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Financial Findings

The financial data we’re collecting includes detailed information on milk solids production per hectare, farm working expenses, item expenses, pasture quantity consumed, and more. This helps us build a picture of the profitability of regenerative farming, in comparison to conventional practices.

  • Clareview Actuals + Forecast 30 November 2021 (6+6)
    Conventional Regenerative Combined
    Effective Area 148 148 296
    Stocking Rate 3.84 3.21 3.52
    Cow Numbers 568 475 1043
    Milk Solids 254,000 207,000 461,000
    Milk Solids Per Cow 447 436 442
    Milk Solids Per Ha 1,716 1,399 1,557
    Payout (kg/MS) $9.20 $9.20 $9.20
    Stock Sales (p/kgMS) $0.35 $0.35 $0.35
    Gross Income (p/KgMS) $9.55 $9.55 $9.55
    Total Revenue $2,425,700 $1,976,850 $4,402,550
    Conventional
    Budget
    (p/kgMS/Cow/Ha)    		 Regenerative
    Budget
    (p/kgMS/Cow/Ha)    		 Combined
    Budget
    (p/kgMS/Cow/Ha)    		 Conventional
    Budget
    ($$)    		 Regenerative
    Budget
    ($$)    		 Combined
    Budget
    ($$)

    Animal Expenses
    Animal Health (per/cow) $ .14 $ .17 $ .15 $ 34,375 $ 35,625 $ 70,000
    Breeding (per/cow) $ .16 $ 0.16 $ 0.16 $ 39,591 $ 33,108 $ 72,699
    Calf Rearing (per/cow) $ 0.04 $ 0.04 $ 0.04 9,286 7,765 17,051
    Other Animal – Allflex
    Total Animal Expenses $ 0.33 $ 0.37 $ 0.35 $ 83,251 $ 76,499 $ 159,750

    Feed Expenses
    Feed On Farm / Supplements (per/cow) $ 0.89 $ 0.45 $ 0.69 $ 225,000 $ 92,200 $ 317,200
    Feed On Farm / Oats, Swedes, Maize (per/ha) $ 0.03 0 $ 0.02 $ 7,000 0 $ 7,000
    Feed Off Farm / Grazing (per/cow) $ 0.96 $ 0.98 $ 0.97 242,875 203,109 445,984
    Total Feed Expenses $ 1.87 $ 1.42 $ 1.67 $ 474,875 $ 295,309 $ 770,184

    Pasture Expenses
    Irrigation (Excluding Electricty) (50:50 split) ¢ 0.07 ¢ 0.08 ¢ 0.07 $ 16,750 $ 16,750 $ 33,500
    Fertiliser (per/ha) $ 0.62 $ 0.38 $ 0.52 $ 157,500 $ 80,000 $ 237,500
    Pasture Renewal (Regrassing) (per/ha) $ 0.06 $ 0.05 $ 0.05 $ 14,550 $ 9,860 $ 24,410
    Regen/Diverse Crop (per/ha)
    Weed & Pest (50:50 split) ¢ .006 ¢ .007 ¢ .006 $ 1,534 $ 1,534 $ 3,068
    Total Pasture Expenses $ 0.75 $ 0.52 $ 0.63 $ 190,334 $ 108,144 $ 298,478

    Operating Expenses
    Electricty (Include Irrigation Electricty) (per/kgMS) ¢ 0.23 ¢ 0.23 ¢ 0.23 $ 58,129 $ 47,372 $ 105,500
    Freight Exps (per/cow) $ 0.03 $ 0.03 $ 0.03 $ 7,145 $ 5,975 $ 13,120
    Repairs & Maintenance (per/kgMS) ¢ 0.19 ¢ 0.19 ¢ 0.19 $ 48,256 $ 39,326 $ 87,582
    Shed Exps (per/kgMS) ¢ 0.07 ¢ 0.07 ¢ 0.07 $ 19,033 $ 15,512 $ 34,545
    Staff Costs (per/kgMS) ¢ 0.92 ¢ 0.95 ¢ 0.94 $ 235,284 $ 196,760 $ 432,044
    Vehicle Exps (per/kgMS) ¢ 0.07 ¢ 0.07 ¢ 0.07 $ 17,753 $ 14,847 $ 32,600
    Total Operating Expenses $ 1.5 $ 1.5 $ 1.53 $ 385,599 $ 319,792 $ 705,391

    Other Operating Expenses
    Health and Safety (H&S) (50:50 split) ¢ 0.002 ¢ 0.002 ¢ 0.002 $ 500 $ 500 $ 1000
    Other Operating Expenses (50:50 split) ¢ 0.002 ¢ 0.002 ¢ 0.008 $ 506 $ 506 $ 3737
    Total Operating Expenses ¢ 0.005 ¢ 0.005 ¢ 0.010 $ 1,006 $ 1,006 $ 4,737

    Overhead Expenses
    Administration (Farm) (50:50 split) ¢ 0.06 ¢ 0.07 ¢ 0.06 $ 14,779 $ 14,779 $ 29,558
    Administration (Overheads) (50:50 split) ¢ 0.26 ¢ 0.32 ¢ 0.29 $ 65,912 $ 65,912 $ 131,824
    Rates (50:50 split) ¢ 0.05 ¢ 0.06 ¢ 0.05 $ 12,080 $ 12,080 $ 24,160
    Insurance (50:50 split) ¢ 0.06 ¢ 0.07 ¢ 0.06 $ 14,275 $ 14,275 $ 28,550
    ACC Levies (50:50 split) ¢ 0.02 ¢ 0.03 ¢ 0.03 $ 6,301 $ 6,301 $ 12,601
    Total Overhead Expenses ¢ 0.45 ¢ 0.55 ¢ 0.49 $ 113,347 $ 113,347 $ 226,693

    Total Farm Working Expenses (F.W.E)

    		 $ 4.92 $ 4.42 $ 4.70 $ 1,248,412 $ 914,096 $ 2,165,233

    Dairy Operating (Surplus/Deficit) (EBITDA)

    		 $ 4.63 $ 5.13 $ 4.85 $ 1,177,288 $ 1,062,754 $ 2,237,317

    EBIT p/HA

    		 $ 7,995 $ 7,181 $ 7,559