before financing costs. Any business with a reasonable 

amount of debt and an operating return that is less 

than the cost of those borrowed funds will have a lower 

return on equity after accounting for financing costs. 

The average Net Equity % of all businesses was 87%. 

94% 

89% 

94% 

90% 90% 

Net Equity (Year Closing) 

85% 88% 90% 83% 

78% 80% 80% 79% 

84% 83% 83% 84% 87% 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

This average means that while a significant number of 

businesses are running at 100%, there are also a few 

businesses that are below the safe level of 75% equity. 

As Chart 4 shows, the average across all businesses will 

move over time, with the level of debt across the whole 

industry increasing with poor seasons or low prices 

and improving with better seasons or higher prices. 

The movements for an individual business will follow 

this general trend with the added impact of major land

purchases that will also force the equity % down. Any 

business that is below 85% equity should continue to 

make debt reduction a high priority to strengthen the 

financial resilience of their business. At the start of 

2013, the average Net Equity % was 79%, so a lot of 

businesses have paid off debt over the last five years, 

with increasing land prices also contributing to the 

better Net Equity %. 

As the last 20 years has shown, the climatic cycles will 

continue to challenge the agricultural industry and 

businesses need to have enough financial reserves 

to absorb the trading losses in the poor years or run 

of lower profitability years. Maintaining a reasonable 

level of equity and repaying debt in the good years will 

build resilience in a farm business. The other side of this 

equation is that when profits are generated, investing 

in new technology or soil ameliorants may be needed 

to improve the long-term profitability of the business 

and protect profit margins in the years of lower prices. 

The Internal Rate of Return (IRR) is the rate at which a 

business would have to have grown on an annual basis to 

achieve its current position from a given starting point. 

The only adjustments outside of looking at the start 

and end equity position is allowing for the difference 

between drawings and our calculated management 

allowance and the movement of capital into or out of 

the farm business. By default, this considers all costs 

including the true costs of depreciation, financing and 

tax, and includes any capital growth from increasing 

land values. The IRR of land values over the last five years 

was 4.9%. The IRR we calculate for the farm business 

over any period is effectively a post-tax dividend on the 

investment in that farm business. The 2018 five year 

farm business IRR average across all clients is a very 

healthy 8.8% and shows the industry has performed 

well over the last five years. The average inflation rate 

over the same period has been 1.60%, so this is a real 

return of 7.2%. To put that into perspective, a number 

of large superannuation funds have a target to achieve 

a 5% real return. 

Chart 5 shows the five year IRR for all the businesses 

that have five years of IRR data. The good result in 2018 

has shifted a lot more businesses above the inflation 

line, however, there are still 9% of businesses that are 

not keeping pace with inflation. What is pleasing to see 

is that over 76% of businesses are performing at 5.0% 

or better. 

In this data set, the top 25% of clients averaged 16.5%, 

while the bottom 25% averaged 1.9%. This is a big gap 

between the top and bottom 25% and is the difference 

between the businesses that have a long-term future 

in agriculture and those that need to improve their 

business performance, if they want to be part of that 

future. 



Photo: Page, M. 2019, International Truck

Net Farm Equity v Net Debt to Income Ratio - 2018 

Net Farm Debt/Income Ratio (Farm Debt less Farm Non Production Assets) 

3 

2 

1 

0 

45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 

Net Equity% 

Rainfall 

Zone 

L 

Net Equity% 

91% 

Net Farm Debt/Income Rao 

0.4 :1 

Businesses are in their strongest position in five years as net equity in both the LRZ and HRZ increased by 6% and the MRZ increased by 

5%. Net debt remained stable for both the MRZ and HRZ and halved in the LRZ, with excellent incomes being recorded across the LRZ. The 

impact on net debt to income ratios will be reflected in 2019 as debt is paid down during the season. 

M 

89% 

0.6 :1 

H 

87% 

0.7 :1 


BUSINESS PERFORMANCE

Gross Farm Receipts per Hectare - Five Year Average 

1200 

1000 

Calculated Farm Income $ per eff ha 

800 

600 

400 

200 

L 

M 

H 

0 

Rainfall 

Zone 

Calculated farm Income $ per eff ha 5 Yr AVG 

$605/Ha 

$788/Ha 

$857/Ha 

High grain prices and average to good yields have resulted in some of the highest GFR/Ha five year averages we have ever seen. LRZ GFR 

are up 90%, MRZ up 22% and HRZ up 5% on 2017 results. Although there is a tail of businesses with lower GFR, the past five years have 

seen rising incomes from good production. Targets LRZ >$400, MRZ >$600, HRZ>$800 



Variable Costs as a Percentage of Income - 2018 

100% 

90% 

Operating Variable Costs as a Percentage of Income 

80% 

70% 

60% 

50% 

40% 

30% 

Rainfall 

Zone 

L 

M 

H 

Variable Costs % Income 

45% 

50% 

53% 

For the first time in five years, all rainfall zones recorded an average variable costs percentage below 55%. There is still a large cohort 

that either has too high a cost structure for their income or achieves below average yields relative to their input costs. Variable cost 

management remains key to profitable farming enterprises and it is the area of the business where management continues to have a 

significant influence on the outcome. 



Overheads (exc lease) as a Percentage of Income - 2018 

18% 

16% 

14% 

12% 

Overheads % 

10% 

8% 

6% 

4% 

2% 

0% 

Rainfall 

Zone 

L 

M 

H 

Overheads % Income 

6% 

6% 

7% 

The majority of the top 25% of businesses have overhead costs below 5% of GFR, with average businesses' overhead costs also below 

the target of 10%. Though this code is impacted by income levels, if it remains high year-on-year then there is a need to review fixed 

costs. Work on reducing the highest expenses, such as insurance, down to the lowest expenses, like postage costs. 



Crop Area v Crop Machinery - 2018 

1000 

900 

800 

Crop Machinery Value $/crop ha 

700 

600 

500 

400 

300 

200 

100 

0 

0 2,000 4,000 6,000 8,000 10,000 12,000 

Cropped area ( ha) 

Rainfall 

Zone 

L 

M 

Crop Area 

4,008Ha 

3,467Ha 

Crop Machinery Value 

$ 381/Ha 

$ 544/Ha 

Across all rainfall zones, there has been a consistent increase in cropped area and cropped machinery values over the last five years. This 

has resulted in crop machinery value increasing by more than 22% across all rainfall zones. Increased values are, in part, a result of some 

catch-up machinery investment, but also caused by the rapid increase in new machinery values over the last three years. LRZ crop 

machinery values have fallen by $85/ha in 2018. This was expected given the cropped area increased by 603ha following the reduced 

cropping programs in 2017. MRZ and HRZ crop machinery values have increased by $19/ha and $65/ha respectively. 

H 

3,109Ha 

$ 629/Ha 



Crop Income 5 Yr Avg v Crop Machinery - 2018 

1000 

900 

800 

Crop Machinery Value $/crop ha 

700 

600 

500 

400 

300 

200 

100 

0 

100 200 300 400 500 600 700 800 

Crop Income Per ha 5 YR AVG 

Rainfall 

Zone 

L 

M 

Crop Income Per ha 5Yr Avg 

$473/Ha 

$759/Ha 

Crop Machinery Value 

$381/Ha 

$544/Ha 

Targeting cropping machinery value of less than 85% of cropping income per hectare should ensure you are not overcapitalised and your 

plant is modern enough so that the cropping operations can be completed reliability. The average for each zone is LRZ 81%, MRZ 72% and 

HRZ 68%. The LRZ has made a higher machinery investment per hectare to enable planting to be completed more efficiently and over a 

shorter time frame. 

H 

$926/Ha 

$629/Ha 



Machinery Capital Replacement as a Percentage of Income - 2018 

45% 

40% 

Machinery Capital Replacement as a Percentage of Income % 

35% 

30% 

25% 

20% 

15% 

10% 

5% 

0% 

Rainfall 

Zone 

L 

M 

H 

Machinery Capital % 

7% 

9% 

10% 

Machinery capital replacement percentage is the annual capital portion of equipment finance and the net value of any machinery 

purchased during the year. The goal is to have machinery replacement below 10% over any 10 year period. The majority of farming 

businesses achieve this target over the long term, but in any one year, we always see outliers where an item such as a header is 

purchased for cash. This can result in machinery capital as high as 40% for the year in question. Across all rainfall zones, the average 

machinery capital replacement is 10% over the past five years. 



2018 Cropping Percentage v Five Year Average Return On Assets Managed (ROAM) 

15% 

Return On Assets Managed (ROAM) 

10% 

5% 

0% 

-5% 

30% 40% 50% 60% 70% 80% 90% 100% 

Crop % 

Rainfall 

Zone 

L 

M 

Return On Assets Managed 5Yr 

Avg 

6.88% 

6.21% 

Cropping % 

80% 

83% 

At the current time, the top 10% (1-29) clients are evenly distributed between 100% cropping and mixed farming operations. This 

confirms that getting a good result is as much about your own focus as it is about enterprise choice. Either way, to be consistently 

represented in the top 25%, you need to do whatever you do, well. Going back 10 years, the cropping percentages for each zone were LRZ 

65%, MRZ 65%, and HRZ 57%. While there has been minimal movement from the 100% crop group back towards sheep, we expect to see 

some retraction in these cropping percentages as mixed farms increase exposure to livestock enterprises. 

H 

6.05% 

77% 



Finance Costs as a Percentage of Income - 2018 

25% 

20% 

Finance less wheat loan costs % 

15% 

10% 

5% 

0% 

Rainfall 

Zone 

L 

M 

H 

Finance less wheat loan costs % 

3.37% 

4.97% 

7.42% 

HRZ finance costs as a percentage of income remain close to 7%, where they have been for the last five years. This suggests that HRZ 

businesses are expanding rather that reducing debt. High grain prices and above average yields in the LRZ resulted in all the LRZ client 

finance costs being lower than 10% of GFR for the 2018 season, which is a pleasing contrast to 2017 where 19 LRZ clients exceeded 10%. 

Both the LRZ and MRZ have seen a reduction in the average finance costs as a percentage of income over the last five years. This 

suggests that debt reduction and lower interest rates have reduced the finance costs for these businesses. If you have finance costs 

above 10% of income then debt reduction must be one of your key priorities. 



Total Business IRR 5 Year Average 

20% 

15% 

Total Business IRR 5 Year Average 

10% 

5% 

0% 

-5% 

-10% 

Rainfall 

Zone 

L 

M 

H 

Total Business 5 Years IRR 

7.12% 

8.26% 

9.31% 

The internal rate of return (IRR) in this chart is the annual rate at which you would have had to invest your funds five years ago to 

achieve today's equity result. This takes into account all movements in and out of the business and is a return in post tax dollars. This 

year's average is about 1% higher than the same result 10 years ago and represents a combination of solid growth in land assets as well 

as business performance. Like 10 years ago, the IRR showed a 1% improvement in each rainfall zone as you move from low to high. 



Total Business IRR ≥10 Years 

20% 

15% 

Total Business IRR > 10 years 

10% 

5% 

0% 

-5% 

-10% 

Rainfall 

Zone 

L 

M 

H 

Total Business 10 Years IRR 

5.36% 

7.43% 

8.44% 

This chart is shown over a mixture of periods, up to a maximum of 20 years. From this perspective, it is a less useful graph to compare 

your own performance directly against. Nonetheless, it is one of the few really long-term business performance measures we have. The 

majority of businesses have shown a long-term IRR greater than 5%. While we are used to seeing the farm operating return reasonably 

consistent across all zones and, at times, higher in the lower rainfall zones (e.g. WA in 2018), land values have not increased in the lower 

rainfall zone to the same degree as the higher rainfall zones in this period of time. 



Return On Assets Managed v Effective Rainfall - 2018 

20% 

15% 


10% 

5% 

0% 

-5% 

150 200 250 300 350 400 

Effective Rainfall (mm) 

Rainfall 

Zone 

L 

M 


11.15% 

8.85% 

Effecve Rainfall (mm) 

211mm 

247mm 

This is an impressive chart, with the results across all rainfall zones being solid and the LRZ achieving an average of over 11% ROAM. This 

return has been held up by strong performances, generally in the Western Region. The averages were trimmed up in the MRZ and HRZ by 

record poor performances in Southern NSW and Northern Victoria, with an average ROAM in those states of just 0.2%. There were parts 

of the Western Region that did not fare so well and parts of southern NSW and Victoria that had strong results. Note that there are a 

number of red numbers mixed with green numbers, reflecting the higher rainfall received in some traditionally lower rainfall zones. 

H 

6.47% 

286mm 



Cropped ha v Farm Operating Profit Before Cap. Growth - Five Year Average 

500 

400 

Farm operating profit before capital growth $/eff ha farmed 

300 

200 

100 

0 

-100 

-200 

-300 

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 

Cropped area ha 

Rainfall 

Zone 

L 

M 

H 

Cropped area ha 5 Yr Avg Farm Operang Profit 5 Yr 

3,905 Ha 

$84 /Ha 

3,297 Ha 

$170 /Ha 

2,744 Ha 

$212 /Ha 

We are often asked if it is the bigger growers who make the most profit. In general, the trend is positive for larger farms to be more 

profitable. However, you would have to say that the trend is not strong. There are some small businesses performing very well and some 

larger businesses not performing so well. As with most things in life, it is what you do with what you've got that is important. Matching 

scale to people and planning to deliver the most effective outcome is the constant challenge. As farms grow larger, you often have less 

control over the detail. Attention to detail is the biggest advantage of a smaller farming operation. 



Profit Series 2018 

P20 

Low Rainfall Medium Rainfall High Rainfall All Clients 

Lower 25% Average Top 25% Lower 25% Average Top 25% Lower 25% Average Top 25% Lower 25% Average Top 25% 0's No. 

12 Clients 47 Clients 12 Clients 45 Clients 181 Clients 45 Clients 16 Clients 62 Clients 16 Clients 72 Clients 290 Clients 72 Clients 

Year 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 

Area Owned & Farmed (Effective ha) (ha) 4,804 4,261 5,054 2,928 3,244 4,067 1,588 2,739 3,026 2,470 3,301 4,098 N 288 

Area Leased (ha) 1,260 1,559 1,432 846 1,312 2,158 899 1,535 1,298 912 1,406 1,767 N 148 

Area Sharefarmed (ha) 520 615 975 1,448 465 599 919 423 775 1,347 N 35 

Total Effective Area (ha) 4,909 5,029 5,923 3,316 4,019 5,394 2,124 3,832 4,403 2,907 4,143 5,258 N 290 

Total Arable Area (ha) 5,323 5,104 5,993 3,273 4,004 5,436 2,083 3,663 4,193 2,857 4,105 5,275 N 279 

Year 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 

Area Owned & Farmed (Effective ha) (ha) 4,909 5,239 6,394 3,318 3,979 5,327 2,117 3,838 4,483 2,904 4,154 5,370 N 288 

Area Leased (ha) 1,260 1,560 1,432 815 1,272 2,054 876 1,526 1,298 886 1,382 1,686 N 146 

Area Sharefarmed (ha) 520 615 975 1,448 465 599 919 423 775 1,347 N 35 

Total Effective Area (ha) 4,909 5,239 6,394 3,318 3,979 5,327 2,117 3,838 4,483 2,904 4,154 5,370 N 288 

Total Arable Area (ha) 4,936 5,211 6,429 3,235 3,971 5,423 2,096 3,732 4,293 2,844 4,118 5,423 N 288 

Management Units 2018 1.52 1.54 1.48 1.41 1.53 1.67 1.45 1.52 1.52 1.43 1.53 1.62 N 281 

Family Units 2018 1.25 1.56 1.54 1.62 1.68 1.71 1.47 1.63 1.72 1.49 1.65 1.71 N 286 

Permanent Labour 2018 1.35 1.91 2.31 2.37 2.49 2.85 2.19 2.78 3.00 2.28 2.45 2.49 N 286 

Casual Labour Wks 2018 37.00 22.83 16.55 42.13 30.23 27.99 16.00 27.91 23.06 36.55 28.61 24.96 N 229 

Management Units 2019 1.69 1.57 1.48 1.47 1.53 1.63 1.40 1.52 1.52 1.50 1.54 1.58 N 245 

Family Units 2019 1.28 1.57 1.54 1.57 1.65 1.73 1.47 1.59 1.60 1.47 1.62 1.70 N 279 

Permanent Labour 2019 1.36 1.93 2.48 2.28 2.31 2.40 2.20 2.70 2.91 2.26 2.33 2.35 N 276 

Casual Labour Wks 2019 46.00 21.73 12.27 43.46 28.38 24.29 19.29 30.26 24.46 39.44 27.72 22.78 N 215 

Plant and Machinery Summary 2018 

Crop Plant $856,021 $1,477,909 $2,184,206 $1,645,034 $1,850,823 $2,522,697 $1,050,648 $1,936,020 $2,256,431 $1,430,426 $1,808,009 $2,053,385 N 286 

Livestock Plant $33,048 $18,636 $12,958 $36,838 $36,204 $25,298 $84,664 $62,498 $34,032 $51,925 $38,588 $17,915 N 209 

General Plant $176,640 $179,068 $141,665 $163,794 $196,801 $231,920 $153,712 $188,383 $199,389 $164,177 $192,137 $210,094 N 285 

Total Plant $1,054,693 $1,672,461 $2,336,669 $1,835,111 $2,006,718 $2,567,492 $1,262,567 $2,133,593 $2,356,509 $1,632,572 $1,979,577 $2,228,803 N 289 

Plant and Machinery Summary 2019 

Crop Plant $839,909 $1,530,224 $2,241,860 $1,540,517 $1,773,911 $2,413,682 $988,099 $1,884,862 $2,393,194 $1,335,019 $1,757,973 $2,120,690 N 287 

Livestock Plant $31,583 $18,065 $12,475 $36,619 $36,525 $24,060 $80,368 $60,475 $33,551 $50,353 $38,264 $17,298 N 210 

General Plant $169,109 $180,492 $151,173 $160,683 $195,780 $244,650 $145,795 $181,053 $192,130 $157,848 $190,180 $219,918 N 286 

Total Plant $1,030,073 $1,720,712 $2,403,429 $1,725,297 $1,969,040 $2,590,275 $1,189,147 $2,102,846 $2,598,191 $1,528,439 $1,957,360 $2,306,359 N 289 

Off Farm Investments 2018 

Superannuation $117,024 $257,745 $449,997 $139,122 $430,238 $1,002,219 $253,515 $331,891 $410,653 $203,498 $381,256 $638,177 Y 290 

Loans Secured by Non Farm Assets $80,672 $200,101 $404,156 $81,822 $126,382 $132,900 $35,248 $51,299 $71,535 $56,201 $122,277 $148,742 Y 290 

Total Business 5 year IRR IRR 4.66% 7.57% 10.08% 7.43% 8.30% 10.16% 5.97% 9.35% 10.93% 6.36% 8.36% 9.19% N 247 

Farm Business 5 year IRR IRR 4.42% 8.15% 10.51% 7.77% 8.84% 10.86% 5.74% 9.40% 10.73% 6.32% 8.82% 10.13% N 247 

Land 5 year IRR IRR 4.41% 3.64% 3.01% 6.92% 5.01% 4.98% 6.68% 5.71% 4.36% 5.47% 4.91% 3.99% N 246 




Statement of Position 2018 

P21 

Lower 25% 

12 Clients 


Average 

47 Clients 

Top 25% 

12 Clients 

Lower 25% 

45 Clients 

Average 

181 Clients 

Area (ha) 4,804 4,261 5,054 2,928 3,226 4,067 1,588 2,739 3,026 2,470 3,290 4,098 Y 289 

$/Eff Ha $1,180 $1,157 $1,004 $3,192 $2,941 $2,403 $6,033 $5,489 $4,547 $4,047 $3,198 $1,878 Y 288 

Land $5,151,120 $4,597,113 $4,879,574 $8,479,994 $8,644,204 $9,286,635 $7,897,591 $12,317,588 $12,199,994 $8,283,290 $8,773,640 $7,423,078 Y 290 

T Sheep $0 $1,763 $0 $28,739 $10,316 $2,245 $39,490 $26,125 $12,195 $29,119 $12,275 $2,563 Y 287 

Sheep $147,165 $82,304 $32,820 $250,813 $214,371 $68,692 $359,397 $531,227 $200,649 $310,709 $260,089 $61,139 Y 287 

Pigs $0 $0 $1,195,200 $1,195,200 $597,600 $0 Y


P22 




Operating Costs 2018 

Wheat $747,097 $1,061,417 $1,501,676 $626,210 $930,521 $1,465,119 $347,233 $874,148 $1,430,068 $540,003 $942,015 $1,423,035 N 259 

All Barley $449,246 $430,605 $377,605 $441,949 $518,115 $670,639 $193,437 $479,494 $733,972 $389,996 $497,542 $564,189 N 256 

Lupins $97,676 $128,580 $84,694 $127,241 $154,078 $242,513 $55,460 $111,226 $125,183 $138,604 $144,501 $201,760 N 116 

Canola $938,830 $409,278 $279,864 $460,660 $459,616 $530,897 $176,553 $737,328 $908,692 $383,135 $519,674 $475,258 N 201 

Oats $79,471 $53,073 $11,662 $118,200 $106,842 $89,410 $99,802 $134,918 $284,262 $104,448 $108,089 $88,081 N 113 

Triticale $34,562 $48,144 $89,091 $93,834 $75,458 $34,562 N


P23 




Operating Profit (Cont) 2018 

Grazing Livestock Operating Profit -$5,855 $1,625 $4,635 $51,269 $85,261 $69,504 -$6,222 $219,223 $135,527 $41,487 $108,520 $29,685 N 206 

Arable Enterprises Operating Profit $148,438 $1,195,547 $2,333,543 $131,095 $1,081,604 $2,325,819 -$138,730 $1,156,871 $1,992,219 $81,634 $1,116,282 $2,153,385 N 289 

Pigs $12,644 $12,644 $12,644 $12,644 N


P24 




Operating Costs 

5 Year Average 

Wheat $735,078 $994,325 $1,316,760 $589,020 $852,719 $1,266,706 $358,087 $806,566 $1,123,868 $533,736 $867,272 $1,253,106 N 270 

All Barley $186,006 $213,250 $197,030 $291,303 $337,723 $418,840 $80,002 $262,034 $343,034 $242,714 $304,654 $320,033 N 265 

Lupins $51,786 $82,876 $60,054 $96,103 $108,286 $171,933 $60,645 $87,005 $104,102 $105,336 $100,742 $134,540 N 157 

Canola $606,074 $322,838 $254,950 $393,305 $427,280 $525,598 $209,190 $714,293 $924,774 $380,430 $475,741 $462,858 N 260 

Oats $98,472 $50,337 $14,434 $83,837 $84,803 $71,887 $67,064 $104,338 $227,105 $78,162 $86,336 $69,558 N 150 

Triticale $21,441 $44,046 $10,312 $48,144 $85,137 $78,425 $41,568 $21,441 N 11 

Field Peas $24,503 $25,028 $43,625 $70,628 $79,179 $70,015 $214,726 $298,883 $74,263 $79,188 $72,853 N 38 

Chick Peas $11,568 $18,017 $8,887 $13,144 $17,544 $9,575 $19,834 $9,346 $14,324 $14,556 N 13 

Oaten Hay $10,993 $13,775 $18,501 $85,686 $77,558 $44,547 $27,911 $111,306 $157,741 $40,893 $78,860 $48,077 N 112 

Other $7,874 $34,019 $21,818 $30,783 $32,698 $47,688 $66,778 $44,990 $37,024 $43,820 $33,005 N 64 

Non-Utilised Area $61,122 $40,502 $47,370 $22,506 $20,348 $14,933 $22,181 $30,616 $51,675 $20,315 $27,489 $30,007 N 68 

Sheep $209,865 $129,059 $98,151 $156,192 $171,730 $115,576 $151,002 $307,605 $227,052 $174,124 $195,801 $102,653 N 216 

Cattle $245 $11,106 $35,552 $80,664 $51,896 $30,431 $55,661 $221,384 $46,414 $58,496 $102,335 $37,425 N 43 

Pigs $529,145 $529,145 $12,753 $25,617 -$112 $184,883 $529,145 N

Operating Profit (Cont) 


P25 


Lower 25% 

12 Clients 

Average 

47 Clients 

Top 25% 

12 Clients 

Lower 25% 

45 Clients 

Average 

181 Clients 

Top 25% 

45 Clients 

Lower 25% 

16 Clients 

Average 

62 Clients 

Top 25% 

16 Clients 

Lower 25% 

72 Clients 

Average 

290 Clients 

Top 25% 

72 Clients 

0's No. 


Grazing Livestock Operating Profit $6,879 -$4,895 -$7,359 $42,971 $50,343 $24,066 $31,659 $161,871 $82,606 $46,011 $68,290 $10,354 N 234 

Arable Enterprises Operating Profit $73,911 $374,031 $711,094 $224,043 $535,493 $977,991 $60,004 $643,664 $834,456 $176,053 $532,441 $771,889 N 289 

Pigs $52,147 $52,147 -$7,727 -$14,928 -$525 $12,231 $52,147 N


P26 




Operating Costs Per Hectare 2018 

Wheat ($/ha) $416 $420 $397 $598 $593 $568 $711 $763 $768 $642 $598 $516 N 259 

All Barley ($/ha) $584 $506 $508 $649 $651 $605 $779 $819 $814 $701 $661 $568 N 256 

Lupins ($/ha) $412 $378 $364 $565 $510 $452 $603 $693 $653 $592 $520 $451 N 116 

Canola ($/ha) $478 $422 $360 $677 $605 $551 $700 $774 $794 $699 $623 $516 N 201 

Oats ($/ha) $449 $379 $323 $669 $596 $488 $652 $712 $674 $667 $601 $424 N 113 

Triticale ($/ha) $346 $802 $751 $900 $650 $346 N


Operating Costs Per Hectare 

P27 


Lower 25% 

12 Clients 

Average 

47 Clients 

Top 25% 

12 Clients 

Lower 25% 

45 Clients 

Average 

181 Clients 

Top 25% 

45 Clients 

Lower 25% 

16 Clients 

Average 

62 Clients 

Top 25% 

16 Clients 

Lower 25% 

72 Clients 

Average 

290 Clients 

Top 25% 

72 Clients 

0's No. 


