AN E C O N O M I C S U R V E Y
O F NEW ZEALAND WHEATGROWERS :
ENTERPRISE ANALYSIS
SURVEY NO.
7
1982-83
R . D . LOUGH
McCARTIN
P.J.
RESEARCH REPORT N O .
142
November 1983
Agricultural Economics Research Unit
Lincoln College
Canterbury
New Z e a l a n d
I S S N 0069-3790
111Li A U 1 \ 1 C I U L I
UI\LI&
L L U I Y U I I I I C I L ) I\LL)LIIL\bII
V I Y I I
Lincoln College, Canterbury, N.Z.
The Agricultural Economics Research Unit (AERU) was established in 1962 a t Lincoln
College, University of Canterbury. The aims of the Unit are to assist by way of economic
research those groups involved in the many aspects of New Zealand primary production
and product processing, distribution and marketing.
Major sources of funding have been annual grants from the Department of Scientific
and Industrial Research and the College. However, a substantial proportion of the
Unit's budget is derived from specific project research under contract to government
departments, producer boards, farmer organisations and to commercial and industrial
groups.
The Unit is involved in a wide spectrum of agricultural economics and management
research, with some concentration on production economics, natural resource
economics, marketing, processing and transportation. The results of research projects
are published as Research Reports or Discussion Papers. (For further information
regarding the Unit's publications see the inside back cover). The Unit also sponsors
periodic conferences and seminars on topics of regional and national interest, often in
conjunction with other organisations.
The Unit is guided in policy formation by an Advisory Committee first established in
1982.
The AERU, the Department of Agricultural Economics and Marketing, and the
Department of Farm Management and Rural Valuation maintain a close working
relationship o n research and associated matters. The heads of these two Departments
are represented on the Advisory Committee, and together with the Director, constitute
an AERU Policy Committee.
UNIT ADVISORY COMMITTEE
G.W. Butler, M.Sc., Fil.dr., F.R.S.N.Z.
(Assistant Director-General, Department of Scientific & Industrial Research)
B.D. Chamberlin
(Junior Vice-President, Federated Farmers of New Zealand Inc.)
P.D. Chudleigh, B.Sc. (Hons), Ph.D.(Director, Agricultural Economics Research Unit, Lincoln College) (ex officio)
J. Clarke, C.M.G.
(Member, New Zealand Planning Council)
J.B. Dent, B.Sc., M.Agr.Sc., Ph.D.
(Professor & Head of Department of Farm Management & Rural Valuation, Lincoln College)
E.J. Neilson, B.A.,B.Com., F.C.A., F.C.I.S.
(Lincoln College Council)
B.J. Ross, M.Agr.Sc.,
(Professor & Head of Department of Agricultural Economics & Marketing, Lincoln College)
P. Shirtcliffe, B.Com., ACA
(Nominee of Advisory Committee)
Professor Sir James Stewart, M.A., Ph.D., Dip. V.F.M., FNZIAS, FNZSFM
(Principal of Lincoln College)
E.J. Stonyer, B.Agr. Sc.
(Director, Economics Division, Ministry of Agriculture and Fisheries)
UNIT RESEARCH STAFF: 1983
Director
P.D. Chudleigh, B.Sc. (Hons), Ph.D.
Research Fellow in Agriczlltural Policy
J.G. Pryde, O.B.E., M.A., F.N.Z.I.M.
Senior Research Economists
A.C. Beck, B.Sc.Agr., M.Ec.
R.D. Lough, B.Agr.Sc.
R.L. Sheppard, B.Agr.Sc.(Hons), B.B.S.
Research Economist
R.G. Moffitt, B.Hort.Sc., N.D.H.
Assistant Research Economists
L.B. Bain, B. Agr., LL.B.
D.E.Fowler, B.B.S., Dip. Ag. Econ.
G. Greer, B.Agr.Sc.(Hons) (D.S.1.R Secondment)
S.A. Hughes, B.Sc.(Hons), D.B.A.
G.N. Kerr, B.A., M.A. (Hons)
M.T. Laing, B.Com.(Agr), M.Com.(Agr) (Hons)
P.J. McCartin, B. Agr.Com.
P.R. McCrea, B.Com. (Agr)
J.P. Rathbun, B.Sc., M.Com.(Hons)
Post Graduate Fellows
C.K.G. Darkey, B.Sc., M.Sc.
Secretary
C.T. Hill
CONTENTS
Page
L I S T OF TABLES
(iii)
L I S T OF FIGURES
PREFACE
ACKNOWLEDGEMENTS
CHAPTER
1.
INTRODUCTION
1.1
1.2
1.3
2
3.
2.1
2.2
Property V a l u e s
C r o p A r e a s and P r o d u c t i o n
2.3
L i v e s t o c k Numbers
C H A R A C T E R I S T I C S O F WHEAT P R O D U C T I O N
3.1
Management P r a c t i c e s
Machinery Details
C O S T S AND R E T U R N S
5.1
5.2
5.3
6
Wheat A r e a a n d P r o d u c t i o n
Wheat V a r i e t i e s , A r e a s a n d Y i e l d s
MANAGEMENT P R A C T I C E S AND M A C H I N E R Y D E T A I L S
4.1
4.2
5.
Wheat P r i c e
Survey D e s c r i p t i o n
FARM C H A R A C T E R I S T I C S
3.2
4.
Climatic Conditions
Selected C o s t s and R e t u r n s
D i s t r i b u t i o n of R e t u r n s
Wheat P r o f i t a b i l i t y R e l a t i v e t o L i v e s t o c k
TRENDS I N PRODUCTION,
6.1
6.2
6.3
C O S T S AND R E T U R N S
Wheat A r e a s
P r o d u c t i o n and Selected C o s t s
Returns
APPENDICES
A.
B.
C.
D.
Regional Climatic Data
R e l i a b i l i t y of S u r v e y E s t i m a t e s
B r e a k d o w n of C o s t I t e m s
D e s c r i p t i o n of C o s t I t e m s
LIST O F TABLES
NO.
Title
W e a t h e r I n d i c i e s f o r New Z e a l a n d Wheat G r o w i n g
A r e a s , 1982-83
B a s i c Wheat P r i c e T r e n d
Announced Wheat P r i c e D e t a i l s
A d d i t i o n a l Wheat L e v i e s , 1 9 8 2 - 8 3
Growers' S t o r a g e Increments
D i s t r i b u t i o n o f S u r v e y Farms a n d S u r v e y P o p u l a t i o n
by R e g i o n , 1 9 8 2 - 8 3
C l a s s i f i c a t i o n o f Farms S u r v e y e d , 1 9 8 2 - 8 3
Government V a l u a t i o n of S u r v e y Farms, 1982-83
Government V a l u a t i o n p e r H e c t a r e , 1982-83
Farm a n d C r o p A r e a s , 1 9 8 2 - 8 3
Wheat A r e a , P r o d u c t i o n a n d Y i e l d on A l l S u r v e y
Farms, 1982-83
O t h e r Crop Y i e l d s by R e g i o n , 1982-83
L i v e s t o c k Numbers, 1982-83
Wheat A r e a , P r o d u c t i o n a n d Y i e l d o n S u r v e y
Farms w h i c h H a r v e s t e d Wheat, 1 9 8 2 - 8 3
D i s t r i b u t i o n o f Wheat A r e a D r i l l e d , 1 9 8 2 - 8 3
E s t i m a t e d Wheat P r o d u c t i o n S o l d t o Wheat B o a r d
p e r F a r m , 1983 H a r v e s t
Wheat V a r i e t i e s b y P r o p o r t i o n o f Wheat A r e a
D r i l l e d , 1982-83
Wheat A r e a a n d Y i e l d b y V a r i e t y , 1 9 8 2 - 8 3
D r i l l i n g a n d H a r v e s t i n g D a t e s , 1982-83
D r i l l i n g R a t e s , 1982-83
Management P r a c t i c e s , 1 9 8 2 - 8 3
T r a c t o r H o u r s f o r Wheat C u l t i v a t i o n
and D r i l l i n g , 1982-83
T r a c t o r Usage, R e p a i r C o s t s and V a l u e , 1982-83
H a r v e s t i n g Method, 1982-83
Wheat C o s t s a n d R e t u r n s p e r H e c t a r e , 1 9 8 2 - 8 3
Wheat C o s t s a n d R e t u r n s p e r T o n n e , 1 9 8 2 - 8 3
S o u r c e s o f Wheat R e v e n u e p e r H e c t a r e , 1 9 8 2 - 8 3
S o u r c e s o f Wheat R e v e n u e p e r T o n n e , 1 9 8 2 - 8 3
D i s t r i b u t i o n o f G r o s s Revenue, 1982-83
D i s t r i b u t i o n o f G r o s s Margin, 1982-83
D i s t r i b u t i o n of G r o s s Margin l e s s
M a c h i n e r y Overhead C o s t s , 1982-83
L i v e s t o c k v e r s u s Wheat G r o s s M a r g i n s , 1 9 8 2 - 8 3
L i v e s t o c k v e r s u s Wheat G r o s s M a r g i n s l e s s
M a c h i n e r y Overhead C o s t s , 1982-83
Wheat A r e a s D r i l l e d a n d Wheat A r e a I n t e n t i o n s
Movement i n Wheat P r o d u c t i o n , C o s t s a n d R e t u r n s
Trends i n S e l e c t e d Costs
T r e n d s i n P r i c e s a n d Revenue
W e a t h e r I n d i c e s f o r N o r t h a n d Mid-Cant e r b u r y
Wheat G r o w i n g A r e a s , 1 9 8 2 - 8 3
Page
Lf S T OF TABLES
39.
40.
41.
42.
43.
44.
45.
(Con' d )
Weather I n d i c e s f o r S o u t h C a n t e r b u r y and N o r t h
O t a g o W h e a t G r o w i n g A r e a s , 1982-83
W e a t h e r I n d i c e s f o r S o u t h l a n d Wheat G r o w i n g
A r e a s , 9982-83
R e l i a b i l i t y of S u m m a r y Wheat C o s t s a n d
R e t u r n s , 1982-83
E s t a b l i s h m e n t C o s t s , 1982-83
G r o w i n g C o s t s , 1982-83
H a r v e s t i n g C o s t s , 1982-83
M a c h i n e r y O v e r h e a d C o s t s , 1982-83
L I S T OF FIGURES
1.
2.
D i s t r i b u t i o n of W h e a t A r e a D r i l l e d , 1 9 8 2 - 8 3
Wheat V a r i e t i e s b y P r o p o r t i o n o f W h e a t A r e a
D r i l l e d , 1982-83
PREFACE
This report
is t h e seventh i n
an
a n n u a l s e r i e s of
economic s u r v e y s o f
New Z e a l a n d w h e a t g r o w i n g f a r m s .
These
s u r v e y s h a v e been u n d e r t a k e n by t h e A g r i c u l t u r a l
Economics
R e s e a r c h U n i t a t L i n c o l n C o l l e g e on b e h a l f o f t h e W h e a t g r o w e r s
S u b - S e c t i o n o f F e d e r a t e d F a r m e r s o f New Z e a l a n d I n c .
S p e c i f i c a t t e n t i o n h a s been
f o c u s e d on t h e p h y s i c a l
characteristics
of
w h e a t g r o w i n g f a r m s , t h e a r e a of wheat a n d
o t h e r c r o p s sown, w h e a t y i e l d s , management p r a c t i c e s a n d c o s t s
and r e t u r n s
for
t h e 1982-83 w h e a t c r o p . An a t t e m p t h a s b e e n
made t o a l l o c a t e p l a n t a n d m a c h i n e r y
overhead c o s t s t o t h e
w h e a t e n t e r p r i s e on a c u r r e n t c o s t b a s i s . A c o m p a r s i o n o f t h i s
information with p a s t surveys
enables a
more
comprehensive
p r o f i l e of t h e i n d u s t r y t o emerge.
The n e e d f o r c u r r e n t a n d d e t a i l e d i n f o r m a t i o n f r o m t h e
s u r v e y i n v o l v e d v i s i t i n g e a c h of t h e f a r m s i n t h e s a m p l e a f t e r
h a r v e s t . T h i s f i e l d w o r k was c a r r i e d o u t b y R o g e r ~ o u g h ,
P a t r i c k McCartin,
A n n e t t e W o r s f o l d , G l e n y s B a l p i n , Rob G o u l d
a n d Ken Pawson.
Computer programming
and
analysis
was
u n d e r t a k e n by P a t r i c k
McCartin.
The r e p o r t was c o m p i l e d b y
R o g e r Lough a n d P a t r i c k M c C a r t i n .
Chudleigh
Director
P. D.
ACKNOWLEDGEMENTS
The A g r i c u l t u r a l
Economics R e s e a r c h
Unit
gratefully
acknowledges
t h e c o - o p e r a t i o n o f t h a w h e a t g r o w i n g f a r m e r s who
p a r t i c i p a t e d i n t h e s u r v e y a n d who made t i m e a n d i n f o r m a t i o n
freely available t o our f i e l d s t a f f .
CHAPTER
1
INTRODUCTION
The N a t i o n a l W h e a t g r o w e r s ' S u r v e y i s a n
annual
survey
being undertaken
by t h e A g r i c u l t u r a l Economics R e s e a r c h U n i t
a t L i n c o l n C o l l e g e on b e h a l f o f t h e Wheat G r o w i n g S u b - S e c t i o n
of
Federated Farmers of
New Z e a l a n d
Inc.
This
report
summarizes i n f o r m a t i o n c o l l e c t e d from p a r t i c i p a t i n g f a r m e r s
f o r t h e 1982-83 w h e a t g r o w i n g s e a s o n .
1.1
Climatic Conditions
i
Wright
provided
t h e following
conditions i n t h e various regions:
details
on
weather
North I s l a n d (Western Regions)
B e c a u s e o f t h e d r y w e a t h e r w i t h many f r o s t s a n d c o o l
winds,
conditions
f o r s p r i n g sowing were v e r y f a v o u r a b l e and
m o s t o f t h e w h e a t was sown b y m i d - S e p t e m b e r ,
two o r
three
weeks
earlier than
normal.
Rain f e l l a t t h e end of O c t o b e r
a n d t h i s was
again
f o l l o w e d by
cool,
windy
weather.
T e m p e r a t u r e s w e r e warm d u r i n g t h e s e c o n d week o f November
o f t e n r e a c h i n g 2 1 ° c b y 3.00pm.
C o o l c o n d i t i o n s i n l a t e summer
a n d autumn d e l a y e d r i p e n i n g a n d h a r v e s t b u t o n c e h a r v e s t i n g
had s t a r t e d it proceeded w i t h o u t
any problems.
The c o o l e r
weather
f a v o u r e d t h e b u i l d - u p of s t r i p e r u s t on s u s c e p t i b l e
cultivars.
Heavy b u t l a t e i n f e c t i o n w i t h l e a f r u s t
and stem
r u s t was a l s o e v i d e n t .
L o s s e s from s h a t t e r i n g were minimal a s
was s p r o u t damage.
On t h e e a s t c o a s t o f t h e N o r t h I s l a n d , t h e s e a s o n s t a r t e d
c o o l a n d f i n e b u t t h e summer was h o t a n d d r y , e n d i n g w i t h t h e
worst
d r o u g h t on
record.
Temperatures
up
t o 30°C w e r e
r e c o r d e d on s e v e r a l d a y s .
Canterbury
-
North Otago
A f t e r t h e v e r y d r y summer o f 1981-82, t h e e a r l y m o n t h s o f
1982 c o n t i n u e d t o b e d r y .
By J u l y o n l y a b o u t h a l f t h e a v e r a g e
r a i n had f a l l e n f o r t h e y e a r and t h i s c o n t i n u e d w i t h September
having t h e
l o w e s t p r e c i p i t a t i o n o f a n y S e p t e m b e r on r e c o r d .
T h e s e c o n d i t i o n s , p l u s t h e l a c k of s t o c k f e e d ,
made f a r m e r s
cautious
about
sowing wheat.
Land p r e p a r a t i o n was
also
d i f f i c u l t b e c a u s e o f t h e h a r d n e s s of t h e g r o u n d .
I n s p i t e of
t h e s e p r o b l e m s most autumn a n d s p r i n g wheat c r o p s e s t a b l i s h e d
w e l l a n d made good
e a r l y growth,
although
t i l l e r i n g was
affected.
Good r a i n f a l l f r o m t h e end o f O c t o b e r t h r o u g h t o J a n u a r y
in
S o u t h a n d C e n t r a l C a n t e r b u r y s t i m u l a t e d g r o w t h a n d good
y i e l d s were recorded.
However,
in the area
n o r t h of
the
W a i m a k a r i r i r i v e r t o t h e A s h l e y r i v e r t h e r e was a d e c r e a s i n g
1 Wright,
pers.
D.,
comm.
Crop R e s e a r c h D i v i s i o n , D.S.I.R.,
1983.
amount of r a i n .
Most
of
the rain
which
fell
evaporated
q u i c k l y due t o s t r o n g north-west winds.
The A m b e r l e y d i s t r i c t
w a s s e r i o u s l y a f f e c t e d a n d y i e l d s o f u p t o 50 p e r c e n t b e l o w
normal were h a r v e s t e d ,
with high
s c r e e n i n g l o s s e s (10-95
percent).
H i g h p r o t e i n l e v e l s a n d good b a k i n g s c o r e s w e r e t h e
result.
A freak hai%storm i n mid-January
c a u s e d l o c a l i s e d damage.
near
Banks
Peninsula
S t r i p e r u s t d i d n o t become t h e e a r l y s e a s o n p r o b l e m
it
had been t h e year b e f o r e .
T h i s was p o s s i b l y t h e r e s u l t o f t h e
d r y , warm c o n d i t i o n s .
T h e r o s e g r a i n a p h i d made i t s
first
appearance i n Canterbury t h i s season.
