The Profit Series Professional Edition

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 | Professional 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%
Geographic Zone
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%
Geographic Zone
Medium Rainfall Zone
5 Yr Av. Return on Assets
Managed
2018 Return on Assets
Managed
Northern 6.18% 14.32%
Southern 5.43% 7.60%
Eastern 8.09% 9.77%
Geographic Zone
High Rainfall Zone
5 Yr Av. Return on Assets
Managed
2018 Return on Assets
Managed
Northern 4.58% 8.39%
Southern 6.65% 7.61%
Eastern 7.76% 11.54%
© Farmanco | Professional 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
© Farmanco | Professional Edition Profit Series 2019 Page 2

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
© Farmanco | Professional Edition Profit Series 2019 Page 3

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
© Farmanco | Professional Edition Profit Series 2019 Page 4

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.
© Farmanco | Professional Edition Profit Series 2019 Page 5

BUSINESS PERFORMANCE
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 | Professional Edition Profit Series 2019 Page 7
BUSINESS PERFORMANCE
$/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

BUSINESS PERFORMANCE
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
© Farmanco | Professional Edition Profit Series 2019 Page 8
BUSINESS PERFORMANCE
% 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.
© Farmanco | Professional Edition Profit Series 2019 Page 9
BUSINESS PERFORMANCE
Photo: Page, M. 2019, International Truck

Net Farm Equity v Net Debt to Income Ratio - 2018
278
Net Farm Debt/Income Ratio (Farm Debt less Farm Non Production Assets)
3
2
1
0
231
254
■
244
107
(■)
■
205
■
281
210
271
265
253
202
267
101
183
218
256
241
234
230
228
167
136
282
■
■
207
122 252 ■133 182 170
224
243
215
■
■
193
214
187
■
191
■ 288 97
90200
123
80
247
209
■
276
226
79
■
■
104
(29)
245
114
151
■
155
■(■)
212
111
■
223
222
217■
88
258 238 201
150
(64)
■153
■
■119
■
(53)
194
■ 216
89
128239
(42)
175
(■) (52)
221
(21)
259
(■) (16)
(12) 108 100 161 117
232 166
211
(41)
285 (65)
143
255
72 152 142 248
264
261
251
130 157
124
233
86
144 204 176
■ 132
188
249
96 186
(66)
84
113
(18) 131
148
105 ■
85 190 110 184
78 137 94
■
(46)
(17) (67)
180 (39)
197 83
(■) 109 195■ 174
(19)
■146
280
160
■ 21981
229 (28)
(59) 145 (■) 165
(61)(30)
(37) (34) ■
206 102
■
116 179 (14) (62) 178
(24) (■) 99
181(7)
227
(50) (57)
(35) (■)
82 ■ (23) (31)
246
274
(11) (68) (49) (51) (55) (58) (22) (33) (38) (13) (15) (54) 103 112 120 135
189 118 139
(■) (5)
162
(20) (26) (43) (56) (60) (70) 172 138 158 163 169 177 196 203 237 257 270 289 262 275 290 185 220 225 156 (8) (6) (4) (■) (2) (1)
74 76
98■
■
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
© Farmanco | Professional Edition Profit Series 2019 Page 10
BUSINESS PERFORMANCE

Gross Farm Receipts per Hectare - Five Year Average
Calculated Farm Income $ per eff ha
1200
1000
800
600
400
178
211
194
280
262
264
246 227
172
■
290
261 252
275
219
217
■
■
143
■
111
■
■
81 (62)
80
(53)
(37)
(34)
(14)
(26)
(23)
(43)
(■)
(■) (5)
(21)
(46)
(31)
(■)
(■)
(20)
(7)
238 177
148
(64)
■ 72
285
195
175
8578
(59)
(49)
(8)
■
135 84
■
105 (66) (65)(■)
(■)
145 118 99
(35)
117
113 108
88
(6)
122
174 124 100
■
98 (■) (16)
■ 214 ■ 103
242 179
144
(57)
101■
(30)
■
■ 233212
209 157
133
(54)
(2)
■
139
83 (51)
■ (39)
(28)
(24)
■
158
(12)
(■)
259
251 203 169
130 (68) (11)
258
■
228
161 153
119
■86
79 (33)
193 151
■
■
232 210
■
■
■
184 182 120 112 77 ■ (58) (55)
■
271
152
(50)
(■)
■255
170
132
■ 247226
222
97
239
221■
190 18166
(4)
■
107
281 ■270
257
244
■
(■)
163146
110
288
196
(■)
237
176
282
248
(22)
191
186
109
274
167
■
■
205
229
204
123
218
116
102
215 188
■
180
156
150 94
(70) (67)
224
82
216
160
■
(18)
183
225
(41)
220202
(1)
256
254
201
207
138
155
187 131
(■)
■ 253
104
136
265245
235 185
■
114
206
234
276
■
142
289
159
223
140
200
■
278
267
197
189
230
241
128
0
Rainfall
Zone
L
M
H
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
© Farmanco | Professional Edition Profit Series 2019 Page 11
BUSINESS PERFORMANCE

Variable Costs as a Percentage of Income - 2018
100%
245
231
90%
■
205
159
Operating Variable Costs as a Percentage of Income
80%
70%
60%
50%
40%
290
280264
252
■
276
261
■
246
■
262
219
227
211
217
172
194
178
142
■
143
■
■
■
111
■
80
81
(46)
(53)
(■)
(62) (■) (31)
(■)
(21) (20)
(43)
(7)
(34)
(37)
(5)
(23)
(26)(■)
218
237
282
(■)
200
270 267
288
181163
229
97■
(22)
195
247
123
289
152
(■)
242
248 239 212
(■)
214
■186
77
204 151
259 221203
108 ■
274
271
■
232
161 113 ■
■ 169
98■
■ ■■
■
184
109 79
210 146 112
■ 78 (■)
258 257
110
(55) (12) (6)
■
157
(52)
(28)
(2)
251
233 182
281 228 ■ 179 170 ■ 124 103
(16)
190 158
■(61)
(50) (■)
244
167
(58) (■)
(30)
255
174 148
(24)
■
135
132117
88 72 (■)
■ 222
130 119 118101
(59)
■
209 177 120 96
(68) (■) (39)
105 85
238 196 145 144 137
■
(57)
(38)
■165
139 ■ 99 8374
(66)
(65) (54) (51) (13) (11)
■
(49) (35) (33) (4)
191
■
■
84
(8)
265
■
253
254 243 235
223 202
206
162
183
207 201
256 224
138
188
249 220 215
131
225
180 150
■ ■ 116
160
216
187
185
155
156
136
89
82
114
■
■ 9490
(70)
(67)
(60)
(■)
(41)
(29)
(42) (17)
(1)
30%
(15)
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.
© Farmanco | Professional Edition Profit Series 2019 Page 12
BUSINESS PERFORMANCE

Overheads (exc lease) as a Percentage of Income - 2018
18%
267
241
16%
289
237
265
128
Overheads %
14%
12%
10%
8%
6%
4%
2%
■
290
275
276262
280
261
246
264
252
■ ■
219
227
217
211
194 178
172
(20)
■
■
(53)
142
143
(46)
(■) (7)
(21)
81
(■)
111 (43)(26)
■ ■
80
(62) (■)
(37)
(31) (5)
(14)
(34)
■
(23)
(■)
278
282
285
274
218
205
197
270
166
■271
193176
79
■ ■
288
195 191 159
■ ■
196
258
170
281 ■
(■)
238 ■
222
■ 248 214
■ ■
(12)
124 103
■ 174
■86
97
(■)
239 ■
221
112
(■)
■
203 ■
255
161
10896
(24)
244
242
■200
181 177 158 133
226 167 ■ 123
120
(16)
144 105
■ 257 233 229
151
137
(64)
122 (■)(54)
■ (■)
247 190
■259
228
182
139
179
212
184
153 152 145 ■ ■88
(68) (58)
(22)
232 169157
■
148135
■ 119 117
113
107 101 100
77
98 85 (55) (■)
78 (49) (35) (11)
■
130
(■) (■)
(2)
■
209 ■
109 76■ (61)
72 (51) ■
175
99
(4)
(66)
204 165 163
(65) (39)
146 110 ■
210
132
84 83 (59) (57) (50)(33)
(■)
(30)
(28)
(52)
74
118
(6)
251
■ (38) (15) (13)
186
(8)
253
223
245
256
249
234
235
188
202
(70)
243
254
220
138 89
216 ■
■
206 201
207
94
(29)
224 185
136
215
131
231 183 ■
114■
(42) (17)
225
■
104
(19)
(18)
180
82
187 162 156
116
155 102 (56)
90
160
150
(67)
(41) (1)
(60)
(■)
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.
© Farmanco | Professional Edition Profit Series 2019 Page 13
BUSINESS PERFORMANCE

Crop Area v Crop Machinery - 2018
1000
223
Crop Machinery Value $/crop ha
900
800
700
600
500
400
300
200
220
133 183
214
122
(13)
247 137
242
89
249
181
■
■ 160
■
86162 166
238
78 ■
110
(■) (■)
218
■ 215
257
■
144 117 182
167 163
288
226 ■
274 153 82
102 (56)
113
232 96
(61) ■
(59)
188 187
(19) 131
(6)
104
253 ■ 158 248 ■
152196
■ 119
(64)
138
245 246
72
256 174
■
157 (66) 139
(41)
228
(49) 98
(50)
180
(■)
289
103195 116 140
209 262
(11)259 99
264 (26)
(18)
■
235 207
124(68)
222
85 170 (16) 126 (57)
■
■
239
145
■ 281184 ■
194
212 (■)
(37)
(12)
270
(2) (34)
148
244 172 (70)
■ 108
(■)
■ 88(54) (33)
258 ■
237
(4)
156
(31)
177
■
(■)
84
282 132
(29)
178
■ 120161 (58)
278
(35)
165
(55)(■) 77 ■
252 142(14)
118 135
■ 136
(21) (■)
(65)
267 (■)
83
206
185
221 109
255 ■
203
151
(39)
229 (7) 211
(23)
(8)
■159
■
190 76
■
■ ■
150
(38) (43)
(15)
(■)
111169
■ ■
■
197 (22) (28)
261
(24)
179 (51)
(53)
114
(5) (20)
(62)
■ 130
■
107
143
254
251 ■ 276
275
(1)
280 219
233
(46)
123 210 (30)
(■)
80
(■)
74
■
■
(■)
■
191
217 81
225
100
227
■
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
© Farmanco | Professional Edition Profit Series 2019 Page 14
BUSINESS PERFORMANCE

Crop Income 5 Yr Avg v Crop Machinery - 2018
1000
223
220
214
900
800
■
218
167
257 288
163 182
(■)
247
■
■
181
238
166
144
249
Crop Machinery Value $/crop ha
700
600
500
400
300
200
278
159
267
262
289
275
217
■ 252 142
(26)
274
(14)
(21)
204
109
229 255 (23) 221
(43) ■
■
111
197
(20)
143
(46) 280
191
246
235
281
261
(5) (62)
■
123
153
131
■
187
232
104
138
248
■
■
253
119
245
196 152
158
139
157
256
(66)
(49)(50)
228
140
209
259 99
264
(11)
■
(68)
124
207
239
(57)
222
(37) 194
170 270
145
(16)
(34)
184 ■212
■
172
(■)
148
237 (4) ■
244
258 ■
(54) (33)
(■)
84 (31)
177
282
132 ■
120
(35) 178
(58) 161
(55)
77
■ ■
(■)
(■)
(65)
136
(7) 211
206
(8) (15) 151
■
203
■
■
(■)
169
190
76
■
(22)
(28)■ (24)
(53)
(51)
130
219 251 ■
■
■
233
(30)
210
(■) ■
81
276
80
■
■
227
100
0
■
290
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
© Farmanco | Professional Edition Profit Series 2019 Page 15
BUSINESS PERFORMANCE

Machinery Capital Replacement as a Percentage of Income - 2018
45%
40%
105
Machinery Capital Replacement as a Percentage of Income %
35%
30%
25%
20%
15%
10%
5%
0%
■
264
261
172
246
194
■
178
211
227
■
219
276
26252
290275
■
143
■
142 111
■
■
■
80
(■)
(7)
(53)
(34)
(62)
(37) (■)
(5)
(21)
(46) (43) (31)
(20) (■)
(■) (26) (14)
(23)
289
271
242
239
212
108
77
79
163
■
226
96
■
200 ■
(64)
203
117
(11)
■
196
152 ■
259 232
■ 103 ■
(6)
285
■ 218 161
■
122 72
248 214
(66) (■)
■
98
282
119 (55) (50)
(■) (■)
258
157139
233
137
(52)
209 205193
167 165
229 195 175 11099
97 (■) (61) (59) (51) (28)
(57) (4) (2)
270 251 ■ ■
190
174158
132120
88 (68)
85
118
■
244 ■ 170153
144 133 113 112
101
(49)(30)
(8) (■)
(39)
109
(33) (24)
257 247
145 ■
228
■
281
■■
238222
221 184 148
■ ■
124 83
107 100
■
8674
(65)
(58) (54)
(35) (■)
179
76 (38)
78
210 189
159
(■) (22)
■ 151
(15) (13)
■
166 130
■
■
■ ■
■ 191
181
84
274
123
255
186
182 177
135
267 237
146
(■)
(■)
(12)
(16)
245
82
265 116
256
131
(56)
249
183
155
138 90 (60)
(67)
114
243
102 (41)
224
(18)
(42)
225
206
(70)
(1)
188 128 94
■
89
253
160
(19)
254 235
220
150
215 156
(29)
187 180
241
■
234
223
216
202
201
■
185
162
■
■
104
(■)
(17)
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.
© Farmanco | Professional Edition Profit Series 2019 Page 16
BUSINESS PERFORMANCE