Wheat ($/ha) $395 $398 $380 $550 $553 $526 $682 $723 $718 $599 $562 $480 N 270 

All Barley ($/ha) $331 $326 $326 $388 $446 $420 $322 $481 $533 $394 $435 $380 N 265 

Lupins ($/ha) $308 $267 $212 $412 $384 $347 $555 $502 $385 $464 $386 $327 N 157 

Canola ($/ha) $348 $346 $352 $578 $537 $486 $681 $720 $751 $622 $551 $443 N 260 

Oats ($/ha) $454 $300 $196 $515 $470 $355 $504 $558 $575 $510 $475 $315 N 150 

Triticale ($/ha) $226 $345 $308 $802 $595 $788 $382 $226 N 11 

Field Peas ($/ha) $343 $259 $205 $307 $330 $328 $768 $703 $423 $344 $319 N 38 

Chick Peas ($/ha) $120 $138 $97 $125 $103 $170 $162 $145 $133 $112 N 13 

Oaten Hay ($/ha) $388 $288 $211 $582 $512 $397 $579 $592 $611 $535 $507 $355 N 112 

Other ($/ha) $187 $267 $291 $316 $301 $650 $586 $528 $466 $411 $312 N 64 

Non-Utilised Area ($/ha) $39 $58 $56 $82 $85 $75 $211 $164 $151 $129 $89 $73 N 68 

Sheep ($/Wgha) $189 $155 $141 $301 $305 $261 $590 $511 $334 $398 $329 $206 N 203 

Cattle ($/Wgha) $187 $282 $416 $326 $302 $481 $447 $375 $455 $370 $261 N 32 

Total Operating Costs ($/eff.ha - F) $337 $345 $334 $524 $516 $509 $621 $663 $662 $562 $520 $451 N 289 

Operating Profit Per Hectare 


Wheat ($/ha) $62 $103 $132 $72 $187 $275 $11 $189 $240 $65 $173 $207 N 270 

All Barley ($/ha) $38 $98 $145 $72 $143 $193 $82 $161 $182 $80 $140 $159 N 265 

Lupins ($/ha) -$54 $14 $66 -$122 -$13 $83 -$108 -$70 -$27 -$116 -$18 $65 N 157 

Canola ($/ha) -$27 $109 $187 $67 $127 $187 -$15 $139 $171 $57 $127 $174 N 260 

Oats ($/ha) $106 $40 $34 $48 $96 $151 -$129 $79 $151 $18 $86 $102 N 150 

Triticale ($/ha) $6 $55 -$66 $6 $93 $129 $18 $6 N 11 

Field Peas ($/ha) -$84 -$82 -$57 -$59 -$53 -$51 -$14 -$92 -$50 -$54 -$79 N 38 

Chick Peas ($/ha) $83 $94 -$40 $26 $91 -$99 -$93 -$79 $12 $87 N 13 

Oaten Hay ($/ha) $279 $166 $95 $366 $255 $101 $93 $339 $552 $284 $265 $153 N 112 

Other ($/ha) -$110 -$99 $120 $169 $399 -$304 $45 $357 -$35 $116 $315 N 64 

Crop Operating Profit ($/ha) $7 $81 $127 $70 $165 $240 -$25 $175 $267 $53 $154 $185 N 289 

Sheep ($/Wgha) $30 -$6 -$14 $64 $63 $7 $250 $222 $150 $127 $89 $3 N 203 

Cattle ($/Wgha) $13 -$3 $153 $154 $160 -$12 $128 $98 $131 $134 $162 N 32 

Grazing Livestock Operating Profit ($/Wgha) $9 -$20 -$4 $153 $78 -$30 $175 $167 $171 $146 $86 -$27 N 218 

Arable Enterprises Operating Profit ($/Wgha) $20 $80 $130 $85 $164 $233 $50 $206 $305 $81 $160 $180 N 289 

Farm Operating Profit (no capital growth) ($/eff.ha - F) $23 $84 $133 $92 $170 $241 $52 $212 $318 $85 $165 $187 N 289 

Net Financing Costs (less grain finance cost) ($/eff.ha - O) $26 $27 $19 $51 $49 $34 $89 $87 $88 $68 $54 $33 N 279 

Farm Lease and Sharefarm Costs as an Effective Lease ($/eff.ha - O) $18 $24 $10 $37 $103 $102 $79 $125 $128 $61 $95 $69 N 202 

Net Farm Profit (before tax) ($/eff.ha - O) $5 $87 $141 $107 $212 $370 $74 $334 $579 $86 $218 $260 N 288 

Change in Land Value ($/eff.ha - O) $14 $29 $21 $207 $136 $97 $483 $317 $309 $236 $159 $66 N 277 

Farm Profit (Incl.Capital Growth) ($/eff.ha - O) $17 $96 $133 $260 $295 $397 $568 $583 $749 $302 $325 $271 N 288 




P28 

Lower 25% 

12 Clients 


Average Top 25% Lower 25% Average Top 25% Lower 25% Average Top 25% Lower 25% Average 

47 Clients 12 Clients 45 Clients 181 Clients 45 Clients 16 Clients 62 Clients 16 Clients 72 Clients 290 Clients 

Business Resource Indicators Actuals 2018 

Assets and Liabilities (incl. land changes after start date) 

Total Farm Production Assets $6,352,978 $6,357,555 $7,259,480 $10,739,458 $10,963,429 $12,059,398 $9,583,736 $15,204,759 $15,092,628 $10,332,709 $11,123,727 $9,767,222 Y 290 

Total Farm Non Production Assets $589,597 $1,794,081 $3,536,562 $1,098,493 $2,033,826 $3,884,780 $608,271 $2,171,655 $3,492,774 $914,619 $2,024,438 $3,242,250 Y 290 

Total Farm Assets $6,942,575 $8,151,636 $10,796,041 $11,837,951 $12,997,255 $15,944,178 $10,192,007 $17,376,414 $18,585,402 $11,247,328 $13,148,165 $13,009,471 Y 290 

Total Farm Liabilities $1,115,027 $1,757,418 $2,433,605 $2,429,272 $2,581,862 $3,011,999 $2,663,497 $3,583,273 $4,479,574 $2,487,351 $2,662,340 $2,627,215 Y 290 

Net Farm debt $635,108 $526,114 $224,300 $1,600,564 $1,194,493 $780,413 $2,055,226 $2,111,037 $2,727,163 $1,732,540 $1,282,423 $669,338 Y 289 

Total Farm Equity $5,827,548 $6,394,218 $8,362,436 $9,408,678 $10,422,600 $12,932,179 $7,528,510 $13,793,142 $14,105,828 $8,759,977 $10,490,557 $10,382,257 Y 289 

Net Off Farm Equity $481,430 $1,189,175 $1,426,022 $501,215 $1,143,737 $2,466,427 $532,148 $909,514 $1,242,668 $557,189 $1,100,878 $1,959,704 Y 289 

Total Business Equity $6,308,978 $7,583,393 $9,788,458 $9,909,893 $11,566,337 $15,398,606 $8,060,658 $14,702,655 $15,348,497 $9,317,166 $11,591,435 $12,341,960 Y 289 

Business Equity % 80% 77% 76% 77% 79% 83% 72% 77% 74% 76% 78% 79% Y 289 

Farm Equity % (without wheat loan effect) 80% 76% 76% 77% 78% 81% 72% 76% 73% 76% 78% 78% Y 289 

Net Equity % 86% 90% 96% 84% 88% 95% 76% 84% 84% 81% 88% 93% Y 289 

Security Ratio (all secured funds / land value) 13% 27% 39% 11% 19% 25% 10% 16% 26% 11% 20% 30% Y 288 

Net Farm Debt/Income Ratio (Debt less Current Assets) 0.54 0.39 0.25 0.96 0.65 0.35 1.91 1.01 0.68 1.21 0.68 0.36 Y 289 

Land (owned) 

Effective Area Owned (ha) 4,804 4,261 5,054 2,928 3,244 4,067 1,588 2,739 3,026 2,470 3,301 4,098 N 288 

Bare Land Value ($/ha) $1,051 $1,063 $937 $2,918 $2,699 $2,222 $5,433 $4,978 $4,122 $3,656 $2,922 $1,731 N 288 

Infrastructure Value ($/ha) $141 $96 $66 $286 $263 $209 $640 $546 $485 $414 $296 $158 N 269 

Land and Infrastructure Value ($/ha) $1,180 $1,157 $1,004 $3,192 $2,941 $2,403 $6,033 $5,489 $4,547 $4,047 $3,198 $1,878 N 288 

Production (Farmed Area) 

Effective Area (ha) 4,909 5,029 5,923 3,316 4,019 5,394 2,124 3,832 4,403 2,907 4,143 5,258 N 290 

Arable area (ha) 5,323 5,104 5,993 3,273 4,004 5,436 2,083 3,663 4,193 2,857 4,105 5,275 N 279 

Combined Crop Area (ha) 3,612 4,129 5,350 2,482 3,319 5,004 1,263 2,809 3,784 2,102 3,343 4,735 N 289 

Non Utilised Area (NUA) (ha) 918 282 174 530 256 99 1,173 333 21 558 274 160 N 34 

Sharefarmed Area (ha) 520 615 975 1,448 465 599 919 423 775 1,347 N 35 

Leased Area (ha) 1,260 1,559 1,432 846 1,312 2,158 899 1,535 1,298 912 1,406 1,767 N 148 

Crop Percentage (%) 67% 80% 90% 79% 83% 94% 69% 76% 92% 75% 81% 90% N 278 

Rainfall 

Growing season rain (mm) 202 214 217 226 243 238 213 303 321 234 251 238 N 289 

GFR/100mm rain/eff. ha ($) $230 $296 $358 $281 $342 $420 $310 $369 $461 $297 $340 $377 N 288 

Machinery 

Machinery value ($/eff.ha - F) $284 $326 $347 $524 $492 $482 $671 $618 $596 $563 $492 $410 N 287 

Crop Machinery Value ($/crop ha) $384 $367 $383 $732 $607 $480 $985 $813 $690 $783 $611 $413 N 285 

Machinery value to income (:1) 0.73 0.57 0.45 0.98 0.66 0.50 1.31 0.75 0.45 1.01 0.66 0.48 N 287 

Labour 

Permanent labour units (units) 1.35 1.91 2.31 2.37 2.49 2.85 2.19 2.78 3.00 2.28 2.45 2.49 N 286 

Casual labour units (units) 0.80 0.50 0.36 0.92 0.66 0.61 0.35 0.61 0.50 0.79 0.62 0.54 N 229 

Machinery value/ labour ($/unit) $582,861 $699,511 $868,498 $574,259 $660,003 $774,747 $548,652 $641,810 $650,231 $574,654 $662,477 $753,968 N 286 

Eff. ha / labour (ha/unit) 2,938 2,294 2,379 1,186 1,421 1,690 890 1,150 1,275 1,206 1,506 1,873 N 288 

Crop ha / labour (ha/unit) 2,088 1,831 2,185 877 1,151 1,581 551 831 1,118 866 1,196 1,675 N 287 

W.G. DSE / labour (WG DSE/Unit) 2,675 1,334 451 2,343 2,265 1,143 2,492 5,092 1,686 2,667 2,907 955 N 175 

GFR / labour ($/unit) $1,146,060 $1,356,702 $1,897,299 $639,967 $1,138,435 $1,673,162 $434,481 $1,084,220 $1,493,878 $649,169 $1,162,656 $1,646,074 N 287 

Family 

GFR / family ($/unit) $1,164,951 $2,030,966 $3,217,975 $1,270,700 $2,115,802 $3,333,768 $745,013 $2,281,606 $3,309,385 $1,204,334 $2,137,894 $2,957,416 N 285 

Non Farm Income / family ($/unit) $9,638 $30,011 $23,056 $11,809 $23,291 $30,466 $15,254 $22,314 $25,665 $18,656 $24,189 $32,566 N 180 

Disposable Income / family ($/unit) $374,760 $1,556,455 $2,652,768 $452,199 $1,426,351 $2,693,712 $108,221 $1,510,320 $2,169,248 $412,034 $1,464,866 $2,511,384 N 285 

Current Land Value/ family ($/unit) $2,778,628 $2,803,320 $3,509,970 $5,745,147 $5,752,434 $5,687,272 $5,806,644 $8,114,633 $8,309,113 $5,844,128 $5,792,378 $4,406,776 N 285 

Top 25% 

72 Clients 

0's 

No. 




P29 

Lower 25% 

12 Clients 




Business Resource Indicators 


Assets and Liabilities (incl. land changes after start date) 

Total Farm Production Assets $6,278,127 $5,875,259 $6,567,388 $9,408,048 $9,600,551 $10,321,225 $8,856,940 $13,429,768 $13,041,891 $9,348,585 $9,815,457 $8,611,559 Y 290 

Total Farm Non Production Assets $561,892 $1,148,350 $1,866,058 $1,050,873 $1,541,879 $2,543,947 $655,505 $1,459,453 $2,185,176 $892,527 $1,460,478 $1,983,125 Y 290 

Total Farm Assets $6,840,019 $7,023,610 $8,433,447 $10,458,922 $11,142,429 $12,865,172 $9,512,445 $14,889,221 $15,227,068 $10,241,112 $11,275,935 $10,594,683 Y 290 

Total Farm Liabilities $1,194,396 $1,681,612 $1,982,491 $2,358,440 $2,394,472 $2,512,623 $2,552,794 $3,199,322 $3,581,504 $2,416,684 $2,451,011 $2,226,013 Y 290 

Net Farm debt $724,540 $801,401 $629,020 $1,516,482 $1,260,465 $921,271 $1,897,289 $2,102,969 $2,328,110 $1,648,250 $1,366,552 $892,874 Y 289 

Total Farm Equity $5,645,624 $5,341,997 $6,450,956 $8,100,482 $8,748,857 $10,352,550 $6,959,651 $11,689,899 $11,645,564 $7,824,429 $8,825,750 $8,368,670 Y 289 

Net Off Farm Equity $421,430 $1,057,501 $1,218,002 $511,871 $1,007,623 $2,173,165 $478,722 $774,352 $842,715 $516,544 $965,690 $1,776,208 Y 289 

Total Business Equity $6,067,054 $6,399,498 $7,668,958 $8,612,353 $9,756,480 $12,525,714 $7,438,374 $12,464,251 $12,488,278 $8,340,973 $9,791,441 $10,144,878 Y 289 

Business Equity % 78% 75% 75% 76% 77% 81% 72% 77% 77% 75% 77% 78% Y 289 

Farm Equity % (without wheat loan effect) 78% 73% 74% 75% 76% 80% 71% 76% 75% 74% 76% 76% Y 289 

Net Equity % 85% 84% 89% 82% 85% 91% 77% 83% 85% 81% 84% 88% Y 289 

Security Ratio (all secured funds / land value) 26% 39% 47% 22% 29% 30% 19% 26% 40% 22% 30% 38% Y 288 

Net Farm Debt/Income Ratio (Debt less Current Assets) 0.62 0.53 0.40 0.93 0.70 0.40 1.82 0.98 0.52 1.17 0.73 0.45 Y 289 

Land (owned) 

Effective Area Owned (ha) 4,896 4,184 4,856 2,896 3,214 3,948 1,599 2,655 2,896 2,486 3,252 3,965 N 288 

Bare Land Value ($/ha) $1,018 $980 $866 $2,592 $2,426 $1,946 $4,945 $4,534 $3,599 $3,343 $2,644 $1,548 N 288 

Infrastructure Value ($/ha) $144 $104 $77 $275 $253 $201 $616 $529 $449 $397 $288 $160 N 277 

Land and Infrastructure Value ($/ha) $1,150 $1,082 $943 $2,861 $2,668 $2,129 $5,522 $5,046 $4,048 $3,724 $2,921 $1,701 N 288 

Production (Farmed Area) 

Effective Area (ha) 5,114 4,961 5,721 3,356 3,973 5,182 2,119 3,745 4,171 2,961 4,085 5,062 N 290 

Arable area (ha) 5,115 4,821 5,348 3,245 3,907 5,144 2,080 3,649 4,045 2,873 4,001 4,971 N 289 

Combined Crop Area (ha) 3,668 3,881 4,729 2,620 3,297 4,713 1,228 2,744 3,569 2,185 3,274 4,416 N 290 

Non Utilised Area (NUA) (ha) 959 452 450 297 203 131 361 247 231 275 279 271 N 68 

Sharefarmed Area (ha) 342 330 889 1,398 331 474 756 343 677 1,191 N 41 

Leased Area (ha) 1,760 1,429 1,163 727 1,183 1,995 723 1,361 1,213 792 1,264 1,621 N 170 

Crop Percentage (%) 71% 81% 87% 76% 82% 93% 68% 76% 88% 74% 81% 90% N 289 

Rainfall 

Growing season rain (mm) 263 246 242 284 295 277 314 363 371 305 301 267 N 280 

GFR/100mm rain/eff. ha ($) $152 $177 $193 $248 $258 $290 $243 $290 $351 $244 $251 $245 N 279 

Machinery 

Machinery value ($/eff.ha - F) $262 $308 $339 $493 $453 $431 $595 $572 $590 $523 $456 $379 N 287 

Crop Machinery Value ($/crop ha) $285 $278 $298 $532 $458 $361 $758 $643 $528 $598 $467 $307 N 270 

Machinery value to income (:1) 0.98 1.05 1.07 0.88 0.71 0.61 1.10 0.73 0.58 0.91 0.77 0.80 N 287 

Labour 

Permanent labour units (units) 1.36 1.84 2.29 2.19 2.33 2.56 2.21 2.72 2.84 2.15 2.33 2.38 N 286 

Casual labour units (units) 0.70 0.47 0.33 0.87 0.61 0.55 0.29 0.62 0.45 0.74 0.59 0.50 N 240 

Machinery value/ labour ($/unit) $546,402 $678,051 $860,961 $582,817 $642,636 $735,687 $518,293 $620,795 $668,036 $568,722 $643,674 $707,349 N 286 

Eff. ha / labour (ha/unit) 2,938 2,285 2,362 1,351 1,494 1,734 887 1,134 1,273 1,305 1,547 1,857 N 288 

Crop ha / labour (ha/unit) 1,147 1,498 1,931 954 1,191 1,511 489 894 1,111 799 1,188 1,548 N 234 

W.G. DSE / labour (WG DSE/Unit) 2,426 1,079 574 1,969 1,947 908 2,331 4,434 1,563 2,354 2,446 896 N 199 

GFR / labour ($/unit) $1,059,073 $967,852 $1,122,397 $783,226 $1,004,523 $1,266,354 $491,429 $946,917 $1,213,021 $742,200 $986,273 $1,134,935 N 287 

Family 

GFR / family ($/unit) $990,018 $1,384,653 $1,990,468 $1,429,914 $1,784,581 $2,432,897 $881,626 $1,929,033 $2,500,687 $1,279,682 $1,752,352 $2,024,457 N 285 

Non Farm Income / family ($/unit) $13,670 $20,659 $21,568 $13,083 $23,804 $25,928 $11,412 $13,148 $23,774 $14,099 $21,348 $22,914 N 227 

Disposable Income / family ($/unit) $297,058 $712,544 $1,051,468 $491,577 $1,023,812 $1,702,172 $253,546 $1,219,644 $1,466,451 $453,813 $1,016,579 $1,402,963 N 285 

Current Land Value/ family ($/unit) $2,680,309 $2,668,964 $3,530,495 $5,068,570 $5,058,105 $4,989,675 $5,401,276 $7,120,335 $6,959,425 $5,211,131 $5,122,262 $3,963,515 N 285 

Top 25% 

72 Clients 

0's 

No. 




Business Cost Indicators Actuals 2018 

P30 

Lower 25% 

12 Clients 


Average 

47 Clients 

Top 25% 

12 Clients 

Lower 25% 

45 Clients 

Calculated Farm Income ($) $1,916,154 $3,091,609 $4,523,314 $1,857,365 $3,271,667 $5,301,364 $993,399 $3,773,242 $5,339,158 $1,670,190 $3,349,988 $4,801,122 Y 289 

Variable Operating Costs ($) $1,370,616 $1,422,155 $1,668,271 $1,235,024 $1,609,937 $2,273,682 $804,057 $1,993,628 $2,632,888 $1,130,428 $1,661,713 $2,023,842 Y 289 

Operating Gross Margin ($) $545,539 $1,669,454 $2,855,044 $622,341 $1,661,729 $3,027,682 $189,342 $1,779,614 $2,706,270 $539,763 $1,688,276 $2,777,280 Y 289 

Fixed Operating Costs ($) $218,931 $334,104 $427,627 $368,560 $514,601 $730,895 $376,587 $623,132 $851,545 $357,309 $508,530 $610,126 Y 289 

Operating Surplus ($) $220,659 $1,199,933 $2,285,031 $90,914 $926,710 $1,996,897 -$299,291 $943,847 $1,648,671 $30,543 $975,265 $1,922,833 Y 286 

As a % of Calculated Farm Income 

Crop Receipts (%) 83% 92% 98% 76% 84% 95% 60% 74% 90% 72% 83% 96% Y 289 

Livestock Receipts (%) 13% 5% 1% 20% 13% 3% 33% 22% 6% 23% 13% 2% Y 289 

Operating Variable Costs (%) 67% 48% 37% 67% 52% 43% 84% 60% 48% 71% 53% 42% Y 289 

Overheads (%) 7% 6% 4% 10% 7% 5% 12% 8% 6% 10% 7% 5% Y 289 

Personal Costs (%) 6% 5% 3% 8% 6% 5% 10% 6% 4% 8% 6% 5% Y 289 

Machinery Capital (%) 10% 7% 5% 14% 10% 9% 21% 12% 10% 15% 10% 7% Y 289 

Infrastructure Capital (%) 1% 1% 0% 2% 1% 1% 9% 4% 2% 4% 2% 1% Y 289 

Operating Fixed Costs (%) 25% 18% 12% 33% 24% 18% 54% 31% 22% 37% 25% 17% Y 286 

Finance (less wheat loan costs) (%) 5% 3% 2% 7% 5% 2% 14% 7% 5% 9% 5% 3% Y 289 

Farm Lease (%) 2% 2% 1% 3% 3% 2% 6% 4% 4% 4% 3% 2% Y 289 

Indicators in $/Effective ha Owned (O) or Farmed (F) 

Farm Asset Value ($/eff. ha - O) $1,609 $1,434 $1,363 $3,508 $3,045 $2,437 $5,486 $4,770 $3,628 $4,080 $3,148 $1,929 Y 287 

Farm Liability Value ($/eff. ha - O) $316 $379 $384 $813 $706 $440 $1,551 $1,152 $955 $1,049 $747 $434 Y 287 

Calculated Farm Income ($/eff. ha - F) $402 $613 $770 $611 $816 $986 $607 $965 $1,246 $634 $815 $893 Y 289 

Wages ($/eff. ha - F) $11 $11 $10 $23 $22 $22 $18 $27 $29 $22 $21 $17 Y 289 

Fertiliser ($/eff. ha - F) $48 $55 $60 $79 $88 $102 $77 $106 $138 $80 $87 $86 Y 289 

Pesticide ($/eff. ha - F) $45 $51 $55 $56 $65 $75 $53 $72 $95 $55 $64 $67 Y 289 

Fuel and Oil ($/eff. ha - F) $19 $20 $22 $25 $27 $28 $20 $28 $37 $24 $26 $26 Y 289 

Repairs & Maintenance ($/eff. ha - F) $19 $20 $22 $25 $27 $28 $20 $28 $40 $24 $26 $26 Y 289 

Variable Operating Costs ($/eff. ha - F) $275 $282 $286 $387 $406 $425 $455 $533 $599 $418 $413 $379 Y 289 

Operating Gross Margin ($/eff. ha - F) $135 $332 $484 $209 $406 $567 $147 $449 $653 $215 $403 $516 Y 289 

Overheads ($/eff. ha - F) $32 $32 $26 $54 $52 $45 $64 $67 $69 $59 $52 $40 Y 286 

Drawings ($/eff. ha - F) $28 $33 $25 $43 $47 $51 $53 $54 $60 $44 $47 $45 Y 290 

Machinery Capital ($/eff. ha - F) $43 $40 $45 $76 $75 $84 $134 $114 $135 $86 $78 $65 Y 290 

Farm Infrastructure Expenditure ($/eff. ha - O) $5 $4 $3 $12 $12 $10 $59 $41 $38 $26 $17 $9 Y 290 

Fixed Operating Costs ($/eff. ha - F) $109 $107 $98 $186 $183 $179 $298 $268 $283 $215 $189 $151 Y 286 

Operating Surplus ($/eff. ha - F) $26 $225 $385 $23 $220 $387 -$150 $184 $393 $0 $213 $364 Y 286 

Finance (less wheat loan costs) ($/eff. ha - F) $19 $20 $17 $43 $38 $23 $85 $63 $58 $55 $40 $23 Y 289 

Farm Lease ($/eff. ha - F) $7 $11 $5 $11 $17 $18 $25 $32 $28 $19 $19 $17 Y 289 

Cropping Costs in $/Crop ha 

Wages Crop ($/crop ha) $18 $14 $10 $32 $29 $24 $39 $41 $34 $33 $29 $19 N 263 

Fertiliser Cost ($/crop ha) $67 $67 $65 $113 $111 $109 $125 $147 $156 $119 $111 $93 N 287 

Pesticide Cost ($/crop ha) $61 $61 $60 $77 $80 $80 $81 $94 $107 $77 $80 $73 N 287 

Fuel and Oil cost ($/crop ha) $29 $25 $24 $37 $35 $29 $34 $38 $42 $36 $34 $28 N 288 

Repairs & Maintenance ($/crop ha) $28 $29 $24 $52 $46 $35 $67 $62 $56 $56 $46 $35 N 287 

Seed/Seed Treatment ($/crop ha) $28 $28 $27 $39 $38 $36 $47 $49 $52 $41 $39 $34 N 288 

Contract Costs ($/crop ha) $51 $30 $16 $44 $38 $36 $48 $62 $63 $49 $42 $33 N 279 

Other Costs ($/crop ha) $15 $16 $14 $22 $25 $23 $25 $31 $35 $23 $25 $20 N 287 

Average 

181 Clients 

Top 25% 

45 Clients 

Lower 25% 

16 Clients 

Average 

62 Clients 

Top 25% 

16 Clients 

Lower 25% 

72 Clients 

Average 

290 Clients 

Top 25% 

72 Clients 

0's 

No. 



