Cost of Production and Break Even Price Analysis (2015/16)

25 June, 2015

The average budgeted unit Cost of Production (before interest), and Break Even Price (after interest), calculated from 2015/2016 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

25 June, 2015

Some key indicators based on predicted EBIT (earnings before interest and tax) have been calculated on the 2015/16 client budget data.  EBIT is a measure of profitability used across various businesses and industries. The average results for both the top … Continue reading


Net Farm Income Analysis (2015/16)

25 June, 2015

The results of budgeted net farm income per hectare, for both the top 20% of clients plus average for the group, ranked on Return on Assets is shown below: These figures illustrate the importance of having costs appropriate for realistic … Continue reading


Are Hard Seeded Annual Legumes a Better Pasture Option than Lucerne?

25 June, 2015

Hard seeded annual legume species such as Biserrula, Bladder Clover, Gland Clover and Medics offer advantages over Lucerne based pastures, particularly in areas with low and variable rainfall. The most significant advantage of the hard seeded annual legume system is … Continue reading


Grazing Management of Phalaris Pastures

25 June, 2015

Rotational grazing of Phalaris will improve the productivity and persistence of the pasture by allowing the plants to fully utilise their natural replenishment and dormancy mechanisms. Phalaris is a deep rooted winter active perennial grass that has greater rooting depth … Continue reading


Grain Market Update – Wheat (June 2015)

25 June, 2015

The following graph shows the movement in Chicago (CBOT) December 2015 Wheat Futures price and the 2015/16 APW Multigrade price delivered port. Although the basis has remained relatively constant, prices dipped during May and more recently have peaked for the … Continue reading


Grain Market Update – Canola (June 2015)

25 June, 2015

The following graph shows the movement in ICE November 2015 Canola Futures and the domestic canola price delivered port. Having been relatively stable during the first part of this year, canola prices have strengthened significantly of late.  Whilst the basis … Continue reading


Wool Market Update (June 2015)

25 June, 2015

The following graph shows the AWEX Eastern Market indicator (EMI) in cents per kilogram clean, from August 2009 to date. Since April 2015, prices have increased rapidly. Current prices are only 80c/kg behind the peak of 1,436 c/kg clean, achieved … Continue reading


Interest Rate Update (June 2015)

25 June, 2015

The following graph shows movements in both the 3 month and 3 year Bank Bill yield rates, for the period January 2006 to June 2015. These rates are wholesale rates which are net of any margin charged by financial institutions. … Continue reading