2018 Cropping Percentage v Five Year Average Return On Assets Managed (ROAM)
Return On Assets Managed (ROAM)
15%
10%
5%
0%
(7)
(8) (■)
(■)
(11)
(12)
(14) (16) (15) (13)
(20)
(18)
(17)
(21)
(■)
(26) (23)
(28)
(29) (30)
(33)
(■) (37)
(34) (39)(38) (■) (31)
(35) (■)
(42) (43) (41)
(46)
(■)
(50) (■) (■) (49)
(52) (51)
(58) (57) (56) (53) (54) (55)
(61) (59)
(■) (62)
(60)
(67)
(64) (65)
■ (■)
■ 77 74 76
72 (68) (66)
(70)
78
■
81 80 82 83 84
86 ■
89
88
85
90 ■
97
94
■ ■ ■
101100 99 98
107 104 102
110 113
109 111 105
119 123117
122 112
108 ■ 103
114
116
120 118
■ 124
133 132
■
137 130
■
167
176 175 170 159
152 153
144 146 145
139
135 ■ ■
128
126
142
143
■
155 150 ■148
160 140 136 ■
138
131
166
162
156 161 157
174
193 191
196
190 186
179 ■
181 182 184
177 169 ■
185
■
180 172
188
178
205 204
226 218 214 203 200 ■
■187
■ 195 194 197
206 207
201
202
221
■ 210 212 209 ■
220
215
232 227 219217 216
211
230 224
231
229 235 228
223
■ 233
225
244
■ 242
238 237
247 246
243
253
257
252 255 254
251
249
245
■ 256
■
265 ■ 264
258
■
262
■
■
274■ ■ 275
270 271
276
■
281 282
280
278
■
■
■
285
(4)
(5)
(1)
(■) (2)
■
288
289
290
-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%
© Farmanco | Professional Edition Profit Series 2019 Page 17
BUSINESS PERFORMANCE

Finance Costs as a Percentage of Income - 2018
25%
216
253
254
230
20%
244
265
271
267
205
Finance less wheat loan costs %
15%
10%
5%
0%
■
276
280
290275
■
252
261
264
■
246
211
219
227
217
194
172
178
80
■
111
(■)
143 ■
(53)
■
142
(21)
■
81 (46)
(62)
(■) (43)(23)
(37) (34) (7)
(31)
(■) (20) (14) (5)
■
(■)
274
■
228
167
■
200
122
■ 151
282
107
197182170
■■ 212
288 285
218
■ (■)
281■
(■)
97
■
278
259 258
247 239 191
123
■ 193 189
222 ■
133119
■ 209
■
88■
161
226
152
238
■ 174 153
83
23221
210195
■
■ ■
(64)
166 124
■
233
157 110
175 148 144 137 9686
85 72
(■)
255 248 229214
204
181
108
(12)
117100
190
179 159 ■■
132 130 ■ (65)
(■)
109 78
(61)(■)
(16)
(6)
251
158 101
■
163
■ 79
(66) (57) (52)
(50)
(■)(30)
242
184
■
■
103 (59) (54)
(24)
(■)(28)
257
169
■
■
165 145 99
(11)
139 118 113 105 98
■
112
84(68)
(58)(39)
(■)
203
77
76 (55)
(51)(35)
(49)
(22)
(38) (33)
270 237 186 177 146 135 74 (15) (4) (2)
256241
■
243 234 224
245 223
207 201
249
231
235
220
225
215
202
206
183
187
180
155
160
162
150
■
188 156
140
128
136
131
138
104
90
■
89
■
116 114
82
■
102 94
(70)
(19)
(42) (18) (17)
(56)
(67)
(60)
(■) (29)
(41)
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.
© Farmanco | Professional Edition Profit Series 2019 Page 18
BUSINESS PERFORMANCE

Total Business IRR 5 Year Average
20%
Total Business IRR 5 Year Average
15%
10%
5%
0%
-5%
280
■
264246
262
261
276 252
■
■
211
227 219
217
194
178
■
143
■
142
■
111
■
(62) (■) (20)
81 (■)
■
(37)
(14)
80
(53)
(31)
(5)
(26)(■)
(43)
(34) (23)(7)
(46)
(■)
(21)
101
(■)
96 (55) (52) (16)
(13)
■
251
(12) (6) (■)
■ (58)
(22)
■
79■
(15)(2)
■
175
■
161 137
(65) (4)
157
228
247 239
182 163
118 113
105
109 100 (64) (54) (■)
(■) (35) (28) (24)
(8)
242
123 (66) (38) (11)
204 165
■145
133 122
119 98 (■)
222
■ 238 232 212
■ 18170
167 117
76 74(59)
(49) (■) (33) (30)
152 144 139 135 132 88
282 258
151
270 259244
148 ■ 124110
97 8377
■
237 209
■ 196 189
120108
(57) (51)
(■)
179
190 169
285 ■ 248
193
229 ■ ■ 186
174 99
■
86
153
103 (50) (39)
85 (68)
166 146 84 72
289 ■ 2214
184
■ ■
176
191 ■ ■
■257
255 233 ■
■
210
158
■
107
281
■
288
267
130
■
(61)
265
254
249
225
216
245
256
220
215
207
253
188
241 231
243
234
223
201
202
206
187
150
140
180 ■
114
155 116
160
104
185 138
156
■
■
128
102 82
89
(67)
■
94
(56)
(■)
(41)
(17)
(18)
(29)
(60)(42)
(1)
230
-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.
© Farmanco | Professional Edition Profit Series 2019 Page 19
BUSINESS PERFORMANCE

Total Business IRR ≥10 Years
Total Business IRR > 10 years
20%
15%
10%
5%
0%
280
■
264
262
■
246
261 252
227
211
219
217
178
194
■
■
143
142
111
■
80
■ 81
(■)
(62)
(21)(7)
(34) (26)
(37) (23)
(46)
(43)
(31)
(■)
(14)
(20)
(■) (5)
175
78 (54)(35)
(11)
228
152137
109
(■)
(50) (■) (12)
■
110
(■)
(24)
204
148 105
(4)
■
167
98 83 (55)
238
133
(58)
(■)
161
(15)
85 (■)(30)
■
122
170 145
(64) (49) (22)
■ 242 222
113 108
(66) ■ (57)
■
■
210
144
(39) (38)
259
(33) (28) (8)
270 ■
135
(51)
258
181
132118
■ 74
257 251
157
■
(68)
247 212
77
271
■
285 278
■233
226209
166
163
8472
158 119 99
■
88 86
■ 193 190 151 ■
■
255239
229 196
186
(65)
174 ■ 97
■ (59)
282 244 191
189 146
139
120
182 179 153 124
221 ■
117
■
248
■
214
■
289
288 ■
232
203
■
165
130
100
101
103
■ 76
79
(■)
(16)
(■)
(■)
(6)
(2)
(13)
254
249
256
245 225
243
234
185
220207
■
215
223
201
206
187
180
156
188
150
■
160
138■
116
155
136
104
114
■
89
94
82(67)
(56)
(41)
(60)
(42)
(29)
(17)
(18)
(1)
-5%
276
■
281267
-10%
230
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.
© Farmanco | Professional Edition Profit Series 2019 Page 20
BUSINESS PERFORMANCE

Return On Assets Managed v Effective Rainfall - 2018
20%
(4)
(24)
■
(65)
142
(49)
211
(52)
(61)
76
(■)
84
(12)
■280
Return On Assets Managed
15%
10%
5%
0%
274
239
252
(50) (2)
77
90
(■)
■
131
203
109
200
(■)
(■)
262
■
257
159
201
271
78
281110■
221
(■)
(■)
124
152
(■)
(58)
■
(42)
174
(41)
96
(6)
204
123
187
■
212
(■)
226
170
■ 248
163 (■)79
(70)
136
■
162
(17)
255
(55)
■
(64)
103
(28)
(1)
■
(13)
101
202 (22)
■
119
157
108209
122
■
207 176
■
231
243
■
■
228
290
130
258
184
238
88
117
■232
105
118
■
■
(18)
210
114
135
158 144
177 153
166
■
151182
220
285
216
■
(67)
■
235
94
82
(56)
224
107
256
156
137
150 ■
193
180 160
249
206
■
(■)
244
89
195
289
205
261
■
218
267
230
245
-5%
100 150 200 250 300 350 400
Effective Rainfall (mm)
Rainfall
Zone
L
M
Return On Assets Managed
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
© Farmanco | Professional Edition Profit Series 2019 Page 21
BUSINESS PERFORMANCE

Cropped ha v Farm Operating Profit Before Cap. Growth - Five Year Average
500
Farm operating profit before capital growth $/eff ha farmed
400
300
200
100
0
-100
-200
(42)
(■)
■ (13)
(39)
■
(17) (■)
102215
224
74
162
160
(61)
(6)
■ 175
(11)
(■)
84
(29)
(56)
116
(2)
101 (18) 94
(64)
137117
203
82
78 88
(■)
(38)
(24)
■
180 226 183243
187 76 (49) 98 96
(28)
(■)
86 (■) 133
■
72
202 ■
(70)
131
105 79
(50)
107
112
85 ■ (51) 122 169
(33)
193
146
■
182 97
(57) 113
(58)
118
(■)
(4) (35)
216
188
155 ■
(31)
89
156
185
176
144 103
(54)
150
(30)
(8)
(65)
108140(53)
100
110
(66)
(37) 177
220 235
104
195■
174
■
209
158
242 (68) 165
153184■
145
139
77
■(■)
(■)
234
285
■
166 228 179 214
244152■
■ (16) 212
■ 124 148 119
(22) 151
157
99
120
132 163 161 130
(■)
170 ■
222 232 167 109 251 ■ ■ ■ (■)
(55)
(21)
■
207■
249 (19)
■
(5) (14) ■
(7)
(34)
114 136
191
■ 238 210
259 194
(62) 138
(43)
■
■
257 282 172
206
233
■ 246
189
205 281
196
(■) 178
(20) 81
254
■
211
■ 201
190 111
248 221
■ 200
■ 258
123 (46)
239
128 256
280 247
■
267
255
186
252 227 ■ ■ 264261 (26)
219 143
231
223 ■
217 262 271 142
229
245
■ 274
■ 159
237
■ 197
276
■
289
■
253
265
230
218
288
278
(59)
(41)
(1) (15)
(■)
(23)
80
(12)
(■)
181 ■
83
135
270
225
275
-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.
© Farmanco | Professional Edition Profit Series 2019 Page 22
BUSINESS PERFORMANCE

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
© Farmanco | Professional Edition Profit Series 2019 Page 23
BUSINESS PERFORMANCE

Profit Series 2018
Statement of Position 2018
P21
Lower 25%
12 Clients
Low Rainfall Medium Rainfall High Rainfall All 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

Profit Series 2018
P22
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
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

Profit Series 2018
P23
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
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

Profit Series 2018
P24
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
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)
Profit Series 2018
P25
Low Rainfall Medium Rainfall High Rainfall All Clients
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.
5 Year Average
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

Profit Series 2018
P26
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
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

Profit Series 2018
Operating Costs Per Hectare
P27
Low Rainfall Medium Rainfall High Rainfall All Clients
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.
5 Year Average
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 $451 N 289
Operating Profit Per Hectare
5 Year Average
Wheat ($/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
© Farmanco | Professional Edition Profit Series 2019 Page 30
BUSINESS PERFORMANCE

Profit Series 2018
P28
Lower 25%
12 Clients
Low Rainfall Medium Rainfall High Rainfall All 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.
© Farmanco | Professional Edition Profit Series 2019 Page 31
BUSINESS PERFORMANCE

Profit Series 2018
P29
Lower 25%
12 Clients
Low Rainfall Medium Rainfall High Rainfall All 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
5 Year Average
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.
© Farmanco | Professional Edition Profit Series 2019 Page 32
BUSINESS PERFORMANCE

Profit Series 2018
Business Cost Indicators Actuals 2018
P30
Lower 25%
12 Clients
Low Rainfall Medium Rainfall High Rainfall All 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.
© Farmanco | Professional Edition Profit Series 2019 Page 33
BUSINESS PERFORMANCE

Business Cost Indicators
Profit Series 2018
P31
5 Year Average
Lower 25%
12 Clients
Low Rainfall Medium Rainfall High Rainfall All 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.
© Farmanco | Professional Edition Profit Series 2019 Page 34
BUSINESS PERFORMANCE

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
© Farmanco | Professional Edition Profit Series 2019 Page 36
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
© Farmanco | Professional Edition Profit Series 2019 Page 37
CROPPING

Wheat Yield v Rainfall - 2018
7
20 kg/mm
6
(60)
15 kg/mm
5
(17)
(■)
■
Wheat Yield (t/Ha)
4
3
2
1
74
(■) (13)(38)
137
96
■
(52)
(67)
180
■
156
(6)
(61)
77
177■
150
(42)
■ (15) 117
182
■ ■
(2)
148(31)
105 118
135
160
114
94
(■) (■)
84
(41)
■157
78 (35) 174
(1) 101119
(49) 228 88
82
249
162
209■
(50) 203
(24) (16) 124
■
108 (65)
216 220
99
258
(12) ■
110
(58) 212
79 103 (28)
144
211 238
(62)
184
244
(■)
(4)
■(■)
(34) ■ 207
■ 243 ■
130
158
232 ■ ■ 210
151
256
■ ■
(■)
255
(23) (70)
239
(■) 170 280
111
202
221
(■)
262
■
126152
■
(■)
(55) ■
245 248 (22)
■
206
163
217 290
(21) 271
136
200
201
187
109
281
123 ■
224
■
261
131
■ 204
142
274
231
252 90
257
235
■
218
159
205
89
195
289
138
188
10 kg/mm
185
0
267
120 160 200 240 280 320 360 400 440 480 520 560
Effective Rainfall (mm)
Rainfall
Zone
L
M
H
Effecve Rainfall
220 mm
238 mm
308 mm
Wheat Yield (t/Ha)
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.
© Farmanco | Professional Edition Profit Series 2019 Page 38
CROPPING