Business Cost Indicators 


P31 


Lower 25% 

12 Clients 


Average 

47 Clients 

Top 25% 

12 Clients 

Lower 25% 

45 Clients 

Calculated Farm Income ($) $1,793,249 $2,137,569 $2,668,207 $2,038,741 $2,754,760 $3,896,711 $1,158,432 $3,195,777 $4,013,379 $1,799,437 $2,748,999 $3,316,540 Y 289 

Variable Operating Costs ($) $1,311,557 $1,250,413 $1,406,713 $1,256,896 $1,480,931 $1,927,615 $737,545 $1,767,076 $2,213,586 $1,124,696 $1,504,829 $1,715,890 Y 289 

Operating Gross Margin ($) $481,692 $887,156 $1,261,494 $781,845 $1,273,829 $1,969,097 $420,887 $1,428,702 $1,799,793 $674,741 $1,244,170 $1,600,650 Y 289 

Fixed Operating Costs ($) $206,294 $419,594 $511,870 $479,378 $606,311 $826,099 $380,750 $664,636 $703,602 $435,243 $588,458 $660,838 Y 289 

Operating Surplus ($) $221,734 $515,269 $853,813 $314,679 $731,244 $1,269,745 -$127,588 $963,980 $1,552,144 $205,552 $746,152 $1,080,899 Y 287 

As a % of Calculated Farm Income 

Crop Receipts (%) 80% 87% 92% 78% 84% 94% 63% 74% 86% 74% 82% 92% Y 289 

Livestock Receipts (%) 10% 6% 4% 15% 10% 3% 29% 18% 6% 18% 11% 3% Y 289 

Operating Variable Costs (%) 70% 68% 67% 63% 57% 53% 70% 59% 54% 66% 59% 60% Y 289 

Overheads (%) 9% 10% 9% 8% 7% 6% 11% 8% 6% 9% 8% 8% Y 289 

Personal Costs (%) 6% 9% 8% 8% 7% 6% 8% 6% 5% 8% 7% 7% Y 289 

Machinery Capital (%) 9% 12% 11% 14% 11% 11% 19% 12% 9% 14% 12% 12% Y 289 

Infrastructure Capital (%) 1% 1% 1% 1% 1% 1% 6% 3% 2% 2% 2% 1% Y 289 

Operating Fixed Costs (%) 28% 37% 37% 30% 26% 24% 48% 29% 20% 33% 29% 30% Y 287 

Finance (less wheat loan costs) (%) 7% 6% 5% 7% 6% 3% 12% 8% 5% 9% 6% 4% Y 289 

Farm Lease (%) 2% 3% 1% 3% 3% 3% 6% 5% 5% 4% 3% 3% Y 289 

Indicators in $/Effective ha Owned (O) or Farmed (F) 

Farm Asset Value ($/eff. ha - O) $1,582 $1,457 $1,425 $3,371 $2,955 $2,344 $5,125 $4,544 $3,439 $3,915 $3,053 $1,954 Y 288 

Farm Liability Value ($/eff. ha - O) $332 $381 $379 $806 $699 $412 $1,486 $1,106 $831 $1,032 $735 $419 Y 288 

Calculated Farm Income ($/eff. ha - F) $367 $435 $469 $616 $691 $754 $636 $859 $993 $637 $685 $644 Y 289 

Wages ($/eff. ha - F) $10 $10 $9 $22 $21 $21 $19 $27 $27 $22 $21 $16 Y 289 

Fertiliser ($/eff. ha - F) $47 $54 $60 $83 $87 $93 $77 $105 $127 $83 $85 $80 Y 289 

Pesticide ($/eff. ha - F) $44 $50 $52 $58 $65 $75 $55 $69 $85 $58 $63 $66 Y 289 

Fuel and Oil ($/eff. ha - F) $19 $18 $18 $25 $25 $24 $19 $26 $32 $24 $24 $22 Y 289 

Repairs & Maintenance ($/eff. ha - F) $21 $23 $21 $32 $32 $31 $28 $35 $41 $31 $31 $29 Y 289 

Variable Operating Costs ($/eff. ha - F) $253 $251 $245 $378 $377 $379 $406 $495 $561 $397 $382 $344 Y 289 

Operating Gross Margin ($/eff. ha - F) $118 $184 $223 $245 $318 $374 $240 $403 $514 $251 $314 $314 Y 289 

Overheads ($/eff. ha - F) $30 $31 $26 $52 $51 $43 $61 $67 $75 $56 $51 $41 Y 287 

Drawings ($/eff. ha - F) $23 $31 $28 $44 $47 $48 $49 $48 $54 $43 $45 $44 Y 290 

Machinery Capital ($/eff. ha - F) $30 $39 $45 $77 $78 $87 $118 $100 $96 $84 $76 $64 Y 289 

Farm Infrastructure Expenditure ($/eff. ha - O) $3 $3 $3 $10 $11 $14 $39 $29 $31 $18 $14 $10 Y 290 

Fixed Operating Costs ($/eff. ha - F) $93 $105 $92 $183 $185 $182 $278 $250 $248 $206 $186 $151 Y 287 

Operating Surplus ($/eff. ha - F) $38 $102 $149 $84 $182 $254 -$58 $203 $366 $60 $174 $214 Y 287 

Finance (less wheat loan costs) ($/eff. ha - F) $20 $23 $20 $42 $35 $18 $59 $47 $35 $46 $36 $22 Y 289 

Farm Lease ($/eff. ha - F) $8 $10 $5 $14 $18 $20 $28 $36 $36 $21 $21 $16 Y 289 

Cropping Costs in $/Crop ha 

Wages Crop ($/crop ha) $15 $12 $10 $27 $25 $21 $31 $34 $29 $28 $25 $16 N 274 

Fertiliser Cost ($/crop ha) $65 $67 $72 $110 $106 $100 $114 $138 $146 $113 $107 $89 N 289 

Pesticide Cost ($/crop ha) $60 $60 $60 $75 $78 $81 $78 $89 $98 $76 $78 $73 N 289 

Fuel and Oil cost ($/crop ha) $26 $21 $20 $33 $30 $24 $30 $33 $35 $32 $29 $23 N 289 

Repairs & Maintenance ($/crop ha) $26 $27 $24 $45 $41 $33 $55 $53 $47 $48 $42 $32 N 289 

Seed/Seed Treatment ($/crop ha) $25 $24 $24 $31 $30 $30 $39 $41 $43 $35 $32 $28 N 289 

Contract Costs ($/crop ha) $51 $30 $16 $44 $38 $36 $48 $62 $63 $49 $42 $33 N 279 

Other Costs ($/crop ha) $12 $13 $11 $20 $20 $18 $21 $27 $28 $20 $20 $16 N 288 

Average 

181 Clients 

Top 25% 

45 Clients 

Lower 25% 

16 Clients 

Average 

62 Clients 

Top 25% 

16 Clients 

Lower 25% 

72 Clients 

Average 

290 Clients 

Top 25% 

72 Clients 

0's 

No. 



Cropping 

CROPPING

CROP TRENDS 

The 2018 average wheat yield of 2.64t/ha was the 

result of exceptional yields achieved in the eastern 

and northern areas of the Western Australian 

Wheatbelt. The result is the highest average wheat 

yields recorded since 1997, shading the 2013 result of 

2.60t/ha yield. 

The result is significant, as the eastern states 

experienced a drought and clients in the lakes area 

and the Lower Great Southern also experienced a 

very dry year with very damaging winds early in the 

season. 

The drought in the eastern states saw all grain prices 

remain in the top 10% of prices over the last 22 years, 

with wheat averaging $355/t FIS. 

The 2018 result is very impressive given that most farms 

in Western Australia had no subsoil moisture, with a 

very dry March and April resulting in a dry profile after 

the summer rainfall event in January. The break to the 

season did not occur until the last week of May. Late 

rains in August combined with cool conditions meant 

that the early October rainfall helped most crops reach 

their full potential. 

Although the data set includes Victorian and New 

South Wales data, the majority of businesses are based 

in Western Australia, where the cool finish allowed a 

lot of businesses in the medium rainfall zone (MRZ) 

to achieve Water Use Efficiency (WUE) above the 

normally accepted maximum potential of 20kg/mm. 

The medium rainfall zone produced an average of 

17kg/mm, which is 4kg/mm above the result in 2017. 

The low rainfall zone (LRZ) produced a very good result 

at 15kg/mm, which is 6kg/mm above the result in 2017. 

The high rainfall zone (HRZ) produced the same WUE 

as 2017, resulting in wheat yields of 2.64t/ha, which 

is in the top 10% of wheat yields recorded since 1997. 

Since 2013, the average wheat yield has remained in 

the top 30% of results recorded since 1997. 

Chart 1: Rainfall in 2018 

Yield t/ha 

3.00 

2.50 

2.00 

1.50 

1.00 

0.50 

0.00 

2.12 2.12 2.31 1.48 

2.14 

1.19 

2.57 

1.93 

Wheat Yield t/ha 

2.19 

1.42 

1.82 1.86 1.82 

1.28 

2.41 

1.68 

2.6 

2.3 2.28 

2.46 2.55 2.64 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

Chart 2: Wheat Yield t/ha 

The average canola yield of 1.12t/ha was in the top 40% 

of yields and quite good for a season with a late start 

and limited subsoil moisture. Although the canola yield 

was just above average, the canola yields were only 

42% of the average wheat yield compared to the longterm 

average of 52%. So, in terms of the yield ratio of 

canola to wheat, the 2018 result is in the bottom 20% 

of results. 

Wheat, barley, oats and legume prices were all in the 

top 10% to 20% of long term prices and did not fall 

leading into harvest. 

The eastern states drought saw high prices in the 

eastern states, but also saw the Western Australian 

grain prices remain strong against international futures 

markets, resulting in a very strong basis compared to 


CROPPING

CROP TRENDS 

recent years. 

The high prices on offer at harvest resulted in the 

majority of grain being sold by the end of January, with 

growers deciding to not take pricing risk of carrying 

unpriced grain into 2019. A lot of growers took out 

contracts for deferred deliveries in July to push some 

of the taxable income into the following year. 

When wheat price and yields are both in the top 10% 

of historic prices and yields, it follows that cropped 

income will also be in the top 10% of years since 1997. 

Cropping income is recorded at $868/cropped hectare, 

$167 above the previous record of $701 achieved in 

2013 and $193 above 2017 cropping income of $675. 

2018 is the sixth year in a row where cropped income 

is in the top 10% of income years. Businesses that 

have achieved the average or better have been able 

to either reduce debt or expand their business to take 

advantage of increased economies of scale. 

$ per tonne 

$400 

$350 

$300 

$250 

$200 

$150 

$100 

$50 

$0 

$177 

$146 $139 

Chart 3: Wheat Price $/t 

Yield t/ha 

1.80 

1.60 

1.40 

1.20 

1.00 

0.80 

0.60 

0.40 

0.20 

0.00 

$179 $209 $240 $194 $175 $162 

$209 

Wheat Price $/t 

$362 

$293 

$227 

$331 

$240 

$323 

$291 $300 $285 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

0.90 

1.11 1.10 

0.63 

0.86 

0.68 

1.41 

1.09 

1.35 

0.82 

1.20 1.18 

Crop Income $/ha 

0.96 

0.53 

1.25 

0.86 

1.32 

1.16 1.13 

$244 

1.56 

$277 

$355 

1.15 1.12 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

Chart 4: Canola Yield t/ha 

Canola Yield t/ha 

$1,000 

$868 

$ per Crop Ha 

$800 

$600 

$400 

$252 $270 $284 

$214 

$381 

$257 

$441 

$302 $336 $306 

$583 $532 

$395 $361 

$559 $517 

$701 $642 $603 

$663 $675 

$200 

$0 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

Photo: Preston, D. 2019, Scepter Wheat 

Chart 5: Crop Income $/ha 


CROPPING

Wheat Yield v Rainfall - 2018 

7 

20 kg/mm 

6 

15 kg/mm 

5 

Wheat Yield (t/Ha) 

4 

3 

10 kg/mm 

2 

1 

0 

120 160 200 240 280 320 360 400 440 480 520 560 


Rainfall 

Zone 

L 

M 

H 

Effecve Rainfall 

220 mm 

238 mm 

308 mm 


2.09 /Ha 

2.84 /Ha 

2.96 /Ha 

The first thing to notice is the number of businesses in the HRZ and MRZ that had less than 200mm of rain in the growing season. A 

number of these businesses were in the eastern states drought affected regions and the parts of Western Australia that missed out. In 

contrast to this, the LRZ had a lot of businesses with more than 200mm. This led to the LRZ having a wheat yield 57% higher than 2017, 

the MRZ was only 6% higher than 2017, and the HRZ was 18% lower than 2017. The other interesting feature of the graph is that very 

good yields were achieved at 200mm to 250mm of effective rain and amounts above this rainfall level didn't get converted to better 

yields. 


CROPPING

Wheat Yield v Rainfall - Five Year Average 

5 

20 kg/mm 

4.5 

15 kg/mm 

4 

3.5 


3 

2.5 

10 kg/mm 

2 

1.5 

1 

140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 


Rainfall 

Zone 

L 

M 

Effecve Rainfall 5 Yr Avg 

246 mm 

295 mm 

Wheat Yield (t/Ha) 5Yr Avg 

1.71 t 

2.51 t 

The five year average wheat yield has been pushed around by the results for 2018. The LRZ has increased its five year average wheat 

yield to 1.73t/ha despite the average growing season rain coming down by 2mm. The MRZ has produced a similar result, with the five 

year average yield increasing slightly by 0.03t/ha and rainfall decreasing by 9mm. The HRZ average yield has dropped by a significant 

amount 0.39t/ha and rainfall has also dropped by 30mm. Once again, this has been pushed down by regions that had well below average 

rainfall in 2018. 

H 

363 mm 

2.85 t 


CROPPING

Wheat Variable Costs per Tonne - 2018 

400 

350 

Wheat Variable Costs per Tonne ($/t) 

300 

250 

200 

150 

100 

50 

Rainfall 

Zone 

L 

M 

H 

Wheat Variable Costs per Tonne 

$ 158 /t 

$ 181 /t 

$ 243 /t 

The LRZ produced wheat at $158/t, which was similar to the MRZ and HRZ in 2017. Surprisingly, the MRZ increased by $26/t despite 

yields being slightly higher. This is due to some businesses missing out on those better yields. The variable costs per tonne have been 

pushed as low as they could go, with well above average yields in many LRZ and MRZ businesses. The lower limit seems to be around 

$110/t, which is impressive given the costs of around $30/t to $40/t after it leaves the header. This means that a number of businesses 

only spent $70/t on variable costs to get the crop grown and harvested. There is still a huge range from $100/t to $250/t. The HRZ 

average of $244/t has been heavily influenced by a few businesses in the drought areas with very low yields. 


CROPPING

Wheat FIS Price v Wheat Gross Margin per Hectare - 2018 

800 

750 

700 

650 

600 

Wheat Operating Gross Margin ($/Ha) 

550 

500 

450 

400 

350 

300 

250 

200 

150 

100 

50 

0 

280 300 320 340 360 380 400 420 440 

Equivalent Cash in Bank Price $/t 

Rainfall 

Zone 

L 

M 

H 

Wheat FIS Price 

$346 /t 

$341 /t 

$356 /t 

Wheat Gross Margin per Ha 

$402 /Ha 

$521 /Ha 

$597 /Ha 

The average price for wheat in 2018 was around $70/t more than 2017 for the LRZ and MRZ and $80/t higher for the HRZ. The HRZ has 

been pushed up by a few businesses in the eastern states being able to extract a drought premium of around $110/t. The majority of 

wheat prices were between $325/t and $365/t, which is a range of $40/t. There was a good percentage of low protein wheat produced in 

Western Australia with the unexpected cool, wet finish which increased yields above the level that was expected, so nitrogen rates were 

well below where they needed to be. The lower protein explains around $20/t of the spread of prices. The other $20/t is the timing of 

sales. 


CROPPING

Wheat Operating Profit (Before Int and Tax) v WUE -2018 

800 

700 

600 

Wheat Operating Profit (BIT) $/Ha 

500 

400 

300 

200 

100 

0 

-100 

-200 

0 5 10 15 20 25 30 

Wheat WUE kg per mm 

Rainfall 

Zone 

L 

M 

Wheat Op Profit 

$301/Ha 

$354/Ha 

Wheat WUE 

15 kg/mm 

17 kg/mm 

The cool finish allowed a lot of businesses in the MRZ to achieve WUE above the normally accepted maximum potential of 20kg/mm. The 

MRZ produced an average of 17kg/mm, which is 4kg/mm above the result in 2017. The LRZ produced a very good result at 15kg/mm, 

which is 6kg/mm above the 2017 result, while the HRZ produced the same WUE as 2017. Operating profits are above $300/ha for all the 

rainfall zones, which would be a first. The LRZ had a huge turnaround from -$33/ha to plus $301/ha and was only $7/ha less than the HRZ. 

The MRZ has the best operating profit of $353/ha, which is a great result and is up $154/ha from 2017. 

H 

$326/Ha 

15 kg/mm 


CROPPING

Barley Yield v Rainfall - 2018 

5 

20 kg/mm 

4 

15 kg/mm 

Barley Yield (t/Ha) 

3 

10 kg/mm 

2 

1 

100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 


Rainfall 

Zone 

L 


2.33 /Ha 


227 mm 

Although there is a correlation between rainfall and barley yield, the interesting thing about this graph is the large variation of yields 

achieved for the same amount of rainfall. At 250mm rainfall, yields ranged from 1.4t/ha to 5.0t/ha. This variation is often explained by 

the position that barley has in the rotation. 

M 

3.01 /Ha 

249 mm 

H 

3.41 /Ha 

309 mm 


CROPPING

Barley Yield v Rainfall - Five Year Average 

4.5 

20 kg/mm 

15 kg/mm 

4.0 

3.5 

10 kg/mm 

3.0 


2.5 

2.0 

1.5 

1.0 

0.5 

140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 


Rainfall 

Zone 


Barley Yield (t/ha) 5 Yr Avg 

Barley continues to perform well in the HRZ and the MRZ. There are also some exceptional yields in the LRZ and the average yields in all 

zones are at least 250kg/ha better than wheat. 

L 

246 mm 

1.98 

M 

295 mm 

2.76 

H 

363 mm 

3.31 


CROPPING

Barley Variable Costs per Tonne - 2018 

350 

300 

Barley Variable Costs per Tonne ($/t) 

250 

200 

150 

100 

50 

0 

Rainfall 

Zone 

L 

M 

H 

Barley Variable Costs per Tonne 

$ 175 /t 

$ 175 /t 

$ 209 /t 

The spread of variable costs in each of the rainfall zones is about the same, ranging from $90/ha to $330/ha, which is an exceptionally 

large range, especially for the LRZ. The MRZ and LRZ have the same average expenditure at $175/ha. 


CROPPING

Barley FIS Price v Barley Gross Margin per Hectare - 2018 

1200 

1100 

1000 

900 

Barley Operating Gross Margin $/Ha 

800 

700 

600 

500 

400 

300 

200 

100 

0 

-100 

260 270 280 290 300 310 320 330 340 350 360 

Equivalent cash in bank price $/t 

Rainfall 

Zone 

L 

Barley FIS Price 

$362 /t 

Barley Gross Margin per Ha 

$451 /Ha 

Barley price varied in 2018 depending on the marketing strategy as the price increased as the season progressed. Price has a huge 

influence on the gross margin and you would expect the correlation to be stronger in the graph, however, the 2018 yield also varied 

significantly and those who achieved a high price and high yield will be located high up in this graph. 

M 

$333 /t 

$524 /Ha 

H 

$372 /t 

$670 /Ha 


CROPPING

Barley Operating Profit (Before Int and Tax) v WUE - 2018 

800 

600 

Barley Operating Profit (BIT) $/Ha 

400 

200 

0 

-200 

5 10 15 20 25 

Barley WUE kg per mm 

Rainfall 

Zone 

L 

Barley WUE 

17 kg/mm 

Barley Op Profit 

$334 /ha 

The highest water use efficiency was achieved in the MRZ in 2018, which may well reflect the adaptation of barley to the South Coast 

medium rainfall environments. The operating profit average of $431/ha in the HRZ was strong and much of this was driven by the 

exceptional prices achieved last year together with the cool spring conditions, which allowed the plants to maximise grain fill. 

M 

18 kg/mm 

$357 /ha 

H 

14 kg/mm 

$439 /ha 


CROPPING

Oats Yield v Rainfall - 2018 

4.5 

4.0 

3.5 

3.0 

Oats Yield (t/ha) 

2.5 

2.0 

1.5 

1.0 

0.5 

0.0 

100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 


Rainfall 

Zone 

L 

M 


227 mm 

249 mm 

Oats Yield (t/Ha) 

1.66 t/Ha 

2.50 t/Ha 

The 2018 season didn't produce good yields in many of the regions. Oat yields are often disappointing in low rainfall years, which is why 

there tends to be very few oat crops in the LRZ. The LRZ oat yield was 33% less than the wheat and barley yields despite the cool finish. In 

fact, the average yield for the LRZ dropped by 0.31t/ha compared to 2017. In the MRZ, oat yields were 17% below barley and 11% below 

wheat, with the average yield down 0.16t/ha. In the HRZ, the situation was similar, with oat yields being 16% below barley but only 2% 

below wheat. 

H 

309 mm 

2.62 t/Ha 


CROPPING

Oats Yield v Rainfall - Five Year Average 

5 

4.5 

4 

3.5 

Oats Yield (t/ha) 

3 

2.5 

2 

1.5 

1 

0.5 

0 

140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 


Rainfall 

Zone 

L 


246 

Oats Yield 5 YR Avg 

1.59 t/ha 

The five-year averages are now very similar to the yields for 2018, so the fact that the five-year average has increased by 26% for the LRZ 

and 18% for both the MRZ and the HRZ must be due to the poor yields in 2013 dropping out of the average. The graph also shows that it is 

difficult to get oat yields above 4.0t/ha, no matter how much rain is received. 

M 

295 

2.57 t/ha 

H 

363 

2.68 t/ha 


CROPPING

Oats Variable Costs per Tonne - 2018 

900 

850 

800 

750 

700 

Oats Variable Costs per Tonne ($/t) 

650 

600 

550 

500 

450 

400 

350 

300 

250 

200 

150 

100 

50 

L 

M 

H 

0 

Rainfall 

Zone 

Oats Variable Costs per Tonne 

$177 /t 

$188 /t 

$260 /t 

The graph shows that some producers are getting variable costs down below $100/t, with the majority being between $100/t and $250/t. 

This means that there is still a good margin at current prices, however, there isn't much of a margin on the five-year average prices of 

around $240/t. 


CROPPING

Oats FIS Price v Gross Margin - 2018 

800 

700 

600 

Oats Operating Gross Margin $/Ha 

500 

400 

300 

200 

100 

0 

-100 

-200 

250 300 350 400 

Equivalent cash in bank price $/t 

Rainfall 

Zone 

L 

Oats FIS Price 

$364 /t 

Oats Gross Margin per Ha 

$270 /Ha 

There is a huge range of prices for oats in 2018, with prices from $280/t up to $400/t. It would be nice to think that the value of good 

quality oats is starting to be recognised in the market, however, the reality is just the short supply of good quality oats in 2018 with the 

drought in the eastern states and the significant rundown of oat stocks due to the extra sheep feeding across Australia. 

M 

$358 /t 

$428 /Ha 

H 

$412 /t 

$486 /Ha 


CROPPING

Oats Operating Profit (Before Int and Tax) v WUE - 2018 

800 

700 

600 

500 

Oats Operating Profit (BIT) $/Ha 

400 

300 

200 

100 

0 

-100 

-200 

-300 

-400 

0 5 10 15 20 25 

Oats WUE kg/mm 

Rainfall 

Zone 

L 

Oats WUE 

13 kg/mm 

Oats Op Profit 

$ 163 /Ha 

For some businesses, oats are seen as just a crop that is grown for sheep feed and it doesn't get the attention it needs. This may be the 

reason that some crops yield well below potential and this has resulted a large number of crops making less than $200/ha operating 

profit. This is in stark contrast to the serious oat growers who are making in excess of $300/ha operating profit. 

