VOL. 86 DECEMBER, 1960 NO. 12 Registered at the General Post Office, Brisbane, for transmission by Post as a Newspaper Page Does It Pay To Use A Plane On A Grazing Property? H. I. Toft 721 Double Forage Yield With Irrigated Lucerne 726 Crossbred Steers Outweigh Purebreds R. A. Barnett .. 731 The Case of The Coughing Pig E. R. Johnson 734 Feeding Tray For Pet Lambs C. R . Smith 739 Using Herd Recording Results C. H. Clark 741 Crops and Pastures For Beef Cattle in The Burnett N. F. Fox 745 T.B.-Free Cattle Herds 758 Elephant Grass Fills A Fodder Gap T. K. Kelly and W. J. Draper 759 Mango Growing In Queensland S. E. Stephens 761 J Use These Formulations To Mix Your Own Poultry Rations B. W. Moffatt . 767 Irrigated Pastures For Tableland Dairy Farms T. K. Kelly and W. J. Draper 772 Pasture and Crop 775 Wheat Grain Composition And Soil Fertility W. T. Kelso 777 Dairy Yields Up In Dry Year W.R. Sigley 779 Brncellosis-Tested Swine Herds 780 Queensland Fauna Sanctuaries C. Roff 781 Index 783 COVER PICTURE: Department of Agriculture and Stock Botanist, Miss Danny Ellis, Inspects Massed Poinsettias at the Brisbane Botanic Gardens. The poinsettia (Euphorbia pukherrima), which is a native of tropical Mexico and Central America, is Brisbane's Horal emblem. EDITOR: E. T. Hackings Plate l Grazier's Transport Photographed at a Far Western Field Day. Does It Pay To Use A Plane On A Grazing Property? By H. 1. TOFT, Agricultural Economist. The privately owned aeroplane has become much more prominent in recent years in the wool industry. Many graziers now have their own planes. That an aircraft is a convenient means of transport between towns is obvious. In grazing areas this is more so, due to increased distances. The aircraft can also be a very useful piece of equipment in work on the property itself. In this article it is proposed to indicate the level of costs which might be expected in owning and operating a small aircraf l, and also to discuss some of the possible benefits. Through the co-operation of a grazier running Table 1, with a similar estimate for the Cessna a typical property, details of which are given, 172 in Table 2. These estimates were obtained an example has been obtained of the use on a from information supplied by commercial users • property of a private aircraft. The economic of these planes. analysis carried out suggests that the cost of hav­ ing an aeroplane would at least be largely offset Costs have also been separated into annual or by the economic advantage of using the plane lixed costs, and variable costs. The annual costs on the property. This is in addition to non­ shown consist of depreciation, insurance, and an economic benefits, such as convenien:e, which annual appropriation towards Certificate of Air­ are to be derived. worthiness costs. This certificate must be renewed every three years and involves maintenance work Owning and Flying Costs on the plane prior to issue. Under the heading, The type of aircraft used on the property is a variable costs, are shown costs which vary dir­ · DH82- Tiger Moth. An estimate of the costs of ectly with the number of hours flown. These owning and operating a Tiger Moth is shown in consist of costs of fuel and oil, 100 hour checks, 1 December, 19601 Q11ee11sla11d .4gric1tltural Journal 721 25 and engine and propeller overhauls, which are TABLE I carried out about every 1,300 hours for the DH82 Tl:IE CosTS OF OWNING AND OPERATING A TIGER MOTH and every 1,000 hours for the Cessna 172. Annual Fixed Costs-Tiger Moth In estimating the depreciation on an aeroplane, Depreciation .. £40 a year account has been· taken of the effect of the Interest on Capital Invested- 5% . £40 a year repeated overhauls, in which parts are renewed, *Insurance of Aircraft (Ground ruid on the aircraft's market value. For this reason taxying insurance at 32s. 6d. an estimate of depreciation was made by com­ per cent., based on a value of paring the market value of the plane bought to-day £800) £l3 a year in new or completely overhauled condition and its market value in 6 years' time in completely over­ Third Party Insurance (£10,000 hauled condition. cover) £8 a year Passenger Liability (£5,000 cover) . £10 a year When a Tiger Moth is bought to-day for £800 Allowance for Certificate of Air- it is assumed that its value in 6 years time will be worthiness. (This cost could between £500 and £600. A Cessna 172 bought vary considerably. The cost of to-day for £5,500 is assumed to be potentially £92 is an estimated maximum.) £92 a year worth £4,000 in 6 years' time. £203 a year The costs shown apply to that time span. This method of calculating depreciation aims at finding Variable Cosrs-Tiger Moth the actual annual loss in capital value as distinct Fuel and oil (5s. a gallon for fuel ; from depreciation as allowed for taxation pur­ 2s. a pint for oil) £1 ·90 a flying hour poses. Cost of 100 hour checks - £0·40 a flying hour The total costs each year of operating a Tiger Cost of overhaul to engme and Moth will vary according to the number of hours propeller (1,300 hour interval) £0·2Saflyinghour flown. Where the aircraft is flown 200 hours £2· 55 a flying hour in the year the estimate is £700, for an aircraft flown 300 hours in the year the estimate is £1,000, • Comprehensive insurance including all flying_ and. ground handling risks and 1hird piuty insurance to £10,000 1s available ar and for a plane flown 400 hours, £1,200. 6 per cent. Plate 2 Stock Can be Mustered on This Property Largely by Air. Note the landing ground on the top right. 722 Q11eensla11d Agricultural Journal [1 December, 1960 Plate 3 .. Supplies and Mail Can Be Dropped to this Flood-Bound Station by Air. TABLE 2 Using Aircraft to Muster Sheep T& COSTS OF Owi-.1N0 A1'0 0PERATINC A CESSNA l 72 Information was obtained of the use of an Annual Fixed Costs-Cessna 172 aircraft-in this case a Tiger Moth-to muster Depreciation . £250 a year sheep on the property mentioned earlier. This Inlerest on Capital-5% £275 a year is a property of 41.000 acres, with a stock of Insurance of Aircraft (Ground and 8,000 sheep including 4,000 breeding ewes. The taxying insurance at 32s. 6d. per cent., based on the initial lamb marking varies from 40 to 75 per cent. in value of £5,500.) £89 a year the year. As such, it is a fairly typical property. Third Party Insurance (£10,000 The plane is used on this property to locate the cover) . £8 a year Passenger Liability (£5,000 cover) . £30 a year sheep, force them into mobs and start the mobs AUowance for Certificate of Air- in the required direction. The number of mobs worthiness. ('Tbis cost is Stable is counted. Then after the plane returns to the for I.he Cessna 172.) . £21 a year landing strip, the sheep are rounded up in a jeep. £675 a year This is followed by another trip in the plane to ensure the paddocks are clear. Variable Costs-Cessna J 72 The mustering of a paddock by this method F uel and oil (5s. a gallon for fuel ; takes one man about 1 hour in the plane for 2s. por pinL for oil) £1 ·50 a flying hour both trips, and about 4 hours in a jeep. Cost of 100 hour checks . £0·22 a flying hour Cost of overhaul to engine and pro- Previously on this property the mustering was ~ peller (1,000 hour interval) . £0·3I a flying hour always done on horseback. This would take three £2·03 a flying hour men about 6 hours in each paddock to do the first mustering, and then four men 6 hours finding The estimated total annual cost of a Cessna l 72 the strays. operating 200 hours a year is £1,100, that of a Comparing the two methods it can be seen Cessna operating 300 hours, £1,300, and 400 immediately that, as expected, there is a consider­ hours, £1,500. able time-saving in the use of the p1ane. Not I D~c-.mb~r. 19601 Q11u11.,/1111d Agric11/tttrnl Joumnl 723 only bas the plane an obvious edge on the horse ( b) Saving in Labour time through Mustering by in speed but it offers a vantage point from which Aeroplane the sheep are more easily seen. An estimate has been made of the labour time The economics of the use of the plane instead which is needed on this prope1i:y to muster by of the horse depends on the value of the time aeroplane. On the average a mustering of a saved compared with additional costs incurred in paddo::k takes: achi.eving the time-saving. Estimates of these extra 1 man I hour in the plan~ . = l man-hour costs and the amount of time saved follow: 1 man 4 hours in the jeep . = 4 man-hours Total number of man-hours for a (a) Extra costs of Mustering by Aeroplane single mustering of a paddock = 5 Total number of man-hours for a It is assumed here that the grazier already owns year's mustering = 160 the aircraft and is deciding whether it is economical to use it to muster sheep.