Wheat Yield v Rainfall - Five Year Average
5
(■)
■
20 kg/mm
4.5
(42)
15 kg/mm
4
■
(13)
243
(17)
Wheat Yield (t/Ha)
3.5
3
2.5
2
1.5
1
200
■
205
(29) 160
96
74
(41)
202
(■)
(52)
(61)
137
180
101
(67)
79
100 ■ ■
(6)
165 ■
89
(■) (2)
■
(■)
(1)
225
(■) (38)
78
162
■
105245
98
195
220
82
156 108
(24)
■
■
■
182
10 kg/mm
177
157
84
112 113
117
88
(12)
212 (■)
(58) (■)
(65)
174 (16)
110 (■)
(11)
228
114 150
118
103
■
249
254
(50)
179 (33) 203
135
72
161
181
(51) 184
128
94
■ (28)
163 85
140
207
124
(35) 148 (57)
145
232 ■209
214 (22)
■
155
131 253
■(66) ■
(30)
144 270
■
(15)
■
(4)
196 ■ ■
152
288 119 222 (49) 258
(■) 187 (70)
170 (64)
(31)
132 (68)
(54) 120
190 237
151 ■
231
139
259
(53)
178
■ 239 99 (■) ■
238
233
264
126
■77
(8)
109
244 251
■
■
(37) 194
■
282
246 172 257 ■
206
247
219(■)
210
248(55)
130
167
■ (62)
76
(23) (5)
281
191
271
211
111 261 (■) 223 290 (34)
136
280
(■)
221 ■
289
201
81
(21)
■
(7)
227
123
255
189
122
204
262
285
(46) ■
(14)(20)
224
265
252
186
■
229
(43) 143
■
142
90
217
■
■
276
■
267
235
218
159
241
0.5
140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440
Effective Rainfall (mm)
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
© Farmanco | Professional Edition Profit Series 2019 Page 39
CROPPING

Wheat Variable Costs per Tonne - 2018
400
350
257
197
159
246
300
Wheat Variable Costs per Tonne ($/t)
250
200
150
100
290 261
252
280264
■
276
■
262■
172
194
178
227 219 217
211
■
80 (■)
81
(7)
(46)
(■)
■ ■
(■)
143
(62)
142 (53)
(43)
(21)
■
(31) (20)
111 ■ (34)
(26) (5)
(37) (23)
(■)
(14)
282
242
237
195
181
281 247
289
186
288
214 163
271 229 169
97
274 ■
248
123
270
■
152
■
212
109
(■)
■
232 204 158
112 108
259 210
113
170 110
78
(12)
■
■
184 ■146
(55)
(■)
239
■ ■ 16151
■
222
174
233
258244
221
203
103
177 167
98
■ 79 (22) (16)
■ 251238
■ 179 124 ■
■ (■) (61) (52)
(■)
209
190
148130
255 ■
145
■ 191
■
157144
117
228
■ 132120
119
■
137 118105
9988 ■85
72(59)
(30)
(■)
(28)
(58)
(68) (65) (■) (39) (6)
165 ■
(66)
135
(57) (54)
101 (■) (38) (35) (24)
196 ■ ■ 96 8377
74 (51) (13)
(11)
(2)
(8) (4)
(50)
182 139 ■
(49)(33)
84 (■)
(15)
■
245
243
254
235
256
249
207
216
215
223 220
225
201
202
206
183 162
136
187
■
188
131
(70)
(42)
(■)
155 116
82
(1)
160
150 89
180 138■
(29)
■ ■ 94 (67) (60)(41)
(17)
114
185
156
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.
© Farmanco | Professional Edition Profit Series 2019 Page 40
CROPPING

Wheat FIS Price v Wheat Gross Margin per Hectare - 2018
Wheat Operating Gross Margin ($/Ha)
800
700
600
500
400
300
200
■
138
94
223
(6)
180 ■
■
■
■
(52)
(2)
84
157
(61)
135 (31) (49)
(8)
(33) ■118
105 117
(59) (51) 101
(■) (57) 72 ■ 215
114 148 (35) 83 ■ (65)
■ (66)
(41)
24989
177(37)
■(■)
(11) 88 (24) ■ (■) 209
(■) 116185
228
160
150
85 99
(50)
119
(26) 174 220
145 (34)
238
139
179 144
(54)
(14)
211
120
196 (39) (28) (62) (4) 256■
(30) (58) 113
132
203244
258 82
(23) ■(■)
■
178
188
124
130 103
(68)
219
111
190 ■ (■)
110
(53) 227233
■
■ ■
207
■ 79
222
■
78
254
184
■
■ 262 (5) ■
■
255
251
112 (12)
170
98 ■ 108
161
221
155
151
191 217 ■ (■) 214
212 ■ 21081
146
(20)
(■) (43)
(■)
(7) (21)
259
■
158 232 (22) 143
239
167 280
■ ■
194
■
(55)
264
(46) (■) 142
97
270
248
■
■
247
■
■
109
288
276
195
206
169
■ 163
181
204 123 289
80
229 281237
172 186
252
261
■
242
(■)
271
152
(1)
290
202
224
100
282
90
0
246
257
280 300 320 340 360 380 400 420 440
Equivalent Cash in Bank Price ($/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.
© Farmanco | Professional Edition Profit Series 2019 Page 41
CROPPING

Wheat Operating Profit (Before Int and Tax) v WUE -2018
Wheat Operating Profit (BIT) $/Ha
800
700
600
500
400
300
200
100
0
235
■
289
137 225
(6)
(8) (52)
(1)
180
84 182
■ 118 ■
157
(■)
(2)
162
(31)
135 83 (61) (51)(57) (33)
(65) (37) 72 (35)
■
114
(■)
■ (49)
(11) ■
(66)
209 117 101 ■ ■
148 (41) (59) ■
(■)
(50)
243
215
(■)
(26)
(■)
216
150 ■
(34)
(62)
(24)
211 (28) ■ 105
88
139
(39)
228 119 177 99 (4)
(23) (14)
249 89
145
120 (30) 116132
244
130 ■ (58) ■
(54) 85
(■) 174
111 179
227
■144 160■ (■)
■ 203
■ 238 (53)
219
190 196 110 (5)
217
82
251258 (68) ■ 113
233
220 184(43) 262 ■ 146178
■
(70) 94
222
■
210
191 255 221 ■ ■
124
138290 81
78
187
(7) (21) (20)
207 ■
256 131 254
103
(22)
151 (■)
■ ■ 98
(12)
142 280
(■)
■ 155
170 ■
108 161
202 143
79
■ 136
(46) (55) 212
188
(■) 112
239
232194
158 214
(■)
152 183 259
■
167 109 ■
204 ■ 276
123 ■
270
245248
264
186 163 80 97 247
274 229169
288 ■
206
281
252
181
■
185
242
195
201
■
172 271
197
■
156
165 (16)
(67)
(42) (29) 96
■
261
237
223
(13)
(■)
(17)
77
-100
-200
267
224
159 282
278 257
218
246
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
© Farmanco | Professional Edition Profit Series 2019 Page 42
CROPPING

Barley Yield v Rainfall - 2018
6
(60)
20 kg/mm
(■)
5
(13)
(61)
216
(67)
137
156
■
15 kg/mm
Barley Yield (t/Ha)
4
3
2
1
205
261
■ 101
(38)
74
■
(52) 88
209
177
117
■ 160
180 89
■ 108
78 148 (49) ■
■ 114 135
94 150
(64)
99 103 ■
(■)
96 (15) 238 105
195
118
224 249
(16)
■ 207119
(■)
124 174
(28) 285
82
(■)
(31)
■
(2) ■ 187
144
(6) (55)
(18)
79 258 158
(12) 226 170
256
203 271 (34)
(58)
■ 153
201 228■
(■) 281
(62)
(70) ■
130
193
152
244
257 110
■(35) (23)
211
(42)
184232
210
280
126 221 212■
166
(24) ■ 151
77 (4)
(■)
248
107
(■)
231
176 157
76
(50)
131 163 ■202
220
(56)
■ (21)
(■) 122 290
206
275
262
204 (■)
217
111
(22)
255
239
■
■ 218
243
■
252 109 200
142
235
159
■
289
104
10 kg/mm
274
267
0
100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460
Effective Rainfall (mm)
Rainfall
Zone
L
Barley Yield (t/Ha)
2.33 /Ha
Effecve Rainfall
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
© Farmanco | Professional Edition Profit Series 2019 Page 43
CROPPING

Barley Yield v Rainfall - Five Year Average
4.5
4.0
■
(42)
(13)
20 kg/mm
■■ 156
175
(41)
195
108
(■)
(29)
■
180
202
■
■
■
15 kg/mm
116
216
Barley Yield (t/Ha)
3.5
3.0
2.5
2.0
1.5
1.0
200
140
88
78135 (■)
74 98
(64) 79
224
96 103
(2) 187
(6)
150 89 (67) 225
(61)
178
■
117
203
209 113
160
(24) 110
(■)
(38) (11)
174
101 133
118
226 (■)
238 (52) 161
■
165
243
94 182
137
249
177
■
207 82 155
72
114■
205
271
(12)
212
■
179 (16)
(49) ■ 233 105
201 (70)
(33) (66) 157
(58)
184
228 ■
144
100
(19)
■ 97 158
259
181
256
148
(28) 214
(■)
128
(51) ■
231
(■) ■ (■)(54) 119 145 170 (18)
193
124 151
126 8599 282
153
■
222 (30) 131 258 232 (8) (55) 247
194
(50) (35) 152
163
(4)
(57) (■) ■(68)
■ 285
(31) (34)
107
176
270■
■ (22)
■ (15) (20)
(■)
122 237
(■)
139
244
76
206
(7) 281
77 120248
257
(53)
(62)
210
109 ■
■
239 190
251
130 166
261
(■)
264
290
172
220 275
(23) ■
(43)
(37)
189
191
167
(56)
196
■ 288■ 280
81
221 ■ 246
211
■ (14)
(21) 143
219 (5)
204
■
■ (65)
262
265
186 229
252 267
218
■
111
255
235
142
289
217 276
132
254
■
■
159
10 kg/mm
0.5
(■)
140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460
Effective Rainfall (mm)
Rainfall
Zone
Effecve Rainfall 5 Yr Avg
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
© Farmanco | Professional Edition Profit Series 2019 Page 44
CROPPING

Barley Variable Costs per Tonne - 2018
350
200
■78
300
275
172
(7)
248
(6)
(16)
104
82
267
Barley Variable Costs per Tonne ($/t)
250
200
150
100
264
290
246
261
252
276
280
■
262
219
211
194
178
217
142 ■
143
■
111 81
(53)
(31)
(62)
(■)
(43)
(34)
(■)
(14)
(26) (21)
(37)
(■)
(20)
(5)
(23)
151
(28)
218
237
103
(55)
■
289
■
122109
■ 242 ■
212
■
163
226
282
(■)
195
(■)
270
288 ■
86
■ 239 186 157
255 247
77
■
214
■181
179
110
146
(64)(■)
(■) (22)
229 184
■ 232
177 167
161
158 113
100
203
285 257
193176
169
251 ■ ■
174
97
79
76■
(12) (■)
259
■ 258244
153 120
108
233 210
(■)
190
■
■
204
166 165152
■ (50)(30)
(24)
133 ■
228 ■
281 222
■
148
271
■196
170 145
12410796 ■ (68)(52)
(2)
(35)
144 ■
118
(■) (39)
130
221
117
72(58)
(57)
(38)
238
135119105
85 (■) (4)
■
74 (51)
137 98 (61) (54)
209
139
83 (66) (13) (11)
■
99
175
(33)
88
(15)
191
(49)
■
(8)
101
231
102
202
(70)
220
206
188
(42)
(19)
(56)
155138
224
256 234 215
249
235 201 180
150 131
89
■
■
207 185
(60)
(29)
160
■
94 (67)
(■)
225
187
116
114
■
(18)
156
216
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.
© Farmanco | Professional Edition Profit Series 2019 Page 45
CROPPING

Barley FIS Price v Barley Gross Margin per Hectare - 2018
1200
1100
151
156
Barley Operating Gross Margin ($/Ha)
1000
900
800
700
600
500
400
300
200
100
107
270
■
249
288
■
(60) (■)
178
■
(29)
(38)
■
88 (61)
74
■
(66)
209
■ (64) 99
(15)
■
116
104
(52)
(49) ■
160
(67)
72 135 114
85
117 (33) (19)
■
■
225
118 96 (18)
238
89
105
144
(51)
98
11994
(11) 180
195 191 (■)
177
108
165(23)
215
148
174
133
(31) 83 145
(58)
113
150
234
(57) 285 ■
(37)
207 170
124
■
■ 130 (5)
■ (■) 222
122 (■) (2)
■(54)
214
256
(62)
■
211194
153
(35) (■)
210 (4)
139 (■)
258 ■ 233
244
■ 281 228 97 (39)
■
(■) ■ 259
(20)
79■ 221 158
166 (26) 226 257
(12)
■
188
152 ■ 203 169193
(30) 190
81 ■
242 (24)
100
(68)
■
■ (53)
232 86
(■)
247 184
161
251 196
(50)
176262
(■) 185 (21)
220
138 217
181
110179
280 (■) 120 143 167
76
■ 204 ■
77 146
111 157
■
■
282
290
155
163
229 212 ■
(■)
(22)(■)
219
255
142
206
■
246
261
252
264 109
159
175
137(13)
289
276
237
(8)
■
101
■
186
0
275
267
-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
© Farmanco | Professional Edition Profit Series 2019 Page 46
CROPPING