M 

15 kg/mm 

$ 262 /Ha 

H 

11 kg/mm 

$ 275 /Ha 


CROPPING

Canola Yield v Rainfall - 2018 

2.5 

9 kg/mm 

2 

6 kg/mm 

Canola Yield (t/Ha) 

1.5 

1 

3 kg/mm 

0.5 

0 

100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 


Rainfall 

Zone 

L 

M 


227 mm 

249 mm 

Canola Yield (t/ha) 

0.96 t/ha 

1.09 t/ha 

There is a positive relationship between yield and growing season rainfall. It is perhaps a little surprising that the trend flattens out so 

early as rainfall rises. This is mostly because the GSR does not take into account stored moisture and October rainfall adjustments. In 

this graph, there is a very large range of yields for any given level of rainfall (e.g. 250mm 0.6t/ha to 2t/ha). This suggests that there is a 

greater capacity to have an influence on performance through management. Planning to ensure a solid rotation with good weed control, 

choosing the correct variety for your environment and attention to detail in seeding establishment can be critical success factors. 

H 

309 mm 

1.33 t/ha 


CROPPING

Canola Yield v Rainfall - Five Year Average 

2.5 

9 kg/mm 

6 kg/mm 

2 


1.5 

1 

3 kg/mm 

0.5 

0 

140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 500 


Rainfall 

Zone 

L 

M 


246 

295 

Canola Yield 5 Yr Avg 

0.89 t/Ha 

1.21 t/Ha 

This is a much better chart for getting a handle on how you are going with canola. Surprisingly, the range of yields is still significant (e.g. 

250mm 0.6t/ha to 2.3t/ha). This may suggest that soil type has a large influence on performance of this enterprise if you have good 

agronomic focus on rotation, variety and establishment. The yield has been knocked around a bit in this five year period, with the range 

of finishes from very dry to very wet. Nonetheless, be sure to consider where canola fits in your rotation and consider its relative 

profitability to cereals. For some, it has a clear place and for others, maybe it is too expensive to maintain despite the rotational benefits. 

H 

363 

1.54 t/Ha 


CROPPING

Canola Yield Relative to Wheat - Five Year Average 

2.5 

2 


1.5 

1 

0.5 

0 

20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 

Rainfall 

Zone 

L 

M 

H 

Canola Relave to Wheat 5 Yr Avg 

49% 

51% 

58% 

Canola yield as a % of wheat 

The relationship between canola and wheat is a good one to consider the relative merits of each in the longer-term rotation. Canola's 

place in rotation starts to get tested if it falls consistently below 45% of wheat yield. Are there alternatives that can deliver a similar 

rotational outcome but produce more profit? Be careful here to consider whether it is actually the wheat yield that is causing a poor 

ratio. Maybe wheat is punching well above its weight in your zone and making the canola look poor. Consider the yield graphs to get to 

the bottom of this. If barley is more significant to you than wheat then you might want to recalculate this ratio based on barley yields. 


CROPPING

Canola Variable Costs per Tonne - 2018 

1100 

1000 

900 

Canola Variable Costs per Tonne ($/t) 

800 

700 

600 

500 

400 

300 

200 

100 

L 

H 

0 

Rainfall 

Zone 

M 

Canola Variable Costs per Tonne 

$ 444 /t 

$ 498 /t 

$ 1,003 /t 

The target for most businesses would be to have variable costs per tonne less than $400/t considering that you still have business 

overheads and finance costs to cover. At $400/t, with a 1.3t yield, this might suggest costs of around $520/ha. The large spread of costs 

this year reflects some poorer canola yield results in some areas, which resulted in higher costs per tonne. The LRZ looks to have 

managed costs at lower levels, but this is more due to a higher yield result relative to variable costs in this zone. Note that this set of 

canola graphs does not include GM canola enterprises. 


CROPPING

Canola FIS Price v Canola Gross Margin per Hectare - 2018 

600 

Canola Operating Gross Margin ($/Ha) 

400 

200 

0 

560 580 600 620 640 660 

Equivalent Cash in Bank Price ($/t) 

Rainfall 

Zone 

L 

M 

Canola FIS Price 

$601 /t 

$612 /t 

Canola Gross Margin per Ha 

$264 /Ha 

$222 /Ha 

The positive trend here is not very strong. Note that these prices include oil bonification and are calculated as a Free In Store (FIS) price 

(including handling fees and freight to port). It is interesting to note the higher frequency of sales around the $600/t and $620/t marks, 

suggesting that some had targets and hence a strategy in place. It is not surprising to see fewer sales at lower levels given that generally 

there is a tendency to not commit canola to a price too early because of production concerns, but also to the general rising price trend 

through the year. Keep an eye on this so that you are consistently achieving a good price. 

H 

$619 /t 

$246 /Ha 


CROPPING

Canola Operating Profit (Before Int and Tax) v WUE - 2018 

600 

500 

400 

Canola Operating Profit (BIT) $/Ha 

300 

200 

100 

0 

-100 

-200 

-300 

-400 

1 2 3 4 5 6 7 8 9 10 11 

Canola WUE kg/mm 

Rainfall 

Zone 

L 

M 

H 

Canola WUE 

7 kg/mm 

7 kg/mm 

7 kg/mm 

Canola Op Profit 

$ 161 /Ha 

$ 63 /Ha 

$ 34 /Ha 

This graph takes a bit of the noise out of the GSR chart. The much more positive trendline here as WUE increases is because stored 

moisture and late rainfall are taken into account in this measure. The more positive trend here reconfirms that WUE improvements are 

directly related to better profitability. Any improvements to WUE such as soil amelioration, soil renovation, better timeliness, more 

accurate sowing depth, better variety choice, etc should flow through to a more profitable result. At the same time, not everyone who 

achieved 7kg/mm was profitable. This means that yield itself is not the only important factor, with the other components of rotation and 

business cost structures still important. 


CROPPING

Lupin Yield v Rainfall - 2018 

3.0 

2.5 

2.0 

Lupins Yield (t/Ha) 

1.5 

1.0 

0.5 

0.0 

160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 


Rainfall 

Zone 

L 

M 


227 mm 

249 mm 

Lupins yield (t/Ha) 

1.35 t/Ha 

1.58 t/Ha 

The rule of thumb that 200mm of GSR is required to grow lupins was reflected in the LRZ in 2018. Average GSR was 202mm and lupin 

yields increased by 0.61t/ha to 1.35t/ha, as compared to 2017 when GSR was 158mm and the average lupin yield was 0.74t/ha. The MRZ 

and HRZ lupin yields were within 100kg/ha of 2017 results. Lupin varieties and agronomic practices have improved, with eight growers 

achieving yields above 2.50t/ha compared to the four or five who have produced yields of 2.50t/ha over the last five years. 

H 

309 mm 

1.73 t/Ha 


CROPPING

Lupin Yield v Rainfall - Five Year Average 

2.5 

2.0 

Lupins Yield (t/Ha) 5Yr Avg 

1.5 

1.0 

0.5 

180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 500 


Rainfall 

Zone 

L 

M 


246 

295 

Lupin Yield 5 Yr Avg 

1.33 t/Ha 

1.45 t/Ha 

Improvements in varieties and weed control options have seen an increase in average lupin yields across all rainfall zones. 27 growers 

have had lupin yields below 1.00 t/ha, which should encourage them to look at their rotation. It is fair to say that some of the lower 

yielding crops would have been grown on unsuitable soil types. There are 22 growers who now have five year average yields above 2.50 

t/ha, with these lupin crops making a significant cash and rotational contribution to farm profitability. 

H 

363 

1.48 t/Ha 


CROPPING

Lupin FIS Price v Lupin Gross Margin per Hectare - 2018 

700 

600 

500 

Lupin Operating Gross Margin $/Ha 

400 

300 

200 

100 

0 

-100 

-200 

300 320 340 360 380 400 420 440 


Rainfall 

Zone 

L 

M 

Lupin FIS Price 

$ 366 /t 

$ 370 /t 

Lupin Gross Margin per Ha 

$228 /Ha 

$206 /Ha 

Growers achieved the highest price for lupins across all rainfall zones for five years. In reviewing the past year's charts, it is apparent 

that there is grower resistance to selling lupins below $300/t FIS. Whenever there are low prices, there are a significant amount of lupins 

priced at $300/t, suggesting that growers are storing lupins for sale a later date. There is no real trend evident in this chart comparing 

FIS price and gross margin, which suggests that yield and cost control are far more important to lupin profitably than price. 

H 

$ 435 /t 

$189 /Ha 


CROPPING

Lupin Operating Profit (Before Int and Tax) v WUE - 2018 

400 

300 

200 

Lupin Operating Profit (BIT) $/Ha 

100 

0 

-100 

-200 

-300 

-400 

-500 

0 2 4 6 8 10 12 

Lupins WUE kg per mm 

Rainfall 

Zone 

L 

M 

Lupins WUE 

9 Kg/mm 

9 Kg/mm 

Lupins Op Profit 

$ 112 Ha 

$ 50 Ha 

There is a strong correlation between improving WUE and operating profit. Even with high lupin prices, the historic benchmark of 

7kg/mm for profitable lupin production is demonstrated again in 2018. The MRZ is the home of profitable lupin crops, with the MRZ 

growers producing a lupin profit in three of the last five years. It is unusual to see the cluster of profitable lupin crops in the LRZ as the 

five year average loss for the LRZ lupin enterprise is -$18/ha. The HRZ has not produced an average lupin profit in the last five years, with 

a five year average loss of -$77/ha. 

H 

7 Kg/mm 

-$ 51 Ha 


CROPPING

Hay Yield v Rainfall - 2018 

8 

7 

6 

Oaten Hay Yield (t/Ha) 

5 

4 

3 

2 

120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 


Rainfall 

Zone 

L 

M 


227 mm 

249 mm 

Hay Yield (t/ha) 

4.17 t/Ha 

5.11 t/Ha 

2018 had a more typical result than 2017, where the yields across the rainfall zones were all about the same. Compared to 2017, the 

yields for the HRZ were up 20%, LRZ was down 15% and the MRZ was only up 4%. Once again, there is a huge range of yields across all 

rainfall zones, from a low of 2t/ha to 10t/ha. Some of this range could be due to the small areas grown by sheep and cattle producers that 

aren't a high priority versus the serious hay producers where hay is the biggest profit generator. 

H 

309 mm 

6.07 t/Ha 


CROPPING

Hay Yield v Rainfall - Five Year Average 

10.0 

9.5 

9.0 

8.5 

8.0 

7.5 

Oaten Hay Yield 5YR AVE (t/Ha) 

7.0 

6.5 

6.0 

5.5 

5.0 

4.5 

4.0 

3.5 

3.0 

2.5 

2.0 

1.5 

1.0 

180 200 220 240 260 280 300 320 340 360 380 400 420 440 


Rainfall 

Zone 

L 

M 


246 mm 

295 mm 

Hay Yield 5 Yr Avg 

3.98 t/Ha 

4.96 t/Ha 

The five year average increases by 1t/ha per zone as you go from 4t/ha in the LRZ to 5t/ha in MRZ to 6t/ha in the HRZ. There is no doubt 

that there is a lot of upside in yields in the MRZ and HRZ, however, trying to achieve better quality often sees the yields constrained by 

the amount of nitrogen applied to the crop. There is still a huge range of yields around the same amount of rainfall, with crops getting an 

average of 250mm rainfall yielding from 1.5t/ha to 7.5t/ha. Soil types might play some part, but most of this range is due to the wide 

variation in levels of management of the crop. 

H 

363 mm 

5.85 t/Ha 


CROPPING

Hay Variable Costs per Tonne - 2018 

$250 

$200 

Hay Variable Cost per tonne 

$150 

$100 

$50 

Rainfall 

Zone 

L 

M 

H 

Hay Variable Cost per Tonne 

$ 87 /t 

$ 114 /t 

$ 124 /t 

The large range in yields also creates a wide range of costs of production, from around $60/t up to $200/t. Producers who have their own 

haymaking equipment will have lower per tonne costs if they grow a reasonable number of tonnes. What is interesting is that costs per 

tonne have gone up from 2017 despite the increased yields in the MRZ and HRZ. The LRZ has only gone up 4% despite a large drop in yield, 

the MRZ is up 8% despite a small increase in yield, and the HRZ costs have jumped a significant 19% despite yields going up 20%. This 

doesn't make a lot of sense as higher yields would normally see a drop in per tonne costs. 


CROPPING

Hay FIS Price v Hay Gross Margin per Hectare - 2018 

1800 

1600 

1400 

Hay Operating Gross Margin $/Ha 

1200 

1000 

800 

600 

400 

200 

0 

140 160 180 200 220 240 260 280 300 320 


Rainfall 

Zone 

L 

M 

Hay FIS Price 

$ 200 /t 

$ 246 /t 

Hay Gross Margin per Ha 

$488 Ha 

$633 Ha 

2018 was certainly the year to have more area sown to hay crops, with historically higher prices combining with better yields to see 

gross margins more than double the 2017 results. The LRZ was up 90%, MRZ was up 106% and HRZ up 173%. The HRZ was pushed up by 

the very high prices in the droughted areas of the eastern states. It should be noted that there were only a few crops in the LRZ, so the 

low price for one producer has pulled down the average for the zone. High quality hay was getting $250/t to $300/t, while the lower 

quality grades were priced from $200/t to $230/t. 

H 

$ 278 /t 

$872 Ha 


CROPPING

Hay Operating Profit (Before Int and Tax) v WUE - 2018 

1600 

1400 

1200 

1000 

Hay Operating Profit (BIT) $/Ha 

800 

600 

400 

200 

0 

-200 

-400 

-600 

0 10 20 30 40 

Oaten Hay WUE kg/mm 

Rainfall 

Zone 

L 

M 

Hay WUE 

35 Kg/mm 

29 Kg/mm 

Hay Op Profit 

$353 Ha 

$468 Ha 

The 2018 season saw an increase in the WUE of oaten hay crops across all of the rainfall zones. The LRZ managed to produce a 

respectable 35kg/mm. The MRZ at 29kg/mm, although higher than 2017, is only 60% of potential and the HRZ at 26kg/mm is only 54%. 

The good prices resulted in very good operating profits. The LRZ and MRZ produced profits that were more than three times the profits 

generated in 2017, while the HRZ was over four times. 

H 

25 Kg/mm 

$669 Ha 


CROPPING

Crop Wages Costs per Cropped Hectare - 2018 

$90 

$80 

$70 

$60 

Wages Crop $/crop Ha 

$50 

$40 

$30 

$20 

$10 

$0 

Rainfall 

Zone 

L 

M 

H 

Crop Wages per Cropped Ha 

$14 /ha 

$29 /ha 

$41 /ha 

The average business that employs only seasonal labour has the advantage of lower costs over larger farms because owners wages are 

NOT included in this measure. Finding and keeping labour is difficult and ongoing skill development in this area is a must for all 

businesses. There has been a general trend in businesses where more than two seasonal labour units are employed, to replace one of the 

seasonal labour units with a full time employee as businesses grow larger. This additional cost is often funded by other enterprises such 

as contracting or carting grain. The advantage here is having an extra permanent employee who is familiar with the operation and can 

help train casual staff. 


CROPPING

Crop Hectares per Labour Unit - 2018 

6000 

5500 

5000 

4500 

4000 

W.G. DSE / labour unit 

3500 

3000 

2500 

2000 

1500 

1000 

500 

0 

0 500 1000 1500 2000 2500 3000 

Crop Ha / Labour Unit 

Rainfall 

Zone 

L 

M 

WG DSE Per Labour Unit 

1,334 WG DSE 

2,265 WG DSE 

Crop Ha per Labour Unit 

1,831 Ha 

1,151 Ha 

This measure shows the combination of crop area and livestock DSE handled per labour unit. Labour units include all people who 

contribute to daily operations, including casual labour, based on the number of weeks in a year that they have contributed. If you are 

below the zone average, there may be opportunities to improve the size or capacity of machinery to leverage each labour unit more 

effectively. If you are at the top end of these numbers, this is a really good result. However, it might also indicate that you have perhaps 

stretched your labour units too far and are missing out on some efficiency advantages such as timeliness or quality of work. 

H 

5,092 WG DSE 

831 Ha 


CROPPING

Crop Fertiliser Costs per Cropped Hectare - 2018 

250 

200 

Fertiliser Cost $ per Crop Ha 

150 

100 

50 

0 

Rainfall 

Zone 

L 

M 

H 

Ferliser Cost Per Cropped Ha 

$67 Ha 

$111 Ha 

$147 Ha 

Fertiliser is the largest cost in most businesses. You need to have a clear strategy to get it as right as possible. Getting it right or wrong 

can have a large impact on the profit outcome. The strategy adopted by most businesses takes into account the key factors on a 

paddock-by-paddock basis, including pH, phosphorus (P) and PBI. Most clients now have good P levels and are focused on a replacement 

strategy. P can be used strategically (like this year in WA) to reduce costs when the outlook is below average, however, nitrogen (N) 

provides the greatest opportunity to play the season. Make sure you work with your agronomist to get the best bang for your buck, given 

the season you are facing. 


CROPPING

Crop Chemical Costs per Cropped Hectare - 2018 

$160 

$140 

$120 

Pesticide Cost $ per Crop Ha 

$100 

$80 

$60 

$40 

$20 

$0 

Rainfall 

Zone 

L 

M 

H 

Pescide Cost $ Per Crop Ha 

$ 61 Ha 

$ 80 Ha 

$ 94 Ha 

Looking at this chart, there is only a slightly lower spend on chemicals in the top 25% compared to all other farms. Why is this so? The 

trick here is that we all have access to the same chemicals, which are similarly priced in general, and where many of the most expensive 

options have fixed advice rates. Given that we can all spend the same amount, the issue is the quality of the planning, crop types and 

rotation to extract the highest possible average yield for this spend. This requires a good, independent agronomist focused on your 

profitability and setting up a clear rotational plan while retaining the flexibility to act quickly when problems arise. 


CROPPING

Fuel And Oil Cost $ per Crop Ha - 2018 

$70 

$65 

$60 

$55 

$50 

Fuel and Oil Cost $/Crop Ha 

$45 

$40 

$35 

$30 

$25 

$20 

$15 

$10 

$5 

Rainfall 

Zone 

L 

M 

H 

Fuel And Oil Costs per Cropped Ha 

$25 Ha 

$35 Ha 

$38 Ha 

In the MRZ and LRZ, the top 25% do spend less per hectare. This shows a focus on appropriate scale of machinery for these zones. The 

range in fuel use is still surprisingly large. Clearly, there are many factors involved here including heavy vs lighter soil types, dry sowing 

vs wet, tynes vs discs, own grain cartage vs contract, slopes vs flat, and Fendt vs the rest! Like any business, it is good to have a focus on 

competitive pricing, monitoring stock control and avoiding unnecessary overflows! A regular review of engine maintenance, tyre inflation 

and ballast is also required to ensure best fuel efficiency. For more information, take a look at: 

http://www2.ca.uky.edu/agcomm/pubs/aen/aen93/aen93.pdf 


CROPPING

Repairs And Maintenance per Hectare - 2018 

$120 

$100 

Repairs & Maintenance $/Crop Ha 

$80 

$60 

$40 

$20 

$0 

Rainfall 

Zone 

L 

M 

H 

R&M Costs per Cropped Ha 

$29/Ha 

$46/Ha 

$62/Ha 

LRZ repairs are 15% higher than fuel costs, MRZ repairs are 30% higher and HRZ repairs are 63% higher. Presumably, the more remote 

you are, the better systems you need to have in place given access to servicing capacity. The other factors that affect this are the greater 

intensity of the higher rainfall zones in terms of weed seed destruction, the more undulating country's impact on sprayers and generally 

more expensive sprayers. All businesses need a good maintenance schedule. Do you have a clear space on the whiteboard in the 

shed/lunch room for the maintenance schedule and a clear designation of who is responsible and what the standard operating procedures 

(SOPs) are? 


CROPPING

Phosphorus Applied - 2018 

20 

15 

Phosphorus Kg / Crop Ha 

10 

5 

Rainfall 

Zone 

L 

M 

H 

Phosphorus Applied Per Ha 

6 Kg/Crop Ha 

8 Kg/Crop Ha 

10 Kg/Crop Ha 

This graph shows crop fertiliser on cropped hectares. All zones show a removal of about 3.5kg/t or 15% more than removal (assuming 3 

units of P per tonne). Five year average yields for wheat are LRZ at 1.73t/ha, MRZ at 2.51t/ha and HRZ at 2.82t/ha. Consensus supports a 

removal rate slightly higher than the five year average. Businesses continue to adjust the rate following particularly high or low yielding 

years, being mindful of the soil status and the Phosphorus Buffering Index (PBI) as well as adjusting at the start of the season pending 

the outlook. 


CROPPING

Potassium Applied - 2018 

20 

15 

Potassium Kg / Crop Ha 

10 

5 

Rainfall 

Zone 

L 

M 

H 

Potassium Applied Per Ha 

2 Kg/Crop Ha 

10 Kg/Crop Ha 

8 Kg/Crop Ha 

The need for potassium (K) is extremely variable between farms depending on soil type. Hence, there is little relationship between the 

amount of K applied and ranking number. Note that about 25% of clients still do not need to apply potash (generally heavier soil types 

with strong K levels). Of those who do apply K, the amount is steadily increasing in line with ongoing removal. About 25% of farms have a 

large enough requirement for blanket starter fertilisers, while there are many being treated on a soil type basis. This is an area to keep 

monitoring through soil tests to make sure you are aware when you are approaching a need to apply. 


CROPPING

Lime Applied - 2018 

200 

Lime Kg / Crop Ha 

100 

0 

Rainfall 

Zone 

L 

M 

H 

Lime Applied Per Ha 

51 Kg / Crop Ha 



The rate of lime removal varies enormously between farms, from 25kg/ha to 345kg/ha per year. The greatest factor is removal by crop 

production. Current advice is to target a soil pH of 5.5 at the surface and 4.8 in the subsoil. The 4.8 in subsoil can be critical on some soils 

as this is required to reduce the effects of aluminium toxicity. If you are one of the lucky ones who has high pH soils, great! If not, be sure 

that you have a clear written plan that outlines your liming strategy. If you have reached your 5.5 target, be sure to monitor pH levels to 

maintain this. 


CROPPING


Rainfall 2018 

P73 

Lower 25% 

12 Clients 


Average 

47 Clients 

Top 25% 

12 Clients 

Lower 25% 

45 Clients 

Average 

181 Clients 

Top 25% 

45 Clients 

Lower 25% 

16 Clients 

Average 

62 Clients 

Top 25% 

16 Clients 

Lower 25% 

72 Clients 

Average 

290 Clients 

Top 25% 

72 Clients 

Jan 34 42 52 26 28 27 43 40 30 33 33 36 Y 290 

Feb 20 16 11 26 31 34 13 25 33 18 27 24 Y 290 

Mar 9 6 5 7 8 7 7 10 9 8 8 6 Y 290 

April 2 2 1 7 6 3 5 9 9 7 6 2 Y 290 

May 12 18 18 19 20 20 27 28 27 22 21 21 Y 290 

Jun 38 42 41 42 42 39 46 52 58 45 44 42 Y 290 

July 42 52 54 44 54 59 18 52 69 41 53 59 Y 290 

Aug 49 54 56 58 66 70 30 74 89 52 66 67 Y 290 

Sep 5 6 5 9 10 8 14 16 16 11 11 8 Y 290 

Oct 32 31 32 30 29 29 32 35 35 30 31 31 Y 290 

Nov 20 18 12 20 15 12 55 34 15 30 20 14 Y 290 

Dec 3 2 0 11 9 9 31 19 7 17 10 5 Y 290 

Total Rainfall 268 289 287 300 318 317 319 393 398 313 330 316 Y 290 

Growing season rain 148 172 175 167 189 191 144 230 274 169 195 194 Y 290 

5 Year average GSR 206 202 196 247 242 225 290 318 311 270 252 221 Y 290 

10 Year average GSR 193 191 190 240 235 217 277 308 300 261 243 214 Y 290 

Clients in Average - Grain Deliveries 

Wheat Total Tonnes 2,932 5,698 9,313 1,861 4,590 8,517 678 3,845 7,181 1,508 4,625 8,216 Y 266 

Hard 198 70 14 91 77 136 100 96 181 113 80 94 Y 266 

APW 499 1,031 2,048 625 914 1,708 158 1,206 1,136 420 996 1,553 Y 266 

ASW 567 1,913 2,761 460 2,106 3,981 43 461 769 276 1,726 3,302 Y 266 

GP1 2 36 16 6 56 120 0 140 387 7 70 143 Y 266 

Noodle 663 731 1,093 64 311 682 19 277 869 80 376 787 Y 266 

Soft 0 0 0 0 0 0 0 0 0 0 0 0 Y 266 

Feed 79 21 2 18 14 33 0 28 5 34 18 21 Y 266 

Other 0 1 3 2 4 2 21 10 0 6 5 2 Y 266 

Delivered to Pool 0 57 0 21 10 0 6 5 15 15 17 38 Y 266 

Sold for Cash 2,838 5,500 9,059 1,777 4,402 8,220 591 3,656 6,842 1,422 4,434 7,937 Y 266 

Malt Barley Total Tonnes 1,607 1,893 1,727 1,474 2,382 3,786 453 1,981 1,854 1,330 2,243 2,783 Y 245 

Malt Tonnes 627 691 638 467 842 1,218 26 639 851 453 786 959 Y 245 

Malt v. as Feed 741 986 984 823 1,246 2,093 329 1,146 848 716 1,191 1,544 Y 245 


Sold for Cash 1,547 1,833 1,680 1,380 2,268 3,628 371 1,811 1,732 1,236 2,127 2,681 Y 245 

Feed Barley Total Tonnes 329 1,002 1,002 673 1,018 985 304 1,689 3,808 470 1,151 1,697 Y 88 


Sold for Cash 310 954 971 621 956 881 174 1,552 3,631 400 1,077 1,610 Y 88 

Lupin Total Tonnes 148 336 232 250 465 908 22 182 193 250 390 641 Y 152 


Sold for Cash 38 280 207 176 388 838 18 150 164 190 326 587 Y 152 

Canola Total Tonnes 983 567 756 426 679 961 159 1,312 1,901 370 799 880 Y 245 


Sold for Cash 981 559 754 424 658 945 154 1,295 1,871 368 781 871 Y 245 

0's 

No. 