Southland
-
South Otago
A l t h o u g h A u g u s t a n d S e p t e m b e r w e r e good f o r
cultivation,
m o s t w h e a t was n o t
sown u n t i l t h e s e c o n d week o f O c t o b e r .
G r a z i n g l a n d was n e e d e d b e c a u s e o f t h e h e a v y lamb d r o p a n d t h e
e x t r a stock being c a r r i e d f o r drought-stricken farmers f u r t h e r
north,
Established cropping farmers a l s o preferred
to
delay
sowing t o p r e p a r e seedbeds.
E s t a b l i s h m e n t was s a t i s f a c t o r y
b u t g r o w t h was s l o w d u e t o t h e c o o l v e r y w e t
weather.
In
October
t e a p e r a t u r e s w e r e 1 . 4 ' ~ b e l o w n o r m a l a n d r a i n f a l l was
70 p e r c e n t above average.
C o o l , wet w e a t h e r c o n t i n u e d t h r o u g h o u t t h e w h o l e
season.
Rainfall
in
Invercargill
i n J a n u a r y was 250 p e r c e n t a b o v e
average.
H a r v e s t i n g s t a r t e d a month t o s i x w e e k s
later
than
normal
a n d became a p r o t r a c t e d
operation.
M a t u r i t y was
d e l a y e d by t h e c o n d i t i o n s
and o f t e n t h e heads had
turned
c o l o u r while t h e stems were s t i l l green.
In t h e previous
s e a s o n s p r o u t i n g had been a major problem,
and
this
season
poor
growing c o n d i t i o n s r e s u l t e d
i n poor baking s c o r e s b u t
s p r o u t i n g was n o t s o e v i d e n t .
A n o t h e r p r o b l e m was
the
barge
proportion
of g r a i n s w i t h " b l a c k p o i n t " , t h e r e s u l t o f f u n g a l
i n v a s i o n of t h e g r a i n d u r i n g t h e wet w e a t h e r which r e s u l t s
in
discoloured flour.
The w e t c o n d i t i o n s a l s o g a v e r i d e t o a
lot
of
and eye-spot with s e r i o u s l o s s e s i n f i r s t year crops.
F r o s t damage a t f l o w e r i n g a n d p a r t i c u l a r l y
at
m i l k y - d o u g h s t a g e was a l s o r e c o r d e d i n some a r e a s .
take-all
the
late
A l m o s t a l l t h e s e e d sown i n
$ha
s o u t h was
treated to
l e s s e n t h e e f f e c t of s t r i p e r u s t .
I n t h e e a r l y p a r t of t h e
s e a s o n s t r i p e r u s t was p r e s e n t t o a n y d e g r e e o n b y i n N o r t h e r n
S o u t h l a n d on c r o p s d r i l l e d b e f o r e m i d - S e p t e m b e r b u t f r o m midJ a n u a r y i t became a p r o b l e m .
Stripe rust
in
t h e heads
affected grain f i l l i n g .
G e n e r a l l y y i e l d s i n S o u t h l a n d were lower t h a n normal
and
t h e wheat q u a l i t y poor.
One m e t h o d o f g a i n i n g a n o v e r a l l p i c t u r e o f t h e c l i m a t i c
conditions
a s t h e y r e l a t e t o wheat
growing is t o weight
information
from
the
various
meteorological
stations
throughout
t h e c o u n t r y by
t h e a r e a o f w h e a t grown i n t h e
v i c i n i t y of t h o s e s t a t i o n s .
T h i s i s shown i n T a b l e
l,
for
rainfall,
temperature,
s u n s h i n e and days
of s o i l m o i s t u r e
deficit.
R e g i o n a l c l i m a t i c d a t a a r e p r e s e n t e d i n Appendix A.
TABLE 1
W e a t h e r I n d i c e s f o r New Z e a l a n d
Wheat G r o w i n s A r e a s a . 1982-83
.............................................................
Month
Rainfall
Average
Temperature
P e r c e n t of
normalC
Deviation
C
from normal
Days o f
Deficit
~ a y 8
Sunshine
P e r c e n t of
n o r m a lb
(0C)
.............................................................
March
April
Hay
June
July
August
September
October
November
December
January
February
March
April
45
97
89
73
79
76
53
154
93
115
90
51
93
146
+0.9
-1 - 4
+O. 9
-0.5
-0.4
+1.3
-0.2
-1.4
+l. 1
-1.0
-1. Q
-1.1
-0.2
-0.4
16.5
1.5
1.6
0.1
0.4
1.7
2.7
2.6
1.4
4 6
11.1
17.7
11.5
4.6
.............................................................
109
104
109
100
119
108
105
95
103
104
95
88
104
94
a W e i g h t e d b y c o u n t y w h e a t a r e a s i n 1967-68.
"days of d e f i c i t " i s c a l c u l a t e d from d a i l y
r a i n f a l l d a t a by a s s u m i n g t h a t e v a p o t r a n s p i r a t i o n c o n t i n u e s
a t t h e Thornthwaite p o t e n t i a l evapotranspiration r a t e u n t i l
75mm o f s o i l m o i s t u r e h a s b e e n w i t h d r a w n .
T h e r e a f t e r , days
of d e f i c i t a r e c o u n t e d u n t i l t h e r e i s a day w i t h r a i n f a l l
i n e x c e s s of t h e d a i l y p o t e n t i a l e v a p o t r a n s p i r a t i o n .
b The number o f
'
Source:
N.Z.
Maunder, W . J . ,
p e r s . comm., 1983.
Meteorological Service,
l
1.2
Wheat P r i c e
is
responsible
for
the
The New Z e a l a n d Wheat
Board
p u r c h a s e from growers
of
a l l wheat of m i l l i n g s t a n d a r d
q u a l i t y , except those Pines q u a l i f y i n g f o r
acceptance as
c e r t i f i e d s e e d wheat
under
t h e s c h e m e o p e r a t e d by t h e
that
M i n i s t r y o f A g r i c u l t u r e a n d F i s h e r i e s . L i n e s of w h e a t
do n o t meet m i l l i n g s t a n d a r d a r e d i s p o s e d of by t h e g r o w e r s
themselves, generally f o r stock feed.
1.2.1
Announced P r i c e s
The d e l i v e r y p r i c e s p a i d
for milling
s t a n d a r d wheat
f.0.r.
grower's
s t a t i o n , shown i n T a b l e s 2 a n d 3 , w e r e up
t o t h e 1980 h a r v e s t f i x e d b y G o v e r n m e n t a n d a n n o u n c e d p r i o r
t o sowing.
They a l s o b e c a m e t h e maximum p r i c e t h a t c o u l d b e
p a i d f o r lower q u a l i t y wheat.
T a b l e 2 shows t h e
long term
t r e n d i n b a s i c wheat p r i c e s
f o r wheat v a r f e t i e s Aotea,
Kopara, Rongotea and t h e i r e q u i v a l e n t s .
In April
1980 t h e M i n i s t e r
0% T r a d e
and I n d u s t r y
announced t h a t
s t a r t i n g with
the
1989 h a r v e s t t h e b a s i c
wheat p r i c e p a i d t o growers would b e a
t h r e e y e a r moving
a v e r a g e of
t h e New Z e a l a n d e q u i v a l e n t o f t h e f . o . b . p r i c e
f o r A u s t r a l i a n s t a n d a r d w h i t e wheat.
The c a l c u l a t i o n o f t h e
b a s i c p r i c e i n c l u d e s t h e l a s t two s e a s o n s ' a c t u a l A u s t r a l i a n
p r i c e s and an
estimate Australian price for
the
coming
s e a s o n announced i n December.
The s c h e m e a l s o p r o v i d e s f o r
a minimum p r i c e w h i c h i n a n y s e a s o n w i l l b e 90 p e r c e n t
of
t h e p r i c e p a i d t o growers i n t h e previous season.
I n J u n e 1982 t h e G o v e r n m e n t a n n o u n c e d a wage a n d p r i c e
f r e e z e t h e r e b y h o l d i n g t h e b a s i c w h e a t p r i c e a t t h e 1982
l e v e l o f $203 p e r t o n n e .
A p r i c e i n c r e a s e was
applied
for
within
t h e t e r m s a n d c o n d i t i o n s of
t h e wage a n d p r i c e
freeze,
This resulted
in
t h e b a s i c wheat
p r i c e being
i n c r e a s e d t o $264 p e r t o n n e f o r t h e 1983 h a r v e s t .
A s f r o m t h e 1981 h a r v e s t t h e N e w
Z e a l a n d Wheat B o a r d
was
empowered t o s e t t h e l e v e l s o f p r e m i u m s a n d d i s c o u n t s
between v a r i e t i e s .
T a b l e 3 shows t h a t f o r t h e 1983 h a r v e s t ,
r e l a t i v e t o t h e b a s i c w h e a t p r i c e , t h e H i E g e n d o r f premium
was r e d u c e d t o 15.0 p e r c e n t a n d Arawa r e t a i n e d a
5 percent
discount.
T h e Karamu d i s c o u n t r e m a i n e d at t h e 1 9 8 2 l e v e l of
15 p e r c e n t f o r S o u t h I s l a n d
growers
e x c l u d i n g Marlborough
and 7.5 p e r c e n t f o r North I s l a n d growers p l u s Marlborough.
102.2
Levies
maximum
I0
The a n n o u n c e d p r i c e s
are subject t o a
percent
levy
struck
on t h e b a s i c w h e a t p r i c e by t h e Wheat
B o a r d t o o f f s e t a n y l o s s e s made f r o m e x p o r t i n g w h e a t .
No
retention
l e v y was s t r u c k f o r t h e 1982-83 s e a s o n .
Tabfe 4
s e t s o u t t h e a d d i t i o n a l wheat
l e v i e s payable by
growers
d u r i n g 1982-83.
TABLE 2
B a s i c Wheat P r i c e T r e n d
..............................................................
H a r v e s t Year
Price
($/tonne f .o.r.)
P r i c e Index
(1976/77=100)
---------3----------------------------------------------------
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
53 2 8
53.28
53.28
53.28
53 28
53.28
55.12
56.95
59.71
91.66
102.88
110.00
120.00
127.50
140.00
183.00
203.00
204.00
48
48
48
48
48
48
50
52
54
83
94
100
109
116
127
166
185
185
.............................................................
TABLE 3
Announced Wheat P r i c e D e t a i l s
.............................................................
H a r v e s t Year
Variety
1981
$/tonne
1982
1983
$/tonne
$/tonne
198 1-82
%
1982-83
change % change
-------------------------------------------------------*-----
Aotea, Kopara
61 e q u i v a l e n t
183.00
203.00
204.00
+10.9
+
0.5
Hilgendorf
219.00
238.53
234.60
+8.6
-
1.7
155.55
172.55
173.40
+10.9
+
0.5
169.28
187 78
188*70
+10.9
+
0.5
Karamu
S . I . Growers
(excl. Marl.Ia
N.I. G r o w e r s
( i n c l . Marl.)
.
.............................................................
a
Marlborough growers were i n c l u d e d w i t h t h e North I s l a n d
growers a s from t h e 1982 h a r v e s t .
TABLE 4
A d d i t i o n a l Wheat L e v i e s ,
1982-83
.............................................................
$ per tonne
.............................................................
wheat Research I n s t i t u t e
U n i t e d Wheatgrowers (NZ) L t d ,
F e d e r a t e d Farmers of NZ I n c .
1.2.3
0.18
0 37
.
0.03
Monthly S t o r a g e I n c r e m e n t s
T r a d e and
From t h e 1 9 7 9 - 8 0 s e a s o n , t h e D e p a r t m e n t o f
Industry
approved an i n c r e a s e i n
t h e r a t e of payment of
s t 0 r a g . e i n c r e m e n t s f r o m 1.25 p e r c e n t p e r month o f t h e b a s i c
wheat
price t o
1.50
p e r c e n t p e r month.
Payment on wheat
grown n o r t h o f a l i n e f r o m W a i k o u a i t i t o Q u e e n s t o w n ,
South
Island,
i s g i v e n i n Table 5 . I n c r e m e n t p a y m e n t s on wheat
grown s o u t h o f t h e W a i k o u a i t i t o Q u e e n s t s w n P i n e a p p l y o n e
month P a t e r .
Under t h e t e r m s a n d c o n d i t i o n s of t h e wage a n d
p r i c e freeze, storage increment f o r t h e
7983
harvest
have
been h e l d a t t h e 1982 l e v e l s .
TABLE 5
Growerss S t o r a s e Increments
.............................................................
Storage Increment
($ per tonne)
Price
Index
Date Sold
1980
1981
1982
1983
(1976/77=100
................................................................
Apr i l
1-95
16-30
May
1-15
16-31
June
1 15
16-30
July
1-15
16-3 1
August
1-95
16-31
September 1-15
16-30
October
9-45
66-3 1
November
9 15
16-30
-
-
3.15
4-28
5.25
6830
7.36
8e40
9.45
10.50
11.55
12.60
13.65
94.70
15075
46e80
17*85
18.90
4.92
5.49
6.86
8.24
9.61
10.98
12.36
13.73
15.90
16.47
17,85
19.22
20e59
21.96
23.34
24.79
4.57
6.09
7.61
9.14
10.66
12.18
13.70
15.23
96-75
98.27
19.79
2%e32
2z084
48.36
2s088
27041
4.57
6009
7.61
9.14
10.66
12.18
13.70
15.23
16075
18-27
19.39
21.32
22.84
24.36
25.88
27.41
180
244
203
244
213
256
219
244
223
244
276
244
228
244
258
274
..............................................................
1
l
3
Survey D e s c r i p t i o n
The s a m p l i n g u n i t f o r
t h e survey i s a wheatgrowing
farm. For t h e purpose of t h i s s u r v e y , a wheatgrowing farm i s
d e f i n e d a s any fa rm which h a s d e l i v e r e d wheat t o
t h e Wheat
Board o v e r t h e most
recent
f i v e y e a r p e r i o d f o r which
r e c o r d s were a v a i l a b l e .
S i n c e t h e Wheat B o a r d h a d n o t
f i n i s h e d p u r c h a s i n g w h e a t f r o m t h e 1982 h a r v e s t a t t h e t i m e
t h e s a m p l e was f i n a l i s e d , t h e m o s t r e c e n t f i v e y e a r p e r i o d
for
which
r e c o r d s w e r e a v a i l a b l e was
1977 t o
1981.
A p p r o x i m a t e l y 75 p e r c e n t o f t h o s e who p a r t i c i p a t e d
in
the
1981-82
s u r v e y ( S u r v e y No. 6 ) w e r e r e t a i n e d f o r t h e 1982-83
survey.
I n f o r m a t i o n r e l a t i n g t o t h e f a r m , i t s management,
crop
and l i v e s t o c k
enterprises,
wheatgrowing c o s t s and r e t u r n s
were o b t a i n e d from f a r m e r s by p e r s o n a l
interview conducted
on a
f a r m v i s i t a f t e r t h e 1983 h a r v e s t .
S i n c e o n e of t h e
o b j e c t i v e s of t h e s u r v e y i s t o c o l l e c t i n f o r m a t i o n
on c r o p
a r e a s and l i v e s t o c k
numbers
from y e a r t o y e a r , farms n o t
a c t u a l l y growing wheat
in
1982-83 w e r e r e t a i n e d
in the
sample.
1.3.1
Stratification
To e n s u r e t h a t v a r i o u s r e g i o n s w i t h i n t h e i n d u s t r y w e r e
a d e q u a t e l y r e p r e s e n t e d , t h e s a m p l e was s t r a t i f i e d b y r e g i o n .
Four r e g i o n s were s p e c i f i e d f o r t h e p u r p o s e s of
t h e survey
a n d g r o w e r s ' names w e r e a l l o c a t e d t o t h o s e r e g i o n s b a s e d on
the r a i l station
f r o m w h i c h w h e a t was
despatched.
The
r e g i o n s were d e f i n e d a s f o l l o w s :
1. N o r t h I s l a n d
2. C a n t e r b u r y ( S o u t h I s l a n d g r o w e r s n o r t h o f t h e R a n g i t a t a
River)
3. S o u t h C a n t e r b u r y ( S o u t h I s l a n d g r o w e r s n o r t h o f
P a l m e r s t o n and s o u t h of t h e R a n g i t a t a
River)
4. S o u t h l a n d ( S o u t h I s l a n d g r o w e r s s o u t h of P a l m e r s t o n )
1.3.2
S u r v e y Farm D i s t r i b u t i o n
T a b l e 6 compares t h e r e g i o n a l d i s t r i b u t i o n of
surveyed
f a r m s w i t h t h e e s t i m a t e d r e g i o n a l d i s t r i b u t i o n of a l l wheat
g r o w i n g f a r m s . S i n c e w h e a t may h a v e b e e n
s o l d under
more
than
o n e name f r o m t h e s a m e f a r m o v e r t h e 1977 t o 1981 b a s e
p e r i o d ( d u e t o f a r m s a l e s o r i n t e r n a l t r a n s f e r s ) t h e number
of
names
on t h e Wheat B o a r d r e c o r d s i s l i k e l y t o b e h i g h e r
than
t h e number
of
wheatgrowing
farms.
In
order
to
determine t h e proportion
of
t o t a l number o f w h e a t g r o w i n g
f a r m s which o c c u r i n each r e g i o n , i t i s assumed t h e r a t i o of
farms
t o names
i s t h e same f o r
e a c h r e g i o n . Hence t h e
p r o p o r t i o n of t h e p o p u l a t i o n ( f a r m s ) i n e a c h r e g i o n
is t h e
s a m e a s t h e p r o p o r t i o n o f names on t h e Wheat B o a r d r e c o r d s
in
each region.
Some c a u t i o n
should be
exercised i n
i n t e r p r e t i n g North
I s l a n d r e s u l t s b e c a u s e o f t h e number o f
farms surveyed.
