Gross Margin Analysis - Wheat



Example 1: Gross margin analysis - wheatCalculating a gross margin for a wheat enterprise (1500 hectares)*Gross income (yield x price):ItemAmountTotal grain yield (based on average of 2.7t/ha)4050tPredicted price on-farm$247/tGross income$1 000 350Gross income/ha$667/haVariable costs:ItemDetailCostTotalSeedSeed100kg/ha at $247/t$37 050SeedSeed treatment and cleaning100kg/ha at $165/t$24 750FertiliserNPS + Cu, Zn and Mn110kg/ha at $820/t$135 300FertiliserUrea200kg/ha at $534/t$160 200FertiliserFertiliser cartage310kg/ha at $13.00/t$6045SpraysSummer - triclopyr0.8L/ha at $27.50/L$33 000SpraysSummer – 2,4-D0.7L/ha at $11.50/L$12 075SpraysKnockdown – glyphosate1L/ha at $4.50/L$6750SpraysKnockdown – paraquat / diquat1L/ha at $12.90/L$19 350SpraysBroadleaf0.8L/ha at $20.80/500g$24 960SpraysFungicide0.15L/ha at $67.00/L$15 075SpraysPost emergence - tralkoxydim0.35kg/ha at $72.00/kg$37 800Machinery operatingFuel and oilsNo data$57 000Machinery operatingRepairs and maintenanceNo data$45 000ContractorsSprayingNo data$18 000ContractorsHarvestingNo data$37 500LabourCasual labour8 weeks at $1000/week$8000InsuranceFire and hail2t/ha at $247/t x 1%$7410Variable costsNo dataNo data$685 265Variable costs/haNo dataNo data$457Gross margin (gross income – variable costs):ItemAmountGross margin$315 085Gross margin/ha$210* This is an example only; it is not from an actual business. Prices and costs may not be current. ................
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