Calculate the net price you actually receive after transport, levies, commissions and all other deductions. Know your real return per tonne, head or bale.
A grain grower sells wheat at $350/t delivered. Freight costs $40/t. GRDC levy and handling $6/t. Agent commission $4/t (1.1%).
The grower actually receives $300 per tonne — not $350. Understanding farm gate price is critical for comparing buyer offers.
Farm gate price is the net price the farmer receives after all deductions including freight, handling, levies, commissions and GST. It's the actual cash you get per unit.
Common deductions: freight/transport, port handling, weighbridge fees, grain levies (GRDC, biosecurity), selling commission (1-3%), quality discounts (stained grain, high moisture, screenings).
Sell in larger parcels to reduce per-tonne freight. Store grain and sell out of harvest when prices improve. Negotiate commission rates. Compare multiple buyers. Add value through grading or processing.
Delivered price is what the buyer pays at their site. Farm gate price is what you receive after subtracting delivery costs. A $350/t delivered price with $40/t freight = $310/t farm gate.