CROPPING


P74 

Lower 25% 

12 Clients 




Crop Details 

Cropped Area 3,612 4,129 5,350 2,482 3,319 5,004 1,263 2,809 3,784 2,102 3,343 4,735 N 289 

Total Tonnes 4,618 8,257 12,306 4,294 8,246 14,202 1,800 8,176 12,408 3,673 8,233 12,843 N 289 

Effective Rainfall 233 227 237 235 249 241 246 309 319 251 262 251 N 190 

Wheat Area 2,071 2,659 3,868 1,134 1,644 2,615 543 1,178 1,787 945 1,727 2,804 N 260 

Wheat Tonnes Produced 2,932 5,698 9,313 2,067 4,705 8,517 775 3,987 7,181 1,663 4,731 8,216 N 260 

Wheat Yield 1.43 2.10 2.45 1.90 2.75 3.23 1.53 2.82 3.64 1.82 2.65 2.90 N 260 

Wheat Water Use Efficiency 12 15 17 13 17 20 10 14 18 12 16 18 N 260 

% of potential 61% 75% 83% 67% 86% 101% 51% 71% 90% 62% 81% 90% N 260 

Malt Barley Area 839 935 792 720 845 1,197 463 656 766 670 826 1,041 N 222 

Malt Barley Tonnes Produced 1,607 2,284 2,158 1,582 2,549 4,085 635 2,311 2,913 1,456 2,476 3,319 N 222 

Malt Barley Yield 1.83 2.35 2.65 2.29 2.97 3.36 1.57 3.30 3.69 2.26 2.94 3.08 N 222 

Malt Barley Water Use Efficiency 14 17 19 15 18 21 11 14 15 14 17 20 N 221 

% of potential 65% 76% 85% 67% 82% 96% 48% 65% 68% 63% 79% 90% N 221 

Feed Barley Area 548 622 557 586 611 507 151 428 939 329 562 709 N 56 

Feed Barley Tonnes Produced 658 1,441 1,403 1,571 1,914 1,773 304 1,900 4,570 839 1,777 2,452 N 57 

Feed Barley Yield 1.73 2.26 2.39 2.17 3.24 3.68 2.65 3.58 4.49 2.47 3.06 3.11 N 56 

Feed Barley Water Use Efficiency 16 16 15 15 20 22 15 17 21 15 18 18 N 56 

% of potential 74% 72% 70% 69% 92% 99% 67% 78% 97% 68% 82% 81% N 56 

Oat Area 192 143 35 209 183 182 153 203 444 173 184 196 N 113 

Oat Tonnes Produced 304 205 91 523 467 457 292 591 1,467 411 470 449 N 114 

Oat Yield 1.64 1.66 2.44 2.44 2.50 2.37 1.27 2.62 2.98 2.18 2.44 2.04 N 113 

Oat Water Use Efficiency 13 13 19 14 15 15 8 11 13 13 14 14 N 113 

% of potential 60% 57% 85% 64% 67% 70% 38% 51% 57% 58% 62% 63% N 113 

Canola Area 2,070 952 770 792 787 925 252 1,001 1,196 638 858 833 N 202 

Canola Tonnes Produced 1,180 816 924 563 821 1,153 207 1,480 1,901 461 974 1,167 N 201 

Canola Yield 0.42 0.96 1.14 0.92 1.09 1.21 0.73 1.33 1.56 0.91 1.13 1.24 N 201 

Canola Water Use Efficiency 3 7 8 6 7 7 4 7 8 6 7 8 N 201 

% of potential 21% 44% 53% 40% 43% 50% 30% 45% 56% 38% 44% 51% N 201 

Lupin Area 315 343 219 238 321 514 95 182 178 252 303 430 N 117 

Lupin Tonnes Produced 148 492 406 267 547 1,060 58 342 516 326 512 875 N 116 

Lupin Yield 0.81 1.35 1.71 1.20 1.58 1.88 0.75 1.73 2.66 1.26 1.57 1.86 N 115 

Lupin Water Use Efficiency 6 9 11 7 9 11 4 7 10 7 9 11 N 115 

% of potential 37% 60% 74% 47% 61% 76% 27% 47% 69% 44% 59% 73% N 115 

Triticale Area 100 60 125 100 119 100 N


P75 

Lower 25% 

12 Clients 




Crop Details 


Cropped Area 3,668 3,905 4,729 2,620 3,297 4,713 1,228 2,744 3,569 2,185 3,277 4,432 N 290 

Total Tonnes 4,647 6,251 8,033 5,291 7,562 11,300 2,466 7,384 9,987 4,467 7,311 9,649 N 290 

Effective Rainfall 263 246 242 284 295 277 314 363 371 305 301 267 N 280 

Wheat Area 2,191 2,637 3,507 1,098 1,600 2,450 533 1,152 1,565 958 1,683 2,676 N 271 

Wheat Tonnes Produced 3,005 4,395 6,112 2,412 4,087 6,638 1,243 3,594 5,112 2,092 4,037 6,147 N 271 

Wheat Yield 1.56 1.71 1.76 2.16 2.51 2.71 2.24 2.85 3.03 2.20 2.44 2.32 N 271 

Wheat Water Use Efficiency 10 11 11 12 14 15 11 13 14 12 13 13 N 271 

% of potential 48% 53% 53% 61% 69% 76% 53% 65% 72% 59% 65% 66% N 271 

Malt Barley Area 762 633 512 778 785 969 317 513 529 687 715 763 N 259 

Malt Barley Tonnes Produced 1,445 1,385 1,170 1,861 2,189 2,829 834 1,669 1,746 1,676 1,977 2,088 N 259 

Malt Barley Yield 1.86 2.03 2.09 2.46 2.77 2.87 2.63 3.18 3.27 2.49 2.73 2.56 N 259 

Malt Barley Water Use Efficiency 11 12 12 14 15 16 13 13 12 13 14 14 N 259 

% of potential 49% 55% 55% 62% 68% 74% 60% 61% 56% 59% 65% 65% N 259 

Feed Barley Area 243 444 600 678 577 716 146 469 691 405 524 636 N 113 

Feed Barley Tonnes Produced 356 856 1,229 1,520 1,542 2,143 311 1,551 3,167 988 1,399 1,795 N 118 

Feed Barley Yield 1.79 1.93 2.03 2.25 2.75 3.17 2.72 3.51 4.38 2.58 2.75 2.71 N 113 

Feed Barley Water Use Efficiency 11 12 12 11 13 14 14 14 19 12 13 14 N 112 

% of potential 49% 55% 53% 48% 59% 64% 64% 64% 85% 55% 59% 62% N 112 

Oat Area 226 150 63 171 171 190 144 188 401 159 173 188 N 150 

Oat Tonnes Produced 433 238 73 430 465 548 272 550 1,264 388 463 458 N 150 

Oat Yield 1.99 1.59 1.47 2.38 2.57 2.86 1.73 2.68 2.93 2.29 2.49 2.23 N 150 

Oat Water Use Efficiency 11 10 11 12 13 14 9 11 13 11 12 12 N 149 

% of potential 49% 46% 52% 55% 59% 63% 41% 51% 59% 50% 55% 54% N 149 

Canola Area 1,435 823 716 713 799 1,048 328 1,036 1,314 654 854 918 N 261 

Canola Tonnes Produced 887 688 717 814 967 1,303 458 1,665 2,062 775 1,079 1,161 N 260 

Canola Yield 0.66 0.89 0.96 1.18 1.21 1.22 1.35 1.54 1.59 1.26 1.24 1.15 N 260 

Canola Water Use Efficiency 4 5 6 6 6 7 6 7 8 6 6 6 N 260 

% of potential 26% 36% 38% 41% 41% 45% 39% 44% 50% 40% 41% 42% N 260 

Lupin Area 184 279 271 230 267 415 132 181 247 226 254 347 N 158 

Lupin Tonnes Produced 128 366 392 292 427 764 159 274 372 313 391 619 N 158 

Lupin Yield 0.99 1.33 1.46 1.08 1.45 1.69 1.18 1.48 1.78 1.17 1.44 1.66 N 158 

Lupin Water Use Efficiency 6 7 8 6 8 9 5 6 7 6 7 9 N 157 

% of potential 41% 50% 54% 40% 52% 62% 32% 40% 47% 38% 50% 58% N 157 

Triticale Area 98 132 33 60 163 100 104 98 N 11 

Triticale Tonnes Produced 122 214 57 120 469 363 231 122 N 11 

Triticale Yield 1.20 1.62 2.04 2.00 2.88 3.16 2.04 1.20 N 11 

Triticale Water Use Efficiency 7 9 11 10 12 14 10 7 N 11 

% of potential 49% 63% 73% 66% 80% 92% 67% 49% N 11 

Field Pea Area 72 108 204 229 230 204 314 425 177 218 199 N 38 

Field Pea Tonnes Produced 63 66 118 222 244 221 578 780 202 238 209 N 37 

Field Pea Yield 0.88 0.65 0.56 0.94 1.01 0.96 2.78 1.84 1.39 1.05 0.91 N 37 

Field Pea Water Use Efficiency 5 4 4 6 6 5 5 5 5 5 5 N 37 

% of potential 36% 27% 23% 38% 38% 37% 32% 33% 34% 36% 30% N 37 

Chickpea Desi Area 80 126 92 95 114 56 129 68 100 97 N 13 

Chickpea Desi Tonnes Produced 59 108 40 85 129 87 283 72 125 94 N 13 

Chickpea Desi Yield 0.63 0.86 0.43 0.86 1.21 1.16 1.59 0.92 0.98 0.92 N 13 

Chickpea Desi Water Use Efficiency 4 5 4 5 7 3 5 3 5 6 N 13 

% of potential 30% 35% 29% 31% 44% 20% 33% 23% 32% 37% N 13 

Oaten Hay Area 28 60 99 131 133 94 42 150 210 64 129 109 N 112 

Oaten Hay Tonnes Produced 125 272 570 635 646 396 176 923 1,299 324 673 513 N 112 

Oaten Hay Yield 4.36 3.98 4.01 5.48 4.96 3.90 4.64 5.85 6.41 5.25 5.07 4.13 N 112 

Oaten Hay Water Use Efficiency 26 22 20 26 24 21 14 24 30 22 24 22 N 112 

% of potential 55% 46% 42% 53% 51% 43% 30% 49% 63% 47% 50% 45% N 112 

Canola Yield as a % of Wheat 40% 49% 53% 53% 51% 52% 60% 58% 52% 57% 53% 53% N 245 

Non Utilised Area 1,074 554 582 327 247 190 395 267 239 309 336 352 N 68 

Top 25% 

72 Clients 

0's 

No. 


CROPPING


P76 




Wheat Enterprise Analysis 2018 

Area ha 2,071 2,659 3,868 1,134 1,644 2,615 543 1,178 1,787 945 1,727 2,804 N 260 

Yield t/ha 1.43 2.10 2.45 1.90 2.75 3.23 1.53 2.82 3.64 1.82 2.65 2.90 N 260 

Production tonnes t 2,932 5,698 9,313 2,067 4,705 8,517 775 3,987 7,181 1,663 4,731 8,216 N 260 

Seeding Rate kg/ha 70 63 55 80 79 71 74 85 86 78 77 67 N 248 

Used for Seed and Feed t 103 176 255 106 146 215 83 128 132 96 148 213 N 247 

Value of Seed $/t $323 $334 $343 $355 $339 $346 $422 $382 $354 $378 $347 $344 N 245 

Feed and Seed Cost $ $34,373 $59,269 $87,686 $37,764 $49,790 $75,100 $36,085 $47,324 $47,885 $36,181 $51,028 $73,442 N 245 

For Sale tonnes t 2,838 5,500 9,059 1,974 4,512 8,220 675 3,791 6,842 1,569 4,537 7,937 N 260 

Equivalent Cash in Bank Price $/t $360 $346 $348 $368 $346 $341 $437 $387 $349 $389 $355 $342 N 259 

Grain Sales $ $1,038,742 $1,902,048 $3,149,135 $694,395 $1,542,947 $2,798,611 $290,232 $1,359,233 $2,415,379 $572,830 $1,568,422 $2,719,806 N 259 

Total Income $ $1,069,990 $1,968,470 $3,236,821 $728,988 $1,610,032 $2,900,377 $335,495 $1,445,643 $2,535,339 $619,614 $1,639,418 $2,815,923 N 259 

Income $/ha $512 $721 $848 $677 $943 $1,104 $656 $1,070 $1,260 $705 $930 $993 N 259 

Variable Operating Costs $ $595,300 $824,781 $1,180,053 $457,584 $710,739 $1,151,527 $223,159 $675,946 $1,166,418 $382,117 $723,739 $1,121,098 N 259 

Variable Operating Costs $/ha $309 $319 $311 $432 $441 $438 $455 $547 $589 $444 $442 $399 N 259 

Variable Operating Costs $/t $215 $158 $127 $277 $181 $137 $393 $243 $180 $301 $190 $138 N 259 

Operating Gross Margin $ $474,690 $1,143,689 $2,056,768 $271,404 $899,293 $1,748,850 $112,336 $769,697 $1,368,921 $237,497 $915,679 $1,694,826 N 259 

Operating Gross Margin $/ha $204 $402 $538 $245 $502 $666 $201 $523 $671 $261 $488 $594 N 259 

Overheads $ $25,900 $49,849 $67,814 $33,384 $50,869 $75,479 $23,545 $46,369 $86,620 $31,047 $49,745 $72,130 N 258 

Crop Machinery $ $48,940 $84,349 $134,650 $67,635 $80,636 $109,507 $49,949 $75,864 $80,470 $60,673 $80,282 $104,960 N 256 

Infrastructure $ $8,695 $8,825 $11,772 $7,709 $9,370 $12,272 $8,747 $10,245 $10,367 $9,127 $9,450 $11,199 N 244 

Management $ $54,397 $70,145 $89,155 $39,457 $54,667 $77,360 $33,694 $41,675 $52,371 $39,594 $54,707 $78,934 N 259 

Fixed Operating Costs $ $151,797 $236,637 $321,623 $168,626 $219,782 $313,592 $124,073 $198,202 $263,650 $157,886 $218,276 $301,937 N 259 

Fixed Operating Costs $/ha $108 $101 $87 $166 $152 $130 $255 $216 $179 $198 $156 $117 N 259 

Total Operating Costs ($) $ $747,097 $1,061,417 $1,501,676 $626,210 $930,521 $1,465,119 $347,233 $874,148 $1,430,068 $540,003 $942,015 $1,423,035 N 259 

Total Operating Costs ($/ha) $/ha $416 $420 $397 $598 $593 $568 $711 $763 $768 $642 $598 $516 N 259 

Total Operating Costs ($/t) $/t $294 $210 $163 $394 $247 $178 $625 $356 $243 $446 $263 $180 N 259 

Operating Profit (BIT) ($) $ $322,893 $907,053 $1,735,146 $102,778 $679,511 $1,435,258 -$11,738 $571,495 $1,105,271 $79,611 $697,403 $1,392,888 N 259 

Operating Profit Crop (BIT) ($/ha) $/ha $96 $301 $451 $79 $350 $536 -$55 $307 $492 $64 $332 $477 N 259 

Finance $ $45,824 $55,066 $69,879 $36,152 $45,324 $53,311 $41,952 $47,590 $37,605 $40,637 $47,536 $59,002 N 245 

Farm Lease $ $56,597 $52,259 $38,267 $29,231 $58,483 $98,089 $23,576 $69,126 $73,195 $31,957 $59,680 $77,934 N 133 

Earnings Before Tax (EBT) $ $270,944 $824,691 $1,646,133 $55,534 $569,255 $1,249,710 -$66,540 $469,056 $1,013,267 $26,092 $594,409 $1,241,903 N 256 

Earnings Before Tax (EBT) ($/ha) $/ha $74 $271 $430 $25 $293 $489 -$166 $204 $390 -$13 $271 $436 N 259 


CROPPING


P77 




Barley Enterprise Analysis 2018 

Area ha 928 950 912 751 866 1,171 322 634 914 647 836 1,045 N 257 

Yield t/ha 1.78 2.33 2.57 2.30 3.01 3.41 2.21 3.41 4.07 2.33 2.98 3.13 N 257 

Production tonnes t 1,648 2,290 2,428 1,688 2,620 4,002 500 2,367 3,931 1,434 2,523 3,386 N 258 





For Sale tonnes t 1,581 2,207 2,359 1,577 2,491 3,821 520 2,418 4,083 1,384 2,435 3,251 N 253 


Grain Sales $ $493,452 $701,085 $760,380 $484,292 $782,814 $1,207,974 $186,209 $756,146 $1,261,131 $431,725 $765,547 $1,029,281 N 251 

Total Income $ $512,762 $727,212 $782,813 $525,066 $829,501 $1,267,601 $189,717 $761,069 $1,256,034 $455,751 $801,087 $1,074,076 N 256 

Income $/ha $665 $841 $1,064 $768 $1,008 $1,131 $951 $1,259 $1,383 $850 $1,030 $1,070 N 256 

Variable Operating Costs $ $374,056 $342,236 $295,191 $324,152 $394,921 $526,912 $123,204 $363,848 $575,662 $284,915 $381,068 $447,625 N 256 



Operating Gross Margin $ $138,706 $384,976 $487,623 $200,914 $434,580 $740,690 $66,513 $397,221 $680,373 $170,835 $420,019 $626,451 N 256 


Overheads $ $15,641 $19,231 $15,274 $23,109 $28,151 $35,002 $13,478 $25,964 $43,161 $20,904 $26,375 $27,926 N 255 



Management $ $21,624 $24,545 $20,830 $29,643 $31,235 $37,690 $20,004 $26,780 $36,659 $26,418 $29,373 $31,298 N 255 



Total Operating Costs ($) $ $449,246 $430,605 $377,605 $441,949 $518,115 $670,639 $193,437 $479,494 $733,972 $389,996 $497,542 $564,189 N 256 



Operating Profit (BIT) ($) $ $63,516 $296,607 $405,208 $83,117 $311,387 $596,962 -$3,720 $281,575 $522,062 $65,754 $303,545 $509,887 N 256 

Operating Profit Crop (BIT) ($/ha) $/ha $81 $334 $556 $119 $357 $526 $172 $439 $568 $149 $369 $502 N 256 

Finance $ $18,832 $18,704 $14,799 $26,049 $27,545 $25,200 $16,390 $27,286 $30,899 $23,652 $26,157 $23,442 N 244 

Farm Lease $ $15,929 $22,341 $7,486 $17,622 $27,188 $37,992 $10,256 $38,288 $31,059 $19,867 $28,444 $27,665 N 131 

Earnings Before Tax (EBT) $ $45,329 $265,839 $386,666 $50,525 $261,401 $530,026 -$24,696 $226,677 $454,637 $34,355 $255,543 $454,687 N 255 

Earnings Before Tax (EBT) ($/ha) $/ha $56 $301 $531 $65 $296 $476 $60 $335 $468 $75 $304 $457 N 256 


CROPPING


P78 




Lupin Enterprise Analysis 2018 

Area ha 315 343 219 238 321 514 95 182 178 252 303 430 N 117 

Yield t/ha 0.81 1.35 1.71 1.20 1.58 1.88 0.75 1.73 2.66 1.26 1.57 1.86 N 115 

Production tonnes t 148 492 406 267 547 1,060 58 342 516 326 512 875 N 116 





For Sale tonnes t 75 474 362 312 626 1,020 70 501 655 438 589 825 N 84 


Grain Sales $ $26,250 $172,623 $135,946 $119,349 $226,343 $373,011 $43,021 $172,988 $188,560 $162,354 $212,144 $298,590 N 83 

Total Income $ $51,625 $178,114 $151,941 $99,723 $196,239 $386,772 $35,699 $119,553 $153,321 $119,913 $183,205 $316,191 N 115 

Income $/ha $283 $490 $632 $405 $561 $689 $454 $682 $840 $457 $568 $667 N 115 




Operating Gross Margin $ -$18,073 $84,510 $88,386 $9,201 $86,112 $210,883 $11,307 $39,189 $52,332 $26,475 $79,028 $169,028 N 116 

Operating Gross Margin $/ha -$9 $228 $369 $27 $206 $363 $186 $189 $327 $76 $206 $343 N 116 

Overheads $ $3,843 $7,076 $5,146 $6,780 $9,429 $15,135 $5,564 $7,347 $6,837 $8,430 $8,820 $12,592 N 116 


Infrastructure $ $1,957 $1,430 $993 $1,659 $1,921 $2,463 $1,937 $1,922 $897 $2,373 $1,853 $1,925 N 109 

Management $ $8,016 $9,686 $5,704 $7,530 $10,365 $15,157 $10,669 $10,026 $5,010 $10,572 $10,227 $12,799 N 116 






Operating Profit (BIT) ($) $ -$46,051 $49,534 $67,247 -$27,519 $42,161 $144,259 -$19,761 $1,294 $28,139 -$18,690 $37,125 $114,431 N 116 

Operating Profit Crop (BIT) ($/ha) $/ha -$129 $112 $268 -$159 $50 $237 -$149 -$51 $186 -$136 $43 $216 N 116 

Finance $ $9,976 $13,376 $6,497 $8,509 $7,205 $6,716 $13,000 $7,443 $2,418 $10,185 $8,087 $6,931 N 109 

Farm Lease $ $12,786 $2,056 $3,859 $9,213 $14,971 $2,882 $3,084 $3,296 $9,287 $12,992 N 55 

Earnings Before Tax (EBT) $ -$56,027 $29,338 $59,722 -$37,261 $21,785 $108,350 -$33,722 -$7,649 $17,146 -$29,136 $18,390 $83,911 N 114 

Earnings Before Tax (EBT) ($/ha) $/ha -$158 $71 $236 -$211 -$3 $197 -$286 -$138 $109 -$204 -$13 $175 N 116 


CROPPING


P79 




Canola Enterprise Analysis 2018 

Area ha 2,070 952 770 792 787 925 252 1,001 1,196 638 858 833 N 202 

Yield t/ha 0.42 0.96 1.14 0.92 1.09 1.21 0.73 1.33 1.56 0.91 1.13 1.24 N 201 

Production tonnes t 1,180 816 924 563 821 1,153 207 1,480 1,901 461 974 1,167 N 201 



Value of Seed $/t $1,095 $765 $593 $599 $632 $629 $571 $608 $583 $645 $644 $652 N 107 

Feed and Seed Cost $ $591 $3,085 $2,700 $3,208 $4,700 $6,299 $3,114 $4,896 $3,271 $2,931 $4,535 $5,390 N 107 

For Sale tonnes t 1,177 805 922 560 796 1,134 223 1,492 1,871 468 957 1,155 N 200 


Grain Sales $ $681,812 $477,835 $550,847 $341,628 $492,967 $688,239 $141,573 $905,615 $1,121,941 $286,988 $586,452 $694,557 N 199 

Total Income $ $682,048 $484,355 $552,047 $343,156 $501,577 $700,344 $133,653 $898,657 $1,139,761 $283,052 $592,738 $701,990 N 200 

Income $/ha $243 $583 $678 $564 $669 $744 $467 $826 $954 $564 $695 $758 N 200 



Variable Operating Costs $/t $1,025 $444 $244 $759 $498 $388 $3,185 $1,003 $400 $1,299 $610 $338 N 200 

Operating Gross Margin $ -$172,760 $145,934 $340,738 $4,885 $153,583 $282,957 $8,966 $301,740 $404,386 -$5,048 $188,012 $323,907 N 201 

Operating Gross Margin $/ha -$128 $264 $406 $72 $222 $327 -$23 $246 $334 $62 $233 $366 N 201 

Overheads $ $29,551 $16,725 $12,173 $24,233 $25,731 $28,991 $11,818 $35,016 $56,889 $20,782 $26,792 $24,665 N 199 



Management $ $21,212 $18,357 $16,497 $27,305 $25,716 $25,825 $16,797 $31,933 $35,874 $23,411 $26,285 $22,765 N 201 





Total Operating Costs ($/t) $/t $1,343 $588 $324 $1,036 $674 $512 $5,053 $1,513 $520 $1,932 $861 $449 N 200 

Operating Profit (BIT) ($) $ -$256,782 $75,077 $272,183 -$117,504 $41,961 $169,447 -$55,050 $142,607 $231,069 -$106,236 $70,115 $226,732 N 201 

Operating Profit Crop (BIT) ($/ha) $/ha -$235 $161 $319 -$113 $63 $193 -$275 $34 $159 -$147 $68 $241 N 201 

Finance $ $6,916 $12,859 $11,369 $24,915 $23,778 $20,340 $22,876 $32,322 $24,993 $23,827 $24,541 $18,527 N 189 

Farm Lease $ $134,262 $19,369 $4,180 $13,299 $26,553 $32,597 $6,651 $64,851 $52,111 $16,161 $35,078 $21,222 N 105 

Earnings Before Tax (EBT) $ -$287,784 $52,884 $258,027 -$145,428 -$9,818 $92,207 -$81,348 $61,284 $139,831 -$135,913 $14,976 $172,848 N 198 

Earnings Before Tax (EBT) ($/ha) $/ha -$250 $130 $295 -$175 $1 $144 -$379 -$72 $36 -$229 -$1 $198 N 201 