Barley Operating Profit (Before Int and Tax) v WUE - 2018
Barley Operating Profit (BIT) $/ha
800
600
400
200
0
289
267
185
■
■
275
243
(19)
104
122
244
86
■ 290
193
107 111
138
188
155
(22)
220 255
206
80
(56)
278
264
(70)
82
78
74
137
(15)
■
(52)
(43) (6)
209
88
■
114 (67)
118
■
135
(49) (64)
■
160 ■ (18) 131
(11) (■) (51)
■
(7) 83 191
117
165180
(58)
(31)
96
89 150 144130
(57)
210
■
145 (62) 177
148
215
238
172
105(4)
(■)
■
94 (39)
195
248 194
(35)(20)
207 133
(■)
153
■
170 (54) 226
281 222
81
139
(30) ■234■
■
249
(■) 158
190 228 ■
214 221 ■(21)
233
242
■ 251
232
285
■ 169
■ (50)
(■)
(53)
258
(24) 257
■
■
256
280
204
140 ■ 146
(■)
186 143
(68) (■)
152
■
120
79
176 196
■ 184
110 77
167
■
179
100 161
229
157 163
■
(■)
(■)
288
212
■
■
■
109
■
261
282 252
■
■
239
246
237
(■)
72
271
113
247
159
-200
197
274
200
128
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
© Farmanco | Professional Edition Profit Series 2019 Page 47
CROPPING

Oats Yield v Rainfall - 2018
4.5
117
4.0
■
249
Oats Yield (t/Ha)
3.5
3.0
2.5
2.0
1.5
200
12
77
221
124
174
16
■
281
152
123
257
226
162
■
248
■
64
■ ■
28 207
176
103 101
122
■ 130
290
111
258
76
18
158
144
285
153114
166
220 ■
82
94
56
107 256
206
193
150
156
■
244
180
160
289
1.0
252
90
21
■
159■
231
■
0.5
0.0
100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440
Effective Rainfall (mm)
Rainfall
Zone
L
M
Effecve Rainfall
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
© Farmanco | Professional Edition Profit Series 2019 Page 48
CROPPING

Oats Yield v Rainfall - Five Year Average
5
(52)
4.5
Oats Yield (t/Ha)
4
3.5
3
2.5
2
200
(12)
212
226
162
(■)
(■)
281
176■
■
■
152
290
77
174
221
(16)
(64)
(28)
101
285 103
■
257
114
(42) ■ ■ 207
(41)
124248 144 244
156 ■
243
258
150
267
■
130
108
166
(1)
76 94
153
(18)
249
■
117
82
107
160
180
206
(56)
137
■
256
193
158
(■)
111 123
122 ■
220
231
1.5
1
159
(21)
90
■
(58)
■
(■)
232
(■)
0.5
217
(34)
0
140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470
Effective Rainfall (mm)
Rainfall
Zone
L
Effecve Rainfall 5 Yr Avg
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
© Farmanco | Professional Edition Profit Series 2019 Page 49
CROPPING

Oats Variable Costs per Tonne - 2018
950
900
265
850
800
750
700
128
650
231
Oats Variable Costs per Tonne ($/t)
600
550
500
450
400
350
300
250
200
150
100
290
252
246
219
172 143 111
(46)
(20)
(21)
(43)
(14)
■
257
289 282 258242
248
281 ■ 251
■ 226 ■259 247
285
■ 229
244
■
■
221
■
200
186
179 161
159
152 146
112
158 ■ 122 ■
196 193174
167 113 101 97
144 103 86
(64)
190176
175 ■ 153 100
166 133 132 130 124 123
117 77 76
191 ■ 107
(■)
(■)
(■)
(28)
(33)
(12)
(■)
(16)
(■)
223
220206
■ 207
256 215
249
185
188
162
150
160
156
180
■
90
94
114
1028982
(56)
(19)
(18)
50
0
Rainfall
Zone
L
M
H
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.
© Farmanco | Professional Edition Profit Series 2019 Page 50
CROPPING

Oats FIS Price v Gross Margin - 2018
800
124 285 100
700
166
221
133
256130
Oats Operating Gross Margin $/Ha
600
500
400
300
200
113
188
97
(18)
153 (28) 114
■
■
(19) 107
242
(■)
122
259
(14)
289
■
■
86
229
158
132
206
(■)
246
150
176
290
167
248
144
■
(21)
226
193
(■)
190
■
112
281 101
16156
258 282
251
(20)
146
100
0
152
(46)
■
257
186
143
252
-100
■
250 300 350 400
Equivalent Cash in Bank Price ($/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
© Farmanco | Professional Edition Profit Series 2019 Page 51
CROPPING

Oats Operating Profit (Before Int and Tax) v WUE - 2018
Oats Operating Profit (BIT) $/Ha
800
700
600
500
400
300
200
100
0
-100
231
289
■
86
206
150 156 (20)
■
(■) 258
159
160
186
143 (46)
188
(■) 90
(■)
196
(19)
193 122
123
144
220
111
146 167
(21) 251
(■)
■
282
242
180 252
257
244
290
158
215
172
107
256
248
■
191
82
162
76
249
(■)
176
153 190 132
130
94
166
(18)
207
285
(28) ■
114
■
101
161219
103
(12)
152
281
(14) 112
■ ■
(16)
246 ■
■
■
226
100
229
259
97
175
133
174
(43)
117
124
247
(33)
113
-200
179
-300
185
■
128
■
223
-400
0 5 10 15 20 25
Oats WUE kg per 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
© Farmanco | Professional Edition Profit Series 2019 Page 52
CROPPING

Canola Yield v Rainfall - 2018
2.5
9 kg/mm
200
(60)
Canola Yield (t/Ha)
2
1.5
1
0.5
0
261
99 177 107 137
243
■
(67)
174 (13)
74
162
176 (61) 105 118
■
(17)
■
114
(52) 117
94
216 156
(35) (41)
■
■ ■ (34)
■ 144
(■)
■
(■)
(18) 285
124
78 212 ■
■ 255 103
88
256
207
211 111
224■
■
201 ■(■)
151
96 (64) ■
82
79 ■ 76
77
(■) 136 (23)
(28)
(70)
232
153
210
■
(■) (55)
220
(1)
(■)
■ (56)
202
182
(12) (6)
(2) (16) 226
126
■
135
239 170
290130
(4) (■) (24)
245
122
(■) ■ 131
(58) 157
203 204
(50)
(■)
(■)
271
221 (■)
■
■
109
(42)
(22)
100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460
Effective Rainfall (mm)
206
275
180
160
195
104
6 kg/mm
3 kg/mm
Rainfall
Zone
L
M
Effecve Rainfall
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
© Farmanco | Professional Edition Profit Series 2019 Page 53
CROPPING

Canola Yield v Rainfall - Five Year Average
2.5
9 kg/mm
200
(42)
Canola Yield (t/ha)
2
1.5
1
0.5
205
(■) (29)
89
■
160 (60)
180 202
135 ■
(67) 107
(11) 238 (49)
165 195 137 ■
116 216
234
150 (17)
175
■
162 131
114 (61)
176 ■
78
253 (41)
(13)
79
(35) (38) 174
140
179 177
(■)
(64)
■ 108 105
128 113
96
(65) ■ 181 117 88 97
(■)
(■)
(12)
(■)
212
8599
119
118 72(6) 84
94
103
98
249 254
133
225 289
178 (31)
232
■
■
74
144 (52) 247
■ 82
■
■ 158
(33) 237 (8) 161
227
156
214 ■
100
■
■ 111
(■) (2) ■ 282
124
259
207
224 (1) 220
■
155
256
201 211(24) (■) ■ ■ (■) ■ ■157
258
145 139
233
148 (57) ■ (30) 170■
228
101 (18)
76
(28) 244 251
153
182
(56)
(34)
203(68)
222(16)
190 194 ■ 172 270
285
257
(■)
■
(19)
136
167
(■) (70) 163 (58) (66) 152
(51)
(54)
(■)
(22)
(21) 219 81
(23) (14) ■ (37)
■
■
(50)
122
77
151
255
(55) ■ 210 166
(4) ■ ■
206
(15)
248
(43) 189
262 ■ 261 (■)
184 126 ■
226109 ■ 204
(53)
187
120
(7)
(■)
130
123239 (■)
(46) (20) 290 288
186 221
(5)
■ 191 246
271
(62)
223
276
229
209
■
243
245
275
104
6 kg/mm
3 kg/mm
278
0
140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 500
Effective Rainfall (mm)
Rainfall
Zone
L
M
Effecve Rainfall 5 Yr Avg
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
© Farmanco | Professional Edition Profit Series 2019 Page 54
CROPPING

Canola Yield Relative to Wheat - Five Year Average
2.5
215
Canola Yield (t/Ha)
2
1.5
1
0.5
223
■
(■)
187
(■)
■
■
(■)
■
(50)
■
246
205
89
202 180
138
135
■
(67)
102
137 ■
116
175 (17)
165 ■
150
(11)
(61)
(13)
78
79
185 (41) 131 162
114
253
105 108
(35) 174
128(■)
133
96
117
88 113254
■
97 179 177
(6)
98 (65) ■ 94
181
(■) 82
(52)
100 ■ 118 72
103
158 232
161 ■214212
119 (■)
84
144■
24799 (12) ■
■
156
178
85
(1) 220
155 227
83
(33) (8) 237 ■
(2)
207
111
124 259
282■
256
(24)
■ 228
182 101
233 169
157
■ ■ ■ ■
258
(30)
251 (■) ■ 145
244 ■
170
(16) 203 222 ■ 270
190■
172 (■) 194 148 167 (57) 136
(58) (66) (51)
(68) 257
(22) 163152
(70) (■)
(54) (37) (21) 219
(23) (14) 81
242
■
151 ■ 77
210
206
255
(4)
(15) 248
■
120
261 (■)
■
(53)
■ 189
109 130
262 184
204 (43)
(7)
(■)
(46) (20)
239 290 123 288
221
186
(5)
191
229
(62)
271
(60) (29)
(59)
245
243
209
(■)
■
216
188
(49) 238
195
249
(38)
225
■
(64)
289
(31)
74
224
139 (34)
201
(■)
211
(28)
285
122
276
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.
© Farmanco | Professional Edition Profit Series 2019 Page 55
CROPPING

Canola Variable Costs per Tonne - 2018
1000
■
(■)
245
900
■
203
(66)
800
271
(■)
Canola Variable Costs per Tonne ($/t)
700
600
500
400
300
200
290
194
219
178
211
227
■
■
■
111
■
(■)
(7)
(53)
(5)
(■)
(■)
(37) (34) (23)
(43) (14)
282
270
278
221
226
242 214
237
229
■
200
170
157
122 120
239
161 135
(■)
204
(64)
78 (■)
182
■
■ 232
97
259
■
(■) (4)
181
130
(54)
79 77
(■)
212 ■ 153 96
98 (52)
233 210
(28)
285
195
113
169
■ (61) (51)
124
251
■ ■
15139
191
10388
86 ■
(55)
145
76
(68) 72 (■)(30)
■
179 177 ■
174■ 167 133117
(13)
190
105 ■
137
175 ■
118 ■85
83 (39)
176 165 144
■
255
74 (11)
■
107 (59) (35)
99
■
(50)
(58)
(■)
(■)
(57)
(2)
(6)
(24) (16) (12)
(8)
■
253
243
256
254
224
225 202
220
185
160
131
90
162
(56)
■
201
207 188
■
155
■
(■) (17)
156 136
(42)
82 (41)
216 ■
(67)
215 180
102 94 (60)
(29)
114 104
(70)
(18)
(1)
Rainfall
Zone
L
M
H
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.
© Farmanco | Professional Edition Profit Series 2019 Page 56
CROPPING

Canola FIS Price v Canola Gross Margin per Hectare - 2018
Canola Operating Gross Margin ($/Ha)
600
400
200
174
■
211
254
(59)
(43)
83
(■)
(5)
(23)
■
(28)
(8)
165
185
215
(60)
74
(11)
175
176
118
(37)
85
137(34)
(35) 160
177
227 111
■
105 (13)
■
180
(29)
144
■
178
114 ■
195
(39)
255
104 117
179 72 243
(18) 102
(42)
(67)
(14)
86
94
■
190
133
■
216 90
(■)
■
(61)
124
■ 103
156
256
285
(17)
219
113 88
(41)
145
151 (■) 76188
■
■
(52) (30)
82
194
169
(68) ■
162
212
167 251
201
(55) ■ ■
96
233 ■
139
207
(■) 210
98 181
(■) 153 79 155
77
(51)
78 ■
191 (■) (53)
■
232
(■)
97
■259
(64)
(56) 202
■
182
(54) 130
0
221
■ ■
282
(■)
161
290
229
■
(12) (16)
(■)
170
122
(■)
■
(58)
(7)
214 (1)
(24)
(50)
■
■
(■)
271
(4)
237
270
(2)
204 225
200
157 226
242
(6)
120
220
224
131
278
560 580 600 620 640 660
Equivalent Cash in Bank Price ($/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
© Farmanco | Professional Edition Profit Series 2019 Page 57
CROPPING

Canola Operating Profit (Before Int and Tax) v WUE - 2018
600
185
(8)
Canola Operating Profit (BIT) $/Ha
500
400
300
200
100
0
-100
-200
-300
109
(22)
(■)
261
157
221
(66)
282
135
130
290
(56) 204
122 (58)
(■)
182
120
■
■
114 (39)
180
137
104
(23)
144 160
105 255
(18) 211 (14)
■
179 190 83 (67)
(■) (■)
■
102
86
195
117
(■)
254
219
(30) ■
(52)
■
(61)
151 156
76 145 251
210
(55)
194 ■ 94
169
82
(68) 88
136
133
(28)
212
139
■
103
(53) 191
233 (51)
167 ■
(■) (5)
232 ■
■
155
256
216
(■) 98
207(■)
153
96
(4)
285 (■) 259
97
78
188
■ (54)
(7) ■
79
229 (1)
(64)
■
278 225
(50)
(■)
242
161 ■
201
202 (24) (6) (■)
■
(16)
270 (2)
224131 214 226
(12) 237
220
170
■
(70)
(■)
239
203
111
74
(60)
165
(11)
118(34)
215
176 175
177 (13)
■
72 178
■ ■
181
■
■
■
■
77
(43)
■
(41)
(17)
243
124
162
113
227
(35)
(37)
85
■
-400
275
■
246
■
(■) 271
1 2 3 4 5 6 7 8 9 10 11
Canola WUE kg per 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.
© Farmanco | Professional Edition Profit Series 2019 Page 58
CROPPING

