Why use this calculator
Understanding your true cost of production per hectare is fundamental to profitable farming. This calculator aggregates all major input costs and determines the minimum yield needed to break even, helping you make informed decisions about which paddocks to crop and what price levels to target for marketing.
How to use it
Enter each input cost category on a per-hectare basis and your total field area. The calculator sums all costs, shows the percentage breakdown of each input, calculates the total outlay for the field, and determines the break-even yield at $300 per tonne crop price.
The formula
Total Cost/ha = Seed + Fertiliser + Spray + Fuel + Labour + Other costs. Total Cost = Cost/ha x Field Area. Break-Even Yield = Total Cost/ha / Crop Price ($300/t).
Worked examples
Standard wheat crop: $80 seed, $120 fertiliser, $60 spray, $40 fuel, $30 labour, $20 other on 100ha
$350/ha total, $35,000 field cost, break-even yield of 1.17 t/ha
High-input canola: $120 seed, $200 fertiliser, $100 spray, $50 fuel, $40 labour, $30 other on 200ha
$540/ha total, $108,000 field cost, break-even yield of 1.80 t/ha
When people use it
- Comparing input cost structures between different crops
- Determining minimum viable yield for profitability
- Budgeting seasonal cropping expenditure
- Identifying the largest cost components for potential savings
Tips
- Include machinery depreciation and insurance in the 'other costs' category for a complete picture
- Compare your costs against district benchmarks to identify areas for improvement
- Review costs annually as input prices fluctuate significantly year to year
- Consider opportunity cost of land when calculating true profitability
Questions people ask
- What costs should I include in 'other'?
- The 'other' category can include crop insurance, machinery depreciation, repairs and maintenance, soil testing, agronomist fees, freight, levies, and any other costs not captured in the main categories. Aim to capture all variable costs for an accurate picture.
- Why use $300/tonne for break-even?
- The $300/tonne is a general baseline for commodity grain prices. Adjust your break-even analysis based on current market prices for your specific crop and quality grade. The important insight is how much yield you need to cover your costs.
- How do fixed costs affect this calculation?
- This calculator focuses on variable (input) costs per hectare. Fixed costs like land payments, rates, permanent labour, and overhead should be calculated separately and added to determine true full-cost break-even yields.