Protecting Crop Income from Adverse Weather Events

18 September, 2017

Frosts, droughts, floods and hot windy days can make farming a frustrating business at times.  When everything under the control of management has been done to obtain the best result, but a weather event occurs that significantly reduces the expected … Continue reading


Work Health & Safety Policies – Can it be made Easier?

18 September, 2017

Clear and concise descriptions of the expectations and standards associated with the operation of a business, will provide a safe and more productive work environment.  So why doesn’t every small business do it?….because most small businesses find it difficult to … Continue reading


Grain Market Update – Wheat (September 2017)

18 September, 2017

The following graph shows the movement in Chicago (CBOT) December 2017 Wheat Futures price and the 2017/18 APW Multigrade price delivered port. Since early January, both the futures and domestic price have remained flat with the basis at or close … Continue reading


Grain Market Update – Canola (September 2017)

18 September, 2017

The following graph shows the movement in ICE November 2017 Canola Futures and the domestic canola price delivered port. Since early January, there has been a steady decline in both the futures and domestic prices. More recently the domestic price … Continue reading


Wool Market Update (September 2017)

18 September, 2017

The following graph shows the AWEX Eastern Market indicator (EMI) in cents per kilogram clean, from August 2009 to date. Decreased wool availability plus strong demand from buyers has led to all time record wool prices recently. While wool growers … Continue reading


Interest Rate Update (September 2017)

18 September, 2017

The following graph shows movements in both the 3 month and 3 year Bank Bill yield rates, for the period January 2006 to September 2017. These rates are wholesale rates which are net of any margin charged by financial institutions. … Continue reading


Cost of Production and Break Even Price Analysis (2017/18)

28 June, 2017

The average budgeted unit Cost of Production (before interest), and Break Even Price (after interest), calculated from 2017/18 client budgets for the major commodities is shown below: Both the Cost of Production (COP) and Break Even Prices (BEP) for wheat … Continue reading


Key Financial Ratios (2017/18)

28 June, 2017

Management should focus on costs rather than income, is the key message from the following analysis. Some key indicators based on predicted EBIT (earnings before interest and tax) have been calculated on the 2017/18 client budget data.  EBIT is a … Continue reading


Net Farm Income Analysis (2017/18)

28 June, 2017

Attention to management of costs rather than income, has the greatest impact on Net Farm Income, is shown below. The results of budgeted Net Farm Income per hectare, for both the top 20% of clients plus average for the group, … Continue reading


Understanding Farm Insurance

28 June, 2017

Insurance premiums are a significant cost to most farm businesses, however few people devote adequate time to understanding the policy and discussing the limitations of their cover with the insurer. Farm businesses may have insurance for; public liability, general farm … Continue reading