Lupin Yield v Rainfall - 2018
3.0
■
103
2.5
(38)
(■)
74
137
Lupins Yield (t/Ha)
2.0
1.5
1.0
(21)
(35)
■
126
201
(16)
(■)
152 174 204
257221
123
■
(■)
162
■
248(55)
(■) 170
(65)
(15)
99
209
(64) ■
■
(31)
(28)
207
101
108
■ 119
111
258
130
118
■
177
210 ■
158
114
285
135
182
220
224
256
193
160
244
289
163
216
104
0.5
77
235
0.0
160 180 200 220 240 260 280 300 320 340 360 380 400 420 440
Effective Rainfall (mm)
Rainfall
Zone
L
M
Effecve Rainfall
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
© Farmanco | Professional Edition Profit Series 2019 Page 59
CROPPING

Lupin Yield v Rainfall - Five Year Average
2.5
(60)
(■)
103
2.0
178
(15)
(■)
99
(38)
■
■
74
(37)
(64) 165
114 113
160
137
Lupins Yield (t/Ha) 5Yr Avg
1.5
1.0
201
(21)
(12)
126
(43)
■
143 (23)
219
(■)
(■)
162
(35)
163
123
111
81
(31)
209
■
190 84
177
■ (66) (65) 72
(68)
110
(57)
135
(54) 118
(28)
■ (34) 170 (■)
■
■
(49)
(33)
191
■
258 ■
(41) 244
■ 77
139
(55) 128101
(51)
(14)
174
(■)
120 172 247
264
132
232
152
194
(■) 288
145
119 204248
257
229
282 221 (16)
285
276
■
124 ■
■
■
267
■
210
130
251
156
112
■
207 108
■
259
224 181
89
243 245
(61)
167
76
98
220
■
182
(53)
88
202
254
289
256
216
193
158
234
(■)
104
0.5
255
186
180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 500
Effective Rainfall (mm)
Rainfall
Zone
L
M
Effecve Rainfall 5 Yr Avg
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
© Farmanco | Professional Edition Profit Series 2019 Page 60
CROPPING

Lupin FIS Price v Lupin Gross Margin per Hectare - 2018
700
600
500
■
165
(37)
(65)
99
(38)
(15)
209
74
139
256
Lupin Operating Gross Margin ($/Ha)
400
300
200
100
182
135
137 ■ (68)
83
(59)
(35)
118
191
(39)
■ (31)
■ (66)
289
■
190
(54)
(51)
(14) ■
■
120
(33)
(■)
■
258
177
(■)
(21)
138
145
(57)
■
244
■
(55)
143
111
(53)
(16)
219
207 119
204
194
113
(28)
130
(■)
123
181
98
188
210
152
0
163
■
■
169
282
-100
80
■
-200
288
77
300 320 340 360 380 400 420 440
Equivalent Cash in Bank Price ($/t)
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
© Farmanco | Professional Edition Profit Series 2019 Page 61
CROPPING

Lupin Operating Profit (Before Int and Tax) v WUE - 2018
400
139
Lupin Operating Profit (BIT) $/Ha
300
200
100
0
-100
-200
-300
235
80
216
77
193
288
138 244 111
163 220
158
■
(53)
282
224 289
123
119
188
108
■
219
210
86
143
182 169
135
■
167
221
257
130
(■)
204
98
201
170
101
174
■
(55) 145
234
160
152(■)
264
■
247
132
■248
285
256
118
(39)
■
(31) 191
(28)
(66)
137
190 (■)
194
114 (14) (51) 120
■ (33)
(■)
■ (54)
(21)
177 258
(57)
207
162
(60)
181
(16)
165 ■209
83
■
(64)
104
■
■
-400
-500
237
112
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
© Farmanco | Professional Edition Profit Series 2019 Page 62
CROPPING

Hay Yield v Rainfall - 2018
8
■
Oaten Hay Yield (t/Ha)
7
6
5
4
90
(16)
152 (58) 174
248
226
■
(64)
101
122
184
238
76
158
(18)
144
114
153
285
166
82
94
(56)
107
193
150 180
(■)
244
3
252
77
281
204
231
108
130
258
256
(■)
2
123
120 140 160 180 200 220 240 260 280 300 320 340 360 380 400
Effective Rainfall (mm)
Rainfall
Zone
L
M
Effecve Rainfall
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
© Farmanco | Professional Edition Profit Series 2019 Page 63
CROPPING

Hay Yield v Rainfall - Five Year Average
10
9
8
■
Oaten Hay Yield 5YR Avg (t/Ha)
7
6
5
4
3
2
1
(12)
(21)
90
219
143
(5)
226
123
217
196
(58)
179
■ 281 (33)
264
(■)
(■)
85
■
(20) ■
■
152
(■)
122
77
132
238
(34)
174
229
(11)
252
184
(51)
(16)
■
258 204
191
190
248
170
246 139
144
232 (52)
101
285
(64)
(41)
(28)
247
257
103
244
214
165
156
251
114
130
150
113
79
259 112
195 243
166
108
207
89
153
76
181
167
175 107
82
(53)
94
180
137
100
(18)
220 133
(56)
254
231
(67)
206
■
97
■
216
193
158
256
180 200 220 240 260 280 300 320 340 360 380 400 420 440
Effective Rainfall (mm)
Rainfall
Zone
L
M
Effecve Rainfall 5 Yr Avg
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
© Farmanco | Professional Edition Profit Series 2019 Page 64
CROPPING

Hay Variable Costs per Tonne - 2018
200
258
229
181
256
90
251
247
190
108
Hay Variable Cost per Tonne ($/t)
150
100
264
252
246 219 143
(5)
■ ■
281
285
259
244226
242
248
238
■
■
196
204
195
175
152
132
133
123
174
179 166 122
158
144
130
184
214 165
139
153
193
113 112
97
101 100
(■)
(64)
(58)
76
(■)
(16)
(■)
234
188 185
180
160
150
114
94
89
82
(56)
(18)
50
107
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.
© Farmanco | Professional Edition Profit Series 2019 Page 65
CROPPING

Hay FIS Price v Hay Gross Margin per Hectare - 2018
1800
1600
100
82
153
1400
89
150
■
158
Hay Operating Gross Margin ($/Ha)
1200
1000
800
600
234
238 285 139
(16)
165
174
184
180 179
122
■
195
175
94
(18)
188
76
166 (64)
242
(■)
244
(■)
226 (56)
400
(58)
259
130
204
77
200
143
247
229
0
181
140 160 180 200 220 240 260 280 300 320
Equivalent Cash in Bank Price ($/t)
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
© Farmanco | Professional Edition Profit Series 2019 Page 66
CROPPING

Hay Operating Profit (Before Int and Tax) v WUE - 2018
1600
82
1400
153
100
1200
150
89
158
■
1000
76
107
■
Hay Operating Profit (BIT) $/Ha
800
600
400
200
0
-200
206
185
256
188
244
231
130
(■)
123 132
258
108
(■)
(56)
143
181
195
190 196
■
204
242
77
144
94
(18)
281
229
226
166
■
285
180
193
139
234
122
(58)
165
264
219
(64)
133
114
184
(■)
252
251
179
152
247
175
248 259 112
101
214
97
238
(5)
(16)
-400
-600
0 10 20 30 40
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
© Farmanco | Professional Edition Profit Series 2019 Page 67
CROPPING

Crop Wages Costs per Cropped Hectare - 2018
90
112
80
215
70
■
195
179
100
(64)
243
Wages Crop $ /crop Ha
60
50
40
30
20
10
0
275
264
■
290
■252
276
261
262
246
217
219
194
178
172
■
■ ■
142
111
■
143
81 (43)
(62) (■)
(34)
(53) (26)
80
(■)
(■)
(■) (7)
(37)
(31) (20)
(5)
(23) (21) (14)
(52)
101
226
86
237
175
78
(28)
108 (■)
271 270 ■258
205
288
113
229
214 212
122
110
(■) (13)
244
■ 76 (38)
96 (■) (■)
(■)
■
169 161
(61)
177
■
251
174 118103
97
■
■
(12)
(59)
248232
■
151
77
210197
184 148
137
72
88
(55)
(50)
■
(33) (6)
■
(■)
285
74
■
135120
(35)
221
(■) (66)
132
(22)
278
200186
■ (65)
239
289
222204
158
163
282■
259 ■
(2)
157
■ (■)(24)
■ 166
242
(■)
■ ■
123
(11)
■ 167
■
■
139
117 (58)(39)
107 79
(68)
203191
182
84
■
133
■
■
(4)
■
190
153 109
■
130
170
119
209 ■165
159
124
(57) (30)
(16) (15)
105 (54)
247 238 ■
99 85
189 ■
98
(51)
83
274
218
176 152
(8)
265
■
249
234
256
254
231
225
230
216
245
224
202185
223
220
207
206
201
188
180
183
160
■
162
150
155
131
140
■
136
116
102
■
82
89
(60)
138
(70)
10494
(41)
(56)
114
(42)
90
(29)
(■)
(19)
(17)
(1)
(18)
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.
© Farmanco | Professional Edition Profit Series 2019 Page 68
CROPPING

Crop Hectares per Labour Unit - 2018
6,000
220
5,000
■
216
206
252
128
WG.DSE / Labour Unit
4,000
3,000
2,000
1,000
0
285112
107
207
166
175
232 ■
281
114 158170
■
■ 214 (■) 101 172
86
253
231 162
224 205
180 257 153 167 182 210
(■)
132
248
109
246
(42) 215
201 94
186 110
265
(18) 264
189
152 188 ■
■
■
160 222
■
176 243 202 218
247 282
■
254
■ ■ (28) 122
116
100
191 ■
97 221
212
117
■ 179■
261
196
259
228 (33) 105
■
89
144
137174
223 219 (64) 88
119
■ 79 209
258
■
150 143
103
136
(■)
76 108 ■
■
190
251
111
■
82 (20)
289
123
(46) (7)(5)
184 (56)
■
245
274
217 120
(4)
140 (11)
183
(51)
■255
■
256
187
98
227 (■)
159
(21)
276
(12)
(■)
(23)
(14)
83
118
(■)
142
(1)
■
242
(34)
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
© Farmanco | Professional Edition Profit Series 2019 Page 69
CROPPING

Crop Fertiliser Costs per Cropped Hectare - 2018
$250
253
90
■
$200
■
■
242
200
■
(■)
254
224
215
180
183
188
■
(60)
(29)
(19)
Fertiliser Cost $ per Crop Ha
$150
$100
$50
275
280
264
211194
246
290
219
261 227
■
276262
■ 252 ■
178 172
■
(31)
(7)
■
(34)
(■) (■)
(■)
■ (37)
81
(62)
■
(53) (23)
(46) (21)
■
(■)
(5)
(20)
142 111
(26)
80 (43)
143
(14)
■ 247 226 195
(■)
117 ■
(13)
158
113 (61) (52)
133
(64)
122
(16)
■
175 165 10896
72
248
■ 176 153 144 97 (59)
285 259
78■
209 177 124
233
137 118105
88 85
135
74
(■) (■)
281 257
■
244 218
(12) (6)
270
■ 179 174 ■ 98
258 ■ 205 152 151 148
84 (38)
■
184 181
99
100■
(49)
(■)
289 232
182166
79 76(65)
212
203 163
83 (58) (51) (■) (■) (8)
(24) (2)
238 ■ ■
161 157 146 86
(11)
107
282 237
145
271
130
■
228214
132
■
(57) (■)
(54) (■)
288 ■ ■
103
101
■
109 ■
■
(35)
■
251 190 170 110
■ 119
(66)(50)
(30) (28) (22)
■
255 222
123
(39)
169 112
229 ■
221 210196
■
(68) (55) (33)(15)
(4)
120
267
159
77
186 167
193
274
204 139
239
197
■
278
■
191
245
243
235
223
202
150
156
162
230
102 82
216
(41)
225
206
155138
116
249
160 140
104
207
■ 220
201
■
(18)(1)
(56)
231
(67)
■
185 136
(■)
265
128
256
114
187
131
89
■ 94 (70)
(42)
(17)
217
$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.
© Farmanco | Professional Edition Profit Series 2019 Page 70
CROPPING

Crop Chemical Costs per Cropped Hectare - 2018
$160
■
203
205
220
215
116
(17)
Pesticide Cost $ per Crop Ha
$140
$120
$100
$80
$60
$40
$20
275
261
280
290
246
172
211
262
227 217
178
194
219
264
252
276
■ ■
■
■
143
142
■
■
111
■
■
(62)
(53)
(37)
81
(■)
(■)
(7)
(34) (23) (21)
80 (20)(5)
(46)
(14)
(43)
(■)
(31)
(■)
(26)
■
96
(2)
(12)
137
108 (■)
(■)
(■)
(52)
233 195
124
(6)
105
72
218
238 ■ 157 119
79 (13)
98
288271
■ 214 212 ■ 181
(■) (38)
282 239
■182
177
■
77 (59)
118 (66) (39)
■ 258 257
232 ■ 174 163
165151
145 123
■ 242
169 ■ 11397
86 (57)(■)
135 110
(15)
■ 251 244
103
270 210193
184166
101
■ 74 (64)
(30)
■
117100
(58) (■)
■ ■
148130
161
289
153
237 ■
139 133 85 84 83 (55) (11) (■)
(35)
226 200
■ (16)
221
228 204 179159
(65)
175
■
■
■ 144 ■ (54) (51)(33)
(50) (24)
259 222 167
(8)
152 132
(49)
■
285 274
247229
209 158■
190
■
170
1099
76■ (22)
146 ■ 120107
(68)
(■)
(4)
281
186 ■
255
(28)
176
88
196
248
112
191 122
■
278 267
197
■
78
(61)
265
254
256
■
249
253
243
225 216201
224
230
202
207
187
231
235
234
223
206
188
160
183
■
185
180
162 136
138
156 150
155
131■
140
■
128
■
114
104
94
89
(70) (60)
(67)
102 82 (56)
(41)
(42)
(29)
(■)
(19)
(18)
(1)
$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.
© Farmanco | Professional Edition Profit Series 2019 Page 71
CROPPING