TABLE 6
D i s t r i b u t i o n o f S u r v e y Farms
and S u r v e y P o p u l a t i o n by R e s i o n , 1 9 8 2 - 8 3
..............................................................
T o t a l Number Number o f
of
Farms
Wheatgrowers a S u r v e y e d
Proportion
of f a r m s
Surveyed
Estimated
Proportion
of T o t a l
Farms
- - - _ - _ - - - 0 - _ _ - - - _ _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
509
14
0 08
.
0.09
Canterbury
2217
77
0.42
0.40
South Canterbury
1028
34
0.98
0.19
North I s l a n d
a Source:
1.3.3
Bannah, W . ,
N.Z.
Wheat B o a r d ,
pers.
comm.,
1982
Weighting
In
order
t o report
unbiased
sample
statistics,
e s t i m a t e s of
f a r m c h a r a c t e r i s t i c s w e r e o b t a i n e d by t a k i n g
each s u r v e y farm c h a r a c t e r i s t i c and t h e n
calculating
the
average f o r a l l farms.
F o r e x a m p l e , y i e l d p e r h e c t a r e was
o b t a i n e d by a v e r a g i n g t h e i n d i v i d u a l f a r m y i e l d s i n s t e a d o f
simply
dividing the t o t a l
w h e a t p r o d u c t i o n by t o t a l f a r m
area.
I f t h e n a t i o n a l p i c t u r e o f Mew Z e a l a n d w h e a t g r o w i n g
is
r e q u i r e d t h e n e a c h r e g i o n must assume i t s c o r r e c t d e g r e e of
importance.
T h i s i s done by u s i n g t h e e s t i m a t e d p r o p o r t i o n
of
total
farms i n each r e g i o n ( T a b l e 6 ) t o weight r e g i o n a l
survey r e s u l t s so a s t o
give an
" a l l regions1' average
result.
T h i s r e s u l t i s p r e s e n t e d i n most t a b l e s w i t h i n t h i s
report,
CHAPTER 2
FARM CHARACTERISTICS
This
chapter
outlines
some
general
survey
farm
characteristics.
The f i g u r e s p r e s e n t e d a r e a v e r a g e s f o r a l l
s u r v e y f a r m s a n d h e n c e i n c l u d e some f a r m s which d i d n o t
grow
w h e a t i n t h e 1982-83 s e a s o n .
T a b l e 7 shows t h e number o f s u r v e y f a r m s w h i c h grew wheat
i n 1 9 8 2 - 8 3 , a s w e l l a s t h o s e w h i c h h a d grown w h e a t i n p r e v i o u s
s e a s o n s b u t f o r a number o f m a n a g e m e n t r e a s o n s , f a i l e d t o d o
s o i n t h e 1982-83 s e a s o n .
TABLE 7
C l a s s i f i c a t i o n of F a r m s S u r v e v e d .
1982-8 3
..............................................................
North
Island
Canterbury
South
Canterbury
Southland
..............................................................
A l l
Regions
Farms which
harvested
wheat
8
64
Farms which
did not
grow wheat
6
13
6
13
38
14
77
34
59
184
Total:
..............................................................
2.1
P r o ~ e r t vV a l u e s
T a b l e s 8 and 9 p r e s e n t t h e a v e r a g e v a l u e o f s u r v e y f a r m s
f o r t h e d i f f e r e n t r e g i o n s on t o t a l v a l u e and v a l u e p e r h e c t a r e
b a s i s r e s p e c t i v e l y . These v a l u e s were determined from t h e most
recent
Government
valuation
(within the past f i v e years),
u p d a t e d b y t h e u s e of
t h e Valuation Department's
"Farmland
S a l e s P r i c e I n d e x " t o J u n e 1982.
TABLE 8
G o v e r n m e n t V a l u a t i o n o f S u r v e v ~ a r r n s ~ .1 9 8 2 8 3
..............................................................
North
Island
Canterbury
South
Canterbury
Southland
A l l
Regions
_ - - _ - _ - - - - P - - - _ _ _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - w e
umber o f
s u r v e y Farms
14
77
34
59
..............................................................
Land Value
($1
696,057
V a l u e of
Improvements
($1
210,917
C a p i t a l Value
($1
906,974
184
500,200
487,969
455,641
50 1,244
165,794
178,285
194,844
181,524
665,994
666,254
650,485
682,768
..............................................................
a Most r e c e n t Government v a l u a t i o n u p d a t e d by t h e V a l u a t i o n
D e p a r t m e n t ' s " F a r m % a n d Sales P r i c e I n d e x "
TABLE 9
Government V a l u a t i o n p e r H e c t a r e ,
1982-83
-------------------------------------------------------------..............................................................
North
Island
Canterbury
South
Cantesbury
Southland
..............................................................
Number o f
Survey Farms
14
77
34
59
..............................................................
Land V a l u e
($/ha)
2,199
V a l u e of
Improvements
($/ha)
670
Capital Value
($/ha)
2,869
184
2,576
2,220
2,413
2,422
896
745
1,047
895
3,472
2,965
3,460
..............................................................
2.2
Af l
Regions
31317
Crop Areas and P r o d u c t i o n
T a b l e 10 s h o w s a v e r a g e f a r m s i z e a n d c r o p a r e a s h a r v e s t e d
1983.
Compared
t o t h e 1981-82 s u r v e y a t h e " A l l R e g i o n s "
in
a v e r a g e w h e a t a r e a h a r v e s t e d w a s down
IQ .2
percent
t o
18.4
hectares.
This
d e c r e a s e was
compounded b y
a decrease i n
As in
previous
seasons,
wheat
b a r l e y a r e a o f 27,4 p e r c e n t .
(18-4 h e c t a r e s )
and b a r l e y
(42.7 h e c t a r e s ) w e r e t h e m a j o r
c r o p s grown,
S m a l l s e e d s a l s o showed a m a r g i n a l d e c r e a s e w i t h
the
grass
seed
area
down
by
4.3 p e r c e n t a n d w h i t e c l o v e r
Wheat a r e a
harvested
was
c o n s t a n t a t 5.2 h e c t a r e s p e r f a r m .
45.4
percent
in
t h e North
Island,
5.9
percene
in
down
it
increased
C a n t e r b u r y and 18.9 p e r c e n t i n S o u t h l a n d , w h i l e
i n S o u t h C a n t e r b u r y by 12.9
percent.
TABLE 1 0
Farm a n d C r o p A r e a s ,
1982-83
......................................................................
North
Island
Canterbury
A l l
South
Southland
Canterbury
Regions
..............................................................
Number o f
S u r v e y Farms
14
77
34
59
..............................................................
184
Farm A r e a
T o t a l Farm
324.4
Area
(ha)
P o t e n t i a l Cropping
Area ( h a )
208 5
P o t e n t i a l Cropping
A r e a a s a Prop'n o f
T o t a l Farm A r e a
(%
1
Cash Crop:
Area H a r v e s t e d
(ha)
Wheat A r e a
B a r l e y Area
Seed Pe a s Area
V i n i n g Pe a s Area
O a t s Area
L i n s e e d Area
O i l s e e d Area
P o t a t o e s Area
Maize Area
G r a s s Seed Area
Clover Seed Area'
O t h e r Cash Crop
Area
T o t a l Cash Crop
Area H a r v e s t e d
186.4
223.2
185.9
205.0
169.4
197.8
158.9
174.9
64
91
89
85
85
7.3
10.8
2.7
1.8
1.6
0.0
0.0
1.1
0.0
1.9
1.3
2.4
30.9
74.6
8 1 .4
30.0
29
25
53
Wheat A r e a a s a
P r o p ' n o f T o t a f Cash
CropArea
(%)
24
32
...........................................................
Average wheat a r e a s
harvested
and p r o d u c t i o n
for
ell
1982-83
are
shown
i n T a b l e 11.
Similiar
survey
farms
in
d e t a i l s f o r o n l y t h o s e f a r m s w h i c h grew w h e a t
are
given
in
C h a p t e r 3.
11
TABLE
Wheat A r e a , P r o d u c t i o n a n d Y i e l d
1982-83
on a l l S u r v e y F a r m s .
..............................................................
North
CanterSouth
Southland
A11
Island
bury
Canterbury
Regions
0
-
0
-
-
-
-
-
-
-
-
-
-
-
_
-
-
0
_
~
-
~
~
-
-
-
-
~
~
-
~
~
~
~
~
~
-
Number o f
S u r v e y Farms
~
14
77
34
59
..............................................................
area
Harvested ( h a )
Production
(tonnes)
Production
per Hectare
( tonnes/ha)
~
a
~
-
-
-
-
184
7.3
22.0
20.2
15.9
18.4
40.5
99.3
82.1
81.6
85.1
5.5
4.5
4.1
5.1
4.7.
...........................................................
Since a11 survey farms a r e
included,
production
is
a
function
o f t h e number o f f a r m s g r o w i n g w h e a t a n d t h e a v e r a g e
y i e l d on t h o s e f a r m s .
D e s p i t e a f a l l i n t h e a r e a of wheat p e r
farm of
10.2
p e r c e n t , p r o d u c t i o n p e r f a r m d e c r e a s e d by o n l y
6.2 p e r c e n t t o 8 5 . 1 tonnes.
T h i s r e s u l t e d from an i n c r e a s e i n
average yield per
h e c t a r e of 6 . 8 p e r c e n t t o 4 . 7 t o n n e s p e r
hectare.
Average a r e a s and y i e l d s f o r c r o p s o t h e r t h a n
wheat
are
12.
The
rapid
increase
i n barley
presented
in
Table
p r o d u c t i o n d u r i n g 1 9 8 2 was n o t m a i n t a i n e d t h r o u g h t o t h e
1983
harvest.
W h i l e t h e number o f g r o w e r s r e m a i n e d c o n s t a n t t h e
a r e a p e r farm f e l l from 2 1 . 4
hectares
in
1981-82
to
97,1
hectares
in
1982-83.
Although
t h e area harvested p e r farm
d e c l i n e d t h e number o f
farmers
growing o a t s
increased.
fn
g e n e r a l p e r h e c t a r e p r o d u c t i o n was e q u a l t o o r m a r g i n a l l y l e s s
than t h e previous season.
2.3
L i v e s t o c k Numbers
farm
Average l i v e s t o c k numbers a n d t o t a l s t o c k u n i t s p e r
a r e p r e s e n t e d a s a t J u n e 3 0 , a n d a t December 3 1 ( T a b l e 9 3 ) .
A
c o m p a r i s o n of t h e June f i g u r e s w i t h t h e p r e v i o u s s u r v e y shows
that
stock
units
per
h e c t a r e on
f a r m s which
grew w h e a t
to
15.0
while
the
lambing p e r c e n t a g e
i n c r e a s e d from 14.6
On won-wheat
d e c l i n e d r e l a t i v e t o t h e 1981-82 survey f i g u r e s .
growing f a r m s t h e s t o c k i n g r a t e i n c r e a s e d from
1 3 01
to
13.5
stock
units per hectare.
A c o m p a r s i o n a s a t December 3 4 w i t h
1989-82
survey
figures
shows
that
carrying capacity per
hectare
decreased
from 2 0 . 1 t o 1 7 . 2 s t o c k u n i t s p e r h e c t a r e e
The e f f e c t o f t h e d r o u g h t i n C a n t e r b u r y a n d S o u t h
Canterbury
~
~
~
~
-
-
-
-
TABLE 12
Other Crop Y i e l d s by Region, 1982-83
No. of farms
which Recorded
Yield
Area
~ a r v etse d a
(ha)
AV. Y i e l d
b
No. of Farms
which Recorded
Yield
(tonneslha)
North I s l a n d
Barley
Peas ( s e e d )
Peas ( v i n i n g )
Oats
Linseed
O i l s e e d Rape
Potatoes
Maize
Grass Seed (md)
Clover Seed (md)
10
3
2
2
0
0
0
0
6
3
15.2
12.4
12.5
11.4
0.0
0.0
0.0
0.0
4.5
6.1
Area
~ a r v etse d a
(ha)
b
AV. Yield
(tonnes/ha)
Canterbury
5.3
2.4
5.6
4.4
0.0
0.0
0.0
0.0
0.8
0.1
60
41
5
24
2
2
5
0
27
31
South Canterbury
19.7:
19.4
15.9
12.8
5.0
7,9
10.1
0.0
15.9
27.7
4.3
3.6
4 .O
4.2
2.3
1.7
16.0
0.0
0.7
0.3
Southland
Barley
Peas ( s e e d ) '
Peas ( v i n i n g )
Oats
Linseed
O i l s e e d Rape
Potatoes
Maize
Grass Seed, (md)
Clover Seed (md)
A l l Regions Average
Barley
Peas ( s e e d )
Peas ( v i n i n g )
Oats
Linseed
O i l s e e d Rape
Potatoes
Maize
Grass Seed (md)
Clover Seed (md)
132
56
15
61
2
6
10
0
55
57
17. 1
17.7
10.1
11.2
2.0
6.4
7.4
0.0
13.8
19.2
Notes
4.8
3.1
3.1
4.3
0.9
1.6
16.0
0.0
0.6
0.2
a
b
Average f o r a l l s u r v e y farms which grew t h e
Crop.
Average f o r farms which recorded a y i e l d .
Where o n l y one grower i s r e p r e s e n t e d i n a
r e g i o n h i s i n d i v i d u a l r e t u r n s have not been
i t e m i s e d b u t t h e y have been i n c l u d e d i n t h e
A l l Regions Average.
n~d Machine d r e s s e d .
i s a p p a r e n t i n a marked d e c l i n e i n l a m b i n g p e r c e n t a g e s on b o t h
w h e a t a n d non-wheat g r o w i n g p r o p e r t i e s .
This f a l l i n per u n i t
production
was
a c c o m p a n i e d by
a
m a r k e d f a l l i n t h e summer
carrying capacity per hectare.
TABLE
13
L i v e s t o c k Numbers, 1 9 8 2 - 8 3
..............................................................
North
Island
Canterbury
South
Southland
~ l l
Canterbury
Regions
..............................................................
Number o f
s u r v e y Farms
14
77
34
59
..............................................................
184
Farm A r e a
T o t a l Farm
Area ( h a )
324.4
186.4
223.2
2064
501
837
1165
195
76
1233
299
75
3404
1436
1607
13.2
12.3
14 8
10.0
185.9
205.6
L i v e s t o c k Numbers
a t 30.6.82
Ewes
Other Sheep
Cattle
TotalaStock
Units
S t o c k U n i t s per
Available Spring
G r a z i n g A r e a ( S. U . / h a )
a)Wheat Farms
b)Non-wheat Farms
16.8
28.2
Lambing B
a ) Wheat F a r m s
b)Non-Wheat F a r m s
99
86
L i v e s t o c k Numbers
a t 31.12.82
Ewes
Other Sheep
Cattle
Total Stock
Units a
S t o c k U n i t s per
A v a i l a b l e Summer
Grazing Area
(S.U. / h a )
23.3
11.8
15.9
23.1
..............................................................
a
Stock U n i t Conversions ( p e r head)
S h e e p : Ewes
1 . 0 S.U.
Cattle:
Hoggets
0 . 6 S.U.
Others
0 . 8 S.U.
Cows
Calves
Bulls
17.2
6.0
3.0
5.0
S.U.
S.U.
s.U.
CHAPTER 3
CHARACTERISTICS O F W H E A T P R O D U C T I O N
T h i s c h a p t e r d e a l s w i t h wheat a r e a and y i e l d f o r t h e
s u r v e y f a r m s w h i c h grew w h e a t i n t h e 1 9 8 2 - 8 3 s e a s o n .
3.1
146
Wheat A r e a a n d P r o d u c t i o n
T a b l e 14 shows t h a t t h e " a l l r e g i o n s 1 ' a v e r a g e s u r v e y f a r m
which h a r v e s t e d wheat
i n 1982-83 h a r v e s t e d 22.9 h e c t a r e s of
wheat and produced 106.6 t o n n e s a t an a v e r a g e farm y i e l d
of
4.7
tonnes p e r
hectare.
T h i s y i e l d was 6 . 8 p e r c e n t g r e a t e r
than t h e 4.4 tonnes per hectare recorded f o r t h e
1981-82
survey.
T h e d i s t r i b u t i o n of s u r v e y f a r m s w h i c h h a r v e s t e d w h e a t b y
area
d r i l l e d i s shown i n T a b l e 15 a n d F i g u r e 1 .
Nearly 73
p e r c e n t of s u r v e y f a r m s which d r i l l e d w h e a t , d r i l l e d l e s s t h a n
30
hectares,
an
i n c r e a s e of
5
percent
from t h e p r e v i o u s
survey.
T h e number g r o w i n g l e s s t h a n
20
hectares
increased
w h i l e t h e p e r c e n t a g e g r o w i n g 20 t o 3 0 h e c t a r e s d e c r e a s e d .
TABLE
14
Wheat A r e a , P r o d u c t i o n a n d Y i e l d
on S u r v e y F a r m s w h i c h H a r v e s t e d W h e a t ,
1982-83
......................................................................
North
Island
Canterbury
South
Southland
A11
Canterbury
Regions
Number of S u r v e y
Farms which
H a r v e s t e d Wheat
8
64
28
46
.............................................................
Area H a r v e s t e d
(ha)
Production
(tonnes)
Yield
( tonnes/ha 1
146
12.8
26.5
24.5
20.4
22.9
70.8
119.5
99.7
104.6
106.6
5.5
4.5
4.1
5.1
4.7
TABLE 15
D i s t r i b u t i o n o f Wheat A r e a D r i l l e d ,
1982-83
..............................................................
P r o p o r t i o n of F a r m s ( $ 1
.................................................