CROPPING


P80 




Oat Enterprise Analysis 2018 

Area ha 192 143 35 209 183 182 153 203 444 173 184 196 N 113 

Yield t/ha 1.64 1.66 2.44 2.44 2.50 2.37 1.27 2.62 2.98 2.18 2.44 2.04 N 113 

Production tonnes t 304 205 91 523 467 457 292 591 1,467 411 470 449 N 114 





For Sale tonnes t 280 174 72 475 456 486 327 711 1,295 380 479 475 N 87 


Grain Sales $ $102,684 $62,990 $28,259 $164,119 $157,605 $172,796 $123,562 $258,943 $451,469 $135,665 $168,861 $158,685 N 87 

Total Income $ $105,250 $69,404 $31,959 $178,860 $163,859 $163,053 $108,415 $224,301 $551,163 $143,610 $168,805 $153,055 N 113 

Income $/ha $556 $542 $773 $878 $858 $783 $495 $986 $1,102 $805 $856 $665 N 113 






Overheads $ $3,865 $2,805 $526 $6,545 $6,038 $5,015 $4,588 $8,847 $20,775 $6,035 $6,390 $5,518 N 113 

Crop Machinery $ $5,208 $4,347 $954 $10,336 $10,958 $4,901 $10,746 $14,414 $32,185 $9,668 $11,115 $6,969 N 111 

Infrastructure $ $1,988 $877 $83 $1,293 $1,266 $1,421 $1,982 $2,094 $4,307 $1,521 $1,430 $1,243 N 103 

Management $ $5,610 $4,217 $779 $8,548 $7,473 $6,597 $10,249 $11,074 $21,058 $9,008 $8,020 $6,745 N 113 






Operating Profit (BIT) ($) $ $25,780 $16,330 $20,297 $60,660 $57,016 $73,643 $8,613 $89,383 $266,901 $39,162 $60,716 $64,975 N 113 


Finance $ $4,428 $2,667 $506 $10,761 $7,833 $3,473 $6,714 $7,822 $15,603 $9,788 $7,313 $4,434 N 110 

Farm Lease $ $5,181 $2,422 $315 $6,600 $8,143 $13,685 $5,920 $12,939 $26,155 $6,060 $8,892 $10,805 N 63 

Earnings Before Tax (EBT) $ $21,164 $12,675 $19,476 $46,426 $44,714 $61,433 -$1,061 $71,092 $228,088 $26,456 $47,848 $53,632 N 113 

Earnings Before Tax (EBT) ($/ha) $/ha $89 $141 $429 $137 $198 $238 -$244 $181 $337 $62 $188 $199 N 113 


CROPPING


P81 




Field Pea Enterprise Analysis 2018 

Area ha 80 50 280 283 245 187 258 289 N 18 

Yield t/ha 0.38 0.34 0.83 1.16 1.15 0.64 1.07 0.84 N 18 

Production tonnes t 30 18 243 296 238 140 265 256 N 18 

Seeding Rate kg/ha 91 91 92 88 110 92 89 110 N 5 

Used for Seed and Feed t 30 18 41 56 83 41 50 80 N 13 

Value of Seed $/t $580 $565 $488 $486 $540 $510 $500 $530 N 11 

Feed and Seed Cost $ $17,539 $10,420 $19,830 $28,166 $44,575 $20,526 $24,939 $42,400 N 11 

For Sale tonnes t 209 259 205 158 259 236 N 16 

Equivalent Cash in Bank Price $/t $456 $464 $491 $429 $464 $477 N 16 

Grain Sales $ $95,867 $122,121 $103,321 $64,850 $122,121 $118,024 N 16 

Total Income $ $17,539 $10,420 $115,697 $138,089 $121,151 $63,760 $123,904 $128,624 N 18 

Income $/ha $219 $192 $386 $539 $584 $299 $500 $405 N 18 

Variable Operating Costs $ $24,318 $15,176 $90,265 $91,682 $67,323 $53,527 $83,182 $79,155 N 18 

Variable Operating Costs $/ha $304 $303 $289 $354 $333 $266 $348 $345 N 18 

Variable Operating Costs $/t $804 $905 $339 $335 $362 $475 $398 $422 N 18 

Operating Gross Margin $ -$6,779 -$4,756 $25,432 $46,407 $53,828 $10,233 $40,722 $49,470 N 18 

Operating Gross Margin $/ha -$85 -$111 $98 $185 $251 $33 $152 $59 N 18 

Overheads $ $1,826 $1,115 $7,381 $10,076 $8,987 $4,042 $9,081 $10,896 N 18 

Crop Machinery $ $2,737 $1,864 $16,381 $13,891 $8,540 $11,916 $12,555 $10,664 N 18 

Infrastructure $ $453 $264 $1,317 $1,438 $994 $783 $1,292 $1,184 N 16 

Management $ $2,706 $1,625 $8,829 $8,306 $7,198 $5,234 $7,564 $8,700 N 18 

Fixed Operating Costs $ $9,298 $5,788 $38,976 $37,517 $28,241 $24,284 $33,992 $34,348 N 18 

Fixed Operating Costs $/ha $116 $115 $148 $141 $118 $137 $138 $133 N 18 

Total Operating Costs ($) $ $33,616 $20,963 $129,241 $129,200 $95,564 $77,811 $117,173 $113,502 N 18 

Total Operating Costs ($/ha) $/ha $420 $418 $437 $494 $451 $403 $486 $479 N 18 

Total Operating Costs ($/t) $/t $1,112 $1,248 $531 $474 $496 $718 $560 $584 N 18 

Operating Profit (BIT) ($) $ -$16,077 -$10,544 -$13,544 $8,889 $25,586 -$14,051 $6,730 $15,122 N 18 

Operating Profit Crop (BIT) ($/ha) $/ha -$201 -$226 -$50 $45 $133 -$104 $15 -$74 N 18 

Finance $ $1,546 $869 $3,477 $7,460 $3,851 $3,728 $6,684 $4,607 N 17 

Farm Lease $ $490 $6,836 $9,050 $3,441 $6,836 $8,099 $3,441 N 9 

Earnings Before Tax (EBT) $ -$17,623 -$11,658 -$19,300 -$4,047 $22,613 -$20,058 -$4,942 $8,197 N 17 

Earnings Before Tax (EBT) ($/ha) $/ha -$220 -$252 -$73 -$1 $88 -$132 -$29 -$125 N 18 


CROPPING


P82 




Oaten Hay Enterprise Analysis 2018 

Area ha 27 47 56 144 199 174 49 204 271 80 188 263 N 76 

Yield t/ha 4.70 4.17 3.98 5.04 5.11 4.48 2.46 6.07 5.86 4.79 5.24 4.75 N 76 

Production tonnes t 119 172 223 648 930 906 144 1,304 1,408 412 949 1,337 N 76 

Seeding Rate kg/ha 56 54 111 102 95 109 106 100 100 87 N 47 


Value of Seed $/t $200 $200 $200 $200 N


P83 




Total Crop Enterprise Analysis 2018 

Area ha 3,688 4,201 5,394 2,517 3,344 5,026 1,341 2,830 3,785 2,126 3,375 4,777 N 289 

Yield t/ha 1.36 1.95 2.28 1.89 2.48 2.82 1.40 2.70 3.26 1.91 2.44 2.60 N 289 

Production tonnes t 4,618 8,257 12,306 4,294 8,246 14,202 1,800 8,176 12,408 3,673 8,233 12,843 N 289 





For Sale tonnes t 4,396 7,917 11,956 4,073 7,826 13,617 1,441 7,479 11,838 3,408 7,767 12,361 N 288 


Grain Sales $ $1,640,487 $2,817,011 $4,311,179 $1,461,937 $2,722,382 $4,671,006 $594,767 $2,810,330 $4,421,263 $1,232,793 $2,756,623 $4,304,679 N 284 

Total Income $ $1,707,784 $2,969,801 $4,586,264 $1,547,087 $2,934,046 $5,024,147 $749,808 $3,439,862 $5,336,732 $1,330,287 $3,047,016 $4,692,010 N 288 

Income $/ha $461 $678 $832 $664 $868 $995 $606 $1,061 $1,351 $688 $878 $929 N 288 

Variable Operating Costs $ $1,228,787 $1,342,509 $1,635,240 $1,052,962 $1,453,516 $2,187,225 $558,090 $1,624,461 $2,399,657 $917,631 $1,471,607 $1,949,498 N 288 



Operating Gross Margin $ $478,997 $1,627,293 $2,951,024 $494,125 $1,480,529 $2,836,922 $191,717 $1,815,401 $2,937,075 $412,656 $1,575,408 $2,742,512 N 288 


Overheads $ $52,657 $81,076 $94,843 $77,604 $106,910 $148,746 $56,460 $110,713 $179,665 $71,710 $103,488 $129,085 N 287 



Management $ $79,525 $105,224 $122,777 $91,192 $112,670 $150,097 $81,243 $106,972 $126,823 $88,295 $110,248 $135,874 N 288 



Total Operating Costs ($) $ $1,475,585 $1,708,337 $2,091,121 $1,434,107 $1,913,375 $2,797,183 $848,698 $2,113,737 $2,997,032 $1,275,505 $1,922,352 $2,477,940 N 288 



Operating Profit (BIT) ($) $ $232,199 $1,261,464 $2,495,143 $112,980 $1,020,671 $2,226,965 -$98,891 $1,326,125 $2,339,700 $54,782 $1,124,664 $2,214,070 N 288 


Finance $ $64,840 $85,654 $94,713 $86,666 $99,231 $103,447 $98,479 $119,234 $113,970 $91,579 $101,219 $102,645 N 273 

Farm Lease $ $79,265 $75,033 $35,480 $57,960 $110,401 $173,311 $57,892 $157,394 $129,147 $71,754 $114,270 $121,462 N 163 

Earnings Before Tax (EBT) $ $154,337 $1,092,327 $2,216,960 -$9,165 $816,692 $1,963,710 -$246,928 $751,722 $1,658,858 -$61,937 $848,470 $1,882,054 N 285 

Earnings Before Tax (EBT) ($/ha) $/ha $20 $234 $407 -$13 $209 $394 -$226 $157 $409 -$48 $202 $373 N 285 


CROPPING

Livestock 

LIVESTOCK

LIVESTOCK TRENDS 

Sheep and wool market prices have continued 

their impressive upward run to see sale prices reach 

their highest level since 1997, when the Profit Series 

started. On average, the sheep enterprise profit of 

$136/ha was $126/ha below the average cropping 

profit of $262/ha. Cattle profit dropped dramatically 

to $87/ha, which was 64% of the sheep profit and 

only 33% of the cropping profit. 

The average sheep sale price across all classes at $122/ 

hd continued the upward trend, which started in 2014, 

to see 2018 record the highest average price of the 

previous twenty-two years, despite the dry conditions 

seen during the West Australian autumn and the 

continuing drought through much of the eastern states. 

In the medium to long term, the West Australian sheep 

meat price outlook is difficult to predict, with sentiment 

around the live export industry tempering the demand 

from overseas, although sale prices in local markets 

continue to remain elevated. Eastern states markets 

continue to see higher prices, through the lack of 

supply due to the drought. This lack of supply is likely 

to be exacerbated in the short term should the drought 

break and restocking occur. 

Wool prices also continued their trend of the previous 

five years, with an average of $11.93/kg greasy, the 

highest level recorded since the start of the Profit 

Series in 1997. These higher prices, coupled with the 

uncertainty in the live export market, are causing some 

producers to reconsider their flock structure, with 

some holding on to wether hoggets to shear another 

fleece before selling them. 

Sheep income was up 20% compared to the previous 

season, driven primarily by the higher sheep and wool 

prices, maintaining income levels well above the $400/ 

ha mark for the previous three seasons. 

The extra sheep income per hectare was tempered 

by increased supplementary feed costs incurred due 

$ per Head 

Sheep Sales 

$140 

120 122 

$120 

111 

103 

93 

97 

$100 

82 85 

$80 

65 

69 

57 54 

$60 

51 49 

43 

46 49 

50 

$40 25 23 20 24 

$20 

$0 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

Chart 1: Sheep Sales 

$14.00 

$12.00 

$ per Kilogram 

Wool Prices 

10.22 

$10.00 

7.44 6.71 

5.63 5.05 

3.49 3.29 4.13 4.35 4.01 

4.49 5.48 4.60 4.81 5.75 6.48 6.31 7.35 8.26 $8.00 

$6.00 

$4.00 2.66 2.55 

$2.00 

$0.00 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

Chart 2: Wool Prices 

$600 

$488 

$500 

$416 

$385 

$407 

$400 

$305 

$310 $346 

$300 

$243 

$245 

$201 $210 $198 

$95 $98 $99 $139 $139 $162 $129 $151 $186 $190 

$200 

$100 

$ per Hectare 

Sheep Income 

$0 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

Chart 3: Sheep Income 

11.93 


LIVESTOCK

LIVESTOCK TRENDS 

to low summer rainfall and the dry autumn, which 

resulted in a gross margin per hectare of $242/ha. This 

was down by $22/ha, an 8% decrease on the previous 

year, contributing to the lowest gross margin in three 

years. However, to put it into perspective, it is still the 

third highest gross margin result since 1997 and well 

above the five year average. 

The sheep enterprise remains profitable at $136/ha 

before financing costs, which is well above the cattle 

profit but less than the average crop profit. 

The cattle enterprise has managed to recover the 

losses it gave up against the sheep enterprise in 2017 

to record a gross margin of $240/ha, only $2/ha below 

the sheep enterprise. This was despite a 12% fall in sale 

prices, down from $1,283/hd in 2017 to $1,131/hd in 

2018. Although prices increased, the cattle enterprises 

were run over a slightly larger area, resulting in reduced 

income of $20/ha. The cattle enterprises had a higher 

fixed cost per hectare, so while the gross margin was 

similar to sheep, the profit per hectare was $87/ha, 

which put cattle $49/ha behind sheep. 

The continued profitability of the livestock enterprises 

has meant that pasture legumes remain in the rotation, 

allowing benefits to flow into the crop phase, although 

some producers elect to keep pasture and cropping 

paddocks separate. 

$ per Hectare 

$300 

$261 $264 

$242 

$250 

$208 

$200 

$173 

$150 

$150 

$125 

$105 $110 $107 

$90 $98 

$100 

$79 

$54 $62 

$22 $29 $34 $42 

$34 

$41 

$50 

$28 

$0 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

Chart 4: Sheep Gross Margin 

Cattle Income 

$600 

$552 

$532 $537 

$ per Hectare 

Chart 5: Cattle Income 

$500 

Sheep Gross Margin 

$500 

$402 

$416 

$356 

$374 

$400 

$309 

$275 $271 $273 

$295 $291 

$300 

$261 

$222 $230 

$222 

$171 

$200 

$100 

$0 

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

Cattle Gross Margin 

$465 

$400 

$377 

$ per Hectare 

$300 

$240 

$195 

$189 

$200 $159 

$142 

$159 

$152 $158 

$167 

$133 

$81 

$82 

$60 

$75 

$100 

$41 

$11 

$0 

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

Photo: Bolt, S. 2017, Wool 

Chart 6: Cattle Gross Margin 


LIVESTOCK

Cropping Percentage v Sheep Operating Profit (BIT)/Ha - 2018 

550 

500 

450 

400 

350 

300 

Sheep Operating Profit (BIT) $/ Ha 

250 

200 

150 

100 

50 

0 

-50 

-100 

-150 

-200 

-250 

-300 

-350 

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 

Crop % 

Rainfall 

Zone 

L 

M 

H 

Crop % 

80% 

Operang Profit 5 Yr Avg 

-$ 6 /Ha 

83% 

$ 63 /Ha 

76% 

$ 222 /Ha 

In 2018, there were contrasting results between the rainfall zones when comparing the cropping percentage to the sheep operating 

profit, with the increased supplementary feeding through autumn and early winter required in the LRZ and MRZ having a greater impact 

than the HRZ. When comparing 2017 to 2018, the LRZ showed a decline in operating profit of $5/ha with an increase in cropping by 6%. 

Similarly, the MRZ lost $30/ha while increasing cropping percentage by 3%. In contrast, the HRZ reduced the average cropping 

percentage by 5% while increasing the five year average operating profit by $52/ha. These results indicate that although cropping 

enterprises are generally the main profit drivers, having a balanced rotation can be of greatest benefit to all enterprises. 


LIVESTOCK

Number of Lambs Weaned per hectare - 2018 

700 

600 

Sheep Gross Margin ($/WGHa) 

500 

400 

300 

200 

100 

1 2 3 4 5 6 7 8 

All Weaned Lambs per Ha (Hd/Ha) 

Rainfall 

Zone 

L 

M 

H 

All Weaned Lambs per Ha 

(Hd/Ha) 

0.9 

2.1 

3.9 

Gross Margin ($/WGHa) 

88 

224 

409 

Comparing the number of lambs weaned per hectare to the 2017 Profit Series, the LRZ maintained a weaning rate of 0.9hd/ha, with the 

HRZ increasing slightly by 0.2hd/ha to make a result of 3.9hd/ha. It is worth noting that the MRZ made a significant improvement to 

3.2hd/ha from 2.2hd/ha. The MRZ also made a significant improvement in gross margin ($/WGHa), with an improvement of $180/WGHa. 

However, in contrast to the MRZ, the HRZ lost $61/WGHa when compared to the previous year's result of $269/WGHa, showing that an 

increase in lambs weaned does not necessarily correlate to an increase in gross margin if other enterprise costs are not controlled. If this 

is the case then it would be worthwhile reviewing management of the sheep flock. 


LIVESTOCK

Lambs Weaned per hectare v Lambing % 2018 

140% 

130% 

120% 

Current Year Lambing % 

110% 

100% 

90% 

80% 

70% 

60% 

0 2 4 6 8 10 

All Weaned Lambs per Ha (Hd/Ha) 

Rainfall 

Zone 

L 

M 

H 

All Weaned Lambs per Ha 

(Hd/Ha) 

0.9 

2.1 

3.9 

Lambing % 

88% 

89% 

94% 

When comparing the lambs weaned per ha to the lambing % in 2018, while there was a significant increase of 1.0hd/ha to 3.2hd/ha in the 

MRZ, there was a decrease in lambing % of six percentage points to give a result of 89%. Similarly, the LRZ maintained a rate of 0.9hd/ha 

while reducing the lambing % by one percentage point to give a total of 88%. The HRZ gained 0.2hd/ha but dropped five percentage 

points compared to 2017, to reach a total of 94%. These figures indicate an increase in stocking rate, which in turn makes management of 

sheep more challenging, potentially lowering the lambing %. This chart shows the importance of ensuring that there is enough available 

feed to meet demand, especially when access to pasture is limited. 


LIVESTOCK

Sheep Gross Margin v Stocking Rate - 2018 

600 

500 

400 


300 

200 

100 

0 

-100 

0 2 4 6 8 10 12 14 16 18 

Stocking Rate (WG DSE/WGHa) 

Rainfall 

Zone 

L 

M 

H 


$88 WGHa 

$224 WGHa 

$409 WGHa 

Stocking Rate(WG DSE/WGHa) 

2 WG DSE/WGHa 

5 WG DSE/WGHa 

10 WG DSE/WGHa 

Similar to the 2017 season, 2018 saw the continuation of exceptional prices for meat and wool. Looking at the graph above, there is a positive 

correlation between the stocking rate and the gross margin, with the spread widening from approx. 6DSE/WGHa. Compared to 2017, the HRZ had 

an increase in stocking rate of 1DSE/WGHa along with an increase of $30/WGHa. By comparison, the LRZ experienced a decline of 1DSE/WGHa 

along with a decrease of $22/WGHa. The MRZ stayed consistent at 6DSE/WGHa and the gross margin increased by $53/WGHa. From this data, we 

can see that maintaining stocking rates will not necessarily impact the gross margin of the sheep enterprise in a negative way, however, this 

result could also be attributed to the increase in wool and meat prices during the 2018 season. 


LIVESTOCK

Sheep Gross Margin 5 YR AVG v Stocking Rate 5YR AVG 

500 

450 

400 

Sheep Gross Margin 5 YR AVG ($/WGHa) 

350 

300 

250 

200 

150 

100 

50 

0 

-50 

0 2 4 6 8 10 12 14 16 

Stocking Rate 5 YR AVG (WG DSE/WGHa) 

Rainfall 

Zone 

L 

M 

H 

Sheep Gross Margin 5 Yr 

Avg($/WGHa) 

$ 62 WGHa 

$ 178 WGHa 

$ 372 WGHa 

Stocking Rate 5 Yr Avg 

2 WG DSE/WGHa 

6 WG DSE/WGHa 


The past five seasons show a strong correlation between stocking rate and gross margin. An increased number of sheep per ha will 

generally correlate to an increase in gross margin, provided that the management for that number of sheep is at its optimum. Comparing 

the five year average for 2017 and 2018, the LRZ had a stocking rate of 2DSE/WGHa, one less than the previous year's average, and a 

gross margin of $62/WGHa, an $11/WGHa reduction. The MRZ improved by $1/WGHa to $174/WGHa and increased the stocking rate by 

1DSE/WGHa to 7DSE/WGHa. The HRZ had the greatest change, with the gross margin dropping $203/WGHa to $375/WGHa and the 

stocking rate increasing by 2DSE to achieve 10DSE/WGHa, indicating that management of the higher stocking rate can be challenging. 


LIVESTOCK

Sheep Operating Profit 5YR AVG v Stocking Rate 5YR AVG 

700 

600 

500 

Operating Profit Bit $/ Ha Sheep 

400 

300 

200 

100 

0 

-100 

-200 

-300 

2 4 6 8 10 12 14 16 


Rainfall 

Zone 

L 

M 

H 

Operang Profit 5 Yr Avg 

-$ 6 /WGHa 

$ 63 /WGHa 

$ 222 /WGHa 

Stocking Rate 5 Yr Avg 

2 WG DSE/WGHa 

6 WG DSE/WGHa 


An increase in stocking rate will generally increase the operating profit per ha, provided that fixed costs are managed well. In the LRZ, 

while the stocking rate reduced by 1DSE/WGHa to 2DSE/WGHa, the operating profit reduced from -$1/WGHa to -$6/WGHa compared to 

2017. The MRZ increased stocking rate by 1DSE/WGHa to 7DSE/WGHa, while the operating profit dropped by $30/WGHa to $29/WGHa, 

showing that an increase in stocking rate does not necessarily correlate to an increase in profit if fixed costs are not controlled as the 

gross margin had improved. In the HRZ, there was an increase of 2DSE/WGHa to reach 10DSE/WGHa as well as a $52/WGHa increase in 

operating profit, achieving $226/WGHa, reversing the reduction at the gross margin level. 


LIVESTOCK

Cropping Percentage v Cattle Operating Profit (BIT) $/Ha 

400 

Operating Profit BIT($/Ha) Cattle 

200 

0 

-200 

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 

Crop % 

Rainfall 

Zone 

L 

M 

H 

Crop % 

80% 

83% 

76% 

Cale Operang Profit 5 Yr 

Avg 

$ 13 WGHa 

$ 154 WGHa 

$ 128 WGHa 

The graph shows that there is no clear correlation between cropping % and cattle operating profit. When compared to 2017, the 2018 

season saw the LRZ and MRZ each increase crop % by 6% and 3% respectively, taking the LRZ to 80% and the MRZ to 83% crop. This can 

be explained by the better than average season in 2018 in most cattle production areas making producers inclined to have a greater area 

of crop as well having a greater carrying capacity due to availability of feed and water. The HRZ was a contrast to this, reducing crop % by 

5% to 75%. There was a significant decrease in the five year operating profit average in the LRZ and HRZ of $89/WGHa and $78/WGHa 

respectively. In contrast, the MRZ had an increase of $12/WGHa in the same period compared to 2017. 


LIVESTOCK

Number of Calves weaned per hectare - 2018 

600 

Gross Margin ($/WGHa ) 

400 

200 

0 

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 

Calves Weaned per Ha 

Rainfall 

Zone 

L 

M 

H 

Gross Margin($/WGHa) Calves Weaned per Ha 

$ 275 /WGHa 

0.4 /Ha 

$ 230 /WGHa 

0.6 /Ha 

Similar to the comparison between cropping percentage and cattle operating profit, when analysing the graph, there is no clear 

correlation between the number of calves born per ha and gross margin ($/WGHa). In the MRZ, the GM/WGHa increased by $180/WGHa 

when compared to 2017, to $275/WGHa, while the number of calves reduced from 0.5 calves weaned per ha to 0.4 calves weaned per ha. 

Interestingly, in the HRZ, the GM/WGHa reduced $61/WGHa to $208/WGHa, while the calves weaned per ha increased from 0.4 calves 

weaned per ha to 0.6 calves weaned per ha. 


LIVESTOCK

Cattle Gross Margin v Stocking Rate - 2018 

600 

400 

Gross Margin ($/WGHa ) 

200 

0 

0 2 4 6 8 10 12 14 

Stocking Rate (WG DSE/WGHa) 

Rainfall 

Zone 

L 

M 

H 

Gross Margin($/WGHa) Stocking Rate(WG DSE/WGHa) 

$ 275 /WGHa 


$ 230 /WGHa 


Unlike the sheep enterprise, the cattle gross margin v stocking rate graph shows that stocking rate was not a key driver of gross margin 

for cattle enterprises in 2018. When comparing the data to 2017, the MRZ had an increase in stocking rate of 4DSE/WGHa to 

13DSE/WGHa and an increase in gross margin of $47/WGHa to $275/WGHa. Similarly, the HRZ had an increase of stocking rate of 

5DSE/WGHa, but a decrease in gross margin of $98/WGHa, to take it to a total of $208/WGHa. This shows that an increased stocking rate 

does not necessarily correlate to an increase in gross margin. Reduced cattle prices may explain the reduction in the HRZ gross margin, 

but this is challenged when compared to the MRZ, which saw similar prices but improved their gross margin. 


