Decision making in your farm business
When making decisions around water purchasing, crop mix and risk management, it is important that you understand your inputs, costs and profit margins because every farm is different.
Use your own numbers and calculate any number of scenarios to assess the important decisions for the coming season by using the web based tool: Rice $cenario is available at http://ricescenario.sunrice.com.au.
For those whose computing skills are not great, click on the button below to see a series of hard copy templates from Rice$cenario for print out and use.
· Calculate your average water price from your allocated water costs plus the cost of purchasing water.
· Input in your own costs to match your own situation at the highlighted text. Add or delete operations and/or inputs if necessary.
John Fowler collected gross margin figures in 2014 from 18 crops using different varieties and sowing methods in the Murray Valley. Variable costs ranged from $1100 - $1650 without irrigation purchases. The point is that the gross margin can vary hugely from different farms and you need to put in your own figures to help you plan and make decisions about sowing rice this year.
Please note that the example gross margins are designed to represent ‘average case scenarios’. They should be used as a guide only.