North
Canterbury
Paland
~
-
0
~
-
3
-
-
0
0
0
-
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
~
~
-
-
~
-
0
-
South
Southland
B11
Canterbury
Regions
~
-
64
8
-
-
-
-
~
~
~
~
-
-
~
46
28
~
~
-
-
-
146
--o-----------e_----------------------------------------------
Wheat A r e a
Drilled (ha)
Q- 9.99
10-19.99
20-29.99
30-39.99
40-49.99
50-59.99
68-69.99
70-79.99
80-89.99
90-99 9 9
100 & a b o v e
Total
50.0
25.0
12.5
12.5
0.0
090
0.0
0.0
0.0
0.0
0.0
100.0
23.4
23 e 4
15,6
17 0.2
7.8
6.3
3.1
0. 0
21.4
21.4
35.7
3-6
3.6
3.5
7e 2
3e 6
0.0
0.0
0.0
180.6
1.6
0.0
1.6
1QO.Q
32.6
30.4
15.2
1 (a e 9
2.2
2804
25.4
19.0
$2.2
4.5
4e4
4.6
4.3
0.0
0.0
0.0
0.0
100.0
.............................................................
4.8
0.7
0 6
0.0
0.6
100.0
FIGURE 1
D i s t r i b u t i o n o f Wheat A r e a D r i l l e d ,
10
20
30
40
50
60
70
Wheat Area ( h a )
1982-83
80
90
1009
-
-
-
~
-
-
-
~
~
B e c a u s e some w h e a t
i s s o l d a s f e e d w h e a t a n d some
r e t a i n e d f o r s e e d , t h e Wheat B o a r d d o e s n o t p u r c h a s e t h e t o t a l
wheat p r o d u c t i o n i n any one y e a r .
T a b l e 16 g i v e s an
estimate
of
the
a m o u n t o f w h e a t s o l d p e r f a r m t o t h e Wheat B o a r d f r o m
t h e 1983 h a r v e s t .
From a n a v e r a g e t o t a l p r o d u c t i o n
of
106.6
tonnes,
7 5 p e r c e n t o r 8 0 . 3 t o n n e s was e s t i m a t e d a s b e i n g s o l d
1981t o t h e Wheat B o a r d .
T h i s i s 11.6 p e r c e n t l e s s t h a n t h e
82 s u r v e y .
E i g h t y f o u r p e r c e n t of t o t a l wheat p r o d u c t i o n f r o m
t h e N o r t h I s l a n d s u r v e y f a r m s was e x p e c t e d t o b e s o l d t o
the
Wheat B o a r d c o m p a r e d t o t h e 38 p e r c e n t s o l d t o t h e Wheat B o a r d
1979-80
d u r i n g 1981- 8 2 , 51 p e r c e n t i n 1 9 8 0 - 8 1 , 43 p e r c e n t i n
A s a r e s u l t o f w e t w e a t h e r at
and
t h e 16 p e r c e n t i n 1978-79.
h a r v e s t o n l y 64 p e r c e n t o f t h e S o u t h l a n d c r o p r e a c h e d minimum
milling
grade
s t a n d a r d . However f u r t h e r d e t e r i o r a t i o n o f t h e
"?lack
Spot"
disease,
has
Southland c r o p i n s t o r e , due t o
r e s u l t e d i n a n A u g u s t 1983 e s t i m a t e
o f o n l y 15 p e r c e n t o f t h e
crop s u i t a b l e f o r t h e f u l l milling grade price.
TABLE 1 6
E s t i m a t e d Wheat P r o d u c t i o n S o l d t o t h e
Wheat B o a r d p e r Farm, 1 9 8 3 H a r v e s t
=======================s====================================
North
Island
Canterbury
South
Southland
A l l
Canterbury
Regions
..............................................................
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
8
Total Production
(tonnes)
70.8
64
119.5
28
99.7
104.6
106.6
E s t i m a t e d Wheat
Sold t o t h e
Wheat ~ o a r d
a
I tonnes)
59.3
Wheat S o l d t o
Wheat B o a r d a s a
P r o p o r t i o n of
T o t a l P r o a n . ( % ) 84
74
96
64
75
.............................................................
.............................................................
a
T h i s i s a n e s t i m a t e b a s e d on w h e a t w h i c h h a d b e e n s o l d a t
t h e t i m e o f t h e s u r e v y v i s i t ( p o s t h a r v e s t ) p l u s any w h i c h w a s
s t i l l i n s t o r e , t a k i n g i n t o a c c o u n t q u a l i t y a n d own s e e d
r e q u i r e m e n t s . T h e S o u t h l a n d c r o p was s u b j e c t t o f u r t h e r i n s t o r e
losses.
2.wheatgrowers
Sub-Section
Federated Farmers,
pers.
comm.
3.2
Wheat V a r i e t i e s , A r e a s a n d Y i e l d s
T a b l e 17 a n d F i g u r e 2 show t h a t
on
the
"all
regions''
average farm,
R o n g o t e a was t h e m o s t i m p o r t a n t v a r i e t y , b e i n g
sown on 2 6 . 4 p e r c e n t o f t h e t o t a l w h e a t
area
drilled.
This
was
f o l l o w e d b y Kopara ( 17.8 p e r c e n t ) , Oroua ( 17.7 p e r c e n t )
and Takahe ( 13.6 p e r c e n t 1 . The r e d u c t i o n i n
t h e premium f o r
Hilgendorf
has
resulted
in this variety
d e c l i n i n g from 8
p e r c e n t of t h e c r o p i n 1981-82
to l e s s
than
2
percent
in
1982-83.
T h e p r o p o r t i o n of R o n g o t e a d r i l l e d
i n c r e a s e d from l e s s
than
1.0
percent
in
1979-80
t o 3 1 p e r c e n t i n 1981-82 b u t
d e c l i n e d t o 26 p e r c e n t i n 1 9 8 2 - 8 3 .
Kopara d e c r e a s e d from 38
percent
i n 1 9 7 9 - 8 0 t o 15 p e r c e n t i n 1 9 8 0 - 8 1 a n d i n c r e a s e d t o
18 p e r c e n t i n 1982- 83.
T i r i t e a made u p
17
p e r c e n t of
the
Southland c r o p and 5 p e r c e n t of t h e n a t i o n a l crop.
For t h e
introduced
in
1977-78
Takahe h a s
f i r s t t i m e s i n c e i t was
declined a s
a p e r c e n t a g e of b o t h t h e S o u t h l a n d and n a t i o n a l
crop.
Wheat V a r i e t i e s b y P r o p o r t i o n o f
wheat Area D r i l l e d , 1982-83
..............................................................
..............................................................
North
Island
Canterbury
South
Southland
AI1
Cant e r b u r y
Regions
..............................................................
Number of Silrvey
Farms which
H a r v e s t e d Wheat
P r o p o r t i o n of Wheat Area D r i l l e d ( % )
8
64
28
46
146
---------------------------------.----------------------------
Wheat V a r i e t y
Kopara
Karamu
Aotea
Takahe
Hilgendorf
Tiritea
Arawa
Oroua
ROblgO'tea
Other
Total
100.0
100.0
% O O eQ
100oO
.............................................................
90Oo0
FIGURE 2
Wheat V a r i e t i e s b y P r o p o r t i o n o f
Wheat Area D r i l l e d , 1 9 8 2 - 8 3
Variety
T a b l e 18 p r e s e n t s w h e a t a r e a a n d y i e l d p e r
hectare
for
the
different
varieties
recorded
on
the
survey.
Where a
s i n g l e c r o p o f a n y v a r i e t y h a s b e e n grown
in
a
region,
the
d e t a i l s h a v e been
deleted
from t h e
regional analysis but
included i n t h e " a l l
regions"
figures.
The
"all
regions"
average
shows
that
s p r i n g sown S o u t h l a n d v a r i e t i e s ( T i r i t e a
and Takahe) o u t y i e l d e d a l l o t h e r v a r i e t i e s w h i l e Rongotea
and
K o p a r a o u t y i e l d e d Karamu a n d O r o u a .
TABLE 18
Wheat Area and Yield by Variety, 1982-83
No. of Farms
which Harvested
Variety
Area' a
Harvested
(ha)
AV. Yield
(tonnes/ha)
No. of Farms
which Harvested
Variety
North Island
Karamu
Kopara
Aotea
Tiritea
Oroua
Rongote a
Takahe
Arawa
Hilgendorf
Other
6
0
0
0
0
2
Q
(4
Q
0
12.2
0.0
0.0
0.0
0.0
15.0
0.0
0.0
0.0
0.0
Area
~arvested~
(ha)
AV. Yield
(tonnes/ha)
Canterbury
5.2
0.0
0.0
0.0
0.0
6.6
0.0
0.0
0.0
0.0
16
12
0
0
23
28
0
4
5
.l2
South Canterbury
11.3
20.5
0.0
0.0
14.2
25.7
0.0
12.8
9.0
10.8
4.4
4.7
0.0
0.0
4.3
5.0
0.0
4.1
3.5
3.7
Southland
Karamu
Kopara
Aotea
Tiritea
Oroua
Rongotea
Takahe
Arawa
Milgendorf
Other
All Regions Average
Karamu
Kogara
Aorea
Tiritea
Oroua
Rongotea
Takahe
Arawa
Milgendorf
Other
Notes
a
Averages apply to only those farms that
harvested this variety.
Where only one grower is represented in a
region his individual returns have not been
itemised bue they have been included in the
All Regions Average.
CHAPTER 4
MANAGEMENT P R A C T I C E S AND M A C H I N E R Y DETAILS
Some o f t h e management p r a c t i c e s e m p l o y e d on s u r v e y f a r m s
w h i c h grew w h e a t i n 1 9 8 2 - 8 3 a l o n g w i t h f a r m m a c h i n e r y d e t a i l s ,
a r e summarised i n t h i s c h a p t e r .
4.1
Manaqement P r a c t i c e s
Average sowing and h a r v e s t i n g d a t e s v a r i e d c o n s i d e r a b l y
among r e g i o n s
( T a b l e 1 9 ) . For t h e North I s l a n d and S o u t h l a n d
p r o p e r t i e s wheat i s almost e x c l u s i v e l y a
s p r i n g sown c r o p ,
whereas
t h e m a j o r i t y of C a n t e r b u r y a n d S o u t h C a n t e r b u r y c r o p s
a r e autumn sown. Compared w i t h 1 9 8 1 - 8 2 , t h e d r i l l i n g d a t e f o r
c a n t e r b u r y was
similiar.
The N o r t h
I s l a n d was
10
days
e a r l i e r , S o u t h C a n t e r b u r y o n e day e a r l i e r a n d S o u t h l a n d 6 d a y s
later.
The h a r v e s t
i n a l l a r e a s was
later
than i n t h e
preceding year.
I n C a n t e r b u r y t h e h a r v e s t was 4 d a y s
later,
i n S o u t h C a n t e r b u r y 13 d a y s l a t e r , i n S o u t h l a n d 13 d a y s l a t e r ,
and i n t h e North I s l a n d 21 days l a t e r .
TABLE
19
p r i l l i n s and H a r v e s t i n s D a t e s ,
1982-83
.............................................................
North
Island
Number of S u r v e y
Farms which
H a r v e s t e d Wheat
8
Canterbury
64
South
Southland
A l l
Canterbury
Regions
28
46
-
-
- -
146
-
- -
-
~ r i l l i n gD a t e
J u l 16
S e p t 26
Aug 13
Harvesting
D a t e 1983
Mar 7
J a n 30
F e b 13
-------------------------------------------------------=-----
April 2
F e b 25
1982
Oct 4
J u l 11
.......................................................
--m--
Average d r i l l i n g r a t e s f o r t h e f o u r
survey regions
are
shown i n T a b l e 2 0 .
These r a t e s
a r e similiar t o previous
years.
TABLE 2 0
D r i l l i n g R a t e s , 1982-83
.............................................................
North
fs l a w d
CanterSouth
Southland
A%%
bury
Canterbury
Regions
P - - _ _ - - - O _ _ - _ o _ _ - - - - - - - - - - - - - - - - - - - - - - - - - e - - - - - - - - - - ~ - ~ - - - - - ~
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
D r i l l i n g Rate
(kg/ha)
8
165
64
28
136
145
180
654
=PP===='3I=P=====P===============2-i============================
T a b l e 2 1 l i s t s a number
of
management
p r a c t i c e s which
w e r e i n v o l v e d i n growing and h a r v e s t i n g t h e wheat c r o p and t h e
A
p r o p o r t i o n of s u r v e y f a r m s t h a t u n d e r t o o k t h e s e p r a c t i c e s .
g i v e n p r a c t i c e i s r e g a r d e d as h a v i n g b e e n u n d e r t a k e n on a f a r m
even i f it i s o n l y a p p l i e d t o p a r t of t h e t o t a l wheat
crop.
POP e x a m p l e o o n l y p a r t
of
t h e wheat
c r o p may h a v e b e e n
undersown w i t h c l o v e r o r o n l y p a r t
o f t h e w h e a t c r o p may h a v e
had n i t r o g e n o u s fe r t i f i s e r topdressed.
i n the spring
Once a g a i n s u i t a b l e
growing c o n d i t i o n s
encouraged an
i n c r e a s e d use of
nitrogen
fertiliser
~n
C a n t e r b u r y t h e r e was
a l s o an
increased
u s e of
nitrogen
fertiliser
at
sowing.
The i n c i d e n c e o f s t r i p e r u s t was l e s s
than the previous year resulting i n a decline i n the use
of
fungicides.
Despite the
dry c o n d i t i o n s i n Canterbury wheat
was
not
extensively irrigated.
The N o r t h
Island,
South
Canterbury and
Southland a l l experienced d i f f i c u l t harvests
with s i g n i f i c a n t increases i n drying i n t h e s e areas.
TABLE 2 1
Management P r a c t i c e s , 1 9 8 2 - 8 3
.............................................................
P r o p o r t i o n o f Farms
................................................
(% )
North
Island
Canterbury
South
Southland
A l l
Canterbury
Regions
.............................................................
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
8
64
28
46
.............................................................
146
Management P r a c t i c e
Wheat C r o p
Undersown w i t h
Clover
0
F e r t i l i s e r Applied
-at Drilling
100
Nitrogenous
F e r t i l i s e r Applied
a t Drilling
50
57
18
W e e d i c i d e Used
100
89
97
93
93
F u n g i c i d e Used
0
57
51
90
61
50
22
0
0
13
0
15
9
0
8
62
3
41
88
43
Nitrogenous
Fertiliser
Topdressed
I n s e c t i c i d e Used
Wheat I r r i g a t e d
G r a i n Dryed
.............................................................
4.2
3achinerv Details
Tractor
running costs
involved
in
cultivation
and
d r i l l i n g and
t h e a s s o c i a t e d labour c o s t s form a s u b s t a n t i a l
proportion of t h e establishment costs (Table 42);
therefore,
average
tractor
hours
for
cultivation
and
drilling
are
p r e s e n t e d i n T a b l e 22.
Favourable conditions
resulted
in
t h e time spent
in
cultivation
f o r t h e " a l l regions" survey farm (2.82 hours p e r
hectare) being l e s s than t h e previous
year
(3.04
hours
per
hectare).
Drilling
time
(0.68
h o u r s p e r h e c t a r e ) was a l s o
l e s s ghan t h e p r e v i o u s y e a r
(0.75
hours per h e c t a r e ) .
TABLE 2 2
T r a c t o r Hours f o r Wheaf
C u l t i v a t i o n and D r i l l i n s . 1987-82
.............................................................
North
Island
CanterSouth
Southland
A l l
bury
Canterbury
Regions
---------------------------------------------------*---------
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
8
64
28
46
146
- .
-
Tractor Cultivation
(hrs/ha 1
9 e82
Time
2.75
3.37
2.86
2 82
Tractor Drilling
Time
(hrs/ha)
0.68
0.75
0 e 6%
0068
0.67
................................................................
I n f o r m a t i o n r e l a t i n g t o t r a c t o r u s a g e , r e p a i r c o s t s and
v a l u e s i s shown i n T a b l e 2 3 .
Twenty e i g h t p e r c e n t o f a l l
t r a c t o r s w e r e l e s s t h a n 60 h o r s e p o w e r , 50 p e r c e n t were 61-85
h o r s e p o w e r a n d 22 p e r c e n t w e r e o v e r 8 5 h o r s e p o w e r r e f l e c t i n g a
m a r g i n a l d e c l i n e i n s m a l l t r a c t o r s and a c o r r e s p o n d i n g i n c r e a s e
i n medium s i z e t r a c t o r s . L a r g e t r a c t o r s a s a p e r c e n t a g e o f t o t a l
O f t h e t o t a l h o u r s worked by a l l
t r a c t o r s remains unchanged.
t r a c t o r s , t h e 6 1 - 8 5 h o r s e p o w e r t r a c t o r s c o n t r i b u t e d 55 p e r c e n t ,
t h e l e s s t h a n 6 0 h o r s e p o w e r c o n t r i b u t e d 19 p e r c e n t a n d t h e
The number o f
g r e a t e r t h a n 85 horsepower c o n t r i b u t e d 26 p e r c e n t .
h o u r s worked by t h e s e r e s p e c t i v e t r a c t o r s h a s r e m a i n e d c o n s t a n t
r e l a t i v e t o t h e 1981-82 survey f i g u r e s .
A s f o r t h e 1981-82 s u r v e y , T a b l e 24 i n d i c a t e s a l a r g e
p r o p o r t i o n of C a n t e r b u r y and South C a n t e r b u r y wheatgrowers u s e d
The p r o p o r t i o n o f
t h e i r own h e a d e r t o h a r v e s t t h e i r w h e a t c r o p s .
S o u t h l a n d w h e a t g r o w e r s u s i n g % h e i r own h e a d e r h a s i n c r e a s e d f r o m
39 p e r c e n t i n 1979-80 t o 52 p e r c e n t i n 1981-82 and t h e n d e c l i n e d
t o 49 p e r c e n t i n 1982-83, w h i l e North I s l a n d f a r m e r s favoured t h e
u s e of c o n t r a c t h a r v e s t i n g .