Fuel And Oil Cost $ per Crop Ha - 2018
$70
110
$65
189176
153
Fuel and Oil Cost per Ha
$60
$55
$50
$45
$40
$35
$30
$25
$20
$15
$10
290
280264
■
275
276
246
194 178
261 252
227
217
211
262
■
■
219
172
142 ■
143
111
■
■
■
■
(62)
(■)
(34)
(7)
(37) (31)
(23) (■)
(26)
(20)
(53)
(■) (■) (21)
81 80 (43)
(5)
(46)
(14)
■
■
195
(61)
285
205
78
■
■ 242 ■ 214 175
212 ■
86
(■)
(12)
259 ■
108
■ 79
137
191
152
8476
72 (■)
257
184 ■ 105 103 (65)
281 ■
196 166 118 117
100
289
181 124
122
119
255238
(24) (13)
209
97 96 ■ (16)
251
74 (■)
157
222
151 85 (64) (28)
■ 221
■ 99
■ 239 182 123 113
(■)
271
232
158
(6)
144
282 248
101
(58) (■)
274 247 244 210 ■ 179161145
139 130 98
237
228 169 165
■
88 (68) (■)
(59) (52)
■
190
167 163
(49) (38)
109 ■ ■
203
(51) (11)
(15)
■
177 170
■ (50) (39)
288 258 ■
135 77(66)
(57) (55)
(■)
(35)
270 233 186 133 132
229
148 ■
(33) (8)
83
(54) (30)
■ 267
■
(■)
278
120 ■
(2)
(4)
218 197
(22)
■
■
226
204
■
174
159
107
112
(■)
265
256
243 231
162
234 183
249 215201
253
224
206
245
■
254 202
220
185
■
188
225 223207
235
216
180
187
150
156
160
155
■
140 138
131
136
128
104
■
114 ■
116
94
102
89
90
82
(70)
(67)
(60)
(56)
(42)
(■)
(41)
(19)
(29)
(18)
(1)
$5
146
$0
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
© Farmanco | Professional Edition Profit Series 2019 Page 72
CROPPING

Repairs And Maintenance per Hectare - 2018
$120
■
243
162
224
■
$100
285
247
200
97
234
89
193
214
110
112
188
■
Repairs And Maintenance $/crop Ha
$80
$60
$40
$20
280
252
276
■
264
275
290
■
261
262
246
■
227
217
194
211
219
178
172
■
■
143
142 ■
■
111
■
(62)
81
80
(7)
(43)(26)
(53)
(■)
(46)
(■)
(■)
(37)(21)
(34)
(20)
(31)
(23)
(5)
(14) (■)
282 ■
■
■ 222
238
■ ■
226
190
181 174
170
237 232 ■
78
242 212 157
195 148
79■
205 ■ 158
161 137 108
(13) (■)
288
169
(■)
151
228
113 85 (66)
■ ■
96
■
76(61)
(38)
184 165
■
259 248
74 (52)
(■) (22)
289
281
■
271 ■ 258
255
244 196
■
239
210 179
204
203 144 ■
(68) (58)
(54) (■)
(28)(12)
(6)
105 99
■ ■ 124
270
176
175 152
(39)
166 159 133 88 (49)
251
163
■274
221209
229 218
132 130 ■
117 77 ■
107
(■) (2)
(59) (11) (4)
(50)
(■)(24)
■
182 139 98
278
167
233
118103
101 84
257 197 191 135123
(51)
(55)
(8)
(35)
267
186
177 146
(30)
119
(65) (57)
(15)
145
(33)
■ 120 ■
(16)
109
■
83
■
■
153
122
■
100
86
■
72 (64)
(■)
(■)
249
245
256 230
215
202
206
■
(67)
(29) (17)
■
90
201 180
254
160
114
216
94
116
150
102 82
220
207 183 138 136
(56)
156 155
(60)
(18)
253 225
(70)
(19)
(■)
185 140
235223
104
187 131 128
■
(41)
(1)
$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?
© Farmanco | Professional Edition Profit Series 2019 Page 73
CROPPING

Phosphorus Applied - 2018
20
174
206
86
265
230
188
■
195176
175
(■)
155
160
180
136
104
89
(67)
(29)
Phosphorus Kg / Crop Ha
15
10
5
■
261
276 252
227
246
219
211
194
172
178
■
142
■
143
■
80
■
81
(■)
(62)
(43)(26)
(37)
(23)
(53)
(■)
(31)
(46) (7)
(21)
(14)
(20)
(5)
144 98
244
■ 179
(64)
282 232
118 107 103
257
113
281 259
182169
117 ■ 124
248 218 191 186 158
■
76
289
258
270 237 233 184 181165
151
146133
(57) (16)
■
209
(■)
242
170
267
226
152
(59)
222 167 132 123
(50)
288 ■
177
(33)
229 ■196
101 100
190
(51) (49) (■)(28)
145
74
(11)
221
238 193 163 159
(38)
135
105 8572
(66) (39)
■
239
(55) (8)
■
■ 99
■
83 (35)
(54) (15)
214 204
79
148
77 (65) (24)
(68)
210■
88 (30)
139120
(58)
251
255
84
■
256
254
215 207
201
187
223
225
202
216
150
156
140 138
131
■
■
128
94
82
(60) (56)
(18)
(19)
■
■
111
(34)
(■)
231
0
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.
© Farmanco | Professional Edition Profit Series 2019 Page 74
CROPPING

Potassium Applied - 2018
20
133
(64)
226
(65)
72
156
89
(18)
■
118
83
15
258
181 176 175
152
(57)
Potassium Kg / Crop Ha
10
5
■
246
227
261
219
194
178 ■
■
111
(■)
(■)
(7)
(37)
(31)
(34)
81 (53) (46) (23)
(43)
(26)
(21)
186 124
86
257
(■)
103
222 158
■ (30)
232 193 165 163
248233
195 151
238
(8)
(54)
282 244
132
(49)
101
184
(51) (■)
270
145
247
144
221
■
288
167 135 105 99 97 (55)
281
159
214
(38)
■
107
■
(11)
148
177
(28)
■ 190 139
(35)
229
(■)
170
120 (68)
77 (15)
255
237 204
179 ■
(33)
■
210
182
112
74
84
256
■254
150
155
225 207 160
138
■
104
102
(60)
(67)
0
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.
© Farmanco | Professional Edition Profit Series 2019 Page 75
CROPPING

Lime Applied - 2018
200
179
83 ■
136
219
■
256
178
81
(■)
259
238
214
196
184
151
139
158144
112
98
103
(39)
(11)
202
162
131
Lime Kg / Crop Ha
100
246
194
■
■
(62)
(20)
(7)
289
281
257
244
186
218
190
209 170
221
145
132
97
113
■
124
(28)
(57)
(55)
(■)
(8)
(68)
265
245
201
206
(42)
172
(46)
(53)
(26)
(■)
(5)
248
210
204
167
123
188
0
(21)
223
82
Rainfall
Zone
L
M
Lime Applied Per Ha
51 Kg / Crop Ha
76 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.
H
83 Kg / Crop Ha
© Farmanco | Professional Edition Profit Series 2019 Page 76
CROPPING

Profit Series 2018
Rainfall 2018
P73
Lower 25%
12 Clients
Low Rainfall Medium Rainfall High Rainfall All 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
Delivered to Pool 87 20 0 10 11 0 0 14 0 7 12 0 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
Delivered to Pool 0 0 0 21 6 0 0 0 0 12 3 0 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
Delivered to Pool 0 0 0 5 40 128 0 0 0 3 27 78 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
Delivered to Pool 0 0 0 3 1 0 0 0 0 2 0 0 Y 245
Sold for Cash 981 559 754 424 658 945 154 1,295 1,871 368 781 871 Y 245
0's
No.
© Farmanco | Professional Edition Profit Series 2019 Page 77
CROPPING

Profit Series 2018
P74
Lower 25%
12 Clients
Low Rainfall Medium Rainfall High Rainfall All 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
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

Profit Series 2018
P75
Lower 25%
12 Clients
Low Rainfall Medium Rainfall High Rainfall All 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
Crop Details
5 Year Average
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.
© Farmanco | Professional Edition Profit Series 2019 Page 79
CROPPING

Profit Series 2018
P76
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
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
© Farmanco | Professional Edition Profit Series 2019 Page 80
CROPPING

Profit Series 2018
P77
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
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
Seeding Rate kg/ha 62 65 72 77 75 69 80 87 87 76 76 69 N 231
Used for Seed and Feed t 86 89 69 112 114 125 135 141 153 117 115 115 N 242
Value of Seed $/t $375 $364 $420 $342 $348 $334 $430 $365 $352 $362 $353 $352 N 239
Feed and Seed Cost $ $24,827 $28,011 $22,433 $35,388 $35,683 $38,575 $53,324 $47,123 $44,264 $38,698 $36,629 $35,879 N 240
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
Equivalent Cash in Bank Price $/t $372 $362 $418 $340 $333 $332 $462 $372 $343 $363 $344 $347 N 251
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
Variable Operating Costs $/ha $451 $389 $393 $463 $484 $468 $490 $589 $621 $490 $489 $442 N 256
Variable Operating Costs $/t $257 $175 $155 $233 $175 $140 $344 $209 $156 $255 $181 $144 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
Operating Gross Margin $/ha $214 $451 $671 $305 $524 $663 $460 $670 $761 $360 $540 $628 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
Crop Machinery $ $26,793 $32,859 $39,236 $46,411 $44,681 $48,449 $27,174 $43,951 $58,887 $41,019 $42,775 $39,469 N 254
Infrastructure $ $4,785 $3,353 $2,798 $5,798 $5,542 $6,027 $4,547 $5,373 $5,907 $5,601 $5,160 $4,520 N 238
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
Fixed Operating Costs $ $75,190 $88,369 $82,415 $117,797 $123,194 $143,728 $70,233 $115,646 $158,311 $105,081 $116,473 $116,563 N 256
Fixed Operating Costs $/ha $133 $117 $115 $186 $167 $137 $288 $231 $193 $212 $171 $126 N 256
Total Operating Costs ($) $ $449,246 $430,605 $377,605 $441,949 $518,115 $670,639 $193,437 $479,494 $733,972 $389,996 $497,542 $564,189 N 256
Total Operating Costs ($/ha) $/ha $584 $506 $508 $649 $651 $605 $779 $819 $814 $701 $661 $568 N 256
Total Operating Costs ($/t) $/t $337 $230 $201 $336 $239 $181 $562 $305 $208 $377 $250 $187 N 256
Operating Profit (BIT) ($) $ $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
© Farmanco | Professional Edition Profit Series 2019 Page 81
CROPPING

Profit Series 2018
P78
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
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
Seeding Rate kg/ha 92 91 86 94 99 95 109 102 94 99 98 94 N 91
Used for Seed and Feed t 110 82 45 100 97 86 35 79 73 100 93 76 N 103
Value of Seed $/t $350 $353 $363 $365 $357 $356 $600 $425 $350 $381 $362 $357 N 92
Feed and Seed Cost $ $38,500 $28,508 $15,995 $35,142 $34,402 $30,812 $21,054 $29,495 $25,673 $35,967 $33,020 $27,417 N 103
For Sale tonnes t 75 474 362 312 626 1,020 70 501 655 438 589 825 N 84
Equivalent Cash in Bank Price $/t $350 $366 $372 $376 $370 $368 $618 $435 $305 $408 $376 $362 N 83
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
Variable Operating Costs $ $69,698 $93,604 $63,554 $90,522 $110,126 $175,889 $24,392 $73,331 $100,990 $93,439 $102,598 $147,163 N 116
Variable Operating Costs $/ha $292 $262 $264 $378 $355 $326 $268 $453 $513 $381 $357 $324 N 116
Variable Operating Costs $/t $522 $235 $162 $391 $268 $175 $401 $306 $193 $373 $269 $179 N 114
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
Crop Machinery $ $11,631 $12,596 $6,415 $15,911 $16,500 $24,269 $10,818 $13,189 $9,501 $17,360 $15,501 $19,573 N 115
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
Fixed Operating Costs $ $27,978 $34,976 $21,139 $36,719 $43,952 $66,624 $31,068 $37,895 $24,193 $45,165 $41,903 $54,597 N 116
Fixed Operating Costs $/ha $120 $116 $101 $186 $155 $126 $335 $240 $141 $212 $163 $126 N 116
Total Operating Costs ($) $ $97,676 $128,580 $84,694 $127,241 $154,078 $242,513 $55,460 $111,226 $125,183 $138,604 $144,501 $201,760 N 116
Total Operating Costs ($/ha) $/ha $412 $378 $364 $565 $510 $452 $603 $693 $653 $592 $520 $451 N 116
Total Operating Costs ($/t) $/t $730 $339 $224 $571 $386 $244 $940 $516 $247 $593 $398 $252 N 114
Operating Profit (BIT) ($) $ -$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
© Farmanco | Professional Edition Profit Series 2019 Page 82
CROPPING

