Part 5

Wheat is bought and sold on what is known as the f.a.q. (fair average quality) system. Samples of wheat are taken from the various districts by the different Chambers of Commerce, and each State fixes its own f.a.q. standard. These samples are mixed together, and by careful testing on a patent scale it is ascertained what an Imperial bushel of weight actually weighs. The idea is to ascertain as equitably as possible what a fair average sample of the season's wheat should weigh. The standard varies a little in different years; it may be 61, 62, 64, or as low as 58 lbs. to the bushel. Whatever it is fixed at for the season that is the basis upon which all sales are made. If the market price for wheat, for instance, is $1.20 per bushel, it is for wheat up to the f.a.q. standard. Say the latter has been fixed at 62 lbs., the wheat must show that weight. Agents have what is called a chrondrometer for the purpose of testing the wheat. If it is below the f.a.q. standard, a lower price is given. This system has been devised to suit the export trade. Samples of the standard wheat are sent to markets abroad, and all cargoes are sold on that basis. When they arrive at the market abroad they must test up to the f.a.q. standard. This system has been in force in Australia for nearly half a century.

It must be understood that this standard f.a.q. weight has nothing to do with the quantity for which the grower is paid. He is always paid on the Imperial bushel basis, 60 lbs. Whatever the standard may be, every 60 lbs. of wheat is a bushel. The f.a.q. weight is a standard for quality, not quantity.

There is always a market for Australian wheat, and the price is always equal to what wheat is bringing in the world's main markets. Australian wheat has a character of its own, and a character that is improving. British millers want it on account of the large amount of flour it produces, and the colour and bloom it gives to their product. The grain is usually bright and clear in texture and rich in gluten, having fine milling qualities. Of late years Australian wheats have been considerably improved in strength, and this factor is continuing, and they undoubtedly promise to more than equal any wheat produced, possessing not only colour and bloom, but also strength, and giving the miller what he wants to produce an ideal article.

COST OF PRODUCING WHEAT.

The cost of production of wheat is a most important matter to the grower. As already stated, the comparatively low yields in Australia are amply compensated for by the low cost of producing wheat.

In regard to the work on the farm, the following figures are approximately the prices for different classes of work when it is done by contract:--Ploughing new ground, $1.68 per acre; old or fallowed ground, $1.45 per acre; harrowing, 18 cents to 24 cents per acre; cultivating, $0.50 per acre; drilling, 36 cents per acre; harvesting with stripper-harvester, 72 cents per acre; cutting with binder, 84 cents per acre; stooking, 24 cents per acre; carting and stacking hay, $1.35 per acre.

Superphosphate is the main fertiliser used. Australian wheat soils are naturally strong in nitrogen and potash, but in many cases are deficient in available phosphoric acid. Superphosphate costs about $1.20 per cwt., and may be reckoned at 48 cents to 60 cents per acre. Seed wheat runs from 96 cents to $1.20 per bushel; sowing 45 lbs. to the acre represents 72 cents to 84 cents per acre.

It is reckoned that if the same work is done by weekly-paid labour the cost is reduced by fully 30 per cent. all round.

In common practice it is considered that it costs $4.80 to $6.00 per acre to put in and take off an acre of wheat. The following figures are reliable estimates of the actual cost of production by official experts, and also actual figures supplied by working farmers.

In the following estimate of the cost of producing wheat it is assumed that the land is fallowed, and the estimate is based on a yield of 20 bushels per acre:--

Ploughing once at $1.45 per acre $1.45

Harrowing three times at 18 cents per acre 0.54

Cultivating once at $0.60 per acre 0.60

Drilling at 36 cents per acre 0.36

Seed, 45 lbs., at 80 cents per bushel 0.72

Pickling seed 0.06

Superphosphate, 1/2 cwt. at $1.20 0.60

Harvesting with harvester at 72 cents per acre 0.72

Seven bags at $1.60 per dozen 0.84 ----- $4.89

If the land is not fallowed and the seed sown immediately after ploughing, the cost is correspondingly less. The above figures are the cost if the work is done on contract. If it is done by weekly hired labour the work comes out about 30 per cent. cheaper, as will be seen by the following figures:--

Ploughing: Wages, one man at $6.00 per week; man's rations, $2.40 per week; feed for four horses for week, $9.60; total, $18.00. One man with four horses in a three-furrow plough will do 22 acres in six days at a cost of less than $0.84 per acre. Drilling: Man's wages, $6.00; rations, $2.40; horsefeed, three horses, $7.20; total, $7.80. He will drill 90 acres in six days at that cost, or less than $0.18 per acre. Other operations cost similarly less, but in all cases wear and depreciation of plant and interest on capital invested in plant should be allowed for.

These figures, however, concern cases where labour is employed. The following figures show the outlay where a man is doing the work himself. He could plough, cultivate, and sow 250 acres, which would take him twenty-two weeks. The first year he has to purchase his seed wheat and feed for his horses:--

190 bushels seed wheat at $0.80 per bushel $153.60

10 tons chaff at $19.20 per ton 192.00 ------- $345.60

Approximately $1.38 per acre.

At harvest time he would first reap portion of his crop to secure a supply of horse feed for the following year, say, 10 acres:--

Reaping and haymaking, 2 men's wages for three days at $1.92, food $0.48 per day $14.40

Twine (for binding the sheaves) 6.00