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AGEC2001 Economics of Biological Production Systems
AREC2001 - Economics of Biological Production Systems
5 Found helpful • 7 Pages • Essays / Projects • Year: Pre-2021
Section 1. Cash Flow Budget and Gross Margins A farm is located in northern NSW. It has an area of 1750 hectares. Cropping is dryland – there is no irrigation – and the enterprises described below are no-till. Herbicide use is therefore higher than would be the case where conventional cultivation methods are used, and machinery hours will be fewer. All labour is provided by family members and can be ignored for the purposes of this exercise (please note that, in a real life estimation, opportunity cost should be used). For this farm you are to prepare a monthly Cash Flow Budget which includes receipts and expenditures for three cropping enterprises. You should then estimate annual cash flow, and use this to develop the Gross Margin for each of the three enterprises.
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