LIVESTOCK

Cattle Gross Margin 5YR AVG v Stocking Rate 5YR AVG 

700 

600 

Cattle Gross Margin 5 YR AVE ($/WGHa) 

500 

400 

300 

200 

100 

0 

0 2 4 6 8 10 12 14 16 


Rainfall 

Zone 

L 

M 

Gross Margin 5 Yr Avg 

$ 100 /WGHa 

$ 272 /WGHa 

Cale Stocking Rate 5 Yr Avg 

4 WG DSE/WGHa 

9 WG DSE/WGHa 

Similarly to sheep, stocking rate is a key driver of gross margin for cattle enterprises over the five year average period. In the MRZ, there has been 

an improvement of $42/WGHa while maintaining the same stocking rate as the 2017 Profit Series. It is worth noting that although there was an 

increase of 1DSE/WGHa in the HRZ, there was a reduction of $56/WGHa compared to the 2017 Profit Series. However, it can be noted that there 

are several outlying figures that are likely to be skewing the data in this graph. Please note that gross margin is not to be confused with operating 

profit. 

H 

$ 275 /WGHa 



LIVESTOCK

Cattle Operating Profit 5 YR AVG v Stocking Rate 5 YR AVG 

500 

400 

Cattle Operating Profit 5 YR AVG ($/WGHa) 

300 

200 

100 

0 

0 2 4 6 8 10 12 14 16 18 20 22 

Stocking Rate 5 Yr AVG (WG DSE/WGHa) 

Rainfall 

Zone 

L 

M 

H 

Cale Operang Profit 5 Yr 

Avg 

$ 13 WGHa 

$ 154 WGHa 

$ 128 WGHa 

Cale Stocking Rate 5 Yr Avg 

4 WG DSE/WGHa 

9 WG DSE/WGHa 


This graph shows that, like sheep, stocking rate is a driver of profit in the cattle enterprise. The greatest variation is in the HRZ, which 

has a spread in operating profit between approx. -$50/WGHa and approx. $460/WGHa, with a similar spread in stocking rate of between 

1DSE/WGHa and 20DSE/WGHa. Compared to 2017, the HRZ five year average has gained an additional 1DSE/WGHa, while there was a 

reduction in operating profit of $78/WGHa. This can be attributed to some outlying numbers in the higher stocking rates, showing that a 

higher stocking rate does not necessarily equate to a greater profit. In contrast, the MRZ maintained a stocking rate of 9DSE/WGHa and 

showed an improvement of $12/WGHa compared to 2017. Market price improvement, or better cost control? 


LIVESTOCK


Sheep Self-Replacing Wool Flock Enterprise 2018 

P98 

Lower 25% 

12 Clients 


Average 

47 Clients 

Top 25% 

12 Clients 

Lower 25% 

45 Clients 

Sheep Grazed Area ha 1,161 1,226 1,095 949 953 1,080 745 1,092 980 896 1,024 1,180 N 170 

Total Sheep (Start Number) hd 2,645 1,922 1,156 4,266 3,895 2,601 3,122 6,599 4,497 4,049 4,310 2,000 N 169 

Winter Number 2,210 1,496 841 3,503 3,079 2,020 2,680 5,504 3,918 3,370 3,516 1,496 N 168 

Winter Grazed Sheep wg dse 3,870 2,624 1,451 5,463 4,988 3,453 5,305 8,969 7,112 5,831 5,735 2,687 N 168 

Stocking Rate wg dse/wg ha 3.66 2.45 1.46 5.87 5.74 4.44 10.99 10.39 7.82 8.24 6.54 3.20 N 168 

Labour Efficiency wg dse/person 2,264 1,225 451 1,863 1,786 953 2,118 3,026 1,806 2,162 2,039 838 N 164 

Mating Data 

Ewe Percentage % 74% 77% 94% 66% 71% 80% 80% 75% 85% 71% 72% 81% N 160 

Ewes Mated hd 1,353 1,101 782 2,195 1,982 1,612 1,823 3,585 2,971 2,150 2,308 1,203 N 160 

Lambs hd 966 918 827 1,892 1,724 1,396 1,590 3,206 2,638 1,893 2,032 1,113 N 162 

Weaning Percentage % 76% 88% 102% 85% 89% 94% 94% 94% 90% 89% 90% 94% N 161 

Lambing Time month number 4 4 5 6 6 7 6 6 6 6 6 5 N 138 

All Lambs Wean wght kg/hd 22.50 26.00 22.50 29.60 27.10 23.50 35.00 30.11 28.00 30.71 27.44 26.00 N 48 

All Lambs Wean wght per ha kg/ha 22.88 20.86 13.96 58.60 42.74 19.90 74.29 108.88 78.93 67.03 50.92 19.12 N 46 

lambs weaned per ha hd/ha 1.17 0.93 0.68 1.83 2.05 1.72 3.92 3.86 3.09 2.90 2.41 1.24 N 140 

Sheep - Death, Sales & Purchases 

Death % 8% 8% 12% 6% 6% 9% 5% 4% 2% 5% 6% 9% N 167 

Sheep Sold hd 1,240 911 973 1,906 1,792 1,396 1,741 2,970 2,095 1,933 1,990 1,160 N 168 

Sheep Purchased hd 369 365 855 353 347 454 213 644 1,024 373 430 436 N 151 

Sheep Sales $ $154,501 $104,056 $97,117 $224,922 $229,630 $209,153 $220,488 $372,412 $245,089 $237,577 $251,329 $141,385 N 168 

Sheep Purchases $ $46,207 $41,283 $66,700 $51,652 $47,374 $79,634 $42,558 $92,405 $126,050 $59,867 $58,834 $59,450 N 151 

Change In Value on Hand $ $8,352 $14,626 $14,198 -$9,668 $2,946 -$6,711 -$5,413 $58,550 $135,367 $10,364 $18,708 $10,667 N 168 

Average Sale Price $/hd $116 $114 $107 $115 $123 $135 $129 $125 $114 $123 $122 $120 N 168 

Average Purchase Price $/hd $816 $736 $362 $1,038 $1,130 $545 $911 $916 $461 $918 $1,023 $629 N 151 

Average Sheep Value (at Start) $/hd $91 $79 $57 $106 $96 $89 $147 $127 $109 $120 $102 $80 N 167 

Wool Data 

Main Shearing Month month number 9 1 9 9 9 2 10 10 2 9 9 1 N 143 

Total Sheep Shorn hd 2,980 2,044 1,125 4,705 4,397 2,855 2,807 6,621 4,586 4,248 4,683 2,150 N 162 

Total Wool kg 11,854 8,660 3,969 16,970 17,184 14,702 12,566 31,888 21,847 16,061 19,944 10,246 N 162 

Adult Fibre Diameter micron 19.81 19.73 19.20 19.27 19.39 19.67 19.58 19.77 19.92 19.50 19.53 19.69 N 118 

Adult Yield % 64% 62% 60% 64% 65% 64% 63% 64% 63% 64% 64% 61% N 129 

Adult VM % 1% 1% 1% 1% 1% 1% 1% 1% 2% 1% 1% 1% N 115 

Fleece Wool % 77% 82% 86% 77% 78% 77% 78% 77% 76% 77% 78% 82% N 106 

Wool Income $ $155,563 $108,311 $48,465 $207,736 $212,745 $176,419 $134,024 $387,892 $273,747 $188,306 $245,260 $121,897 N 162 

Average Greasy price $/kg $12.79 $11.93 $11.21 $12.10 $12.30 $12.08 $9.40 $11.11 $12.59 $11.20 $11.95 $11.91 N 162 

Average Clean Wool Price $/kg $19.93 $21.01 $19.07 $19.32 $19.24 $19.16 $17.70 $19.01 $19.65 $18.83 $19.42 $21.03 N 128 

Adult Wool Cut kg/hd 4.60 5.21 4.32 4.81 4.97 6.10 4.92 5.01 4.63 4.83 5.01 5.60 N 160 

Lamb Wool Cut kg/hd 1.27 1.57 1.09 1.67 1.69 2.39 3.06 2.43 1.59 2.11 1.88 1.97 N 110 

Wool Cut kg/wg dse 3.13 3.17 2.52 3.41 3.71 4.62 3.22 3.44 3.02 3.26 3.57 3.54 N 160 

Wool Cut kg/wgha 11.55 8.39 3.95 19.07 19.72 16.44 38.23 35.16 24.06 25.77 22.36 10.44 N 160 

Clean Wool kg 7,630 5,670 3,349 11,048 11,013 10,513 9,420 24,799 15,126 10,847 13,602 6,709 N 130 

Clean Wool kg/wgha 7.49 4.97 2.82 12.20 12.70 10.36 28.35 24.09 16.98 15.99 14.45 6.67 N 127 

Clean Wool Water Use Efficiency kg/ha/100mm 4.85 2.91 1.65 5.56 5.41 4.91 17.95 10.42 5.47 8.63 6.28 3.19 N 130 

Average 

181 Clients 

Top 25% 

45 Clients 

Lower 25% 

16 Clients 

Average 

62 Clients 

Top 25% 

16 Clients 

Lower 25% 

72 Clients 

Average 

290 Clients 

Top 25% 

72 Clients 

0's 

No. 


LIVESTOCK


P99 




Sheep Self-Replacing Wool Flock Enterprise (Cont) 2018 

Cost details 

Feed Grown on Farm $ $26,003 $17,522 $46,351 $42,815 $32,287 $81,298 $69,389 $39,725 $56,633 $47,795 $20,432 N 137 

Feed Purchased $ $33,889 $17,932 $6,739 $50,115 $45,802 $35,749 $100,203 $59,676 $43,368 $64,425 $47,111 $25,950 N 105 

Total Feed Used $/wg dse $12.19 $8.97 $4.30 $34.31 $18.62 $14.39 $23.27 $14.72 $8.98 $27.02 $16.48 $11.61 N 155 

Sheep Genetics $/wg dse $1.72 $2.96 $2.31 $2.36 $3.01 $5.04 $4.50 $3.33 $2.11 $3.37 $3.10 $4.02 N 134 

Pasture Management $/wg dse $3.55 $4.96 $8.32 $3.91 $5.12 $8.34 $4.62 $6.41 $10.58 $4.15 $5.44 $6.78 N 147 

Pasture Management $/wgha $13.70 $11.86 $11.68 $19.51 $29.46 $40.56 $52.48 $61.00 $75.20 $31.57 $35.67 $24.74 N 147 

Gross Margin Analysis 

Net Sales $/wg dse $10.57 $16.72 $15.27 $39.57 $33.04 $12.41 $27.08 $21.39 $19.66 $28.58 $27.95 $9.13 N 168 

Change in Value On Hand $/wg dse $29.26 $19.51 $30.48 -$6.19 $7.07 $29.53 $18.69 $22.26 $27.56 $10.34 $12.60 $28.40 N 168 

Wool Income $/wg dse $39.74 $38.05 $28.56 $40.18 $44.70 $55.06 $31.84 $39.71 $38.16 $36.57 $42.57 $42.99 N 161 

Variable Operating Costs $/wg dse $36.60 $33.41 $33.18 $37.53 $40.20 $44.29 $46.03 $43.63 $41.55 $40.82 $40.25 $36.97 N 168 

Operating Gross Margin Sheep $/wg dse $35.87 $37.03 $41.13 $34.60 $42.86 $48.12 $29.46 $37.93 $43.83 $32.40 $40.84 $39.80 N 168 

Net Sales $/wgha $72 $58 $46 $196 $180 $54 $303 $254 $164 $219 $184 $43 N 168 

Change in Value On Hand $/wgha $72 $30 $21 -$12 $42 $134 $203 $220 $200 $111 $87 $83 N 169 

Wool Income $/wgha $151 $101 $44 $230 $241 $198 $367 $387 $302 $274 $262 $124 N 161 

Variable Costs (exc. Purch.) $/wgha $116 $79 $47 $214 $229 $205 $505 $434 $305 $318 $263 $131 N 169 

Operating Gross Margin Sheep $/wgha $115 $88 $65 $191 $224 $165 $343 $409 $361 $262 $255 $108 N 169 


LIVESTOCK


Sheep Self-Replacing Wool Flock Enterprise 

P100 


Lower 25% 

12 Clients 


Average 

47 Clients 

Top 25% 

12 Clients 

Lower 25% 

45 Clients 

Sheep Grazed Area ha 1,320 1,009 908 557 626 556 457 822 712 580 725 703 N 209 

Total Sheep (Start Number) hd 2,116 1,359 944 2,078 2,267 1,529 1,712 4,151 2,976 2,202 2,579 1,306 N 193 

Winter Number 2,135 1,314 924 2,158 2,253 1,554 1,488 4,260 2,972 2,091 2,582 1,214 N 192 


Stocking Rate wg dse/wg ha 3.00 2.33 2.32 5.72 5.44 3.79 10.43 9.55 6.59 7.43 5.94 3.07 N 192 

Labour Efficiency wg dse/person 2,312 1,172 896 1,692 1,623 837 1,984 2,717 1,711 1,962 1,814 859 N 186 

Mating Data 

Ewe Percentage % 76% 79% 87% 67% 72% 78% 80% 75% 83% 72% 74% 80% N 169 

Ewes Mated hd 1,347 1,149 1,024 2,043 1,945 1,633 1,821 3,491 2,626 2,040 2,246 1,227 N 170 

Lambs hd 1,019 932 884 1,633 1,543 1,085 1,712 2,784 2,112 1,740 1,770 953 N 179 

Weaning Percentage % 90% 95% 94% 90% 98% 103% 103% 101% 103% 95% 98% 104% N 184 

Lambing Time month number 4 5 5 7 6 4 6 6 6 6 6 6 N 165 

All Lambs Wean wght kg/hd 31 28 24 27 27 28 31 30 28 29 28 28 N 89 

All Lambs Wean wght per ha kg/ha 51 28 17 59 60 45 167 118 81 88 67 36 N 85 

lambs weaned per ha hd/ha 1.20 0.95 0.87 2.16 2.21 1.68 3.83 3.65 2.74 2.84 2.36 1.34 N 179 

Sheep - Death, Sales & Purchases 

Death % 6% 5% 4% 4% 5% 5% 5% 4% 3% 4% 5% 5% N 191 

Sheep Sold hd 1,164 1,092 1,092 1,555 1,639 1,441 1,611 2,805 2,461 1,661 1,822 1,336 N 197 

Sheep Purchased hd 186 181 247 164 192 260 223 322 406 206 223 199 N 180 

Sheep Sales $ $117,549 $86,883 $76,089 $118,632 $140,476 $111,146 $142,534 $240,949 $181,769 $138,139 $155,266 $94,356 N 197 

Sheep Purchases $ $24,658 $21,079 $19,802 $21,546 $23,175 $27,811 $36,827 $43,705 $44,325 $30,783 $28,028 $22,568 N 180 

Change In Value on Hand $ $1,670 $2,925 $2,840 -$1,934 $590 -$1,342 -$1,083 $11,710 $27,073 $2,073 $3,742 $2,133 N 168 

Average Sale Price $/hd $99 $98 $99 $104 $107 $107 $131 $117 $100 $114 $108 $101 N 197 

Average Purchase Price $/hd $1,008 $753 $407 $934 $947 $511 $883 $977 $409 $871 $929 $589 N 179 

Average Sheep Value (at Start) $77 $66 $59 $93 $83 $74 $141 $113 $84 $108 $87 $67 N 194 

Wool Data 

Main Shearing Month month number 8 9 3 1 2 2 10 10 2 1 2 2 N 180 

Total Sheep Shorn hd 2,293 1,500 1,109 2,710 2,643 1,631 1,716 4,789 3,444 2,542 2,999 1,385 N 179 

Total Wool kg 12,123 7,363 3,970 12,026 13,200 10,296 7,703 24,532 16,863 11,269 14,983 7,438 N 188 

Adult Fibre Diameter micron 20.43 19.89 19.44 19.59 19.84 20.06 20.22 20.04 20.07 19.89 19.89 20.00 N 154 

Adult Yield % 65% 62% 61% 64% 65% 63% 64% 65% 64% 65% 64% 62% N 160 

Adult VM % 1% 1% 1% 2% 3% 2% 1% 2% 1% 1% 2% 1% N 153 

Fleece Wool % 78% 80% 79% 78% 79% 80% 77% 77% 76% 78% 79% 80% N 147 

Wool Income $ $113,593 $64,481 $32,291 $114,324 $123,262 $89,365 $67,643 $233,490 $146,820 $104,880 $140,305 $63,440 N 188 

Average Greasy price $/kg $9.18 $8.00 $7.04 $9.77 $9.37 $8.39 $8.78 $9.31 $9.46 $9.39 $9.15 $8.00 N 187 

Average Clean Wool Price $/kg $14.75 $14.88 $12.61 $16.22 $15.05 $13.74 $16.43 $16.27 $17.37 $16.23 $15.30 $14.72 N 159 

Adult Wool Cut kg/hd 5.20 5.20 4.77 5.23 5.28 5.77 5.28 5.10 4.80 5.20 5.23 5.40 N 186 

Lamb Wool Cut kg/hd 1.50 1.83 1.96 2.02 2.09 2.97 2.80 2.16 1.60 2.17 2.06 2.21 N 158 

Wool Cut kg/wg dse 3.98 4.19 3.52 3.85 4.09 4.98 3.46 3.70 3.99 3.67 4.02 4.35 N 185 

Wool Cut kg/wgha 12.13 9.50 7.06 20.31 20.27 16.15 39.09 34.60 24.77 25.96 21.97 11.72 N 185 

Clean Wool kg 8,659 4,964 2,286 8,438 8,075 5,937 3,588 17,216 8,129 7,343 9,647 4,317 N 160 

Clean Wool kg/wgha 8.66 6.17 4.28 13.83 13.56 10.72 26.41 23.05 16.09 17.20 14.64 7.66 N 158 

Clean Wool Water Use Efficiency kg/ha/100mm 4.34 2.40 1.17 3.93 3.93 2.99 4.28 4.48 2.61 3.95 3.84 2.28 N 159 

Average 

181 Clients 

Top 25% 

45 Clients 

Lower 25% 

16 Clients 

Average 

62 Clients 

Top 25% 

16 Clients 

Lower 25% 

72 Clients 

Average 

290 Clients 

Top 25% 

72 Clients 

0's 

No. 


LIVESTOCK


Sheep Self-Replacing Wool Flock Enterprise (cont) 

Cost details 

P101 


Lower 25% 

12 Clients 

Average 

47 Clients 

Top 25% 

12 Clients 

Lower 25% 

45 Clients 

Average 

181 Clients 

Top 25% 

45 Clients 

Lower 25% 

16 Clients 

Average 

62 Clients 

Top 25% 

16 Clients 

Lower 25% 

72 Clients 

Average 

290 Clients 

Top 25% 

72 Clients 

0's No. 


Feed Grown on Farm $ $22,415 $12,258 $9,328 $28,550 $30,642 $22,145 $49,177 $48,945 $31,372 $35,505 $32,629 $13,267 N 174 

Feed Purchased $ $17,732 $13,883 $11,384 $41,448 $33,964 $29,047 $59,991 $43,811 $32,692 $45,683 $34,438 $22,923 N 114 

Total Feed Used $/wg dse $6.13 $5.18 $4.38 $27.02 $12.22 $8.09 $14.64 $9.18 $4.39 $19.90 $10.48 $6.61 N 182 

Sheep Genetics $/wg dse $2.06 $2.77 $2.50 $2.99 $3.37 $7.59 $4.80 $3.43 $2.85 $3.69 $3.31 $5.35 N 165 

Pasture Management $/wg dse $3.88 $5.92 $8.66 $4.16 $5.12 $6.60 $4.00 $5.50 $6.54 $4.25 $5.33 $6.60 N 172 

Pasture Management $/wgha $12.16 $12.39 $16.44 $22.38 $26.65 $25.57 $47.98 $53.22 $44.60 $32.16 $30.78 $19.53 N 174 

Gross Margin Analysis 

Net Sales $/wg dse $27.02 $50.43 $48.87 $44.80 $35.85 $25.16 $22.77 $21.21 $29.63 $32.00 $34.62 $42.75 N 192 

Change in Value On Hand $/wg dse $11.97 -$11.83 -$5.10 -$4.98 $7.20 $17.81 $29.68 $25.70 $16.28 $11.74 $8.66 -$1.02 N 192 

Wool Income $/wg dse $35.55 $32.27 $24.45 $35.72 $37.33 $42.82 $31.79 $34.84 $35.78 $33.71 $35.99 $34.54 N 185 

Variable Operating Costs $/wg dse $31.54 $41.23 $34.52 $35.55 $39.33 $47.25 $38.71 $38.92 $35.56 $36.88 $39.52 $45.07 N 192 

Operating Gross Margin Sheep $/wg dse $39.27 $26.95 $31.55 $37.68 $39.00 $34.18 $41.96 $40.35 $43.55 $37.86 $37.49 $28.28 N 192 

Net Sales $/wgha $86 $93 $100 $205 $191 $82 $270 $232 $202 $205 $186 $92 N 194 

Change in Value On Hand $/wgha $34 -$8 -$19 $5 $24 $69 $253 $214 $72 $121 $63 $30 N 193 

Wool Income $/wgha $114 $76 $49 $193 $186 $138 $352 $322 $230 $239 $201 $94 N 185 

Variable Costs (exc. Purch.) $/wgha $99 $88 $72 $185 $191 $145 $420 $361 $221 $263 $214 $118 N 202 

Operating Gross Margin Sheep $/wgha $120 $62 $56 $192 $178 $94 $419 $372 $263 $271 $205 $76 N 202 


LIVESTOCK


P102 




Cattle Enterprise 2018 

Cattle Grazed Area ha 417 343 101 254 814 171 299 578 101 N 22 

Number at Start hd 352 308 235 333 703 41 274 506 235 N 22 

Winter Grazed Cattle wg dse 4,255 3,538 1,714 3,852 9,633 426 3,602 6,585 1,714 N 22 

Stocking Rate wg dse/wgkg 13.97 13.34 19.83 15.17 16.28 7.09 19.73 14.81 19.83 N 22 

Cows Mated hd N

Cattle Enterprise 


P103 

Lower 25% Average 

12 Clients 47 Clients 



Top 25% Lower 25% Average Top 25% Lower 25% 

12 Clients 45 Clients 181 Clients 45 Clients 16 Clients 

Average Top 25% Lower 25% Average Top 25% 0's No. 

