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opportunity cost

Catalogue: GRDC Updates
Farmers see advantages in land values being held down by lower productivity levels in allowing them to expand their businesses.. Five wheat producing businesses were studied across a production transect varying from highly productive land on Yorke Peninsula (average wheat yield 4.5 tonne/Ha) to marginal cereal growing area in a low rainfall district of the Upper North (average yield 1.3 tonne/Ha)... All the businesses studied showed a profitable outcome at average yields (refer Figure 2- only the highest and lowest yielding farms included)...
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Catalogue: GRDC Publications
the a limit to the volume of grain that can be harvested early following epxample demonstrates one way to calculate the or at higher moisture content so the benefit may only e $20 cost of uscning our own cleaner... if we're planning to store grain in bags for a few months and deliver the same quality grain, we must account for enough time to check and repair the bags at least weekly... if we have existing storage we can check financial records to find repairs and maintenance costs on average each year, otherwise we can use a percentage of capital cost to estimate an allowance...
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Catalogue: GRDC Media
The prospect of capturing higher grain prices can be tempting but in some circumstances investing large sums of money in on-farm grain storage could prove a costly mistake... "You need to work out exactly how much the storage could earn and compare that to expected returns from other farm business investments such as buying more land, a chaser bin, a wider boomspray, a second truck or paying off debt," Mr Warrick said... The template also contains calculations to work out the fixed costs of on-farm storage such as the annualised capital costs of all of the infrastructure, site works, concrete and equipment, as well as the opportunity cost of capital...
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Catalogue: GRDC Updates
Introduction The 2010 harvest will remain in the mind of many farmers as they reflect on a year that could have been even better if grain yields and quality had been maintained... The formula for calculating a machinery work rate is: Work rate in Ha / Hr = (Speed (km/hr) x width (m)) x efficiency % 10 If harvesting a crop at 5 km / hr and using an 14m harvester and operating at 80% efficiency, this farmer should be able to harvest a crop at 5.6 ha / hr... The formula for calculating field efficiency is: Field efficiency % = Time spend operating the machine x 100 Total time spent in the paddock Total time spent in a paddock generally includes emptying the grain, travel, fixing breakdowns, turning, overlapping and undertaking maintenance...
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Catalogue: Ground Cover
On-farm storage - do the sums first.. "There are examples of growers investing in on-farm grain storage and paying for it in one or two years because they 'struck the market' at the right time," says Chris Warrick, consultant with ProAdvice Pty Ltd... An example of an opportunity cost is the cost of having the physical grain in storage compared with having the money in the bank earning interest, or avoiding paying overdraft interest...
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Catalogue: GRDC Media
The prospect of capturing higher grain prices can be tempting but in some circumstances investing large sums of money in on-farm grain storage could prove a costly mistake... "You need to work out exactly how much the storage could earn and compare that to expected returns from other farm business investments such as buying more land, a chaser bin, a wider boomspray, a second truck or paying off debt," Mr Warrick said... The template also contains calculations to work out the fixed costs of on-farm storage such as the annualised capital costs of all of the infrastructure, site works, concrete and equipment, as well as the opportunity cost of capital...
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Catalogue: GRDC Factsheets
Investment in technology-enhanced machinery has provided significant productivity gains for grain growers over the last 10 years... Determining the appropriate level of machinery investment for an individual farm business can be a challenge... Each business has a different cost structure and a different set of resources available individual situations need to be analysed carefully before making investment decisions...
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Catalogue: GRDC Factsheets
Investment in technology-enhanced machinery has provided significant productivity gains for grain growers over the last 10 years... Determining the appropriate level of machinery investment for an individual farm business can be a challenge... Each business has a different cost structure and a different set of resources available individual situations need to be analysed carefully before making investment decisions...
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Catalogue: GRDC Factsheets
Investment in technology-enhanced machinery has provided significant productivity gains for grain growers over the last 10 years... Determining the appropriate level of machinery investment for an individual farm business can be a challenge... Each business has a different cost structure and a different set of resources available individual situations need to be analysed carefully before making investment decisions...
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Catalogue: Ground Cover
Benefits should be quantified and outweigh the additional cost... Ms Alexander works through an example of what it costs to own a piece of machinery, such as a new header, that retails for $750,000, and the impact of scale and alternative investment options... Investors need to consider more than just the capital costs when it comes to machinery: seasons, risk of delays and the associated penalties, and the financial impact of each option on the business must be considered...
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