On a v e r a g e , 6 8 p e r c e n t o f f a r m s
u s e d o n l y t h e i r own h e a d e r , 3 1 p e r c e n t u s e d o n l y a c o n t r a c t o r
w h i l e 1 p e r c e n t s o l d t h e i r wheat s t a n d i n g .
TABLE 23
Tractor Usage, Repair Costs and Value, 1982-83
Less than 60 h.p.
Age of Tractor ( ~ r s )
0-5
6- 10
61-85 h.p.
1 l+
0-5
6- 10
Above 85 h.p.
1 l+
0-5
6- 10
I I+
8
15
50
59
54
19
39
19
2
a
Annual Usage
(~ours/~ractor)
448
3 14
2 18
459
395
333
454
368
4 24
Annual Repair Cost
($/~ractor)
298
33 1
178
169
4 73
4 24
482
769
340
0.67
1.05
0.80
0.3 7
1.20
1.27
1.06
2.09
0.80
13,994
5,5 13
2,171
18,87 1
7,452
3,98 1
26,204
18,537
9,500
Number of Tractors
Repair Cost
our)
Value of Tractors at
Cost Price ($1
a
For all tractors the annual usage was 375 hours per tractor.
TABLE 2 4
H a r v e s t i n s Method,
1982-83
.............................................................
P r o p o r t i o n of F a r m s
(%)
---os-____---___o_---------------------------w--
North
Island
Canterbury
South
Southland
AI%
Canterbury
Regions
- - - - 0 - - - - - - - - - - - - - - - - ~ - - - - - - - - ~ - - - - - * ~ ~ ~ ~ ~ - - v ~ - - - - - - - - - - - - - - -
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
8
64
28
46
146
-----------_--o-o-s--e---------------------------------------
Own H e a d e r
0
86
95
49
68
Contractor
3 00
14
5
49
39
Own H e a d e r a n d
~ontraetor
Q
Q
(4
Sold Standing
Q
Q
0
2
l
.............................................................
CHAPTER 5
COSTS AND RETURNS
5.1
S e l e c t e d C o s t s and Returns
T a b l e 2 5 r e p o r t s c o s t s a n d r e t u r n s on a p e r h e c t a r e w h e a t
h a r v e s t e d b a s i s w h i l e T a b l e 26
l i s t s t h e r e s u l t s on a p e r
tonne harvested basis.
Gross revenue from wheat
g r o w i n g was
e s t i m a t e d from t h e p r i c e r e c e i v e d f o r , o r v a l u e o f , wheat a t
t h e completion of
harvesting.
No
s t o r a g e increments were
a s s e s s e d and no
c o s t s r e l a t i n g t o t h e s t o r a g e of wheat w e r e
included.
R e t e n t i o n s , l e v i e s and w e i g h i n g c o s t s were d e d u c t e d
from t h e wheat p r i c e .
Although t h e c o s t s o u t l i n e d a r e r e a s o n a b l y comprehensive,
n o a t t e m p t h a s b e e n made t o p r e s e n t a t o t a l o r c o m p l e t e c o s t of- production f i g u r e .
The f i g u r e s p r e s e n t e d
include a l l
m a j o r v a r i a b l e w h e a t c o s t s up t o a n d i n c l u d i n g h a r v e s t i n g a n d
any wheat c a r t a g e t o f . 0 . r .
fn addition,
an
e s t i m a t e of
overhead
costs
r e l a t i n g t o f a r m m a c h i n e r y u s e d on w h e a t was
calculated.
For t h e p u r p o s e of t a b u l a t i n g r e s u l t s t h e s e l e c t e d
have been c l a s s i f i e d i n t o t h e f o l l o w i n g groups:
1.
Establishment Costs
2.
Growing C o s t s
3.
Harvesting Costs
4.
Cartage Costs
5.
Machinery Overhead C o s t s .
costs
T o t a l v a r i a b l e c o s t s a r e s u b t r a c t e d from g r o s s revenue t o
give a
g r o s s margin e s t i m a t e from which machinery overheads
a r e then subtracted.
Land i s a s s u m e d t o b e a f i x e d c o s t
and
s o no r e n t a l f i g u r e h a s been i m p u t e d .
S t a t i s t i c a l information
r e l a t i n g t o t h e r e l i a b i l i t y of
these
costs
and r e t u r n s
is
g i v e n i n A p p e n d i x B.
I n t h e s h o r t r u n , w h e a t s h o u l d c o n t i n u e t o b e grown a s
long as
it
offers
growers
t h e p r o m i s e of a s u f f i c i e n t l y
a t t r a c t i v e g r o s s margin
relative t o other
s t o c k and c r o p
enterprises.
I n t h e l o n g e r r u n , however, growers a r e f a c e d
w i t h t h e p r o s p e c t of r e p l a c i n g m a c h i n e r y a n d i f
returns
from
wheat
growing
a r e not
s u f f i c i e n t l y high, enterprises with
s i m i l i a r g r o s s margins b u t lower machinery i n p u t s w i l l
become
more a t t r a c t i v e .
The a l l o c a t i o n o f m a c h i n e r y o v e r h e a d c o s t s
h a s b e e n u n d e r t a k e n s o t h a t t h e s i g n i f i c a n c e o f t h i s a s p e c t of
w h e a t g r o w i n g may b e a s s e s s e d .
I n c a l c u l a t i n g t h e overhead
costs,
depreciation
and
a v e r a g e book
v a l u e s h a v e b e e n d e t e r m i n e d on a " c u r r e n t c o s t "
basis.
The aim i n c a l c u l a t i n g " c u r r e n t c o s t " d e p r e c i a t i o n
is
t o determine t h a t
dollar
amount w h i c h w o u l d n e e d t o b e s e t
s i d e a t t h e end o f
t h e year
so that
machinery operating
apacity
could be restored t o its o r i g i n a l position a s a t t h e
T h i s , i s achieved by
t a k i n g account
of
t a r t of t h e y e a r .
nflation
i n machinery p r i c e s .
Book v a l u e s a r r i v e d a t b y t h e
" c u r r e n t c o s t 1 * method more c l o s e l y a p p r o x i m a t e m a r k e t
values
t h a n book
values
d e r i v e d By a p p l y i n g t h e " h i s t o r i c a l c o s t "
method.
A11
costs
a r e presented
on
a
bef ore-tax
basis
Information
f o r u s e i n t h i s r e p o r t was c o l l e c t e d f r o m f a r m e r s
w e l l i n advance of any t a x a t i o n accounts b e i n g
available so
that
a l l
f i g u r e s p r e s e n t e d would b e a s c u r r e n t a s p o s s i b l e .
1% s h o u l d b e n o t e d t h a t
f i r s t year
depreciation
incentives
allowed
f o r by
t h e c u r r e n t t a x a t i o n l a w s g o some o f t h e way
toward transforming
t h e normal
historical
cost
(taxation)
deprecf ation
f igures
into
"
current
cost"
equivalents.
However,
they
do
not
adequately bridge
the
gap b e c a u s e
enterprises not
u n d e r t a k i n g new i n v e s t m e n t d o n o t g a i n f r o m
such allowances.
T a b l e s 27 a n d
28
indicate the
i m p o r t a n c e 0% v a r i o u s
a per
hectare
and p e r tonne b a s i s
s o u r c e s of
revenue on
respectively.
Of w h e a t n o t s o l d t o t h e Wheat B o a r d , t h e m o s t
important
source of
r e v e n u e w a s s e e d w h e a t f o r s a l e o r own
use.
Sub-standard m i l l i n g grade Southland wheat
solg
Wheat B o a r d h a s b e e n a s s e s e d on t h e f o l l o w i n g b a s i s :
to
the
Wheat p u r c h a s e d b y Wheat B o a r d :
$/tonne
30 p e r c e n t a t f u l l m i l l i n g p r i c e o f
$203.42 p e r t o n n e
61.03
plus:
70 p e r c e n t a t full m i l l i n g p r i c e
Less :
$23,56
$20.40
$8.00
-
discount for shrivelled o r
diseased (Black Point) grain
I Q p e r c e n t less f o r s c r e e n i n g
C o s t of
screening
A v e r a g e W e i g h t e d P r i c e p e r t o n n e S o u t h l a n d Wheat
5
106.06
167,09
0
Sinee preparing t h i s r e p o r t t h e pool f o r undergrade Southland
Wheat h a s made i t s f i r s t s a l e a t $ 1 9 5 p e r t o n n e on w h a r f .
A c t u a l r e t u r n p e r t o n n e f o r S o u t h l a n d w h e a t s o l d t o t h e Wheat
B o a r d a n d t h r o u g h t h e u n d e r g r a d e p o o l i s now $ 1 8 8 . 3 5 p e r t o n n e .
TABLE 25
Wheat Costs and Returns per Hectare,1982-83
Average Cost
Number of Survey Farms
which Harvested Wheat
North Island
8
Canterbury
64
etur urn) ($/ha)
South Canterbury
28
Southland
46
All Regions
146
--
Establishment Costs
Growing Costs
Harvesting Costs
Cartage Costs
187-45
46.27
170.56
6 1.59
138.75
99.73
35.28
34.86
142.55
61.71
37.59
27.82
195.39
100.19
170.51
55.31
161.98
87.84
91. 17
42.54
5 Total Variable costsa
( 1 +2+3+4)
465.87
308.62
269.67
52 1.60
383.53
71.88
215. 18
201.07
292.62
224.38
1,047.25
84 l .29
796.85
844. l l
852.28
58 1.38
532.67
527.18
322.5 1
468.75
l
2
3
4
6 Machinery Overhead Costs
(Current Cost asi is)
7 Total Selected Costs (5+6)
8 Gross Revenue
9 Gross Margin (8-5)
10 Gross Margin minus
Machinery Overhead
Costs (9-6)
a
The cost of farm labour involved in tractor work, drilling and harvesting is included. Tractor repairs and machinery
insurance are included under machinery overhead costs.
G,
Assessed on the basis of $169.68 per tonne. On the basis of the revised Wheat Price (Table 28).
Machinery Overhead Costs is now assessed at $146.37 per hectare (October 1983).
Gross Margin minus
TABLE 26
Wheat Costs and Returns per Tonne, 1982-83
Average Cost
Number of Survey Farms
which Harvested Wheat
1
2
3
4
Establishment Costs
Growing Costs
Harvesting Costs
Cartage Costs
North Island
8
Canterbury
64
etur urn) per tonne Harvested ($/t)
South Canterbury
28
Southland
46
All Regions
14 6
37.07
9.24
33.68
11.81
35.93
25.19
8.76
8 . 13
48.88
18.86
12. 13
7.29
42.68
20.88
33.74
10.96
40.65
2 1 . 17
19.64
9.20
105.24
1;30.25
154. 14
172.90
146. 19
193.68
198.54
204.44
169.68
189.92
101 - 8 8
120.53
117,28
6 1.42
99.26
88.44
68.27
50.30
-3.22
43.73
5 Total Variable costsa
( 1+2+3+4)
6
Machinery Overhead Costs
(Current Cost asi is)
7
Total Selected Costs ( 5 + 6 )
8 Gross Revenue
-
9
10
a
Gross Margin
(8-5)
Gross Margin minus
Mashinery Overhead
Costs ( 9 - 6 )
The cost of farm labour involved in tractor work, drilling and harvesting is included.
insurance are included under machinery overhead costs.
Tractor repairs and machinery
TABLE 2 7
S o u r c e s o f Wheat R e v e n u e p e r H e c t a r e . 1 9 8 2 - 8 3
.............................................................
.............................................................
Average G r o s s Revenue ( $ / h a )
North
Island
Canterbury
South
Southland
A l l
Canterbury
Regions
-
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
8
p
64
-
p
p
-
-
-
-
-
-
p
28
-
-
--
p
p
p
p
p
p
v
p
p
p
p
F
---
146
46
p
p
-
-
S o u r c e of Revenue
1. Wheat B o a r d
789.92
2. S t o c k F e e d
82.36
3. S e e d
174.97
4. S o l d S t a n d i n g
0.00
5. I n s u r a n c e C l a i m 0 . 0 0
6 3 1.56
160.30
49.30
0.00
0.23
740.79
19. 20
39.96
0.00
0.00
523.07
202.97
93.79
10.69
13.59
63 1 85
140.07
72.50
3.42
4.44
T o t a l Revenue
841.29
796.85
844.11
852.28
1047.25
I==P===X==3==P==Z==f=========P=I=P===e=======================
TABLE 2 8
S o u r c e s o f Wheat R e v e n u e
D e r
Tonne.
1982-89
.............................................................
Average G r o s s Revenue ( $ / t )
North
Island
Canterbury
A l l
South
Southland
Canterbury
Regions
.............................................................
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
8
64
S o u r c e of Revenue
1. Wheat B o a r d
142.72
2. S t o c k F e e d
25.33
3. S e e d
25 ,6 3
4. Sold S t a n d i n g
0.00
5. I n s u r a n c e C l a i m 0 . 0 0
46
28
p
-
p
p
-
p
p
-
14 6
- - -
p
p
99.33"
45.75
15.89
3.33
5.38
137.28
34.84
15.00
1.06
1.74
T o t a l Revenue
193.68
198.37
204.44
169.68
.............................................................
a
189.92
144.51
39.95
13.86
0.00
0.05
183.40
10.19
10.85
0.00
0.00
Assessed on t h e b a s i s of a weighted average p r i c e of $167.09 per tonne.
The r e v i s e d e s t i m a t e f o r m i l l i n g and pooled wheat i s now $188.35 per tonne.
5.2
D i s t r i b u t i o n of Returns
show t h e v a r i a t i o n i n d i f f e r e n t
measures
T a b l e s 29,30,31
of
return.
Fifty
to
sixty percent
of
a l l
farms which
h a r v e s t e d wheat h a d a g r o s s r e v e n u e p e r h e c t a r e of
$700-1100,
a g r o s s margin p e r h e c t a r e of $400-800 and a g r o s s margin l e s s
machinery
overhead c o s t s p e r
h e c t a r e of
$20Q-600.
fn
Canterbury
50-60 percent o f w h e a t p r o d u c i n g f a r m s h a d a g r o s s
revenue per h e c t a r e i n excess
of
$900,
a
g r o s s margin
in
e x c e s s of
$500 p e r h e c t a r e a n d a g r o s s m a r g i n l e s s m a c h i n e r y
o v e r h e a d c o s + s i n e x c e s s o f $ 300 p e r h e c t a r e .
TABLE 29
D i s t r i b u t i o n of G r o s s R e v e n u e ,
1982-82
.........................................................................
P r o p o r t i o n of F a r m s ( $ 1
North
Island
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
~ r s s sR e v e n u e
($/ha)
0
100
100
260
200
300
300
400
400
500
500
600
6 Q O - 7C0
700
800
800
900
900
1000
1000
1100
1100
1200
1200 a n d a b o v e
Total
-
-
-
CanterSouth
Southland
~ l l
bury
Canterbury
Regions
8
64
28
46
0-0
Ie3
000
163
0.0
3.6
3.6
3.6
3.6
3.6
17.9
10.7
17.9
17.9
7.0
3.6
7.0
10Q.O
0 0
0.0
0.0
2.2
8.7
4.4
13.0
13.0
15.2
19.6
10.9
6.5
6.5
400.0
0.0
0.0
0.0
1205
12.5
0.0
12.5
12.5
0.0
12.5
37.5
100.0
1-3
3.2
392
1.3
10.9
15.6
14.1
20.3
12.5
7.8
6.4
10Q.Q
.
.............................................................
146
0-7
1.4
le 4
2.8
4.8
3.4
13.0
13.0
15.1
19.2
10.3
6.9
8 0
100.0
TABLE 30
D i s t r i b u t i o n of G r o s s M a r q i n ,
1982-83
.............................................................
P r o p o r t i o n of Farms ( % l
...........................................
North
Island
Canterbury
South
Southland
A l l
Canterbury
Regions
.............................................................
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
8
64
28
46
.............................................................
146
G r o s s Margin
($/ha)
Below 0
0 100
100
200
200
300
300
400
400
500
500
600
600
700
700
800
800
900
900
1000
1000
1100
l100
1200
1200 a n d a b o v e
Total
--
-
-
0.0
0.0
0.0
25.0
12 e 5
12-5
0.0
12.5
0.0
12.5
25.0
0.0
0.0
0.0
100.0
4.6
4.6
6.4
7.8
17.2
18.8
18.8
14.1
4.6
3.1
0.0
0.0
0.0
0.0
100.0
3.6
3e 6
3.6
3.6
14.2
17.9
10 7
17.9
14 * 2
3.6
3 6
0.0
3.5
0.0
100.0
0
4.4
13.0
17.4
13.0
17.4
15.3
6.5
6.5
0.0
6.5
0.0
0.0
0.0
0.0
100.0
4.1
5.5
6 9
8.9
12.3
16.4
12 3
14.4
8.9
5.5
3.4
0.0
0.7
0.0
100.0
0
-
.............................................................
T a b l e s 30 a n d 31 h i g h l i g h t t h e d i f f i c u l t i e s
of
covering
h i g h machinery
o v e r h e a d c o s t s d u r i n g y e a r s of r e l a t i v e c r o p
failures.
O n l y 24 p e r c e n t o f S o u t h l a n d g r o w e r s e x c e e d e d g r o s s
returns
of
$1000 p e r
h e c t a r e c o m p a r e d w i t h 56 p e r c e n t t h e
previous year.
Seventeen percent
of
S o u t h l a n d growers had
g r o s s margins p e r
h e c t a r e o f l e s s t h a n $100.
