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: 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:—

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:—

This is reckoning the crop as averaging 15 bushels per acre, when the returns would be:—

To be thoroughly correct we should allow for:—

And in addition allow for the value of the farmer's own labour:—

We still have a satisfactory result, viz.:—

From this it can be seen that very handsome returns can be obtained where the farmer is working his land properly, and growing a good portion, if not all, of his crop on fallowed land. Then his average would be nearer 25 bushels than 15, and his net return nearly as much again. In the above example, after making full allowance for all legitimate charges, the cost of producing a 15-bushel crop from 250 acres comes out at about $7.44 per acre.