62 Clients 16 Clients 72 Clients 290 Clients 72 Clients 

Cattle Grazed Area ha 242 209 369 289 187 180 630 197 268 440 273 N 31 

Number at Start hd 13 55 86 342 220 170 268 591 119 260 358 193 N 34 

Winter Grazed Cattle wg dse 797 796 3,329 2,400 1,479 2,445 7,268 1,135 3,186 4,429 1,821 N 32 

Stocking Rate wg dse/wgkg 3.51 3.69 10.26 9.33 8.80 13.72 10.84 4.32 13.03 9.64 7.83 N 31 

Cows Mated hd 40 45 156 112 75 116 395 64 162 218 85 N 28 

Calves Weaned hd 39 41 150 102 64 109 314 53 126 187 74 N 31 

Weaning Percentage % 86% 68% 95% 81% 61% 91% 77% 56% 83% 79% 74% N 30 

Calves Weaned per Ha hd/ha 0.2 0.3 0.5 0.4 0.4 0.7 0.6 0.4 0.6 0.5 0.3 N 30 

Death % 4% 6% 3% 2% 2% 2% 3% 4% 3% 4% 3% 3% N 31 

Cattle Sold hd 11 20 38 151 321 810 137 347 82 142 303 614 N 32 

Cattle Purchased hd 8 3 0 2 7 9 1 29 36 7 16 7 N 30 

Cattle Sales $ $4,401 $17,973 $38,900 $161,579 $128,361 $92,864 $163,733 $428,487 $98,364 $153,506 $233,856 $107,775 N 31 

Cattle Purchases $ $7,848 $3,554 $813 $7,101 $11,279 $14,084 $7,889 $49,022 $44,622 $10,385 $24,796 $12,101 N 29 

Change in Value on Hand $ $8,750 -$500 $18,296 $2,918 -$9,496 -$56,733 $39,624 -$22,913 -$9,594 $19,871 -$26,122 N 31 

Av. Cattle Sale Price $/hd $129 $454 $770 $1,079 $1,110 $1,026 $1,176 $1,055 $929 $957 $1,025 $937 N 31 

Av. Cattle Purchase Price $/hd $327 $713 $813 $2,504 $2,029 $997 $6,951 $2,411 $805 $2,613 $2,038 $1,029 N 29 

Feed Grown on farm $ $2,505 $3,260 $41,238 $20,985 $7,371 $11,640 $38,341 $4,145 $19,857 $27,143 $5,424 N 25 

Feed Grown on farm $/wg dse $2.79 $3.75 $14.84 $7.43 $3.45 $6.70 $7.35 $10.92 $10.18 $7.02 $3.19 N 25 

Kg of Beef Sold kg 8,868 15,435 22,543 26,707 40,153 24,917 68,571 1,418 27,636 42,025 24,511 N 25 

Beef Price $/kg $2.09 $1.86 $1.58 $1.85 $1.69 $1.91 $1.97 $0.41 $1.70 $1.92 $1.89 N 25 

Beef Yield kg/wgha 42 78 67 86 157 257 138 35 142 104 100 N 25 

Beef Water Use Efficiency kg/wgha/100mm 17 34 12 19 48 -27 -1 9 11 11 33 N 25 

Net Sales $/wg dse $22.46 $35.92 $51.36 $52.80 $37.38 $78.23 $18.73 -$78.51 $52.34 $36.01 $41.58 N 30 

Change in Value on Hand $/wg dse $13.96 -$0.56 $5.11 -$3.77 $0.13 -$35.29 $5.22 $22.94 -$4.49 $1.48 $0.42 N 29 

Cattle Variable Costs $/wg dse $21.21 $18.23 $26.51 $22.99 $18.61 $18.78 $25.88 $39.18 $19.22 $24.18 $16.96 N 31 

Gross Margin $/wg dse $16.11 $18.93 $26.16 $23.43 $14.74 $28.24 $27.25 $34.91 $26.10 $24.64 $24.37 N 32 

Net Sales $/wgha $223 $301 $627 $487 $357 $1,048 $610 $503 $617 $523 $343 N 30 

Change in Value on Hand $/wgha $59 -$5 $61 $5 -$47 -$445 $47 $110 -$8 $27 -$50 N 30 

Cattle Variable Costs $/wgha $77 $92 $297 $221 $165 $257 $256 $192 $245 $228 $137 N 31 

Gross Margin $/wgha $100 $118 $272 $272 $260 $375 $275 $182 $313 $262 $262 N 31 


LIVESTOCK


P104 




Sheep Enterprise 2018 

Sheep Grazed Area ha 1,028 1,183 1,095 949 932 1,080 745 1,092 980 879 1,006 1,180 N 170 


Wool Sales $ $137,202 $102,802 $48,465 $207,736 $208,658 $190,481 $134,024 $387,892 $273,747 $186,058 $242,265 $126,667 N 161 

Sales hd 1,057 858 973 1,906 1,785 1,396 1,741 2,970 2,095 1,912 1,979 1,160 N 168 

Sales $/hd $105 $111 $107 $115 $122 $135 $129 $125 $114 $121 $121 $120 N 168 

Sales $ $118,925 $93,892 $97,117 $224,922 $219,967 $209,153 $220,488 $372,412 $245,089 $233,392 $244,134 $141,385 N 168 

Purchases $ $25,707 $35,888 $66,700 $51,652 $46,918 $79,634 $42,558 $92,405 $126,050 $57,639 $57,881 $59,450 N 151 

Change in Stock Value $ -$1,186 $11,591 $14,198 -$9,668 $4,105 -$6,711 -$5,413 $58,550 $135,367 $9,080 $19,020 $10,667 N 168 

Trading Profit $ $219,188 $167,433 $106,419 $369,626 $384,523 $345,754 $303,280 $717,210 $565,343 $367,855 $444,519 $219,256 N 168 

Trading Profit $/wg dse $72 $70 $74 $72 $83 $92 $75 $82 $85 $73 $81 $77 N 168 

Trading Profit $/wgha $270 $175 $112 $405 $451 $369 $848 $843 $665 $592 $519 $239 N 168 



Variable Operating Costs $/wg dse $37 $33 $33 $38 $40 $44 $46 $44 $42 $41 $40 $37 N 168 

Variable Operating Costs $/wgha $116 $79 $47 $214 $228 $205 $505 $434 $305 $318 $262 $131 N 169 


Operating Gross Margin $/wg dse $36 $37 $41 $35 $43 $48 $29 $38 $44 $32 $41 $40 N 168 

Operating Gross Margin $/wgha $115 $88 $65 $191 $224 $165 $343 $409 $361 $262 $254 $108 N 169 

Overheads $ $19,413 $21,884 $16,105 $30,769 $29,784 $28,232 $21,346 $34,169 $39,617 $28,043 $29,898 $26,112 N 169 

Livestock Machinery $ $1,299 $1,375 $811 $2,116 $2,527 $2,987 $3,890 $3,549 $2,077 $2,621 $2,627 $2,002 N 148 


Management $ $42,166 $33,285 $22,992 $41,623 $37,036 $32,016 $40,839 $44,265 $33,369 $40,869 $38,422 $29,559 N 170 


Fixed Operating Costs $/wgha $91 $72 $50 $129 $114 $79 $163 $147 $110 $143 $117 $69 N 170 

Total Operating Costs $ $184,285 $142,811 $101,784 $288,255 $263,445 $193,178 $309,182 $487,208 $365,759 $308,310 $302,058 $152,945 N 180 

Total Operating Costs Sheep $/wg dse $68 $70 $78 $63 $64 $74 $64 $60 $56 $64 $64 $73 N 168 

Total Operating Costs Sheep $/wgha $207 $151 $97 $336 $339 $283 $667 $581 $414 $456 $377 $200 N 170 

Operating Profit $ $3,591 $3,693 $4,635 $56,728 $90,179 $83,425 -$5,901 $230,001 $199,584 $45,664 $112,826 $33,828 N 180 

Change in Stock Value $ $29 $20 $30 -$6 $7 $30 $19 $22 $28 $10 $13 $28 N 168 

Operating Profit $/wg dse $5 $0 -$3 $10 $18 $18 $11 $21 $30 $9 $17 $4 N 168 

Change in Stock Value $/wg dse $29 $20 $30 -$6 $7 $30 $19 $22 $28 $10 $13 $28 N 168 

Operating Profit Sheep $/wgha $24 $16 $15 $55 $108 $86 $180 $262 $251 $114 $136 $39 N 170 

Change in Stock Value $/wgha $72 $30 $21 -$12 $42 $134 $203 $220 $200 $111 $87 $83 N 169 

Finance $ $23,991 $20,367 $14,825 $40,352 $35,179 $20,556 $31,964 $37,978 $15,796 $38,671 $34,023 $18,964 N 165 

Farm Lease $ $22,774 $19,553 $24,977 $31,136 $33,311 $45,688 $21,180 $50,898 $26,373 $31,594 $36,918 $26,690 N 74 

Earnings Before Tax (EBT) $ -$20,226 -$22,275 -$25,176 $8,688 $46,829 $61,386 -$49,161 $160,663 $133,897 -$4,387 $65,011 $8,441 N 178 

Earnings Before Tax (EBT) ($/ha) $/ha $5 -$11 -$18 $8 $55 $47 $73 $173 $161 $45 $77 $4 N 170 


LIVESTOCK


P105 




Cattle Enterprise 2018 

Cattle Grazed Area ha 417 343 101 254 814 171 299 578 101 N 22 

Winter Number wg dse 4,255 3,538 1,714 3,852 9,633 426 3,602 6,585 1,714 N 22 

Cattle Sold hd 168 155 131 140 389 9 163 260 131 N 20 

Av. Cattle Sale Price $/hd $1,047 $1,156 $931 $1,001 $1,130 $1,604 $984 $1,144 $931 N 20 

Cattle Sales $ $167,251 $177,830 $133,233 $140,143 $497,528 $14,440 $160,705 $321,694 $133,233 N 20 

Cattle Purchases $ $14,000 $26,008 $15,000 $12,000 $58,108 $230,848 $21,602 $43,128 $15,000 N 15 

Change in Stock Value $ -$33,588 -$13,398 -$7,325 -$104,745 $29,738 $35,600 -$17,671 $8,170 -$7,325 N 22 

Trading Profit $ $126,663 $147,881 $118,408 $23,398 $424,291 $90,996 $101,561 $286,086 $118,408 N 22 

Trading Profit $/wg dse $33 $44 $59 $6 $74 $257 $29 $59 $59 N 22 

Trading Profit $/wgha $457 $595 $1,100 $92 $562 $836 $458 $578 $1,100 N 22 

Variable operating costs $ $119,334 $97,957 $39,917 $51,095 $261,025 $47,262 $83,358 $179,491 $39,917 N 22 

Feed Grown on farm $ $55,287 $44,857 $16,936 $15,600 $55,855 $3,000 $32,842 $50,723 $16,936 N 15 

Variable operating costs $/wg dse $29 $26 $16 $13 $43 $142 $23 $35 $16 N 22 

Variable operating costs $/wgha $402 $319 $268 $201 $331 $310 $366 $325 $268 N 22 

Operating Gross Margin $ $7,329 $49,924 $78,491 -$27,698 $163,266 $43,734 $18,203 $106,595 $78,491 N 22 

Operating Gross Margin Cattle $/wg dse $3 $18 $43 -$7 $31 $116 $6 $25 $43 N 22 

Operating Gross Margin Cattle $/wgha $55 $275 $832 -$109 $230 $526 $92 $253 $832 N 22 

Overheads $ $14,613 $12,216 $2,309 $15,349 $22,569 $12,927 $11,816 $17,393 $2,309 N 22 

Livestock Machinery $ $1,631 $1,168 $1,591 $3,864 $1,209 $1,252 $1,490 $1,188 $1,591 N 18 

Infrastructure $ $2,845 $2,051 $382 $7,638 $5,106 $678 $2,969 $3,578 $382 N 20 

Management $ $12,496 $11,927 $3,127 $16,876 $20,915 $4,269 $11,495 $16,421 $3,127 N 22 

Fixed Operating Costs $ $42,823 $33,843 $4,191 $48,805 $62,912 $19,666 $36,482 $48,378 $4,191 N 22 

Fixed Operating Costs Cattle $/wgha $147 $106 $34 $192 $150 $147 $178 $128 $34 N 22 

Total Operating Costs $ $162,158 $131,800 $44,108 $99,901 $323,937 $66,928 $119,839 $227,869 $44,108 N 22 

Total Operating Costs Cattle $/wg dse $40 $35 $18 $26 $61 $199 $34 $48 $18 N 22 

Total Operating Costs Cattle $/wgha $549 $426 $302 $393 $481 $457 $544 $453 $302 N 22 

Operating Profit (BIT) $ -$7 $9 $41 -$20 $1,803 $9,905 -$4 $906 $41 N 22 

Change in Stock Value $ -$33,588 -$13,398 -$7,325 -$104,745 $29,738 $35,600 -$17,671 $8,170 -$7,325 N 22 

Operating Profit Cattle (BIT) $/wg dse -$7 $9 $41 -$20 $13 $58 -$4 $11 $41 N 22 

Change in Stock Value $/wg dse -$2 $3 $7 -$48 $27 $95 $13 $15 $7 N 22 

Operating Profit Cattle (BIT) $/wgha -$92 $169 $798 -$301 $81 $379 -$86 $125 $798 N 22 

Change in Stock Value $/wgha -$20 $66 $168 -$412 $284 $500 $303 $175 $168 N 22 

Finance $ $19,761 $11,423 $2,265 $63,738 $23,787 $1,868 $22,524 $16,987 $2,265 N 20 

Farm Lease $ $5,804 $31,396 $13,917 $53,041 $7,206 $44,022 $13,917 N 12 

Earnings Before Tax (EBT) $ -$56,707 -$9,613 $58,118 -$140,241 $49,876 $26,511 -$41,702 $18,715 $58,118 N 21 

Earnings Before Tax (EBT) ($/ha) $/ha -$169 $79 $648 -$552 -$7 $247 -$181 $36 $648 N 22 


LIVESTOCK


P106 




Total Grazing Livestock 2018 

Livestock Grazed Area ha 1,028 1,204 1,095 973 953 1,013 768 1,241 900 920 1,061 1,158 N 174 

Winter Number wg dse 3,377 2,538 1,451 5,861 5,153 3,451 5,655 10,913 6,330 6,295 6,374 2,766 N 172 

Sales hd 1,057 860 973 1,864 1,768 1,315 1,760 2,921 1,863 1,934 1,966 1,124 N 172 

Sales $ $118,925 $95,344 $97,117 $240,235 $235,852 $213,247 $239,063 $456,696 $219,461 $255,014 $277,760 $147,867 N 172 

Purchases $ $25,707 $35,888 $66,700 $50,742 $48,770 $73,171 $43,482 $103,743 $159,028 $59,170 $61,817 $57,430 N 154 


Trading Profit $ $219,188 $169,078 $106,419 $374,351 $393,260 $337,374 $305,276 $787,629 $517,424 $381,923 $471,360 $221,427 N 172 

Trading Profit $/wg dse $69 $69 $74 $69 $80 $89 $71 $76 $88 $70 $78 $76 N 172 

Trading Profit $/wgha $260 $172 $112 $407 $459 $434 $790 $796 $731 $571 $514 $280 N 172 

Variable operating costs $ $99,818 $67,081 $51,517 $187,069 $172,174 $114,982 $226,746 $392,743 $204,771 $206,756 $214,073 $79,057 N 198 


Variable operating costs $/wg dse $40 $34 $33 $37 $39 $41 $44 $41 $41 $40 $39 $35 N 172 

Variable operating costs $/wgha $125 $82 $47 $226 $233 $207 $486 $412 $308 $317 $262 $136 N 173 


Operating Gross Margin Total Grazing Livestock $/wg dse $29 $35 $41 $32 $41 $49 $27 $36 $47 $30 $39 $41 N 172 

Operating Gross Margin Total Grazing Livestock $/wgha $98 $83 $65 $181 $226 $227 $305 $384 $424 $243 $250 $144 N 173 

Overheads $ $19,413 $22,253 $16,105 $31,724 $30,653 $26,415 $22,849 $38,237 $37,896 $29,771 $31,601 $25,554 N 173 

Livestock Machinery $ $1,299 $1,375 $811 $2,246 $2,614 $3,003 $4,292 $3,756 $2,138 $2,828 $2,738 $2,058 N 150 


Management $ $42,166 $33,313 $22,992 $41,902 $37,789 $30,035 $42,854 $47,633 $30,266 $42,639 $39,826 $28,613 N 174 


Fixed Operating Costs Total Grazing Livestock $/wgha $91 $72 $50 $128 $113 $76 $163 $146 $120 $143 $117 $68 N 174 

Total Operating Costs $ $184,285 $143,903 $101,784 $309,876 $274,707 $186,618 $318,706 $544,422 $336,771 $324,948 $325,349 $151,569 N 183 

Total Operating Costs Total Grazing Livestock $/wg dse $71 $70 $78 $61 $63 $69 $62 $57 $55 $63 $62 $69 N 172 

Total Operating Costs Total Grazing Livestock $/wgha $216 $154 $97 $347 $344 $283 $648 $558 $427 $455 $377 $203 N 174 

Operating Profit (BIT) $ $3,591 $4,040 $4,635 $51,996 $90,712 $87,498 -$13,430 $243,207 $180,653 $42,562 $117,678 $38,225 N 183 


Operating Profit Total Grazing Livestock (BIT) $/wg dse -$2 -$1 -$3 $9 $17 $21 $9 $20 $33 $8 $16 $7 N 172 

Change in Stock Value $/wg dse $2 $11 $30 -$6 $7 $25 $13 $20 $31 $5 $11 $25 N 171 

Operating Profit Total Grazing Livestock (BIT) $/wgha $7 $11 $15 $47 $110 $151 $142 $238 $304 $95 $131 $76 N 174 

Change in Stock Value $/wgha $12 $11 $21 -$13 $44 $129 $125 $193 $272 $81 $79 $80 N 172 

Finance $ $23,991 $20,704 $14,825 $41,687 $35,833 $19,220 $36,348 $41,093 $13,806 $41,361 $35,354 $18,644 N 169 

Farm Lease $ $22,774 $19,553 $24,977 $31,716 $36,396 $42,117 $21,616 $61,817 $26,373 $31,627 $42,462 $26,785 N 77 

Earnings Before Tax (EBT) $ -$20,226 -$22,223 -$25,176 $1,127 $45,070 $65,043 -$61,307 $163,674 $118,556 -$10,686 $65,635 $12,480 N 181 

Earnings Before Tax (EBT) ($/ha) $/ha $5 -$11 -$18 -$15 $60 $144 $4 $153 $203 $12 $76 $58 N 174 


LIVESTOCK

Machinery Efficiency 

MACHINERY EFFICIENCY

MACHINERY EFFICIENCY 

Consultants are fond of saying, “Plant purchase 

can often be justified in isolation, the challenge is to 

prioritise the replacement of machinery to produce 

the best return on investment”. 

Trucks can be justified if you regularly produce over 

6,000 tonnes of grain. A single large seeding unit can 

complete a seeding program between 4,000 and 6,000 

hectares. If you are harvesting more than 7,000 to 

8,000 tonnes of grain per harvester then you may be 

lacking harvest capacity. 

There is no doubt that the biggest impact on farm 

profitability is getting the crop emerged under the 

full range of conditions, in a timely manner. So, an 

investment in suitable seeding plant should be a high 

priority for most cropping businesses. 

Like most things in farming, it is when and how you 

use what you've got that is important. It is interesting 

to note that the majority of the top 25% of growers 

have a lower seeding capital investment per hectare 

than their peers. This highlights the importance of 

management activities, but is also being influenced by 

larger scale, with low rainfall businesses making up a 

large component of the top 25% following their 2018 

results. 

Clients across all rainfall zones have a similar amount 

invested in spray technology at $284,000. With more 

self-propelled boomsprays being added to businesses’ 

plant lists, there has been a $20,000 increase in 

boomspray investment per business across the 2018 

data set. 

On a cropped hectare basis, this one investment could 

represent an increase in machinery capital of $8/ha 

in the high rainfall zone, as compared to $6/ha in the 

medium rainfall zone and $4/ha for the low rainfall 

zone. Regardless of the scale of your operation, timely 

$ per Crop Ha 

Chart 1: Machinery Capital $/eff. ha 

$ per Crop Ha 

$90 

$80 

$70 

$60 

$50 

$40 

$30 

$20 

$10 

$0 

$700 

$600 

$500 

$400 

$300 

$200 

$100 

$0 

43 

26 28 27 28 

Chart 2: Machinery Investment $/crop ha 

and efficient spraying is integral, but you do need to be 

aware of the potential increase in replacement costs if 

you are a smaller operation. 

The average cropping investment in the high and 

medium rainfall zones was $67 per cropped hectare, 

with the low rainfall zone investment in 2018 being $48 

per cropped hectare. 

After two years of significant investment in machinery 

capital, the 2018 analysis suggests there was a pause in 

the rate of investment. Machinery capital per effective 

hectare has fallen by $1 per effective hectare from $78 

in 2017 to $77 in 2018. 


33 

30 

47 

Machinery Capital $/Eff. ha 

33 35 37 

49 

56 

41 

49 49 

53 

62 

72 


66 

78 77 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

273 

332 

303 

333 341 349 335 

Machinery value $/crop ha 

372 366 

343 

428 

359 367 

408 417 428 427 

457 451 

495 

617 612 

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


It is pleasing to see that businesses have been able 

to replace ageing machinery over the last two years, 

with average investment jumping from $495/cropped 

hectare in 2016 to $617 in 2017 and remaining stable 

at $612 for 2018. This has been driven by good planning 

and supported by a run of generally good seasons, with 

some core debt being replaced by machinery finance. 

The top 10% of businesses are evenly distributed 

between 100% cropping and mixed farming operations. 

With improved profitability in break crops, there has 

been minimal change by the 100% cropping group 

back towards sheep at this stage. However, we expect 

to see some retraction in cropping percentages as 

mixed farms have tended to increase exposure to their 

livestock enterprises in 2019. 

As the cropped area retracts, it is unlikely that 

businesses will sell down their plant. Given that the 

existing machinery will depreciate, we can expect 

machinery costs to fall on an effective hectare basis, 

but potentially rise on a cropped hectare basis over the 

next three to five years. 

Good strategic planning, by matching machinery scale 

to labour availability to deliver the most cost-effective 

outcome, is the constant challenge. Businesses must 

ensure that the correct machinery is prioritised 

for replacement, without limiting the ability to 

expand business or remain viable if a poor season is 

encountered. 

Photo: Rignall, R - McIntosh & Sons. 2019, KW & V Farrell & Sons Yuna 



Seeding Capital Per Seeded Ha v Cropped Ha - 2018 

190 

180 

170 

160 

150 

140 

130 

Seeding Capital By Area $/Ha 

120 

110 

100 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 

Total Cropped Area (Ha) 

Rainfall 

Zone 

L 

M 

H 

Seeding Capital Per Ha 

48 

67 

67 

Total Cropped Ha 

4,129 

3,319 

2,809 

Getting the crop emerged under the full range of conditions in a timely manner is one of the most critical tasks in a cropping enterprise, 

so investment in seeding equipment often provides a good return. The amount invested per hectare has risen for the MRZ and HRZ, but 

remained the same in the LRZ. The impact of LRZ purchases is likely to show up in next year's data. The data shows improving economies 

of scale up to 5,000ha, after which it flattens off, with all businesses able to keep their spend under $100/ha. It is also worth noting that 

a number of the businesses in the top 25% are achieving this good performance with a relatively low investment in seeding machinery. 

The average $ invested in seeding machinery is around $200,000. 



Spraying Capital Per Sprayed Ha v Cropped Ha - 2018 

300 

280 

260 

240 

220 

Spraying Capital By Area $/Ha 

200 

180 

160 

140 

120 

100 

80 

60 

40 

20 

[1] 

0 

0 2,000 4,000 6,000 8,000 10,000 12,000 

Total Cropped Area (Ha) 

Rainfall 

Zone 

L 

M 

Spraying Capital Per Ha 

69 

86 


4,129 Ha 

3,319 Ha 

The money invested in boomsprays has increased in the MRZ and the HRZ in 2018. The LRZ has dropped slightly on a per hectare basis, 

however, the average number of hectares has increased in 2018, so the total $ invested per business is $20,000 more than 2017 at 

$284,000. Over the three rainfall zones, the total money invested in boomsprays is very similar, so the changes in the area being covered 

explain most of the difference on a per hectare basis. The graph shows that the economies of scale improve until 4,500 hectares, before 

flattening out. 

H 

101 

2,809 Ha 



Harvesting Capital Per Harvested Ha v Cropped Ha 2018 

500 

450 

400 

350 

Harvesting Capital By Area $/Ha 

300 

250 

200 

150 

100 

[1] 

50 

0 

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 

Cropped Area (Ha) 

Rainfall 

Zone 

L 

M 

Harvesng Capital Per Ha 

84 

125 


4,129 

3,319 

The spend per hectare on harvesters has gone up a lot from 2017. LRZ is up 15%, MRZ is up 34%, and HRZ is up 52%. Some of this increase 

is due to the extra spend by WA businesses when faced with the large harvest of 2018. The HRZ has been having a good run in the last 

four years, so had more to spend, which has pushed their average spend up to $163/ha. The average age of the harvesters will make a big 

difference to these numbers. A new large header with a seed destruction system will cost in excess of $850,000, which is $325/ha for the 

average area of the HRZ. 

H 

164 

2,809 



Kilowatts Per Tyne - 2018 

10 

9 

8 

7 

Kilowatts per Tyne 

6 

5 

4 

3 

2 

1 

0 

Rainfall 

Zone 

L 

M 

H 

Kilowas per Tyne 

6 Kw/Tyne 

7 Kw/Tyne 

6 Kw/Tyne 

The kilowatts per tyne of the seeding equipment has remained consistent from year to year at around 6 to 7 kW per tyne across all 

rainfall zones. The majority of businesses lie between 4 and 7 kW per tyne. Some of the businesses with higher kW per tyne may also use 

the main seeding tractor for deep ripping or mouldboard ploughing, which would require extra power due to the high draft requirements, 

influencing the total kW. 




P112 




Machinery Efficiency 2018 

Seeder Bar Width m 15 16 17 13 14 16 10 11 13 12 14 16 N 152 

Area by Sowing Width crop ha/m 240 212 225 162 193 241 118 170 205 153 192 230 N 146 

Seeding Rate @ 100% F.E. ha/hr 15 15 15 13 13 14 8 10 11 10 12 14 N 105 

Kilowatts Per Tyne 5 6 6 8 7 7 6 6 6 5 6 6 N 106 

Seeding Capital by Area $/crop ha 53 48 46 76 67 68 71 67 54 72 64 56 N 252 

Value per Seeding M $/m 5,063 10,855 12,549 15,643 14,566 17,070 8,858 17,705 19,429 12,781 14,413 15,054 N 151 

Boomspray Volume l 4,880 6,298 6,688 5,843 6,526 6,253 5,199 5,418 5,800 5,464 6,215 6,525 N 139 

Boom Width m 33 34 34 33 34 36 31 32 33 32 34 35 N 148 

Spraying Rate at 100% F.E. ha/hr 64 78 81 75 78 86 59 65 75 67 74 82 N 104 

Spraying Capital by Area $/crop ha 84 69 56 104 86 77 141 101 102 104 87 66 N 247 

Value per Spraying M $/m 5,726 7,416 7,336 7,332 7,517 8,569 5,559 7,153 10,961 6,427 7,412 8,455 N 144 

Header Width m 10 12 12 11 12 12 11 12 12 11 12 12 N 147 

Harvesting Rate @ 100% F.E. t/Rotor hr 36 34 39 46 96 38 92 66 61 65 72 36 N 112 

Tonnes Harvested per Metre Comb Width t/m 231 482 659 289 502 719 184 434 713 270 481 652 N 146 

Harvesting Capital by Area $/crop ha 72 84 94 138 125 116 255 164 114 166 127 97 N 249 

Value perHarvesting M $/m 11,156 18,506 26,614 24,122 22,815 24,180 23,808 22,119 20,955 23,368 21,662 22,379 N 142 

Total Cropped Area ha 5,207 4,134 5,324 4,550 5,338 5,331 665 4,185 4,274 3,553 4,765 4,753 N 56 

Total Tonnes Less Hay t 5,080 8,756 13,072 4,512 8,733 15,427 1,987 9,199 13,858 3,961 8,835 13,851 N 289 

Fuel Use l/eff ha (f) 16 19 18 24 26 27 23 31 44 25 26 25 N 271 

Fuel Use per Tonne of Grain 17 12 9 23 15 11 38 21 16 26 16 11 N 270 

Crop Total Plant Machinery and Labour % 40% 25% 16% 56% 33% 21% 83% 43% 25% 60% 34% 20% N 285

Profit Series - Business Edition 2019

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