When a d j u s t e d
f o r m a c h i n e r y o v e r h e a d s 63 p e r c e n t
of
growers
i n Southland
s h o w e d r e t u r n s o f l e s s t h a n $ 100 p e r h e c t a r e .
TABLE 31
D i s t r i b u t i o n of G r o s s Marqin l e s s Machinery
1982-83
Overhead C o s t s ,
.............................................................
.............................................................
P r o p o r t i o n of Farms
(%)
------------------------------m------------
North
Island
Canterbury
South
Southland
A%$
Canterbury
Regions
-PO-------s----------------------~--~----~~----~--~---~------
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
Below 0
0
100
100
200
280
300
300
400
B06
500
500
600
$00
700
700
800
900
800
1008
900
1900
1000
1200
1400
1200 a n d a b o v e
Total
m
W
-
8
64
0.0
0.0
12.5
12.5
7e9
10.9
709
10.9
1702
Ia08
15.6
4.6
4.5
1.6
0.Q
0.0
0.0
0.0
100.0
$285
32.5
0.0
12.5
25.0
12.5
0.0
0.0
0.0
0.0
100.0
28
14-3
7a 0
10e7
do*%
14.3
14,3
14.4
5.0
10.7
3.6
0.0
0.0
0.0.
0.0
100.0
46
146
52.2
10.9
10.9
22.6
13.0
8-7
2.2
2.1
0. Q
0.0
0.0
0.0
Q. 0
0.0
0.0
100.0
.............................................................
.............................................................
.
5.3
9o 6
9e6
14106
33.7
%2*3
10.3
2.6
5-5
2.2
0.0
8.0
0.8
0.0
100.0
Wheat P r o f i t a b i l i t y R e l a t i v e t o L i v e s t o c k
T h i s s e c t i o n c o m p a r e s l i v e s t o c k f a r m i n g w i t h two m e a s u r e s
of
r e t u r n from wheat growing.
T a b l e 32 shows t h a t a t $20 p e r
s t o c k u n i t 33.8 p e r c e n t o f a 1 1 s u r v e y w h e a t g r o w i n g f a r m s h a d a
higher
g r o s s margin from l i v e s t o c k t h a n from wheat.
Table 33
i n d i c a t e s t h a t a t $20 p e r s t o c k u n i t ,
if
machinery
overhead
56.1
percent
of
a l l survey
costs
are
allowed
for,
then
wheatgrowing farms would have a h i g h e r r e t u r n
from
livestock
thaw from wheat.
TABLE 32
J i v e s t o c k v e r s u s Wheat G r o s s M a r s i n s ,
1982-83
.............................................................
North
Island
Canterbury
South
Southland
A l l
Cant erbury
Regions
.............................................................
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
8
64
28
46
-
146
P
-
-
P
-
Wheat G r o s s
Margin ( $ / h a )
581.38
532.67
527.18
322.51
468.75
Spring Grazing
Stocking Rate
(S.U./ha)
16.8
13.2
14.8
16.8
15.0
336.00
264.00
296.00
336 00
300.00
Farms w i t h Lives t o c k G r o s s Margin
m o r e t h a n Wheat
G r o s s Margin a
(%
12.5
(12.5)
21 . O
(31.6)
21.4
(32.1)
60.9
(67.4)
33.8
(42.8 1
Livestock Gross
M a r g i n a t $20
p e r S.U.
($/ha)
.............................................................
a
P e r c e n t a g e s i n ( 1 a s s u m e a l i v e s t o c k g r o s s m a r g i n of
$25 p e r s t o c k u n i t .
TABLE
33
L i v e s t o c k v e r s u s Wheat G r o s s M a r s i n s less
M a c h i n e r y O v e r h e a d C o s t s , 1982-83
.............................................................
A v e r a g e G r o s s Revenue ( $ / g )
0 - - - - - - - - - - - 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
North
1s l a n d
Canterbury
South
Southland
A l l
Canterbury
Regions
- * - - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - ~ - - - - - ~ - - - ~ ~ ~ - ~ - - - - - - ~ - - ~ ~ ~ ~
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
8
64
28
46
.............................................................
A d j u s t e d Wheat
G r o s s ~ a r ~ai n
($/ha)
509.50
317.49
326.11
146
29.87
244.37
Spring Grazing
Stocking Rate
(S.U./ha;)
16.8
13.2
14.8
A d ~ u s t e dL i v e stock Gross
Margin a t $20
p e r S.U. b
( $/ha
270.90
212.85
238.65
270.90
241.85
Farms w i t h A d j u s t e d
Livestock Gross
Margin G r e a t e r
than Adjusted
Wheat G r o s s
Margin C
(%l
12.5
(37.5)
43.9
(52.61
46.4
(60.7)
84.8
(890 l )
56.1
(65.5)
.............................................................
.............................................................
a
Machinery Overhead Costa s u b t r a c t e d
b
$20 p e r s t o c k unit l e s s o p p o r t u n i t y c o s t o f l i v e s t o c k
e s t i m a t e d a t 1 5 . 5 p e r c e n t o f $25 p e r s t o c k u n i t
C
P e r c e n t a g e s i n ( 1 assume a l i v e s t o c k g r o s s margin of
$25 p e r s t o c k u n i t l e s s o p p o r t u n i t y c o s t o f l i v e s t o c k
e s t i m a t e d a t 1 5 . 5 p e r c e n t o f $25 p e r s t o c k u n i t .
CHAPTER 6
TRENDS I N PRODUCTION, COSTS A N D RETURNS
6.1
Wheat A r e a s
T a b l e 34 c o m p a r e s w h e a t a r e a s d r i l l e d on a l l s u r v e y f a r m s
1980-81,
1981-82,
1982-83 s u r v e y s , and l i s t s wheat
for
the
These wheat
area
a r e a i n t e n t i o n s f o r t h e 1983-84 c r o p y e a r .
intentions
a r e what
farmers
were i n t e n d i n g t o d r i l l a t t h e
c o m p l e t i o n of h a r v e s t i n g i n 1983.
TABLE 3 4
Wheat A r e a s D r i l l e d a n d
Wheat A r e a I n t e n t i o n s
.............................................................
Wheat A r e a
1980-81
1981-82
Surevy
Survey
18.1
22.1
27.2
16 3
20.2
13.3
23.3
17.9
19.6
20.5
(ha)
1982-83
1983-84 a
Survey I n t e n t i o n s
.............................................................
North I s l a n d
Canterbury
South Canterbury
Southland
A l l Regions
7.3
22.0
20.2
15.9
18.6
.............................................................
.............................................................
6.2
5.5
27.5
25.4
11.3
19.9
P r o d u c t i o n and S e l e c t e d C o s t s
T a b l e 3 5 shows t h a t i n 1 9 8 2 - 8 3 r e l a t i v e t o 1 9 7 6 - 7 7 , w h e a t
area
h a r v e s t e d has d e c l i n e d 18.2 p e r c e n t while t h e t o t a l a r e a
i n cash crop increased
by
11.8
percent.
I n c r e a s e d wheat
yields
of
20.8
percent
p l u s an i n c r e a s e i n t h e b a s i c wheat
p r i c e h a s i n c r e a s e d g r o s s r e v e n u e by 1 1 3 . 2 p e r c e n t .
Variable
c o s t s have
i n c r e a s e d by 2 0 1 . 2 p e r c e n t r e s u l t i n g i n t h e g r o s s
margin r i s i n g by 72.0 p e r c e n t .
However,
machinery
overheads
have
i n c r e a s e d by 2 8 1 . 1 p e r c e n t , r e s u l t i n g i n a 1 4 . 4 p e r c e n t
i n c r e a s e i n g r o s s margin l e s s machinery overhead c o s t s .
components
of
selected
T a b l e 36 c o m p a r e s t h e d i f f e r e n t
costs
and an a t t e m p t
i s made
t o f o r e c a s t t h e next annual
change i n t h e s e c o s t s .
Total Selected Costs
increased
from
$324
per
hectare
i n 1979-80 t o $608 p e r h e c t a r e i n 1982-83.
T h i s r e p r e s e n t s an 8 8 . 0 p e r c e n t
increase
over
a
four
year
period.
Furthermore, c o s t s a r e expected t o i n c r e a s e a f u r t h e r
15 p e r c e n t t o $ 6 9 9 p e r h e c t a r e d u r i n g t h e
period
1982-83
to
1984-84.
603
Returns
T a b l e 37 s t a n d a r d i s e s y e a r l y r e v e n u e s
with
respect
to
v a r y i n g wheat
yields.
This
i s done by c a l c u l a t i n g g r o s s
r e v e n u e on t h e b a s i s o f a c o n s t a n t y i e l d .
The c o n s t a n t
yield
i s a s s e s s e d a s t h e a v e r a g e y i e l d o v e r t h e p e r i o d 1976-77 t o
1982-83.
An a t t e m p t i s a l s o made
to
estimate the
1983-84
w h e a t r e v e n u e on t h e b a s i s o f t h i s c o n s t a n t y i e l d .
T a b l e 3 7 shows t h a t o v e r t h e f o u r y e a r p e r i o d 1 9 7 9 - 8 0
to
1982-83
t h e b a s i c w h e a t p r i c e i n c r e a s e d by n e a r l y 46 p e r c e n t
t o $ 204 p e r t o n n e .
Despite
this
significant
increase i n
basic
w h e a t p r i c e t h e a d j u s t e d g r o s s m a r g i n i n c r e a s e d by o n l y
5 p e r c e n t t o $ 382 p e r h e c t a r e .
This indicates the
increase
in
the basic
wheat p r i e e o n l y j u s t c o v e r e d t h e i n c r e a s e s i n
total
variable
costs.
The a d j u s t e d
gross
margin
less
machinery
overhead
costs declined over t h e four year period,
from $237 p e r h e c t a r e t o $157 p e r h e c t a r e i n d i c a t i n g t h a t
the
i n c r e a s e s i n t h e b a s i c wheat p r i c e h a s n o t o f f s e t i n c r e a s e s i n
machinery overhead c o s t s given constant y i e l d s .
T h i s t r e n d i s c o n t r a r y t o t h e r e s u l t s of p r e v i o u s s u r v e y s
which
showed
that
t h e f n c r e a s e i n b a s i c wheat p r i c e c o v e r e d
Clearly
b o t h i n c r e a s d v a r i a b l e c o s t s and machinery overheads.
at
c o n s t a n t w h e a t y i e l d s t h e h o l d i n g of t h e b a s i c w h e a t p r i c e
w i t h i n t h e t e r m s o f t h e wage a n d p r i c e f r e e z e h a s
meant
that
cost
i n c r e a s e s which t o o k p l a c e p r i o r t o t h e i n t r o d u c t i o n of
t h e wage a n d p r i c e f r e e z e a n d t h e i n c r e m e n t a l
costs
due t o
disastrous
environmental.
conditions
associated with
the
S o u t h l a n d c r o p have n o t been o f f s e t .
It
is
estimated
for
the
1983-84
season
that
total
v a r i a b l e c o s t s w i l l i n c r e a s e by 97 p e r c e n t t o $ 4 4 9 p e r h e c t a r e
a n d m a c h i n e r y overhead c o s t s by
42
percent
to
$259
per
hectare.
Given
t h e s e c o s t i n c r e a s e s and a b a s i c wheat p r i c e
e s t i m a t e d a t $220 p e r t o n n e , it i s e s t i m a t e d t h a t
the
gross
margin l e s s machinery overhead c o s t s f o r 1983-84 w i l l i n c r e a s e
m a r g i n a l l y t o $161 p e r h e c t a r e .
TABLE 35
Movement in
Wheat
Production, Costs and Returns
Index for
1976-77
1977-78
1978-79
1979-80
1980-8 1
198 1-82
1982-83
1982-83
( 1976-77= 100)
22.5
21.2
19.7
22.5
21.2
20.5
18.4
81.8
51.7
1926
3.89
50.0
1946
3.72
49.2
1889
3.39
56.5
1823
3.60
52.5
192 1
4.35
62.9
1758
4 ;40
57.8
1864
4.70
111.8
96.8
120.8
Production
Wheat Area Harvested (ha)
Total Cash Crop Area Harvested
(ha)
Total Stock Units (s.u.1
Wheat Yield (t/ha)
Costs and Returns ($/ha)
Establishment Costs
Growing Costs
Harvesting Costs
Cartage Costs
Total Variable Costs
Gross Revenue
-406.72
432.50
438.06
509.78
782.94
880.29
852.28
209.5
Gross Margin
279.40
295.39
279.87
32 1.25
515.3 1
539.20
468.75
167.8
58.87
88.21
109.19
135.50
164.58
191.89
224.38
381.1
220.53
207. 18
170.68
185.75
350.73
347.29
244.37
110.8
Machinery Overhead Costs
Gross Margin less Machinery
Overheads
'
TABLE 36
Trends in Selected Costs
Change
% 983-84
Establishment Costs
X
$/ha
$/ha
$/ha
$ /ha
$/ha
Cultivation
Labour
Seed
Fertiliser
14.11
17.34
35.48
19.55
30.97
18. 10
45.21
34,91
28.62
19.83
55.76
42.84
30.90
19.57
65.86
45.65
39,03
21.68
72.57
56 90
+26
91 1
91 1
c25
Total
86.48
129.19
147.09
16 1.98
190. 18
+ 17
0 . 19
9.03
21.52
0.18
0.79
12.84
33.29
3.79
0.39
18.52
0.44
14.52
65.83
928
929
+36
+ 18
0.49
26,15
-
Growing Costs
Harrowing & Rolling
Fertiliser
Spraying
Irrigation
4.35
7.05
0.57
18.74
89.70
8.33
0.03
0.06-
0.07
0.08
+ 14
34,15
6.70
0.40
14.48
3.92
48.96
7.65
0.39
29.55
4.55
51.39
8 . 19
0.36
27.35
4.90
+ 5
0.65
14.66
3.2 1
33.66
6.93
0.65
12.52
3.55
188.53
269.68
341.10
383.53
13.82
69.20
39.49
70.87
41.23
79.38
51.02
90.54
61 - 0 7
96 98
+20
c 7
52.48
54.24
71.28
82.82
93.09
-+ 12
%3%,50
%64,58
19 % - 8 9
224,38
2 5 % -14
+ 1%
324.83
432.26
532.99
607.91
699.87
+ 15
77.93
Total
Harvesting Costs
Desiccation
Machinery and
Contractor
Labour
Bags
Grain Drying
Insurance
5.93
i-
-
7
8
7
+ 8
Total
Cartage Costs
Total Variable Costs
448.73
+ 19
Machinery Overhead
Costs (Current)
Repairs and
Maintenance
Depreciation
Interest on
Book Value
Total
Total Selected
Costs
a.
Estimates
TABLE 3 7
z r e n d s i n P r i c e s a n d Revenue
.............................................................
1979-80
1980-81
1981-82
1982-83
1983-84
.............................................................
B a s i c Wheat
P r i c e ( $ / t ) 140.00
Actual P r i c e
183.00
2 0 3 00
204.00
220.00
135.56
179.99
201.34
189.92
213.62
98.4
99.2
93.1
97.1
725.36
8 1 1.40
765.65
860.89
267.63
341-09
383.53
448.73
457.73
470.31
382.12
412.16
164.58
191- 8 9
224.38
251.14
293.15
278.42
157.74
161.02
($/ta
)
Actual P r i c e
( % of B a s i c
96.5
Price)
Adjusted Gross
Revenue b
( $/ha
546.31
Total Variable
C o s t s ( $ / h a ) 183.53
Adjusted Gross
Margin
( $/ha)
362.78
Machinery Overhead
Costs
($/ha)
135.50
Adjusted Gross
Margin l e s s
Machiriery
Overhead C o s t s
($/ha)
227.28
.............................................................
a
A c t u a l p r i c e r e c e i v e d p e r t o n n e by g r o w e r s t a k i n g i n t o
a c c o u n t v a r i e t y premiums a n d d i s c o u n t s . I n c l u d e s d i s c o u n t s
f o r undergrade Southland c r o p f o r 1982/83.
b
B a s i c p r i c e t i m e s c o n s t a n t y i e l d . The y i e l d was t h e
" A l l Regions'' a v e r a g e y i e l d 1976-77 t o 1982-83
i . e . 4.03 t / h a .
.
APPENDIX A
REGIONAL C L I M A T I C D A T A
TABLE 3 8
W e a t h e r I n d i c e s f o r N o r t h a n d Mid C a n t e r b u r y
Wheat G r o w i n g A r e a s ,a 1982-83
.............................................................
Rainfall
Month
Average
Temperature
Days o f
deficit
Sunshine
..................................................
P e r c e n t of
normal C
Deviation
from normal=
Days b
P e r c e n t of
normal C
(0C
.............................................................
March
2l
+ l .4
April
89
25.1
108
-1.5
1.6
85
June
105
+O. 1
0.3
90
July
81
-0.1
0.0
118
August
49
+1.6
0.0
114
September
58
-0.1
0.0
10 6
October
153
-1.4
0.2
92
November
96
+ l .8
0.2
109
December
104
-0.3
4.1
103
January
42
-0.5
12.7
108
February
36
-1.1
23.5
82
March
51
90.9
18.1
115
April
141
4-0.2
4.6
96
.................................................................
a W e i g h t e d b y c o u n t y w h e a t a r e a i n 6967-68
"days of d e f i c i t ' ' i s c a l c u l a t e d from d a i l y
r a i n f a l l d a t a by assuming t h a t e v a p o t r a n s p i r a t i o n c o n t i n u e s
a t t h e Thornthwaite p o t e n t i a l evapotranspiration r a t e u n t i l
75mm o f s o i l m o i s t u r e h a s b e e n w i t h d r a w n . T h e r e a f t e r , d a y s
o f d e f i c i t a r e c o u n t e d u n t i l t h e r e i s a day w i t h r a i n f a l l
i n excess of t h e d a i l y p o t e n t i a l e v a p o t r a n s p i r a t i o n .
b T h e number o f
Source:
Maunder, W . J . ,
N.Z.
