The economics of contract growing maize for grain are largely dependent on crop yield and the price received per tonne of grain ($/tonne). As a guide, the approximate fixed and variable costs to grow maize for grain are shown in Table 1. Please contact your local Grain Merchant Representative or contractor to establish current costs.

Use the "My costs" column (far right of Table 1) and Table 2 below to calculate your gross margin forecast. To move to the next box, either push the tab key or click in the next box.
			Indicative costs & revenue ($/ha)	My costs & revenue ($/ha)
	Inputs
		Soil tests, other	7
		Base: Lime @ 1 t/ha + application	50
		Base fertiliser: 300 kg/ha + application	300
		Cultivation: To planting specifications	350
		Pioneer® brand maize seed 36B08 @ 94,000/ha	360
		FAR levy ($0.09/10,000 kernels @ 94,000/ha)	8
		Seed insecticide treatment (Poncho®*)	130
		Starter fertiliser: 250 kg/ha DAP	230
		Planting	140
		Pre emergence weed control	80
		Post emergence weed control	60
		Sidedressing: 250 kg/ha urea + application	200
		Spraying: Two applications	90
		Total input costs excluding harvest	$2,005
	Interest on input costs excluding harvest
		Interest rate	10
		Interest on input costs for 8 months	$134
		Harvest: Combine	360
	Total costs (inputs, interest & combine)		$2,499

	Yield
	Tonnes per hectare - WET (@ 24% moisture)
	Tonnes per hectare - DRY (@ 14% moisture)
	Cartage and drying costs
	Cartage cost per wet tonne
	Cartage - 50 km per wet tonne
	Drying costs per wet tonne
	Drying (from 24% - 14%) per wet tonne
	Total cartage and drying costs per hectare
	Cost summary	10.5 t/ha DRY	11.5 t/ha DRY	12.5 t/ha DRY	13.5 t/ha DRY	14.5 t/ha DRY
	Input costs
	Interest (on input costs)
	Combine
	Drying and cartage costs
	Total costs
	Revenue
	Tonnes per hectare - DRY
	Indicative price per tonne - 2011 harvest
	Total gross revenue per hectare
	Gross margin per hectare

Gross margin per hectare (revenue minus costs)
	Maize for grain price ($/tonne)	10.5 t/ha DRY	11.5 t/ha DRY	12.5 t/ha DRY	13.5 t/ha DRY	14.5 t/ha DRY
	$
	$
	$
	$
	$

Assumptions: