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Q13: HOW DO I CALCULATE IF I AM
BETTER OFF MAKING HAY OR
HARVESTING GRAIN?

Almost every year hay out performs grain in gross To highlight hay’s potential using the rule, Feed
value per ha. Yes, the work is there but so are the Central has inserted a simple gross margin budget
rewards. The rule of thumb is hay yields below which provides space for growers to do their
approximately twice that of grain. This rule is very own figures. The calculation compares gross margin
relevant when crops have bulk but lack soil moisture per hectare from harvesting grain to making hay.
to make grain.

YOUR HAY __T per ha hay @$____ T Total = $____ha = $____ Fertiliser = $____ Chemicals = $____ Fuel = $____ Machinery = $____ha Sub total Cutting per ha = $____ Raking per ha = $____ 6.6 bales ha/8x4x3 = $___ Handling @___ T= $____ Sub total = $____ ha GM = A – (B + C) GM =$___– ($ ___+$___ ) Gross Margin = $_____ha

EXAMPLE HAY 4 T per ha hay @ $150 T Total = $600 ha = $120 Fertiliser = $80 Chemicals = $24 Fuel = $26 Machinery = $250 ha Sub total Cutting per ha = $40 Raking per ha = $20 Baling $17 / bale (606 kg bale) = 6.6 bales ha = $112 Handling @ $10 T =$40 Sub total = $212 ha GM = A – (B + C) GM = $600 – (250 + 212)

YOUR GRAIN ___T per ha wheat @$____ T Total = $____ha = $____ Fertiliser = $____ Chemicals = $____ Fuel = $____ Machinery = $____ha Sub total Harvest @ $____ T Handling @ $_____T Sub total = $____ T GM= A – (B + C) GM=$___– ($ ___+$___) Gross Margin= $______ha Gross Margin = $138

EXAMPLE GRAIN 2 T per ha wheat @ $200 T Total = $400 ha = $120 Fertiliser = $80 Chemicals = $24 Fuel = $26 Machinery =$250 ha Sub total Harvest @$20 T Handling @ $5 T Sub total= $50 GM = A – (B + C) GM = $400 – (250 + 50) Gross Margin = $100 ha

A = Est. yield ha x $ per tonne on farm $ per T on farm Gross margin = A – (B +C)

DETAILS B = Growing costs per ha C = Harvest and handling

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