Starting my farming career again

[Bowerpower]

Just having a quick glance I’d say you are in an area where land prices still make sense. Low cost low inputs low risk. Avg 2.5t at 200. Gross of 500. Close to profit of 200-250 hectare??? Land can be paid for in 10 years by itself.
No chance of that where I am. Land over 4000 per acre. Gross 5/600 per acre if it doesn’t drown..... Net 200 if it doesn’t drown out..... lucky to have land paid for in 30 years with interest rates where they are at.

[Guest]

You have to pay gst on farm euip ?
Do you get it back ?
Is it 10% gst ? Any other sales tax ?
We have 5% fed gst and 6 % sask pst but a lot of farm stuff exempt or get it back (gst)

[farmaholic]

It's interesting how everyone's profitability level is different. Our two highest expenses lately have been salaries(which can be easily adjusted, meaning I work for less money....I wonder how many operators/managers would take less pay from the arms-length company they work for if margins are tight?...because of issues beyond their control!) The other one is asset depreciation which is a bit of a phoney number....that number is quite real in the first 2-3 years after the purchase of a "new" piece of equipment, but if it's sold or traded later.....alot of times there's a net increase to the asset class it came out of based on the amount of depreciation expense used against it.

[GDR]

Interesting to see your projection numbers. Things that caught my eye are MAP (around 550/t) quite a bit cheaper than ours. Fertility rates are super low, does it not pay to increase rates or you just limited by water? If you go with those rates why do you spread the application? Spread the risk I Assume incase crop expectations decrease?

If I wasn't so lazy I should do projections too, I would add interest, cost of land even if owned, crop insurance and repairs.

Are those machinery/acre costs going custom rates or just what you figure your costs are? They look like they'd pay our fuel but that's about it. Custom combiners around here are $45 plus per acre seeding around $20 and spraying around $8. (or $111/ $49 / $19 on a per hectare basis) Sounds high but you gotta cover a pile of acres to make it pay custom farming.

Incase anyone wondering looks like CAD and AUD are pretty much equal these days.

Thanks for the info.

[malleefarmer]

Thanks for the pick up gdr.
Dap its now $610 was done a while back.
Wage component is factored to a degree.

Rates taxes electricity car payments phone,machinery repayments, allsorts has be paid out of surplus so maybe not quite as rosy.

Dap may be increased to 60kg yet.

Urea always spread once crop is up and away 3 leaf stage onwards.

If year is shit and crop struggling may not be applied.
\

[malleefarmer]

Now this ones gonna be interesting.
About 8kms away and my father was keen to buy it when it sold last time, was held in same family for about 40 years, but a known frosty area, was being run as a successful sheep stud a really good property.

Got sold during a run of droughts maybe 15 16 years ago a real goose bought who was in horticulture,absolutley stuffed the joint up. Covered in cooch grass Elymus repens. Water system for stock water stuffed fences partly removed alot of fallow done to control cooch grass alot of sand blowing.

Be interesting my tip it still may make $350 to 450 per acre. Land is really tightly held in our area

http://tailembend.eldersrealestate.com.au/rural/buy/property-cropping-sa-karoonda-707777

[malleefarmer]

Someone asked GST yes 10%

[malleefarmer]

Wheat

[malleefarmer]

Now the poor figures always budget low Canola

[ajl]

You listed a freight cost on canola while the profitability analysis was done with farm gate prices. Farming economics is better there than here. Land prices are so out of whack here and they have only begun their descent. Yields here, except by the coffee shop braggart and the local colony, are not that much above yours. You only hear about the best fields all the time and there are always those that drag the average down. Our county had the poorest crop since 2002, last year. 2002 was the poorest year in a long time for a wide region of east central AB.

[malleefarmer]

woops correct re freight.

My whirlwind tour of western canada and sorry if i offend anyone, crops did look poor around lethbridge or between medicine hat and lethbridge kinda looked like home.
presume some sort of rain shadow effect lethbrdge area mountains not that far away

[MBgrower]

They dont look like it in pics.
Dealers always rate high. Unless you can run em bald Done at %25
So 60% 2/3 done.
Are they R1s or R1Ws?
Check your beads for any wear or damage too. Power plus weight something slips. Sometimes bead depending on application. Ask your tire guy.
Assess your requirements of course as well. Also make damn sure weight ratios done right.
Just my own experiences.

they look pretty worn to me. Have you priced out new tires lately? Ouch!

[helmsdale]

Farming economics is better there than here. Land prices are so out of whack here and they have only begun their descent

Descent? Hell they're still going up here. Local BTO broke a large amount of regrass and you could see rabbits humping at a 1/4 mile out all summer... yet he still gathered the cash/investors to do a major expansion. Had I grown that crop the bank would be phoning me for money and not the other way around!

[Klause]

Most places in the world have better economics than Canada as far as ag.


Why?


Because here the system is setup to extract maximum profit and leave us with the least.


Thanks to government intervention mostly.

[malleefarmer]

Not sure klause

Im just a bonehead from downunder but seems to me 2 main things that ****s you guys is freight and your narrow weather window for everything oh maybe three bad beer