08 Feb 2013

Fertilizer Expenditure in the Australian Grains Industry

Summary from ABARES Farm Input Surveys
Wheat Crop Wimmera


Fertilizer Expenditure of Grain Farms in Australia.

The Australian grains industry produces around 40 Mt of wheat, barley, oats, canola, pulses and other grains each year. The production systems vary from high rainfall zone intensive production with high yield potentials, to low rainfall opportunity cropping. Most of the grain production is rainfed, and so varies from year to year.
The data below is taken from a series of reports on farm costs for grain and mixed farming properties in each of the agroecological zones. The years surveyed were 2006-2007, 2007-2008 and 2008-2009, and the results reported are the average for those three years. Mean yields over these periods are lower than the long term average for Australia due to drought with annual wheat production of 10.8 Mt (2006-2007), 13.6 Mt (2007-2008), 21.4 Mt (2008-2009), 21.8 Mt (2009-2010), 27.4 Mt (2010-11) and 29.9 Mt (2011-2012). Production for the current 2012-2013 crop season is forecast at 22.0 Mt.

The amounts spent on fertilizers are generally the largest single variable cost for grain producers, and are 15-20% of all cash costs, or 20-25% of variable costs.


Figure 1: Australian agroecological zones, Grains Research and Development Corporation.


Table 1: Physical performance benchmarks for grain farms in Australia (2006-07 to 2008-09), averages per farm.
Table 1a
Specialist Grain Farms $/ha
RegionAv Rainfall (mm)
Farm Size (ha)
Cropped area (ha)
% wheat
Ave. Wheat Yield t/ha
Central NSW3402459
666
75
0.7
NSW & Vic Slopes4431730
1059
59
0.8
Vic HRZ & Tas4471034
550
39
2.1
SA & Vic Wimmera
365
880
580
33
1.3
SA & Vic Mallee2882596
1482
61
0.7
SA Mid North, 4041327
747
46
1.4
WA Sandplain4704959
3008
46
1.9
WA Northern2788770
2901
79
1.1
WA Eastern2805081
2589
86
0.9
WA Central3403365
1858
59
1.6
North west NSW/SW Qld5489838
3261
63
1.2
North east NSW/SE Qld6141547
810
50
1.7
Central Queensland6354119
2310
52
2.0

Table 1b
Mixed Farms
$/ha
RegionAv Rainfall (mm)
Farm Size (ha)
Cropped area (ha)
%wheat
Ave. Wheat Yield t/ha
Central NSW
335
4984
770
67
0.9
NSW & Vic Slopes
457
1470
415
59
0.8
Vic HRZ & Tas
522
1047
178
25
2.5
SA & Vic Wimmera
460
1041
287
35
1.2
SA & Vic Mallee
330
1907
732
55
0.9
SA Mid North,
427
1440
441
48
1.2
WA Sandplain
507
3617
1159
37
1.8
WA Northern
343
3610
1031
67
1.1
WA Eastern
272
3992
1766
72
1.1
WA Central
419
1974
1402
53
1.7
North west NSW/SW Qld
533
4424
624
72
1.0
North east NSW/SE Qld
612
1990
290
44
1.5
Central Queensland
628
7762
580
47
1.7


Table 2. The amount spent on fertilizers as a proportion of total cash costs on Australian grain farms.
Region
Specialist Grain Farms $/ha
Mixed Farms
$/ha
Fertilizer
Total Cash Cost
% Fert
Fertilizer
Total Cash Cost
% Fert
Central NSW
15.30
122
13%
6.80
108
6%
NSW & Vic Slopes
40.40
239
17%
20.10
217
9%
Vic HRZ & Tas
68.70
457
15%
35.50
266
13%
SA & Vic Wimmera
41.1
274
15%
30.3
255
12%
SA & Vic Mallee
24.90
130
19%
17.30
116
15%
SA Mid North,
47.20
278
17%
21.60
157
14%
WA Sandplain
73.70
327
23%
53.30
223
24%
WA Northern
21.90
102
21%
22.10
115
19%
WA Eastern
21.30
114
19%
34.20
162
21%
WA Central
49.30
230
21%
41.50
213
19%
North west NSW/SW Qld
4.40
157
3%
1.40
72
2%
North east NSW/SE Qld
31.40
343
9%
9.30
185
5%
Central Queensland
14.40
298
5%
2.40
86
3%


Table 3. The amount spent on fertilizers as a proportion of variable costs on Australian grain farms.
Region
Specialist Grain Farms $/ha
Mixed Farms $/ha
Fertilizer
*Crop Costs
% Fert
$/cropped ha**
Fertilizer
*Crop Costs
% Fert
Central NSW
15.3
93
16%
56
6.8
53
13%
NSW & Vic Slopes
40.4
178
23%
66
20.1
121
17%
Vic HRZ & Tas
68.7
357
19%
129
35.5
191
19%
SA & Vic Wimmera
41.1
219
37%
62
30.3
190
16%
SA & Vic Mallee
24.9
111
22%
44
17.3
86
20%
SA Mid North,
47.2
231
20%
84
21.6
121
18%
WA Sandplain
73.7
275
27%
122
53.3
170
31%
WA Northern
21.9
76
29%
66
22.1
81
27%
WA Eastern
21.3
84
25%
42
34.2
114
30%
WA Central
49.3
190
26%
89
41.5
155
27%
North west NSW/SW Qld
4.4
110
4%
13
1.4
43
3%
North east NSW/SE Qld
31.4
267
12%
60
9.3
107
9%
Central Queensland
14.4
246
6%
26
2.4
55
4%

* Crop costs were derived from the total cash cost, less administration, livestock purchases, fodder, shearing and interest.
** $/cropped ha for specialist grain farms assumes that all the fertilizer is applied to the cropping areas.



Sources: ABARES GRDC Reports, 2011 (Various Authors)
  1. Physical and financial performance benchmarks for grain producing farms, New South Wales central agroecological zone.
  2. Physical and financial performance benchmarks for grain producing farms, New South Wales - Victoria slopes agroecological zone.
  3. Physical and financial performance benchmarks for grain producing farms, Victorian high rainfall agroecological zone and Tasmanian grains area.
  4. Physical and financial performance benchmarks for grain producing farms, South Australia and Victoria Bordertown-Wimmera agroecological zone.
  5. Physical and financial performance benchmarks for grain producing farms, South Australia and Victoria Mallee agroecological zone.
  6. Physical and financial performance benchmarks for grain producing farms, South Australia mid-north - lower Yorke and Eyre agroecological zone.
  7. Physical and financial performance benchmarks for grain producing farms, Western Australian Mallee and Sandplain agroecological zone
  8. Physical and financial performance benchmarks for grain producing farms, Western Australian northern agroecological zone
  9. Physical and financial performance benchmarks for grain producing farms, Western Australian eastern agroecological zone
  10. Physical and financial performance benchmarks for grain producing farms, Western Australian central agroecological zone
  11. Physical and financial performance benchmarks for grain producing farms, New South Wales north-west and Queensland south-west agroecological zone
  12. Physical and financial performance benchmarks for grain producing farms, New South Wales north-east and Queensland south-east agroecological zone
  13. Physical and financial performance benchmarks for grain producing farms, Queensland central agroecological zone.

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