Income and cost budgets are compiled annually by the PRF for canola as well as for selected competitive crops within the Winter Rainfall Areas respectively.
The information is meant to be used as a guideline by existing, and/or potential producers of these crops and can be compared with a producer's own figures. Adjustments can be made in respect of prices and yields as well as the various cost items to simulate the situation on an existing farm.
In addition to the cost of producing a crop, profitability, in the form of gross margin (gross income minus variable costs), is shown. The relative profitability of certain competitive crops is also portrayed.
These budgets can also be utilized to execute a whole farm plan, including planning of cash flow and the calculation of credit requirements for the entire farming operation, if budgets for all the other potential enterprises are known.
Cognizance should be taken of the fact that the economic and agronomic benefits of canola in a rotation system are not reflected in the gross margins of these crops.
These budgets can also be used as a basis for compiling budgets for similar crops in other areas for which no budgets exist.
The PRF also presents a 'do-it-yourself income and cost estimate' facility for producers to compile budgets for specific circumstances. See PRF Website at Income & Cost Budget Online Form and Software.