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Gross Margin Table Topped by Low Biomass Rape
UK - Low biomass oilseed rape has topped the gross margin table for next years harvest, with a projected Gross Margin of £962/hectare, compared with £907/ha for first wheat and £730/ha for second wheats, according to John Barrett, Farm Business Manager for the professional farming company Sentry Ltd."At Sentry our objective is to deliver added value and to create profits. We do this by managing our crops carefully and cost- effectively in order to produce high, consistent yields and positive gross margins. Looking at what we can realistically achieve next year, winter oilseed rape with its improved pricing, better yielding varieties and lower operating costs, margins are looking very positive for this crop," says John.
He explains that the calculation for gross margins is based on realistic yields which for first wheats is 9 tonnes/ha and for oilseed rape 3.75 t/ha. "In terms of operating costs from initial cultivations through to combining, rape has a significant advantage over wheat, with projected costs of £245/ha for rape and £325/ha for first wheats."
For harvest 2009 his projected figures for first wheats are 9 t/ha yield, giving a gross margin of £907/ha with operating costs of £325/ha.
The projected figures for second wheats are £8 t/ha yield, gross margin £730/ha with operating costs of £317/ha, reports Farming UK.
But the projected figures for oilseed rape are £3.75t/ha yield, gross margin £962/ha with operating costs of £245/ha.
According to John, Es Astrid yields well and allows some inputs to be minimised and savings to be made. "Being a conventional variety we can save our own seed and make some input savings there. Rape is also less costly to establish than wheat, with two passes with a cultivator drill being sufficient."
John Barrett has budgeted for 190 kg/ha of Nitrogen for the rape, as both Ammonium nitrate and sulphate, compared with 200 kg/ha for the first wheats. "With the escalating costs of fertiliser, this is a key area to look at in the future for all combinable crops," he says.
According to John, the spray bill for winter oilseed rape tends to be a little higher than that of wheat and he has projected a spray cost of £126/ha for wheat and £143/ha for oilseed rape. "With good establishment of rape being so critical to its overall success, a robust herbicide programme, which tends to be costly, is essential, so we just have to bite the bullet on this."
View the Farming UK story by clicking here.
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