Combinables Price Tracker

pellow

Member
Location
Newquay
grain marketing mistake #101

1) selling for cash flow

Grain is currency, if you need cash leverage the grain you have via bank or merchant warrant and sell (price) when you think time is right

I can tell you from the history of our farm business, the best decisions were made when there was pressure to make them, from cash flow/interest/capital payments/purchase of assets, its partly a symptom of easy money/low interest rates/long period of settled economy that you can be so relaxed about holding 100% of your harvest
 
grain marketing mistake #101

1) selling for cash flow

Grain is currency, if you need cash leverage the grain you have via bank or merchant warrant and sell (price) when you think time is right

Is grain really currency? I bet 1 tonne of wheat bought you a lot more things in 1970 than it does today!
 
so its a currency that has devalued since 1970 - we helped that process by printing (growing) more of it

its still a currency, same as gold

At least with real currency there is no cost of carry and you can actually lend it out to earn interest. You cannot do that with grain. Let's us rapeseed as an example.

Ex farm £320 per tonne plus 10% bonuses = approximately £350 per tonne
Interest at 3% means it costs £10.50 per tonne per year, or just shy of £1 per month in interest before storage costs and quality deteriotion risk.
 

willy

Member
Mixed Farmer
Location
Rutland
At least with real currency there is no cost of carry and you can actually lend it out to earn interest. You cannot do that with grain. Let's us rapeseed as an example.

Ex farm £320 per tonne plus 10% bonuses = approximately £350 per tonne
Interest at 3% means it costs £10.50 per tonne per year, or just shy of £1 per month in interest before storage costs and quality deteriotion risk.

It’s actually a far more stable currency in many ways. Look at Zimbabwe for their currency valuation, would you rather hold zim dollars or wheat?
 

Renaultman

Member
Arable Farmer
Location
Darlington
If I could get £170.00 for some more harvest 19 wheat I think I would sell a bit more, am at a tonne now, which is normally my max till well into the harvest year, but I am not that confident it will be a lot more when we get there. Everything but agrochems is fixed so as long as yields aren't a total disaster there should be profit at that.
 

bankrupt

Member
Location
EX17/20
gmd-2018-12-20-fig-1.jpg



More good news from the HGCA, this week.

2018 wheat yields up 1% here in the South West.

Should limit local price rises, after Christmas.

As a matter of record (see above) my yields here in the South West were down 29%, exactly the same as they were down in Northern Ireland

And for exactly the same reason.
 
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MrNoo

Member
Arable Farmer
Location
Cirencester
I would say ours were well up but still have some to shift before I know final t/acre sold out, but would add ours are never barn busting regardless of the year due to pants soils.
 

bankrupt

Member
Location
EX17/20
I would say ours were well up

That's not good news for prices, MrNoo.

But, to be fair, the HGCA's probably about right, overall.

This is because the bigger acreages lie in the east of the South West region where welcome overnight rain tracked up a few times in June.

And, if I remember correctly, you reported having a bit.

But here, we had only 10% of what we had in 1976.

:D
 

MrNoo

Member
Arable Farmer
Location
Cirencester
Yes we had two nights of particularly heavy rain a couple of days apart, 29mm and I think 32mm, so very lucky. Only our WW was any good, SB and OSR were both nothing to shout about especially the OSR.
 

Jerry

Member
Mixed Farmer
Location
Devon
gmd-2018-12-20-fig-1.jpg



More good news from the HGCA, this week.

2018 wheat yields up 1% here in the South West.

Should limit local price rises, after Christmas.

As a matter of record (see above) my yields here in the South West were down 29%, exactly the same as they were down in Northern Ireland

And for exactly the same reason.

My bit of the SW was no where near 1% up, it was nearer 15% down for WOSR and 15 to 20% down wheat, id like to exclude the SB, that was 60% down.
 

Iben

Member
Arable Farmer
Location
Fife
Looks about right as an average for our area. Yields very variable this year, with areas that hold moisture (hollows, wet areas, near trees) could easily hit 13-15t/ha. Lighter land was often sub 4t/ha. Often the extremes in the same field.
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
gmd-2018-12-20-fig-1.jpg



More good news from the HGCA, this week.

2018 wheat yields up 1% here in the South West.

Should limit local price rises, after Christmas.

As a matter of record (see above) my yields here in the South West were down 29%, exactly the same as they were down in Northern Ireland

And for exactly the same reason.


I’m convinced 2018 production figures are way optimistic still even after recent correction last week
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 78 43.1%
  • Up to 25%

    Votes: 63 34.8%
  • 25-50%

    Votes: 30 16.6%
  • 50-75%

    Votes: 3 1.7%
  • 75-100%

    Votes: 3 1.7%
  • 100% I’ve had enough of farming!

    Votes: 4 2.2%

Red Tractor drops launch of green farming scheme amid anger from farmers

  • 1,286
  • 1
As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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