Profit Series 2018
P79
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
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
Seeding Rate kg/ha 6 6 4 6 6 6 4 5 5 5 6 6 N 171
Used for Seed and Feed t 1 5 5 5 8 10 6 8 6 5 7 9 N 111
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
Equivalent Cash in Bank Price $/t $580 $601 $592 $610 $612 $613 $619 $619 $613 $613 $612 $608 N 199
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 $ $854,809 $338,421 $211,309 $338,271 $347,994 $417,387 $112,537 $578,195 $735,375 $281,946 $401,777 $378,083 N 201
Variable Operating Costs $/ha $371 $319 $272 $491 $447 $417 $448 $562 $619 $490 $458 $392 N 201
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
Crop Machinery $ $22,009 $26,460 $32,495 $46,797 $41,611 $40,016 $26,944 $65,623 $54,643 $38,991 $45,461 $34,208 N 201
Infrastructure $ $4,791 $2,711 $2,692 $5,837 $4,803 $4,649 $4,266 $7,155 $7,376 $5,005 $5,105 $3,961 N 184
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
Fixed Operating Costs $ $84,021 $70,856 $68,555 $122,389 $111,621 $113,510 $64,016 $159,133 $173,317 $101,188 $117,897 $97,175 N 201
Fixed Operating Costs $/ha $106 $103 $87 $186 $158 $134 $252 $212 $175 $209 $164 $124 N 201
Total Operating Costs ($) $ $938,830 $409,278 $279,864 $460,660 $459,616 $530,897 $176,553 $737,328 $908,692 $383,135 $519,674 $475,258 N 201
Total Operating Costs ($/ha) $/ha $478 $422 $360 $677 $605 $551 $700 $774 $794 $699 $623 $516 N 201
Total Operating Costs ($/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
© Farmanco | Professional Edition Profit Series 2019 Page 83
CROPPING

Profit Series 2018
P80
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
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
Seeding Rate kg/ha 89 77 80 92 89 81 78 90 93 87 88 76 N 92
Used for Seed and Feed t 126 79 37 106 118 150 89 112 163 92 113 86 N 102
Value of Seed $/t $300 $284 $200 $335 $322 $319 $485 $384 $377 $359 $333 $294 N 90
Feed and Seed Cost $ $37,650 $25,367 $7,400 $34,415 $36,643 $42,588 $31,248 $36,334 $55,353 $29,356 $35,673 $27,419 N 101
For Sale tonnes t 280 174 72 475 456 486 327 711 1,295 380 479 475 N 87
Equivalent Cash in Bank Price $/t $365 $364 $364 $353 $358 $362 $438 $412 $398 $376 $370 $356 N 88
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
Variable Operating Costs $ $61,069 $39,128 $8,958 $87,454 $78,289 $68,741 $69,985 $95,044 $199,098 $74,798 $78,282 $64,637 N 113
Variable Operating Costs $/ha $330 $272 $233 $486 $430 $375 $423 $500 $478 $468 $431 $314 N 113
Variable Operating Costs $/t $206 $177 $95 $205 $188 $174 $485 $260 $195 $266 $205 $173 N 113
Operating Gross Margin $ $44,181 $30,276 $23,001 $91,406 $85,570 $94,312 $38,429 $129,257 $352,065 $68,812 $90,523 $88,419 N 113
Operating Gross Margin $/ha $226 $270 $540 $392 $428 $408 $72 $486 $625 $337 $425 $351 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
Fixed Operating Costs $ $18,402 $13,945 $2,704 $30,746 $28,554 $20,669 $29,817 $39,874 $85,164 $29,650 $29,807 $23,444 N 113
Fixed Operating Costs $/ha $119 $107 $90 $183 $165 $112 $229 $212 $197 $199 $170 $110 N 113
Total Operating Costs ($) $ $79,471 $53,073 $11,662 $118,200 $106,842 $89,410 $99,802 $134,918 $284,262 $104,448 $108,089 $88,081 N 113
Total Operating Costs ($/ha) $/ha $449 $379 $323 $669 $596 $488 $652 $712 $674 $667 $601 $424 N 113
Total Operating Costs ($/t) $/t $286 $251 $134 $283 $261 $225 $783 $388 $284 $396 $291 $235 N 113
Operating Profit (BIT) ($) $ $25,780 $16,330 $20,297 $60,660 $57,016 $73,643 $8,613 $89,383 $266,901 $39,162 $60,716 $64,975 N 113
Operating Profit Crop (BIT) ($/ha) $/ha $107 $163 $450 $210 $262 $296 -$157 $275 $428 $138 $255 $241 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
© Farmanco | Professional Edition Profit Series 2019 Page 84
CROPPING

Profit Series 2018
P81
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
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
© Farmanco | Professional Edition Profit Series 2019 Page 85
CROPPING

Profit Series 2018
P82
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
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
Used for Seed and Feed t 119 168 223 181 178 118 66 198 73 158 181 167 N 58
Value of Seed $/t $200 $200 $200 $200 N

Profit Series 2018
P83
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
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
Seeding Rate kg/ha 62 56 48 65 65 59 53 62 65 61 63 56 N 284
Used for Seed and Feed t 266 318 350 309 385 439 363 579 317 313 414 384 N 281
Value of Seed $/t $395 $376 $358 $376 $408 $468 $447 $403 $393 $401 $402 $427 N 278
Feed and Seed Cost $ $80,756 $102,794 $116,574 $96,870 $122,348 $150,516 $127,370 $131,772 $105,222 $100,684 $121,162 $131,348 N 281
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
Equivalent Cash in Bank Price $/t $372 $389 $410 $437 $424 $427 $476 $438 $439 $438 $421 $415 N 287
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
Variable Operating Costs $/ha $320 $314 $304 $440 $443 $428 $455 $561 $609 $458 $447 $390 N 288
Variable Operating Costs $/t $241 $170 $133 $264 $193 $153 $390 $244 $188 $287 $200 $149 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
Operating Gross Margin $/ha $141 $364 $528 $224 $425 $567 $151 $500 $741 $230 $431 $539 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
Crop Machinery $ $79,856 $132,942 $198,804 $154,141 $171,203 $211,903 $114,242 $187,973 $196,680 $138,199 $168,617 $183,857 N 285
Infrastructure $ $15,276 $14,015 $16,800 $18,258 $20,127 $23,863 $19,738 $25,207 $26,898 $20,104 $20,177 $19,852 N 269
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
Fixed Operating Costs $ $251,200 $370,772 $459,240 $388,382 $463,177 $611,952 $294,508 $490,385 $597,520 $359,405 $453,860 $531,688 N 288
Fixed Operating Costs $/ha $103 $99 $87 $182 $159 $130 $249 $212 $181 $200 $160 $117 N 288
Total Operating Costs ($) $ $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 $2,477,940 N 288
Total Operating Costs ($/ha) $/ha $254 $415 $367 $810 $587 $554 $950 $818 $904 $984 $554 $496 N 34
Total Operating Costs ($/t) $/t $313 $222 $170 $380 $265 $199 $614 $350 $244 $422 $276 $194 N 288
Operating Profit (BIT) ($) $ $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 $2,214,070 N 288
Operating Profit Crop (BIT) ($/ha) $/ha $40 $267 $442 $44 $266 $437 -$96 $288 $561 $30 $271 $423 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
© Farmanco | Professional Edition Profit Series 2019 Page 87
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
© Farmanco | Professional Edition Profit Series 2019 Page 89
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
© Farmanco | Professional Edition Profit Series 2019 Page 90
LIVESTOCK

Cropping Percentage v Sheep Operating Profit (BIT)/Ha - 2018
550
500
450
102
162
140
Sheep Operating Profit (BIT) $/ Ha
400
350
300
250
200
150
100
50
0
-50
-100
-150
-200
234
107
193
185
128
■
220
159
133
224
231
94
■
175
155
113 (■) (67)
122
(18)
(■)
215 101
251
76
■
(28) ■
144
88
205 180 160 136
226 86
181 116
103
210
(1)
104
■
176
109
117
112
206
172
174
(■)
257
170 214 274■
209
182
■
167 246 207 ■
■
153
(12) 150
244
110 289 132 97
282
(64)
82
258
(■)
232
218 100
186
184
191
166
■ ■ 105108
(38) 245
201 (21)
252
114
(7) (23)
■
281
152
179 (33)
118
247
196
285
■ (4)
228 137
145
254
187
■
(■)
(58)
(51)
221 119
(■)
111 (46)
(37)
280
(34)
123
74 99
142
(5)
7283
■ 265■
■
120(57)
■
276 264
(20) 143
223
217
■
242 190
255
(52) (14)
219
249
■
288
(50)
227
211
253
202
■
188
■
195
■ 194
-250
(11)
-300
■
256
-350
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%
Crop %
Rainfall
Zone
L
M
H
Crop %
80%
Operang Profit 5 Yr Avg
-$ 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.
© Farmanco | Professional Edition Profit Series 2019 Page 91
LIVESTOCK

Number of Lambs Weaned per hectare - 2018
188
700
600
155
113
116
■
94
140
(■)
■
(42)
202
Sheep Gross Margin ($/WGHa)
500
400
300
159
■
222
257 170 ■
■ 172232
150
254
82122
259
(12)
282 182
160
234
153
(58)
137
200 132 251 246 226
119258
114244
104
218
(■)
■ 248 ■
228
191 196 109
(33) 179 ■■
110 (21) 25289
■ 107 ■
(51)
181 264
207
187
143 255 ■
18679
■
100 (■)
■ 190 ■
166 (■)
118
247
(14)
■
(5)
(1)
209
■
265
(46) (20) 221
83 (23) (7)
128
97
(11)
219
261
214
■
105
185
205
158
101
(64)
98144
133
210
136
103
■
■
(18)
(67) 245
88
175
■
180
231
201
76
253
(28)
1 2 3 4 5 6 7 8 9
102
(■)
All Weaned Lambs per Ha (Hd/Ha)
215
■
Rainfall
Zone
L
M
H
All Weaned Lambs per Ha
(Hd/Ha)
0.9
2.1
3.9
Gross Margin ($/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.
© Farmanco | Professional Edition Profit Series 2019 Page 92
LIVESTOCK

Lambs Weaned per hectare v Lambing % 2018
140%
216
130%
120%
222
140
Current Year Lambing %
110%
100%
90%
80%
70%
60%
142
■
205
(23) (51)
218
(46) 190
256
180
98
255
251
258
(33)
■
119 79
116
136
(11) (12) 109 ■
158
182113
(■)
(14)
219
254 207
110
97
234259
232 228
■
210 144 ■
118 ■
(67) (18) 175
■
150
(64)
(20) (5) 209
122
88
104
■
264
196
■ 244 105 82
223 246
101
(1)
(7)
■
247
137
111
248
(■)
(■) ■
166
103 245
276
226 214
133
(4)
114
155
■
(■) 128 ■
282
■
(58)
■
181 107
289
■ 170
265 185
191
94
143
186
■
153
(21)
172■
■
■
231
160
221
132
257
252
(28)
201 253 102
76
■
(■)
220
215
■
(42)
188
202
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.
© Farmanco | Professional Edition Profit Series 2019 Page 93
LIVESTOCK

Sheep Gross Margin v Stocking Rate - 2018
600
116 ■
■
500
■
224
88
180
193 102
98
159
144
■
133 ■
(■)
400
210 105
■
Gross Margin ($/WGHa)
300
200
100
0
142 217
185
215
174 (64)
(18)
205
214
(67) ■
■
158
245 136
117
108
103
101
86 285
(28)
■274
222
257 170
150 254
259
■ 182 172 232 122 82
(12)
282 112
160 234
153
120 (58) 251 132
218 167 258 119 226 176 137
246
76
114 244
104
(■)
■ 228 248 ■
196 ■ (33)
179
110
289 109191
■ 281
100
206
(21)
■
107
(51)
264 252
181 207
255 143 ■
187 152
79 ■ 186
175
111
(■) (34)
(■)
190 ■
166
■ 247
(14)
(4) 189 118 ■
(5)
(1) ■
209
■ 184
265
221
(46) (20)
(23)(7)
128
24212383
97
(11)
219
253
261
276
■
201
■
-100
241
223
256
0 2 4 6 8 10 12 14 16 18
Stocking Rate (WG DSE/WGHa)
Rainfall
Zone
L
M
H
Gross Margin ($/WGHa)
$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.
© Farmanco | Professional Edition Profit Series 2019 Page 94
LIVESTOCK

Sheep Gross Margin 5 YR AVG v Stocking Rate 5YR AVG
Sheep Gross Margin 5 YR AVG ($/WGHa)
500
450
400
350
300
250
200
150
100
50
0
159
122
(67)
113 193
(18)
(■)
(■)
■
101
215
155
■
144 160
■ 205 ■ 103
136 180 88
116
■
251 76
112
■274 117
(28)
185 234
■
209
79 257
170 181
282 214
172
206 201
86
174 (1) ■ 210
245 82■
207 104
107
182
■
166 176
109 226 153
246
258 (■)
108
■ 222 218 158 114
(64) 285
100
253
(12) 105
97
167150
248 179
289 184 228
■ 259
265 128
(■)
■
244
191
281 152 232 137
252
(51) ■ 247
■ ■
189 110 196
132
(21)
187
(7)
(33)
261 118
(23) (■) ■ 186
254
(58) 119
■ 221
■
(46) 264
(4)
120
■
223
255 111 123(34)
241
242 190 ■
83
98
(14) (20) 143
(5)
219
142 217 276
■
133
175
224
94
■
-50
256
■
0 2 4 6 8 10 12 14 16
Stocking Rate 5 YR AVG (WG DSE/WGHa)
Rainfall
Zone
L
M
H
Sheep Gross Margin 5 Yr
Avg($/WGHa)
$ 62 WGHa
$ 178 WGHa
$ 372 WGHa
Stocking Rate 5 Yr Avg
2 WG DSE/WGHa
6 WG DSE/WGHa
10 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.
© Farmanco | Professional Edition Profit Series 2019 Page 95
LIVESTOCK

