April 1983 Indirect costs were not included

Costs in the Wheat ’82 competition did not include the indirect costs that would normally be incurred on a mixed cropping farm, according to Chairman of the Wheat ’82 organising committee, Mr Don Crabb.

The profits achieved in the competition are not the kind of returns farmers can expect to get.

“Factors such as debt servicing, rates, insurance and depreciation were not taken into account in assessing Wheat ’82 costs,” he said.

Mr Crabb said the intention of the competition was to compare the various techniques for growing wheat in New Zealand.

Mr Bede McCloy, a farm adviser in agronomy with the Ministry of Agriculture and Fisheries in Christchurch, said any wheat yield better than the Canterbury average (4.2 tonnes/ha in 1981) would be rewarded by a good net profit.

“Costs for growing a below-average crop were the same as for an above-average crop — the difference was in the timing of the inputs.

“The average yield of Wheat ’82 of 5.2 tonnes/ha was above the district average and the profits reflected this,” Mr McCloy said.

Arable Farming