Met.
Service, pers.
comm.,
1983
TABLE 39
, W e a t h e r I n d i c e s f o r S o u t h C a n t e r b u r y and N o r t h O t a g o
Wheat Growing A r e a s , a 1982-83
.............................................................
Rainfall
Average
Temperature
Month
-
-
O
-
O
~
-
-
-
-
O
P
O
-
O
P e r c e n t of
normal C
-
-
-
-
~
-
-
-
-
-
-
-
Days o f
def ic i t
~
-
Deeiatiom
from normalC
~
-
~
~
~
~
Bays b
Sunshine
-
-
~
-
~
~
-
~
~
-
-
~
(0C)
.............................................................
March
34
+O. 9
April
132
June
21.7
126
-1.6
0.9
104
55
-0 8
0.Q
108
August
48
+ 4 e 4
3.7
912
September
41
-0.2
5.8
111
350
-9.3
5.7
97
82
+l .4
2.7
108
95
-4.1
6.9
113
January
67
- 1 .O
15.9
99
February
27
-leQ
23.7
91
March
77
-003
13.0
111
April
176
-0.4
7.1
97
October
November
December
-
-
.
.............................................................
a W e i g h t e d by c o u n t y w h e a t a r e a i n 4967-68
b The number o f " d a y s of d e f i c i t 8 ' i s e a b c u f a t e d f r o m d a i l y
r a i n f a l l d a t a by a s s u m i n g t h a t e e a p o t r a n s p i r a t i o n c o n t i n u e s
a t t h e Thornthwabte p o t e n t i a l . e v a p o t r a n s p i r a t i o n r a t e until
75mm o f s o i f m o i s t u r e h a s b e e n w i t h d r a w n . T h e r e a f t e r , d a y s
of d e f i c i t a r e c o u n t e d u n t i l t h e r e i s a day w i t h r a i n f a l l
i n e x c e s s of t h e d a i l y p o t e n t i a l e v a p o t r a n s p i r a t i o n .
Source:
Maunder, W . J . ,
N.Z,
Met.
Service, pers.
-
Pereemk o f
normalC
comm.,
1983
-
-
TABLE 40
Weather I n d i c e s f o r S o u t h l a n d
Wheat G r o w i n g A r e a s p a 1 9 8 2 - 8 3
.............................................................
.............................................................
Rainfall
Month
Average
Temperature
Days o f
deficit
Sunshine
..................................................
P e r c e n t of
normal C
Deviation
from normalC
Days
P e r c e n t of
normal=
(0C)
.............................................................
March
83
-0.4
0.0
92
April
38
-1.0
0.0
133
June
51
-0.6
0.0
109
July
180
-0.2
0.0
104
August
182
+ l .4
0.0
94
60
0.0
0.0
103
October
165
-1.7
0.0
96
November
116
-0.6
0.0
93
i)ec ember
181
-1.4
0.0
90
January
211
-1.3
0.0
65
February
122
-1.1
0.0
82
March
168
-1.5
0.0
74
April
96
-1.0
0.0
94
s e p t ember
..........................................................
a W e i g h t e d by c o u n t y w h e a t a r e a i n 1 9 6 7 - 6 8
b The number o f " d a y s o f d e f i c i t ' ' i s c a l c u l a t e d f r o m d a i l y
r a i n f a l l d a t a by a s s u m i n g t h a t e v a p o t r a n s p i r a t i o n c o n t i n u e s
a t t h e Thornthwaite p o t e n t i a l evapotranspiration r a t e u n t i l
7 5 m m of s o i l m o i s t u r e h a s been withdrawn. T h e r e a f t e r , d a y s
of d e f i c i t a r e c o u n t e d u n t i l t h e r e i s a day w i t h r a i n f a l l
i n e x c e s s of t h e d a i l y p o t e n t i a l e v a p o t r a n s p i r a t i o n .
Source:
Maunder, W . J . ,
N.Z.
Met.
Service, pers.
comm.,
1983
APPENDIX B
RELIABILITY
SURVEY ESTIMATES
Due t o s a m p l i n g e r r o r , e s t i m a t e s o f f a r m c h a r a c t e r i s t i c s
b a s e d on a s a m p l e of f a r m s a r e l i k e l y t o d i f f e r
from f i g u r e s
which would h a v e been o b t a i n e d had i n f o r m a t i o n been c o l l e c t e d
from a l l farms i n t h e p o p u l a t i o n .
However, s i n c e t h e s a m p l e
was s e l e c t e d p r o b a b i l i s t i c a l l y , s a m p l i n g t h e o r y c a n b e u s e d t o
compute t h i s sampling e r r o r .
A summary m e a s u r e t h a t
captures
this
e r r o r i s t h e r e l a t i v e s t a n d a r d e r r o r (R.S.E.) d e f i n e d a s
t h e standard deviation
of
the
e s t i m a t e d i v i d e d by
the
e s t i m a t e d mean.
T h e s m a l l e r t h e R.S.E.,
t h e more r e l i a b l e t h e
estimate.
T a b l e 41 r e p o r t s t h e mean a n d R.S.E.
of
t h e important
c o s t and revenue items.
F o r example, t h e t a b l e shows t h e " a l l
r e g i o n s n a v e r a g e s u r v e y f a r m h a v i n g a g r o s s m a r g i n of
$468.75
per
hectare,
w i t h a R.S.E.
of 3.47 p e r e c n t .
f n o t h e r words
o n e c a n b e 95 p e r c e n t c e r t a i n t h a t t h e t r u e v a l u e o f t h e
"all
r e g i o n s " a v e r a g e mean g r o s s m a r g i n p e r h e c t a r e l i e s w i t h i n t h e
r a n g e 1.96 X 3.47
percent
X
$468.75
either
s i d e of
the
e s t i m a t e d f i g u r e ; t h a t i s , w i t h i n $468.75 + o r
$31.88.
The
North I s l a n d f i g u r e s s h o u l d b e i n t e r p r e t e d w i t h c a u t i o n due t o
t h e s m a l l sample s i z e .
-
TABLE 4 1
S u m m a r y Wheat C o s t s a n d R e t u r n s ,
R e l i a b i l i t y of
1982-83
.............................................................
.............................................................
North
Isband
Southland
Canter-
South
bury
Canterbury
A l l
Regions
_-----9----_----_----a-------------------------------wm---aee
umber of S u r v e y
F a r m s which
H a r v e s t e d Wheat
8
Establishment Costs
Mean
($/ha)
187.45
R.S.E.
(%)
13.32
Growing Costs
($/ha)
46.27
- M e a n
R.S.E.
(%)
19.09
Harvesting Costs
Mean
($/ha)
170.56
Re8.E.
( % I 19.75
Cartage Costs
-Mean
($/ha)
61.59
R.S.E.
(%)
27.90
-
64
28
46
138.75
5.12
142.55
7.65
195,39
5.69
164 . 9 8
6.5%
100.19
6.77
8 7 84
8.14
178.51
8e53
9 %,1 %
55.31
12.52
42 54
13.12
-
99.73
6.29
61 . 7 1
35.28
8.79
37.59
40.22
-
34 8 6
9.81
9.19
.
.
27 82
14.10
146
9.96
.
--------------------~~~-------------------~----------*---~-~~
Total Variable Costs
465.87
Mean
($/ha)
R.S.E.
(%I
11.83
308.62
1.62
269.67
3.58
52 1 60
2.23
3 8 3 53
3.11
Machinery Overhead Costs
Mean
($/ha)
71.88
R.S.E.
(%)
21.29
215.18
6.60
20 1 . 0 7
9.49
292.62
8.40
224 38
9.05
T o t a l Selected C o s t s
Mean
($/ha)
537.75
R.S.E.
(%l
11.88
523.80
1.65
470.74
3.61
814.22
2.24
607.91
3.13
-
-
-
-
--_-----------o-o----a---------------------------------------
Gross Revenue
Mean
($/ha)
1047.25
R.S.E.
% I 28.50
-
849.29
8-32
-
796.85
13.67
844.11
9.70
852.28
19.59
527.18
3.97
322.51
468.75
3 * 47
_ - - - - - - P O - P - - - - _ - _ - - - * - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Gross Margin
Mean
($/ha)
R.S.E.
(%l
-
581.38
13.16
-
~
-
-
-
-
-
-
-
-
0
-
0
0
-
-
-
-
~
0
~
G r o s s M a r g i n less
Machinery Overhead
CQStS
Mean
($/ha) 509.50
R*S.E.
(%)
43.25
-
532.67
1.72
-
-
-
~
~
~
~
-
319,453
20 46
-
-
-
-
-
-
~
~
2.65
~
326.11
4.83
~
~
-
~
-
-
~
29.89
20.40
-
-
-
-
-
-
-
~
~
2 4 4 o 37
9.50
-
-
-
-
-
-
-
-
APPENDIX C
BREAKDOWN OF COST ITEMS
The b r e a k d o w n o f t h e c o s t s
and
returns
for
t h e wheat
A description
crop, Table 25, i s d e t a i l e d i n T a b l e s 42 t o 4 5 .
o f t h e t e r m s u s e d i n t h e s e t a b l e s i s g i v e n i n A p p e n d i x D.
TABLE 4 2
E s t a b l i s h m e n t C o s t s , 1982-83
..............................................................
Average Cost
North
Island
Canterbury
($/ha)
South
Southland
A l l
Canterbury
Regions
---------------------------*----------------------------------
Number o f S u r v e y
Farms which
H a r v e s t e d Wheat
8
64
28
46
146
- 0 - 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Item
a. C u l t i v a t i o n
and D r i l l i n g
Tractor
Running
b. C u l t i v a t i o n
and D r i l l i n g
Labour
c. C u l t i v a t i o n
Contractor
d. D r i l l i n g
Contractor
e. Seed
f. S e e d C a r t a g e
g. F e r t i l i s e r
h. F e r t i l i s e r
Cartage
-
-
Total Establishment
Costs
187.45
138.75
142.55
195.39
.............................................................
161.98
TABLE 4 3
G r o w i n q C o s t s , 1982-83
.............................................................
Average Cost ($/ha)
-_P_--O------O----_-----------------------m-
North
Island
Number o f S u r v e y
Farms which
H a r e v s t e d Wheat
8
CanterSouth
Southland
A%%
bury
Canterbury
Regions
64
28
46
146
Item
a.
-
b.
-
c.
d.
-
e.
-
f.
g.
h.
-
i.
k.
l.
j.
m.
-
n.
-
o.
-
p.
-
Harrowing and R o l l i n g
Tractor
Running
0.00
8.25
Harrowing and R o l l i n g
Labour
0.00
8.14
Fert. Topdressing
Tractor
0.49
0 88
Running
Fert. Topdressing
~abour
0.34
0.51
Fert. Topdressing
contractor
OoOO
1,48
Fertiliser
2.23
23.47
Fertiliser
Cartage
0.10
1.00
Spraying
Tractor
Running
1,52
2.27
Spraying
Labour
1,11
1.16
Spraying
contractor
9,95
8 . 16
Weedicide
Material
26.21
25.88
fnseceicide
Material
4.52
3.90
Fungicide
Material
Q. 08
15.06
Irrigation
Running
0.00
7.22
Irrigation
Tractor
Running
O.OQ
0.09
1r r i g a t i o n
Labour
0.00
8.26
T o t a l Growing
Costs:
.
46 e 2 ' 7
99.73
64,7'l
.
I Q 0 79
89.84
====================-=========s=================================s
TABLE 4 4
Harvesting Costs, 1982-83
.............................................................
Average Cost ( $ / h a )
------------------------------------------W-
North
Island
Canterbury
South
Southland
A l l
Canterbury
Regions
.............................................................
Number o f S u r v e y
Farms which
R a r e v s t e d Wheat
8
64
28
46
146
.............................................................
Item
a.
Desiccation
- Material
b. D e s i c c a t i o n
- Tractor
c.
d.
-
e.
f.
-
g.
h.
j.
-
i.
k.
1.
-
m.
n.
0.00
0.04
0.00
Running
Desiccation
Contractor
0.00
Header
Fuel
0.00
Header
Tractor
Running
0.00
Harvesting
Labour
0.33
Harvesting
Contractor
120.77
Paddock t o S i l o
Truck F u e l
0.15
Paddock t o S i l o
Tractor
0.58
Paddock t o S i l o
Truck H i r e
10 7 0
Bags ( n e t )
0.00
Grain Drying
own
0.00
Grain Drying
Contractor
33 5 0
Crop I n s u r a n c e 4 . 5 3
0.04
-
Total Harvesting
Costs:
170.56
0.07
5 63
2.35
7.71
12.26
0.14
2.17
0.00
0.08
0 . 15
.
0 48
4.24
35.28
37a59
170.51
.............................................................
91.14
T A B L E 45
Machinery Overhead C o s t s , 1982-83
.............................................................
Average Cost ( $ / h a )
-_o-----------------------------------------
North
Xs1and
Canterbury
South
Southland
W11
Canterbury
Regions
_ o _ - - - - - - - - _ - - - - - - - - - - - - - P - - s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Number o f S u r v e y
Farms which
H a r e v s t e d Wheat
8
64
28
46
146
-----o----O-_----P------------------------------------------m
Item
a.
b.
c.
R e p a i r s and
Insurance
20.69
50.58
63 73
51.02
87 ,36
78.49
119.30
90.54
24.71
79.93
72.00
109.19
82 82
71 - 8 8
215,18
201 - 0 7
292.62
224.38
Depreciation a t
95% d i m i n i s h i n g
value
26,48
(current value)
I n t e r e s t on
Capital a t
15.7% Cost
T o t a l Machinery
Overhead C o s t s
.
47.89
.............................................................
APPENDIX D
DESCRIPTION OF COST ITEMS
1.
Establishment Costs
(a)
C u l t i v a t i o n and D r i l l i n g
-
T r a c t o r running:
T r a c t o r r u n n i n g c o s t s f o r s u r v e y farms were e s t i m a t e d
as
follows:
For t r a c t o r s 60 h.p. o r l e s s , r u n n i n g c o s t = $ 6 . 0 5 p e r h o u r
For t r a c t o r s 61-85 h.p.,
r u n n i n g c o s t = $7.74 p e r hour
per
For t r a c t o r s g r e a t e r t h a n 85 h.p. , r u n n i n g c o s t = $ 9 . 4 4
hour
These c o s t s i n c l u d e d d i e s e l f u e l c o s t e d
at
54.03
cents
per
l i t r e b u t e x c l u d e d i n s u r a n c e , r e g i s t r a t i o n and any m a j o r
repairs.
(b)
C u l t i v a t i o n and D r i l l i n g
-
Labour:
Total
labour
time f o r
cultivation
a n d d r i l l i n g was
determined
from t h e t r a c t o r
h o u r s a n d t h e number o f p e o p l e
involved.
T h i s t i m e was c o s t e d a t $ 5 . 4 1 p e r h o u r b a s e d on t h e
($10,068)
of
full
t i m e e m p l o y e e s on s u r v e y
average s a l a r y
f a r m s , p l u s a n a l l o w a n c e of $ 5 0 p e r week f o r h o u s i n g e t c .
(c)
C u l t i v a t i o n and D r i l l i n g
-
Contractor:
The a c t u a l amount p a i d f o r a n y c o n t r a c t work was u s e d .
(d)
Seed:
For each
farm t h e t o t a l
seed
c o s t was
t h e sum o f
T h e c o s t o f p u r c h a s e d s e e d was
p u r c h a s e d a n d f a r m grown s e e d .
t a k e n t o b e t h e a c t u a l r e t a i l s e e d p r i c e which
included
any
costs
for
dressing,
treating,
and bags.
The c o s t o f f a r m
grown s e e d was g e n e r a l l y t a k e n a s t h e p r e v i o u s y e a r ' s
milling
p r i c e p l u s a n y s t o r a g e i n c r e m e n t s which would h a v e a c c r u e d up
t o t h e sowing d a t e p l u s any c o s t s
related to
dressing
and
t r e a t i n g t h e seed.
An e x c e p t i o n t o t h i s m e t h o d was made w h e r e
t h e w h e a t s e e d was r e t a i n e d f r o m a c r o p grown s p e c i f i c a l l y f o r
s e e d i n w h i c h c a s e t h e a c t u a l v a l u e o f t h e s e e d was u s e d .
(e)
Seed C a r t a g e :
T h i s i s t h e c o s t of t r a n s p o r t i n g s e e d t o t h e f a r m .
Where
a
grower
used
h i s own t r a n s p o r t
this
was c h a r g e d a t t h e
a p p r o p r i a t e commercial r a t e f o r t h e a r e a .
(f
Fertiliser:
This c o s t r e f e r s t o t h e c o s t
of
fertiliser
applied a t
drilling.
T h e c o s t was d e t e r m i n e d a s t h e 'Works P r i c e 1 ' m i n u s
any a p p r o p r i a t e s p r e a d i n g o r p r i c e s u b s i d i e s .
(g)
F e r t i l i s e r Cartage:
This i n c l u d e s both t h e a c t u a l c o s t of f e r t i l i s e r
cartage
p l u s a n y a d d i t i o n a l c o s t s w h e r e t h e f e r t i l i s e r was b o u g h t f r o m
a depot r a t h e r t h a n d i r e c t l y from t h e works.
The t r a n s p o r t
s u b s i d y b a s e d on t h e d i s t a n c e from t h e f e r t i l i s e r works t o t h e
f a r m was d e d u c t e d .
W h e r e f a r m e r s c a r t e d t h e i r own f e r t i l i s e r ,
a p p r o p r i a t e commercial r a t e s were used t o determine t h e c o s t .
2.
Growing C o s t s
(a)
Harrowing and R o l l i n g
-
T r a c t o r Running:
newly
established
Where h a r r o w i n g a n d / o r r o l l i n g o f t h e
wheat
c r o p was
carried out,
tractor
running
c o s t s were
d e t e r m i n e d , a s f o r " C u l t i v a t i o n and D r i l l i n g
T r a c t o r Runningw
under Establishment Costs 1 ( a ) .
-
(b)
Harrowing and R o l l i n g
-
Labour:
Labour a s s o c i a t e d w i t h any h a r r o w i n g
and/or
rolling
of
c r o p W-as e o s t e d a s f o r E s t a b l i s h m e n t
the
e s t a b l i s h e d wheat
c o s t 1 (b).
F e r t i l i s e r Topdressing
( C )
-
T r a c t o r Running:
Tractor running costs
for
fertiliser
topdressing
c o s t e d a s d e s c r i b e d u n d e r E s t a b l i s h m e n t C o s t s 1 (a).
id)
F e r t i l i s e r Topdressing
-
Labour:
Labour f o r t o p d r e s s i n g f e r t i l i s e r
Establishment Costs 1 ( b ) .
(e)
F e r t i l i s e r Topdressing
-
were
was
costed
as
under
Contract Spreading:
The c o n t r a c t s p r e a d i n g c o s t i s t h e a c t u a l amount p a i d
t h e farmer b e f o r e d e d u c t i o n of s p r e a d i n g s u b s i d y .
(fl
by
Fertiliser:
T h i s i t e m r e f e r s t o t h e c o s t of f e r t i l i s e r t o p d r e s s e d
t o
the
growing
crop.
The amount
was
determined a s
Establishment Costs 1 ( f )
.
(g)
on
in
F e r t i l i s e r Cartage:
F e r t i l i s e r c a r t a g e c o s t f o r f e r t i l i s e r t o p d r e s s e d on
to
t h e g r o w i n g c r o p was c a l c u l a t e d a s u n d e r E s t a b l i s h m e n t C o s t s l
(g)
0
(h)
Spraying
-
T r a c t o r Running:
Where s p r a y i n g was
tractor
running
costs
Costs 4 ( a ) .
a tractor,
the
carried
out
using
were
determined a s f o r Establishment
( i ) Spraying
-
Labour:
Labour i n v o l v e d i n
spraying
under Establishment Costs 1 ( b ) .
(
j)
Spraying
-
operations
was
costed
as
Contractor:
Amount p a i d f o r c o n t r a c t s p r a y i n g o f w h e a t c r o p .
(k)
Irrigation
-
Running:
Where a n y i r r i g a t i o n p l a n t u s e d a n
electric,
diesel
or
petrol
motor,
the
e s t i m a t e d c o s t was
i n c l u d e d under t + h i s
heading.
(1)
Irrigation
-
T r a c t o r Running:
Where a t r a c t o r was u s e d f o r p u m p i n g o r r e b o r d e r i n g ,
the
tractor
running
cost
was
determined a s
d e s c r i b e d under
Establishment Costs 1 ( a ) .
(m)
Irrigation
-
Labour:
Farm l a b o u r i n v o l v e d i n
Establishment Costs 1 ( b )
.
3.
Harvesting Costs
(a)
Header Fuel:
irrigation
was
costed
as
for
of
h a r v e s t i n g where
a
This is t h e estimated f u e l cost
grower
used h i s
own s e l f - p r o p e l l e d h e a d e r .
Diesel = 5 4 . 0 3 ~
per l i t r e .
P e t r o l = 5 3 . 5 ~p e r l i t r e n e t o f t a x r e b a t e .
(b)
Header
-
T r a c t o r Running:
Where a
grower's
own
tractor
running
cost
was
Establishment Costs 1 ( a ) .
(c)
Harvesting
-
h e a d e r was
tractor-pulled
the
calculated
as
described
under
Labour:
A l l farm l a b o u r ( n o t c o n t r a c t o r s ) i n v o l v e d i n
harvesting
was
costed
at
$5.41
per
hour a s o u t l i n e d i n Establishment
Costs 1 ( b ) .
(d)
Harvesting
-
Contractor:
This covers t h e t o t a l contract cost
to
the
farmer
and
includes
the
a c t u a l c o s t ( m a c h i n e r y p l u s l a b o u r ) a n d i n some
cases cartage t o the farmer's silo.
(e)
Paddock t o S i l o
-
Truck Fuel:
T h i s i t e m r e f e r s t o on-farm
farmers s i l o .
(f)
Paddock t o S i l o
-
c a r t a g e of t h e wheat
to
the
T r a c t o r Running:
T r a c t o r r u n n i n g c o s t s o f c a r t a g e of
h a r v e s t e d wheat
to
t h e s i l o were d et erm i n ed a s o u t l i n e d under E s t a b l i s h m e n t c o s t s
1 (a).
(g)
Paddock t o S i l o
-
Truck H i r e :
T h i s i t e m i n c l u d e s t h e c o s t of h i r e o f t r u c k s o r t r a i l e r s
to
t a k e t h e w h e a t f r o m t h e p a d d o c k t o t h e s i l o w h e r e t h i s was
not included i n t h e c o n t r a c t heading c o s t .
(h)
Bags ( n e t ) :
A l t h o u g h m o s t w h e a t i s h a r v e s t e d i n b u l k some i s b a g g e d .
The
cost
of
t h e bags
i n v o l v e d was e n t e r e d as t h e p u r c h a s e
p r i c e minus t h e s a l v a g e v a l u e a f t e r u s e .
( i ) Grain Drying
-
Own:
Where a g r o w e r d r i e d w h e a t a n d u s e d
his
own
equipment,
the
e s t i m a t e d f u e l o r e l e c t r i c i t y c o s t was e n t e r e d u n d e r t h i s
heading.
( j )
Grain Drying
-
Contrzctor:
Where g r a i n was c o n t r a c t d r i e d , t h e c o s t o f
a c y a d d i t i o n a l c a r t a g e r e q u i r e d was e n t e r e d .
4.
drying
plus
Cartage Costs
A c t u a l c a r t a g e c o s t s f o r wheat were
not
available
%or
most
f a r m s a t t h e t i m e t h e s u r v e y was u n d e r t a k e n .
Hence, t h e
c a r t a g e c o s t s p r e s e n t e d a r e imputed v a l u e s .
The t o t a l
amount
of w h e a t h a r v e s t e d i s a s s u m e d t o b e c a r t e d t o t h e n e a r e s t r a i l
s t a t i o n a t t h e a p p r o p r i a t e commercial r a t e f o r t h e a r e a .
~ s r
w h e a t which i s t o b e s o l d t o t h e Wheat B o a r d t h i s s h o u l d b e an
a c c u r a t e e s t i m a t e of t h e t r u e c o s t s i n c e t h e Wheat B o a r d P r i c e
for
wheat
is a f.0.r. price.
O f t h e wheat n o t s o l d t o t h e
Wheat B o a r d some m i g h t b e e x p e c t e d t o b e r e t a i n e d on t h e f a r m
as s e e d o r f e e d b u t a m a j o r p r o p o r t i o n i s s o l d o f f - f a r m .
5.
T o t a l VaribEe C o s t s
This is t h e
sum o f
t h e Establishment
Costs,
Growing
C o s t s , H a r v e s t i n g C o s t s and C a r t a g e Costs and i n c l u d e s certain
f a r m l a b o u r a s s o c i a t e d w i t h t h e wheat e n t e r p r i s e .
Machinery Overhead C o s t s
6.
Machinery Overhead c o s t s
are allocated
to
t h e wheat
e n t e r p r i s e on
the
basis
of
usage.
T h i s was d e t e r m i n e d a s
follows:
T r a c t o r s a n d H e a d e r s = h o u r s on w h e a t / t o t a l h o u r s f o r t h e y e a r
I r r i g a t i o n E q u i p m e n t = a r e a of w h e a t i r r i g a t e d / t o t a l a r e a
i r r i g a t e d with t h e
same equipment
C u l t i v a t i o n and
= a r e a of w h e a t / t o t a l a r e a c u l t i v a t e d
Spraying Equipment,
f o r t h e year
Trucks, D r i l l , T r a i l e r s ,
Grain Augers e t c .
(a)
R e p a i r s and I n s u r a n c e :
This
item
includes repairs
and maintenance
on
a l l
machinery
and
e q u i p m e n t u s e d on t h e w h e a t e n t e r p r i s e f o r t h e
1982-83 wheat c r o p y e a r .
Insurance a t 0.45 p e r c e n t of t r a c t o r
and header c o s t i s a l s o included.
(b)
Depreciation:
Current Cost
The h i s t o r i c a l
c o s t of
machinery
used
on
t h e wheat
a machinery
price
index and
e n t e r p r i s e was
i n f l a t e d by
( 15
percent)
was
then
diminishing value
depreciation
c a l c u l a t e d from t h e updated c o s t s .
D e p r e c i a t i o n i n . y e a r n = C o s % X &,. X ( 0 . 8 5 p- I
X 0.15
I0
where Cost
0
Initial historical cost
I
=
I n f l a t i o n i n d e x a t t h e end of y e a r n ,
J
=
I n f l a t i o n i n d e x a t t h e t i m e of p u r c h a s e
n
0
(C)
=
and
I n t e r e s t on C a p i t a l :
Using t h e d e p r e c i a t i o n method o u t l i n e d u n d e r ( b ) an a v e r a g e
book v a l u e was d e t e r m i n e d by t h e c u r r e n t c o s t m e t h o d f o r e a c h
i t e m of p l a n t a n d m a c h i n e r y u s e d on w h e a t .
I n t e r e s t on c a p i t a l
was t h e n i n p u t e d a t 1 5 . 7 p e r c e n t .
This i s a weighted average of
t h e a v e r a g e o v e r d r a f t i n t e r e s t r a t e s of T r a d i n g Banks a p p l y i n g t o
A g r i c u l t u r e a t September 1982, and t h e normal i n t e r e s t r a t e s
b e i n g c h a r g e d by S t o c k and S t a t i o n Agents a n d F i n a n c e Companies
a t t h a t time.
RECENT PUBLICATIONS
RESEARCH REPORTS
105. Potatoes: A Consumer Survey of Christchurch andAuckland Households, M.M. Rich, M.J. Mellon, 1980.
106. Survey of New Zealand Farmer Intentions and Opinions, JulySeptember, 1979, J.G. Pryde, 1980.
107. A Survey of Pests and Pesticide Use in Canterbury and Southland
J.D. Mumford, 1980.
108. An Econdmic Survey of New Zealand Town Milk Producers, 197879, R G . Moffitt, 1980.
109. Chan~esin United Kingdom Meat Demand RL. Sheppard,
1980.
110. Brucellosis Eradication: a description of a planning model, A. C.
Beck, 1980.
111. Fish: A Consumer Survey of ChristchurcbHousebolds. RJ. Brodie,
1980.
112. An Analysis of Alternnfive Wheat Pricing Schemes, M.M. Rich,
L.J. Foulds, 1980.
113. An Economic Survey of New Zealand Wheatgrowers; Enterprise
Analysis, Survey No. 4 1979-80, R.D. Lough, R.M. MacLean,
P.J. McCartin, M.M. Rich, 1980.
114. A Review of the Rural Credit System in New Zealand 1964 to
1979, J.G. Pryde, S.K. Martin, 1980.
115 . A Socib-Economic Study of Farm Workers and Farm Managers,
G.T. Harris, 1980.
116. An Economic Survey of New Zealand Wheatgrowers; Financial
Analysis, 1978-79, RD. Lough, RM. MacLeari, P.J. McCartin,
M.M. Rich, 1980.
117 Multiplers from Regional Non-Survey Input-Output Tabfesfor
New Zealand L.J. Hubbard, W.A.N. Brown 1981.
118 Survey ofthe Health of New Zealand Farmers: October-November
1980, J.G. Pryde, 1981.
119 Horticulture in Akaroa County,
R L . Sheppard, 1981.
120. An Economic Survey of New Zea/and Town Milk Producers, 197380, R G . Moffitt, 1981.
121. An Economic Survey of New Zealand Wheatgrowers: Enterprise
Anab~is,survey No. S 1980-81, R. D. Lough, P.J. McCartin,
M.M. Rich, 1981.
122. An Economic Survey of New Zealand Wheatgrowers: Financial
Anal'ysis 19778-80, R.D. Lough, P.J. McCartin, M.M. Rich,
1981.
123. Seasonality in the New Zealand Meat Processing Indwtry, R.L.
Sheppard, 1982.
124.
125.
126.
127..
128.
129.
S
,130.
131.
,
132.
The New Zealand Wheat and Flour Indwtry: Market Structure and
Policy Implications, B.W. Borrell, A.C. Zwart, 1982.
The Ecomomics of Soil Conservatid;r and Water Management
Policies in the Otago High Country, G.T. Harris, 1982.
Survy ofNew Zealand Farmer Intentions and Opinions, SeptemberNovember, 1981, J.G. Pryde, 1982.
The New Zealand Pastoral Livestock Sector: An Econometric Model
(Version Two), M.T. Laing, 1982.
A Farm-level Model to Evaluate the Impacts of Current Energy
Policy Options, A.M.M. Thompson, 1982.
An Economic Survey of New Zealand Town Milk Producers 198081, R.G. Moffitt, 1982
The New Zealand Potato Marketing System, R.L. Sheppard,
198.2.
An Economic Survey of New Zealand Wheatgrowers: Enterprise
Analysis, Survey IVO.6, 2981-82, R.D. Lough, P.J. McCartin,
M.M. Rich, 1982.
An Economic Survey of New Zealand Wheatgrowers: Financial
Analysis, 1980-81, R.D. Lough, P.J. McCartin, 1982.
133. Alternative Management Stratrgies und Drafting Policies for
Irrigated Cmterbury Sheep Farms, N. M. Shadbolt, 1982.
1 34. Economics of the Sheep Breeding Operations of the Department of
Lands and Survey, A.T.G. McArthur, 1983.
..
. Waterand Choiceik Canterbury, K.L. Leathers, B.M.H. Sharp,
W.A.N. Brown, l983
Survey of New Zealand Farmer Tntetrtior~sand Opinions, OctoberDecember, 1982, J.G. Pryde, P.J. McCartin, 1983.
Investnzetlt nnd S,/p/~(yRosp.spot/sc, in thi, N t r ~Zeo/(urrd
,
Pustornl
Sector:.An E~onomdrir.Modcd, M.T. Laing, A.C. Zwart, 1983
The World S h r e p m ~ tM~rket;an ecotzotnetric modd, N. Blyth,
1983.
An Economic Survey of New Zealand Town Milk Producers, 198182, R.G. Moffitt, 1983.
Economic Relationships within the Japanese Feed and Livestock
Sector, M. Kagatsume, A.C. Zwart, 1983.
The New Zealand Arable Sector: Foreign Excharzge Implications,
R.D. Lough, W.A.N. Brown, 1983.
An Economic Survey of New Zealand Wheatgrowers; Enterprise
Analysir, Survey No. 7, 1982-83, R.D.Lough, P.J. McCartin,
1983.
An Economic Survey of New Zealand Wheatgrowers: Financial
Analysis, 1981-82, R.D. Lough, P.J. McCartin, 1983.
DISCUSSION PAPERS
The F~lrtherProci,s.rin~nfMmt, K . M . Silcocl;, R.L. Sheppard,
1981.
Japanere Agri6-irltirrul Policy DeveLupment: Implications for New
Zealand A.C. Zwart, 1981.
Itrterest H~ti,.r:Facts and Fallacies, K.B. Woodford, 1981.
The EEC Sheepmeat Regime: One liaar On, N. Blyth, 1981.
A Review of the World Sheepmeat Alarket: Vol. I - Overview of
International Trade, Vol. 2 - Australja, New Zealand& Argentina,
Vol. 3 - The EEC (IO), Vo1.4 - hi'orth America, Japan & The
Middle East, Vol. J - Eastern Bloc, U.S.S. R. & Mongolia,
N. Blyth, 1981.
An Evaluation of Farm Ownership Savings Accounts,
K.B. Woodford, 1981.
The New Zealand Meat Trade in the 980's: aproposalfor change,
B.J. Ross, R.L. Sheppard, A.C. Zwart, 1982. .
Supplementary Minimum Prices: a production incentive? R.L.
Sheppard, J.M. Biggs, 1982.
Proceedings of a Seminar on Road Trfinsportit2 Rztral Areas, edited
by P.D. Chudleigh, A.J. Nicholson, 1982.
Quality in the New Zealand Wheat and Flour Markets, M.M.
Rich, 1982.
Design Considerations for Computer Based Marketing and
Information Systems, P.L. Nuthall, 1982.
Reaganomics and the New Zealand Agricultural Sector, R.W.
Bohall, 1983.
Energy Use in New Zealand Agric~ll:/lrnlProdltction, P. D.
Chudleigh, Glen Greer, 1983.
Farm Finance Data; Availability and Requirements, Glen Greer,
1983
The Pastoral Livestock Sector and the Szqplementary Minimum
Price Policy, M.T. Laing, A.C. Zwart, 1983.
,f
Marketing Institutions for New Zealand Sheepmeats, A.C. Zwart,
1983.
Supporting the Agricultural Sector: Rationale and Policy, P.D.
Chudleigh, Glen Greer, R.L. Sheppard, 1983.
Issues Relating to the Funding of Primary Processing Research
Througb Research Associations, N . Blyth, A.C. Beck, 1983.
Tractor Replacement Policies and Cost Minimisation, P.L.
Nuthall, K.B. Woodford, A.C. Beck, 1983.
Tomatoes and the Closer Economic Relationship with Australia,
R.L. Sheppard, 1983.
A Survey of Farmers'Attitudesto Information, R.T. Lively, P.L.
Nutha11,1983.
Monetary Policy and Agricultural Lending by Private Sector
Financial Instiations, R.L. St. Hill, 1983.
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