Sheep Operating Profit 5YR AVG v Stocking Rate 5YR AVG
700
216
600
Operating Profit Bit $/ Ha Sheep
500
400
300
200
100
0
-100
-200
140
102
■
159
133
224 94
193 ■
122 113
155
(■)
251
■101
215
(18)
■
■
■ ■ 144 185
226 210 181 205 160
107 86
103 136
(1)
116
180
88
209
109 174 (■)
■(12) 79 182 274 176 117
167
257
170 ■
■ 112
104
■
172
234 206
■
246
150
82
(■)
289 ■ 184 132 222 97
(33) 191
218 258 248158244
■207
153
245 128(64) 282
(21)
252
118 166 ■ 186 259
■ ■
196
(58) 247
228
179
232 105
114
100
261
281 187 152 137
254
119 285
(34)
221
123 ■
120
83
143 241 ■
264■
223
265
219
■
■
■
98
-300
■
256
2 4 6 8 10 12 14 16
Stocking Rate 5 YR AVG (WG DSE/WGHa)
Rainfall
Zone
L
M
H
Operang Profit 5 Yr Avg
-$ 6 /WGHa
$ 63 /WGHa
$ 222 /WGHa
Stocking Rate 5 Yr Avg
2 WG DSE/WGHa
6 WG DSE/WGHa
10 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.
© Farmanco | Professional Edition Profit Series 2019 Page 96
LIVESTOCK

Cropping Percentage v Cattle Operating Profit (BIT) $/Ha
(41)
400
210
(56)
(67)
234
Operating Profit BIT($/Ha) Cattle
200
0
193
185
244
220
142
285
113
207
(58)
181
182
243
162 254
(52)
■
216
(43)
212
(■)
253
-200
■
(50)
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.
© Farmanco | Professional Edition Profit Series 2019 Page 97
LIVESTOCK

Number of Calves weaned per hectare - 2018
600
210
Gross Margin ($/WGHa )
400
(58)
(67)
220
200
(41)
■
193
185
113
212
162
285
0
244
181
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
Calves Weaned per Ha
Rainfall
Zone
L
M
H
Gross Margin($/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.
© Farmanco | Professional Edition Profit Series 2019 Page 98
LIVESTOCK

Cattle Gross Margin v Stocking Rate - 2018
600
210
400
Gross Margin ($/WGHa )
200
(58)
(67)
254
185
220
■
285 113
193
0
244
181
0 2 4 6 8 10 12 14
Stocking Rate (WG DSE/WGHa)
Rainfall
Zone
L
M
H
Gross Margin($/WGHa) Stocking Rate(WG DSE/WGHa)
$ 275 /WGHa
13 WG DSE/WGHa
$ 230 /WGHa
16 WG DSE/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.
© Farmanco | Professional Edition Profit Series 2019 Page 99
LIVESTOCK

Cattle Gross Margin 5YR AVG v Stocking Rate 5YR AVG
700
600
(41)
Cattle Gross Margin 5 YR AVE ($/WGHa)
500
400
300
244
181 (58)
113
(56) (67)
185 220
210
216
200
193
162
100
■
0
0 2 4 6 8 10 12 14 16
Stocking Rate 5 YR AVG (WG DSE/WGHa)
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
11 WG DSE/WGHa
© Farmanco | Professional Edition Profit Series 2019 Page 100
LIVESTOCK

Cattle Operating Profit 5 YR AVG v Stocking Rate 5 YR AVG
500
(41)
400
239
(56)
210
Cattle Operating Profit 5 YR AVG ($/WGHa)
300
200
100
(52)
244
■
182
113 185
(58)
181
(■)
220
(67)
216
285
234
207
243
193
142
0
(43)
■
212
(17)
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
11 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?
© Farmanco | Professional Edition Profit Series 2019 Page 101
LIVESTOCK

Profit Series 2018
Sheep Self-Replacing Wool Flock Enterprise 2018
P98
Lower 25%
12 Clients
Low Rainfall Medium Rainfall High Rainfall All 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.
© Farmanco | Professional Edition Profit Series 2019 Page 102
LIVESTOCK

Profit Series 2018
P99
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
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
© Farmanco | Professional Edition Profit Series 2019 Page 103
LIVESTOCK

Profit Series 2018
Sheep Self-Replacing Wool Flock Enterprise
P100
5 Year Average
Lower 25%
12 Clients
Low Rainfall Medium Rainfall High Rainfall All 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
Winter Grazed Sheep wg dse 3,158 1,945 1,411 3,235 3,426 2,188 2,992 6,641 4,994 3,414 3,956 1,786 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.
© Farmanco | Professional Edition Profit Series 2019 Page 104
LIVESTOCK

Profit Series 2018
Sheep Self-Replacing Wool Flock Enterprise (cont)
Cost details
P101
Low Rainfall Medium Rainfall High Rainfall All Clients
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.
5 Year Average
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
© Farmanco | Professional Edition Profit Series 2019 Page 105
LIVESTOCK

Profit Series 2018
P102
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
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
Profit Series 2018
P103
Lower 25% Average
12 Clients 47 Clients
5 Year Average
Low Rainfall Medium Rainfall High Rainfall All 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
© Farmanco | Professional Edition Profit Series 2019 Page 107
LIVESTOCK

Profit Series 2018
P104
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
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
Winter Grazed Sheep wg dse 3,377 2,483 1,451 5,463 4,843 3,453 5,305 8,969 7,112 5,773 5,629 2,687 N 168
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 $ $99,818 $72,495 $51,517 $199,845 $179,369 $130,020 $222,971 $375,910 $269,244 $217,357 $213,351 $89,119 N 179
Feed Grown on farm $ $22,836 $16,165 $46,351 $42,601 $32,287 $81,298 $69,389 $39,725 $56,201 $47,525 $20,432 N 137
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 $ $88,057 $74,009 $54,902 $157,035 $177,440 $146,583 $80,310 $341,300 $296,098 $143,424 $203,851 $97,655 N 179
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
Infrastructure $ $7,920 $4,661 $2,830 $6,930 $6,455 $4,294 $9,260 $9,562 $5,091 $8,123 $7,015 $3,388 N 157
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 $ $84,466 $76,708 $50,267 $98,351 $92,268 $78,948 $86,211 $111,299 $96,515 $95,054 $95,180 $74,927 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
© Farmanco | Professional Edition Profit Series 2019 Page 108
LIVESTOCK

Profit Series 2018
P105
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
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
© Farmanco | Professional Edition Profit Series 2019 Page 109
LIVESTOCK

Profit Series 2018
P106
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
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
Change in Stock Value $ -$1,186 $11,775 $14,198 -$13,967 $3,539 -$7,321 -$21,193 $59,507 $121,201 $4,164 $19,235 $9,781 N 172
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
Feed Grown on farm $ $22,836 $16,165 $53,563 $45,998 $30,582 $82,498 $78,825 $35,134 $60,679 $52,440 $20,199 N 139
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 $ $88,057 $74,772 $54,902 $158,046 $180,925 $147,233 $77,850 $365,303 $270,020 $145,698 $213,528 $100,428 N 182
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
Infrastructure $ $7,920 $4,663 $2,830 $7,089 $6,550 $3,941 $10,017 $10,373 $4,461 $8,598 $7,313 $3,266 N 161
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 $ $84,466 $77,162 $50,267 $100,782 $94,463 $73,520 $91,280 $122,096 $89,367 $100,386 $99,581 $72,570 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
Change in Stock Value $ -$1,186 $11,775 $14,198 -$13,967 $3,539 -$7,321 -$21,193 $59,507 $121,201 $4,164 $19,235 $9,781 N 172
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
© Farmanco | Professional Edition Profit Series 2019 Page 110
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.
© Farmanco | Professional Edition Profit Series 2019 Page 112
33
30
47
Machinery Capital $/Eff. ha
33 35 37
49
56
41
49 49
53
62
72
MACHINERY EFFICIENCY
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

MACHINERY EFFICIENCY
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
© Farmanco | Professional Edition Profit Series 2019 Page 113
MACHINERY EFFICIENCY

Seeding Capital Per Seeded Ha v Cropped Ha - 2018
190
180
170
216
226
79
■
160
105
Seeding Capital By Area $/Ha
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0
153 90
85
231
232
224 112
247
218
242 145
102 288
■ 167
131
158
110
200 172
205
166
183190
249 132
(17) 209
■
97
(57)
245
■
109
(18)
194
113
(20)
157
(13)
(■)
275
155
(15)
223 159
■
201
101 258
(54) (39) (66)
239
99
214
96
■
■ (7)
270
(16)
187 243 138
114
(68) 126 (61)
(46)
177
181
225
■ (64)
(28)
(■)
211
267 238 ■122
119 ■
72
(12)
252 ■ (31) 82
135
(51) ■ ■
74
(24)
237 118
(34)
(60)
257 246(70)
100 170 165
152 ■
120
175 ■
174 169
139 (■)
(37)
(65)
162 202
229
(33)
(50)
(■) ■
(26)
184 182 (■)
123 262
204
244
■
207
(■)
133
■
228
(53) (23)
(42)
281 (29) 117
221 (49)
212 116
248 ■ 140 203 (22) (5) ■ (21)
(■)
107 289
■
255 ■ 278
(11)
■
■ 210
86 ■ ■
(62)
■
235
(30)
180 128
276
196
(■) 151
150 (8) (■)
84
■
(2)
282 (56) ■ 111217
108
144
(■) 81
264 104 136
(1)
197 124
(38) 77
222188
■ 219 259
(43) 80
227 103 ■
191
256 261 143178 185
94
156 233
98 (19)
179 195 88
(55)
220
(14)
251
76
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000
(4)
(35)
Total Cropped Area (Ha)
(52)
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.
© Farmanco | Professional Edition Profit Series 2019 Page 114
MACHINERY EFFICIENCY

Spraying Capital Per Sprayed Ha v Cropped Ha - 2018
300
189
152 201
280
260
112
240
200
195
97
220
94
Spraying Capital By Area $/Ha
200
180
160
140
120
100
80
60
40
20
0
196
■
105
202 156
102 223
(17)
116
257
90 289 88
79
(42)
■
249
262
■
■
247 170 160
242
133 184 161
167 (26)
278
■ 222 172
(2)
103
206
238
96 271 ■
178
144
98 (11)
216
113
100 108
(55)
182
■ 132
(8)
101
139
181
(50)
169
■
(■)
209 119 ■
99
180
■
■
120
179 110 148 151 165 ■ (57)
157
(■)
(18)
194
193
(49) 117 276
(33) 72
■ 258 203 (39) (30) (13) 89
(34)
143
245 246 (29) 128
140 (53) 118
270
159 124 126
(■)
81
(37)
162
■
■
244 107255 123
(66)
(21)
(65)
(68)
(14) ■ 84
■ 211
135
(7)
176
220 288
(54)
226 264
114
230
104
(64)
(43)
224 ■
(15)
281 212
82
(■)
150
243
214
259 (■)
131 142
177
190 197
(38)
231 122
138
74
111
■ 158 (61)
237 (35)
■
(■) ■ 282 233 256
136
228
(16) 174 (46)
251 (■)
234 (12)
■
218 175 221
(■) (20)
(23)
207
(56)
76
■ 210 (5)
86 ■
■
77
(70) (19)
23261
■
(4)
205 235 187
(51) 109 ■ ■
80
248 267 ■ 219
(62)
(1)
217
■
215
191 153 145 ■
(31)
85
137 ■
185
239 229
■
(22)
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
Total Cropped Ha
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
© Farmanco | Professional Edition Profit Series 2019 Page 115
MACHINERY EFFICIENCY

Harvesting Capital Per Harvested Ha v Cropped Ha 2018
500
112
450
400
216
350
128
■
104
Harvesting Capital By Area
300
250
200
150
100
50
0
201 183
90
101
133 98
79
155
202
■
■
285
200 137
116 (17) 97
160
117 288
167
■
126
■
205 (68)
175
100 105
187
140
271
248
196
■ (2)
181
■
(57) 113
209 (■) 72
166 218 223
■
(49)
259 ■
■212
■ (55)
84
162
176
224
■ 150
228
103 122 96 (61)
249 (26) 178 120 (66)
138 177
99
(12)
243 (31) (14)
232
(34)
246
214
■
281 ■
258242 ■
165 145
■
(65) (50)
94 (5) 239(37)
77
(23)
270
(43)
111 203 157 139
245 ■ ■ (42)(29) 110
267
174
226 22170 85 88 151
188 ■
194
89
237
■ 219
■
193 124
131
(33) (■)
(4)
211
136
278
(■)
262 ■
(28)
■
135
■ 102 184256
■
238 182
169
119 (39)
153
251
■
(38) (7)
(35)
(1)
(56) 215 264 (■)
255 (11)
(■) 118
80
22086 206
257244 289 108
(16)
109
(54)
■
(■)
148
(18) 276
(20) (24) (8)
247
■
(62)
(22)
158 ■ 143
282 172 190 114
235
(15)
■
252 ■ (64) (■) 229
(21)
180 227
(53)
156
185
207 179 159■ (■) 132
(■)
■
222 233 261
(46)
142
(70)
144 76
(51)
210
■
■
(30)
191 197
(■)
123
217 ■
152
(13)
0 2,000 4,000 6,000 8,000 10,000
Cropped Area (Ha)
Rainfall
Zone
L
M
Harvesng Capital Per Ha
84
125
Total Cropped Ha
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
© Farmanco | Professional Edition Profit Series 2019 Page 116
MACHINERY EFFICIENCY

Kilowatts Per Tyne - 2018
10
(68)
9
190
85
(39)
128
Kilowatts per Tyne
8
7
6
5
4
262
280
276
■
194
211
178
219
227
143
■
■
■
80
81
(■)
(37)
(26)
(43)
(20)
(23)
(31)
(46)
(14)
(7)
(5)
288
278
270 237
255
233
251
282
271
■
■
229
218
222
197
204
205
177
189 165
196
191
174
179 169
181
■
■
153
159
132 120
135
119 113
98
84
72
77
(66)
(65)
(64)
(51)
(57)
(■)
(30)
(35)
(16)
(24)
(8)
(11)
241
243
225
231
245
202
206
223
216
187
138
140
131
102
82
(60)
(42)
(29)
(1)
3
(21)
207
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.
© Farmanco | Professional Edition Profit Series 2019 Page 117
MACHINERY EFFICIENCY

Profit Series 2018
P112
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
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
© Farmanco | Professional Edition Profit Series 2019 Page 118
MACHINERY EFFICIENCY